My friend, have you been paying attention to the NFL sponsors lately? It seems like they’ve been having a difficult time. Have you ever stopped to think how much money the sponsors are paying to be involved with the National Football League? It’s a lot! I’ll bet for some of those sponsors, the cost of doing business with the NFL outweighs the potential benefit.
Muller and O’Reilly, two NFL sport-marketing executive consultants, examined a decade of data from the 2005 to the 2015 NFL seasons and found that spending for broadcast and cable television, radio, Internet, and outdoor promotions soared year after year. It’s no wonder sponsors are starting to question whether the money they’re spending to be involved with the NFL is worth it.
It’s not just the cost of sponsorships that’s the problem: sponsors are also worried about the public’s opinion of the NFL. What happened back in 2015 with Deflategate really didn’t help matters, with the NFL suspending Tom Brady and having a lot of negative publicity swirling around the sport. That’s not something sponsors want to be associated with.
It looks like the league will have to improve its image if it wants to keep its sponsors, or worse, attract more. Otherwise, they’re risking serious financial losses. Imagine if Pepsi decided not to sponsor the NFL; that would mean the loss of millions of dollars in annual revenue for the league!
It’s not just about the revenue either. It’s about the value that sponsors bring to the NFL. Sponsors provide the NFL with more than just cash; they bring recognition, credibility, and influence. If sponsors start dropping out, the NFL would lose more than just dollars; it would lose the type of relationships that create value.
Many sponsors aren’t just ending their NFL partnerships either; some are actively opposing the league. Papa John’s, the official pizza company of the NFL, ended their deal in February 2018 after complaining of declining sales. Papa John’s doesn’t want to be associated with the NFL anymore, claiming it has damaged their brand.
There’s also the issue of declining viewership. Will that have an impact on the sponsorships? With rising ticket prices, skyrocketing expenses, and a steady loss of viewers, the NFL risks alienating even more fans and sponsors.
That doesn’t bode well for the long-term finances of the NFL. So, it looks like it’s time for the league to show its sponsors that it can still be trusted. Otherwise, money won’t be the only thing lost.
To begin, the NFL needs to nurture its current sponsors. Agreement renewal dates are coming up soon and the sponsors will need to see what the league can do to improve it’s image if they’re going to renew. It would definitely help if the NFL starts to show sponsors that it’s worth their investment.
The league also needs to look for new sponsors. The current climate may be unfavorable, but there are still potential sponsors out there, if the NFL can make the game attractive enough. Corporate sponsors look for visibility, so the NFL must deliver this in its broadcasts, social media presence, and public relations efforts.
It doesn’t stop there. Engaging with fans is a proven way to bring in more sponsors, so the NFL needs to not only show sponsors it’s worth their investment but also show the fans how it’s worth their support. It could be as simple as creating games and activities to keep them interested.
But the main focus needs to be on repairing the relationship between the league and its current sponsors. That means providing transparency and having an open dialogue. The NFL needs to be able to show sponsors that their investment is going towards something that’s benefitting the entire community, not just the NFL.
The league also needs to adapt. It can’t keep relying on the same strategies; it needs to look for new ones. Experiential marketing is becoming increasingly popular and the NFL could use that approach to draw in new sponsors. In addition, it could explore possibilities with digital and social media marketing.
The NFL can’t be doing the same things over and over and expecting different results. It needs to take risks and experimentation, as well as be more open to innovation and collaboration. If it can do these things, then there’s a chance that sponsors won’t be losing money.
The NFL can give sponsors a platform to show off their services, products, and create connections with fans. It’s up to the league to make sure there is value in that relationship and that sponsors see a return on their investment.
The NFL also needs to look at the bigger picture. There is more to consider than just how much money sponsors are investing in the league. There are other factors like the fan experience, the quality of the football, the media coverage, and the promotion of the sport.
The NFL needs to look at all these things and come up with a strategy that works. It needs to focus on producing an engaging product, developing meaningful relationships with sponsors, and creating a fan experience that keeps people coming back for more.
The NFL has some tough decisions to make but I’m confident it can do it. It just needs to put it’s best foot forward and show sponsors that it’s worth investing in. If it can do this, the league can avoid losing more money.