A column last year that received a tremendous amount of feedback was a recap from an SBJ National Sports Forum breakout session in which two sports executives outlined emerging sponsorship categories and strategies to sell them. The constant pursuit of new revenue leads all organizations to find fresh areas to monetize, so Brett Baur, Excel Sports Management’s senior director of corporate partnerships, and Travis Misner, Playfly Sports’ director of team partnerships and strategy, ran back their session at this year’s Forum in St. Louis and outlined their emerging sponsorship categories before a standing-room-only audience. They offered compelling definitions and business needs around a number of categories sellers should be exploring. Here’s what I can share:
First, they stressed that their methodology was rooted in four, nonscientific elements: data SponsorUnited; surveys; media analysis; and their own “gut” feeling. For the survey section, they sent a questionnaire to 60 teams and got a 50% return rate. The results showed that:
• 37% saw a 10% increase in new business goals this year, which is an aggressive number and shows the increasing pressure on teams to find new revenue.
• 45% don’t have a dedicated strategy person on their team, which they found to be a surprisingly low number, considering how that role has taken on more and more importance.
• 68% do not spend enough time prospecting.
• 61% agree or strongly agree with “I have a hard time finding young, qualified sales talent when hiring.” This is a consistent theme I have heard across sports, and Baur and Misner wondered to me if getting into sales is not as interesting to young people as it was 10 years ago.
They also graded their first study, and felt they successfully identified seven categories last year, missing on two — crypto/blockchain and multichannel audience targeting, such as Campell’s big deal across the Harris Blitzer Sports & Entertainment teams. They gave themselves a “C” on the employee recruiting category.
The emerging categories they shared for this year:
• Financial wellness: As monetary pressures grow on consumers, more of these services will seek brand amplification, such as buy now, pay later; budgeting apps; currency exchanges; P2P (peer-to-peer) lending; credit monitoring and insurtech. Examples are Sokin’s deal with Manchester United and PayPal’s with Liverpool.
• Travel and leisure: They cited a healthy forecast around travel, with international travelers coming for the World Cup and other events. Targets include: visitors bureaus; car rental agencies; cruise lines; and hotels and resorts. Examples given were City Cruises’ experiential platforms with the Chicago White Sox, Boston Red Sox and Washington Nationals, as well as Visit Anaheim being the Anaheim Ducks’ away jersey sponsor.
• Trading platforms: The two noted the new players causing disruption, such as prediction markets, with more activity on these platforms and each needing awareness. Targets are Robinhood, Kalshi, Polymarket, Kraken and GalaxyOne. Examples include Polymarket’s deal with the NHL, Kalshi with the Chicago Blackhawks and StarTrader with the NBA.
• Health and wellness: The duo cited data showing 84% of consumers report wellness is a top priority, with an emphasis ranging from wearables to glucose tracking to hearing assistance. This includes supplements and nutrition, and mental health and experiential wellness — think chiropractor visits, massage and sauna studios. Examples here include Humana and the University of Texas, and Unrivaled with nutrition partner Thorne.
• AI business services: These B2B companies expect their marketing budgets to increase, and brand awareness will be a priority in a very crowded market. Companies include those in cybersecurity; enterprise data optimization; HR tech and talent acquisition; and autonomous finance. Examples include Bill AI with the Utah Jazz and BigBear.ai with the Washington Commanders.
• Ready-to-drink cocktails: They noted that RTD has surpassed hard seltzers in sales for the first time, and they expect spirit-based RTDs will see growth. In addition, 50% of the teams surveyed cited a new deal in this category in the last 12 months. Examples of these health-friendly choices are the Cleveland Guardians with Sun Cruiser Iced Tea & Vodka, and Two Robbers with the Philadelphia Eagles.
• Armed forces recruiting: This category will see a 4% increase in its ad budget, and recruiting shortfalls mean aggressive marketing. Examples are the Texas Rangers with the Air National Guard, and the Colorado Avalanche with the Colorado Army National Guard.
The two noted a number of honorable mentions, including the QSR-pizza and pet supplies categories.
The bottom line is attendees took a lot away from this presentation, and I’d suggest contacting Baur and Misner directly if you’re interested in learning more.
Abraham Madkour can be reached at amadkour@sportsbusinessjournal.com.
