Networks are still counting on the return of live sports – despite a number of unknowns and issues coming out of the U.S. as pandemic lockdowns lift. Currently, new infections are surging in Florida, where numerous teams and leagues had planned to host their training and games, while a number of athletes have tested positive for the virus.
Nevertheless, media companies are still banking on the return of sports – Rogers Sports & Media said it’s “spending the vast majority of [its] time planning as though games will happen” – albeit with one key difference: there will be no fans in the stands.
The shutdown of live sports not only gave way to major disappointment for fans, but also had significant ramifications for brands that have lost sponsorship value based on the length of the ongoing situation. The challenge now is how the brands are going to recoup this lost value once play resumes. The lack of in-venue fans is just one of the obstacles.
Mike Smith, director of the sponsorship practice at Diamond Marketing Group, says that before brands enter into negotiations with their partners or properties, they must realize that each sports property has fundamentally changed for the foreseeable future and there might not be enough assets to meet demand.
Smith tells MiC, “A lot of venues have assets with little-to-no value without fans in the seats. All of these properties or events are going to have to shift to three marketing channels – digital, social, broadcast plus virtual money-can’t-buy experiences. The issue is that only a finite amount of assets are available in these categories because many of these channels already have pre-defined elements that are already presold.”
Initiatives such as behind-the-scenes content and other opportunities that engage fans are imperative for brands right now, and streaming services are going to be key in the post-COVID viewing experience at home. Medium- and small-size investment brands need to start discussions with properties to determine which assets may still be left on the table. Brands might expect to use new platforms that incorporate technology, digital or social in order to effectively reach their core consumer; and for broadcast to include new geo targeting and new assets with seats covered in tarps.
Smith doesn’t expect brands to get inspiration from how overseas countries are handling the return to sports. He’s been disappointed in what he’s seen globally from places such as South Korea. “I had thought they would have led the charge in sponsor innovation but the only thing they’ve done so far is they’ve named the baseball teams that were playing after the corporate partners rather than their home cities. It would be like having ‘Budweiser versus Toshiba’ when the Toronto Maple Leafs play the New York Rangers… It’s a huge missed opportunity for all of these overseas leagues.”
He points to a more positive example in North America, where Major League Soccer is opening up its inventory to help brands reconnect with the sport and its fans by offering sponsors assets for both home and away games rather than home games only.
He adds, “Trying new ways to integrate your brand now will transcend your business well past the recovery stage. COVID may have taken a bite out of the sponsorship industry – but it’s the brands that are agile, innovative and willing to take risks that ultimately will break through the clutter and win the hearts and minds of Canadians from coast to coast.”
