LAST WEEK TODAY: SPONSORSHIP ACTIVATION
posted on November 11, 2019
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Check out the blog every Monday for a weekly roundup of the past week's most exciting and industry-altering news. These stories cover November 4 - 10, 2019.
1. PETROBRAS & MCLAREN SAY GOODBYE
Just two weeks before the Brazilian Grand Prix, Petrobras and McLaren terminated (with mutual agreement) what was originally a five-year partnership starting in 2018. It’s a shocking goodbye…
Petrobras is 64% Brazilian government owned, and the Brazilian president had already indicated he wanted the partnership to end earlier in the year so this was no big surprise, but the timing sure was odd. Only a couple weeks before race time and instead of preparing, they’re removing logos from cars and race track? What a waste!
On the flipside, it was made clear that the decision had nothing to do with results on the track. Word on the streets is that a Brazilian minister claimed the deal didn’t represent value for money, and that was that. Makes us wonder if perhaps they understand the value of sponsorships in general, or if there’s more to this? Then again, maybe a $218.1 million deal needs excessive justification that just couldn’t be found.
2. NBA SAYS HELLO TO NEW BETTING OPERATOR
DraftKings announced a multiyear partnership that makes them an Authorized Sports Betting Operator of the NBA league beginning with the current 2019/2020 season.
Ezra Kucharz, chief business officer at DraftKings said, “The correlation between sports betting and fan engagement is proven, and we look forward to the opportunities that being an Authorized Gaming Operator of the NBA will unlock for consumers.”
DraftKings is the sixth sports betting operator to team up with the NBA, following FanDuel, Sportradar, MGM Resorts International, William Hill and the Stars Group.
3. AMERICAN AIRLINES SAYS GOODBYE, KIND OF
Another goodbye in the books, with American Airlines choosing to not renew its current 20-year deal with the Miami Heat arena. Since 1999, American Airlines has been paying approximately $2 million annually to have its name proudly displayed on the Heat’s home arena, and now TD Bank appears to be the front-runner for a takeover.
We should also mention a porn site by the name of BangBros apparently also submitted a bid to own the naming rights… can you imagine going to the “The Bang Bros Center.” God help us.
Maybe this has something to do with the fact that a new valuation was just done on the arena’s naming rights and as a result, they’re estimating the next deal should be worth ‘at least triple’ what AA currently pays (psssst.... this is why we encourage you to get a new valuation done... so you're not leaving money on the table.. contact us for help).
Despite the end of this deal, it’s actually not goodbye for American Airlines who will still extend its relationship with the Heat to become the franchise’s official airline and international marketing partner.
4. RAIDERS SAY HELLO TO OFFICIAL VEHICLE SPONSOR
Allegiant Stadium and the Raiders say hello to the Desert Ford Dealers welcoming them as the Official Vehicle of Raider Nation.
Ford will have a dynamic presence throughout the stadium year-round which includes pregame tailgate activations and naming rights on the north gate entry.
“The Raiders are proud to welcome the Las Vegas Ford dealers as the newest Founding Partner of Allegiant Stadium,” said Raiders President Marc Badain. “We are excited to add another world-wide brand to the Raider family and for the annual activation and tailgating experiences this partnership will provide to our fans.”
5. GOODBYE ENERGY DRINK BANS
And finally, we did a happy dance when we heard the National Football League (NFL) is dropping its ban on energy drink advertising, woot woot! Even though the sponsorship category will remain closed, energy drink brands will be permitted to advertise on the US football league’s owned-and-operated media and during broadcast windows on partner networks, as well as team-owned media. Hey, it’s a start.
And we should also mention it’s not a done deal yet – this is only a one-year trial for now, and will become permanent if its proves to be successful. Considering the league dropped a ban on liquor advertising and casino sponsorships in 2018, this might just have a happy ending.
And in case you’re wondering, here’s the fine print, as reported by SportsPro, “the NFL must approve any energy drinks advertising on its various properties in advance and campaigns cannot imply improved athletic performance or promote mixing with alcohol. Only energy drinks classified as food and beverage products – not dietary or nutritional supplements – will be permitted product and they cannot contain any NFL-banned substances, says the report.”
Did we miss any? Tweet @be_tandem to let us know - we hate being behind the times just as much as you do.
Look out next Monday for the usual round-up on sponsorship news.