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Exclusive: Bowl Games Prep National Sponsorship Platform IEG SPONSORSHIP REPORT August 22, 2011 800/834-4850 | www.IEGSR.com STRATEGY Exclusive: Bowl Games Prep National Sponsorship Platform Bowl games put aside differences to secure incremental sponsorship revenue; category exclusivity, competitive issues could hinder program rollout. In what will likely have a major impact on the way sponsorships are bought and sold in college football, the Football Bowl Assn. is developing a national sponsorship platform around post-season games. The FBA—which represents the country’s 35 bowl games—plans to have the program up and running for the 2012 season. The association is developing the platform by aggregating the games into a one-stop source for national bowl game sponsorships. “College football is the second-most popular sport in the country behind pro football, and it does not have a national platform. We want to have a conversation about national partnerships that can add value to college football and our partners,” said Steve Hogan, CEO of Florida Citrus Sports, a nonprofit that owns and operates the Capital One Bowl and Champs Sports Bowl. Hogan, who serves as FBA vice chairman, is spearheading the sponsorship initiative on behalf of the association. The program is designed to help bowl games access national marketing budgets. While most games work with national brands, the majority of deals are with local or regional offices, not corporate headquarters. “Outside of title sponsors, most games don’t have many, if any, conversations with national sponsors,” Hogan said. “That’s a real frustration.” The initiative is notable based on the level of cooperation between the games, most of which have historically viewed each other as adversaries in terms of ticket sales, team recruitment and status in the bowl game hierarchy. “For years the industry has operated in silos. We come together once a year to talk about best practices, but everyone is protective of their turf. After many years of beating this idea into the ground we said ‘Why not?’ If we can aggregate inventory, we can lift all boats.” In addition to rights to game logos, hospitality and other traditional sponsorship assets, Hogan envisions the program including social media and inclusion in events that occur in conjunction with each game. “There is a lot of inventory before the kickoff that can be monetized.” © 2011 IEG, LLC. All rights reserved. 1 IEG SPONSORSHIP REPORT The FBA last year created a committee to explore the viability of a national sponsorship platform. The committee continues SIDEBAR to work with member games as well as athletic conferences, The Industry’s Take On A National Bowl Game Platform ESPN and other stakeholders to determine how the program While they acknowledge the inherent challenges in will be structured and how everyone can benefit. developing a national bowl game platform, most sponsorship veterans contacted by IEG SR applaud the Football Bowl “The Bowl Championship Series is a big part of the equation. Assn.’s new program. Everyone needs to be comfortable with what we’re doing,” “I’m a big believer in aggregation. Instead of doing ten- Hogan said. plus deals, a sponsor can achieve scale through one-stop shopping,” said Kevin Adler, president of Engage Marketing, The FBA plans to hire a third-party sponsorship sales agency an agency that represents both brand-side marketers and to help refine and sell the program, said Hogan. The FBA has rightsholders. already met with several agencies to gain feedback on the In addition to providing one-stop shopping, the program could initiative, he said. potentially help reduce clutter by drawing a core group of companies that are dedicated to supporting and activating The association is working with each game to secure the right college football, sources said. to sell cosponsorship packages. The FBA plans to secure Rights to the collective bowl game logos also could add value those rights by buying out contracts or waiting for existing to sponsorship packages. deals to lapse. “Pageantry and history is a consistent story across all bowl “We want to clear and aggregate the space under title sponsor,” games. That is a platform they may be able to exploit,” said Hogan, noting that the FBA has conducted extensive said Dan Jones, senior vice president of sponsorship and event marketing with Intersport, a sponsorship agency that research to identify existing sponsors and open categories. manages Taco Bell Corp.’s BCS program. “There is less category conflict than you would think.” Sources Engage Marketing, Tel: 312/981-3800 While the program has momentum, it still must gain approval Intersport, Tel: 312/661-0616 from the FBA executive committee to move forward. The committee is expected to sign off on the initiative within the next few months, Hogan said. “The train has moved down the track, but by no means are we pulling into the station. We have a lot or riders to pick and have conversations with, but hopefully we’ll be able to go to market in 2012.” Each game will be able to opt in or out of the program, he added. Source Florida Citrus Sports, Tel: 407/423-2476 © 2011 IEG, LLC. All rights reserved. 2 IEG SPONSORSHIP REPORT August 22, 2011 800/834-4850 | www.IEGSR.com LESA UKMAN PERSPECTIVE Sponsorship Watch: Luxury Timepieces The luxury watch category represents a prime sponsorship prospect for golf, motorsports, arts and other types of properties that draw an upscale demographic. Just as fashion brands are signing scores of new sponsorships aimed at normalizing fashion among males, marketers of watches—the only “jewelry” widely embraced by men—are doubling and tripling their sponsorship budgets, hoping to increase acceptance of luxury and fashion watches. Rolex is the biggest spender on sponsorship among luxury watch makers, but LVMH’s Hublot has my vote as the category’s most innovative sponsor. With the signing of UEFA’s Euro 2008, Hublot became the first luxury brand to sponsor soccer. But, rather than just riding the coattails of “the beautiful game”, Jean-Claude Biver, CEO of the Geneva-based company, wanted to use the high profile event as a platform to promote the brand’s own values. To that end, Biver donated all of the brand’s stadium signage to Unite Against Racism. The bold gesture was embraced by journalists, social media influencers, Hublot customers and prospects. Within 12 months, football sponsors, teams and federations each launched campaigns of their own to highlight their commitment to social responsibility. Since then, Biver has gone on to architect more than a dozen new deals for Hublot, growing awareness, affinity and sales of the brand worldwide. For example, as part of Hublot’s recent three-year sponsorship of the NBA Miami Heat, the brand has committed to raising at least $750,000 for the team’s charitable fund. And, while many luxury watch brands focus on sports like polo and yacht racing, Biver is more interested in reaching the next generation of customers, which he says are watching football and basketball. Biver’s high profile deals and concomitant record-breaking sales have not gone unnoticed by competitors. In 2011, almost every luxury watch maker has increased sponsorship expenditures and broadened their portfolios. For example, new deals in 2011 for Audemars Piguet—the brand favored by cognoscenti–include the expected: endurance racing at Belguim’s famed racetrack, Spa, as well as the less traditional, the LeBron James Family Foundation and the Four Seasons Hotels and Resorts. Interestingly, the deal with the Heat’s popular LeBron James coincides with Hublot’s new partnership with the team. Meanwhile, Swatch-owned Longines more than doubled its portfolio of show jumping, tennis, skiing and gymnastics events in 2011. Activation includes support of youth events and causes. © 2011 IEG, LLC. All rights reserved. 3 IEG SPONSORSHIP REPORT Category Hot Buttons Objectives for companies in the luxury watch category typically include the right to produce co-branded watches; access to talent to serve as brand ambassadors; opportunities to involve key retailers; and the opportunity to set up an on-site store. Showcasing precision and heritage also are important to most brands in the category. Key markets include China, Russia, Abu Dhabi, India, Turkey and the U.S.A. Sponsorships used as much to showcase product attributes—chronographs, navigation, timing, etc.—as image and awareness-building include yacht racing, aviation and motorsports. Sponsorships aimed at the affluent male target include polo, skiing, tennis and golf. In the last five years, brands in the category have broadened their portfolios to include partnerships with causes, performing and visual arts, film festivals, European football, horse racing, endurance sports and basketball. The global market for watches is forecast to reach $31.5 billion by the year 2015, according to a report by Global Industry Analysts, Inc. Below, sponsorship activity on behalf of brands in the luxury watch category. Audemars Piguet The brand favored by men who can afford any brand has an eclectic portfolio that includes causes, motorsports, sailing, horse racing and the Tony Awards. Still owned by its founding family, Audemars Piguet creates special-edition products around its sponsorships. For example, the company made a series of limited-edition watches around its sponsorship of Team Alinghi, the winner of the America’s Cup in 2003 and 2007. The company also created the Jules Audemars Clinton Foundation Equation of Time watch around its partnership with the nonprofit. The company prefers sports that showcase perseverance such as endurance racing and the America’s Cup. It also uses sponsorship to highlight its commitment to the fight against AIDS and sustainability. For example, around its sponsorship of the 2011 Tony Awards, the brand hosted a charity clock auction to benefit Broadway Cares/Equity Fights AIDS.
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