Recovering Marketing Revenue from Pandemic Impact
Like many hit hard by the repercussions of operating business amid pandemic regulations, professional sports and its related brand partners are finding new ways to tap into potential revenue opportunities.
Adidas, for example, recently signed fashion designer, Jerry Lorenzo and his Fear of God brand to help elevate its basketball business globally. In a similar strategy as Puma hiring Jay-Z, Lorenzo will serve as creative and business lead in an attempt to tap into the sub-culture surrounding athletics, and basketball in particular.
Under Armour—in the same creative vein—recently launched a sub-brand with Steph Curry of the Golden State Warriors, similar to the Jordan Brand model instituted by Nike. In addition to on-court renditions, Curry’s shoes will also focus to have a presence in golf and on-the street to make it more of a lifestyle brand.
eSports continues to see brands reallocate marketing dollars to have a digital presence on the ever-increasing platform.
On another note, similar to the NBA’s sponsorship approach in allowing ads on jerseys, the NHL is now selling ad inventory to be placed on player’s helmets, debuting this season. The resulting advertisement is anticipated to be a multi-million dollar valuation for respective sponsors and shared revenue for the league. Revenue teams desperately need to provide financial relief stemming from the pandemic’s impact:
The average value of an NHL team dropped 2% to $653 million in 2020, the first decline since 2001
The league generated $4.4 billion in revenue last season, down 14% year-over-year
Operating income totaled $250 million, down 68% year-over-year
Nine teams saw double-digit operating losses, up from five during the 2018-19 season.
The Tampa Bay Lightning, defending Stanley Cup champions, posted an operating loss of $11 million.