It was never an “if” but a “when,” so those who expressed surprise that the NBA officially announced an approved outreach plan for a front jersey patch sponsor should not be surprised at all. MLS has done well without issue, the WNBA has worked smoothly, small patches on NHL, NFL and NBA practice jerseys didn’t cause the world to collapse, and this week starts the series of soccer “friendlies” across the U.S., with clubs from abroad wearing some of the most lucrative kits in the world, all adorned with sponsor tags front and back. NASCAR it won’t be. A lucrative, very lucrative and needed revenue stream is what it is, one that will hopefully offset the rising price of operations and not force ticket prices to keep going to the stratosphere.
So let’s say the jersey sponsor goes well and expands to other sports…even…maybe baseball…at least starting at the minor league level. What’s next? Two ideas, one of which is not tobacco, which was the life blood of sports revenue as recent as 20 years ago.
Hard Liquor and Condoms: Some networks and leagues have started to relax the spirits category, and new stadia are adorned with spirits-sponsored clubs. The rules still restrict some forms of advertising and promotions but the dollars for brands to spend are in place, and characters like Diageao’s Captain Morgan are popping up in more places than R.J. Reynolds’ Joe Camel cartoon for Camel Cigarette’s ever did.
Similarly, while male enhancement pills like Cialis and Viagra have dominated sports ads for several years, condom advertising is still largely off limits. New rules for condom advertising, especially tied to HIV prevention, are going to open up the category and can drop condom ad spending right into sports at a big price.
Gambling: The leagues will never attest to supporting, but we live in a world where fan engagement is becoming more and more important. New Jersey governor Chris Christie is pushing hard to overturn the ban on sports books in casinos outside of Nevada, and if successful it will change the atmosphere and the opportunity for legalized, government controlled sports wagering. Wagering, and all the advertising and revenue associated with it, is legal in many parts of the world, and that opening of the market…and maybe at first its for goods vs. dollars…and the growth of the mobile space could dwarf the revenue streams for teams in almost all categories except maybe beer. An opportunity for incoming dollars that once was way off the radar is coming more and more into view.
Sure there will be naysayers who will maintain that these categories should never be addressed and that teams and leagues are just too greedy. it will ruin the image of team sport yet again. However we live in a global environment where most if not all of these streams have been active for years and in order to try and help maintain whatever is left to have casual fans engage and attend events, these next steps will be taken. How soon? Well you won’t see gambling addressed in an election year for sure, but condoms and spirits? probably soon. Regardless, what has worked and is accepted elsewhere will come to the States soon. It makes too much sense…well at least dollars…to be ignored much longer.
