Benefits of Sports Betting Sponsorship Deals

 5 months, 29 days ago 0 Comments

Sports franchises are among the most valuable assets in the world, often valued in billions of dollars. It was not always the case. In fact, less than a decade ago, in 2012 there was only one sports franchise that was worth over two billion dollars. That was Manchester United. Today, there are 52 and ManU isn’t even in the top five. It is dominated by the American powerhouses Dallas Cowboys, New York Yankees and one of the worst teams in the NBA, the New York Knicks. The other two spots in the top five are taken by Real Madrid and Barcelona FC.

This sudden increase in teams; worth was caused by a huge spike in media and sponsorship deals. The massive influx of money allowed them to buy the best players and assert dominance over their competitors. That has left smaller and less wealthy teams in a pickle. Faced with these juggernauts, they simply couldn’t muster war chests big enough to engage in the race. Major brands weren’t interested in signing any sponsorship deals with them. They only have eyes for big teams. Smaller teams had to turn to companies that traditionally didn’t have sponsorships in sports. This was the cue sports betting companies were waiting for.

Sports Betting Sponsorship Deals

In 2018, the Supreme Court of the United States made a decision that basically lifted the prohibition on sports betting across the country. This landmark verdict opened up a lot of doors for betting companies to enter mainstream media. Soon, they started seeking sponsorship deals with sports organizations across the country. This had led to massive investments in teams. For instance, the NFL reported that its 32 clubs managed to obtain US$1.47 billion in sponsorship revenue during the 2019/20 season. Most of the increase came from 21 new deals teams made with betting, lottery, and casino companies. These sports betting sponsorship deals have many benefits for all parties involved.

Increased Brand Awareness

Displayed proudly on the front side of a uniform of a football or basketball team, the brand logo gains a lot of views during the game. Billions of people get to see it across the world. The same people buy jerseys of their favorite players or teams, which all come with a logo of their sponsor. Even people who don’t watch football can probably recognize some of the most popular clubs’ uniforms. There are simply too many around not to notice them. This is how brands use sponsorship deals to increase awareness and visibility. Add often fanatical home supporters, who now become the ambassadors of the brand, and you have a pretty explosive mix for future growth. The downside is that the opposing fans may dislike it. Can you imagine a hardcore Real Madrid fan wearing or using something made by the company that sponsors Barcelona? Yeah, neither can we.

More Money in Sports

A successful partnership between a sponsor and a sports organization can provide much-needed funds for acquiring new players or expanding stadium capacity. West Ham United’s deal with online betting giant Betway casino is an excellent example of one such partnership. A monetary infusion allowed The Hammers to hire a new manager and make some much-needed additions to the team. These moves resulted in one of their best seasons ever. Among other things, they managed to secure a 0-3 win in Liverpool. That was their first victory at Anfield after 52 years. The club also broke its record for the most points in, the most goals, and the fewest losses in a season.

New Audience

Brands that sponsor team clubs have a direct line of access to an audience they usually couldn’t approach. Not only that, but sports fans tend to be younger, so more active and more susceptible to marketing deals. Pair that with excitement for their favorite team or an athlete, and you have got a winning situation. The best example is Steph Curry and Under Armour. Previously fairly unknown brand, they signed a sponsorship deal with the future three-times NBA champion and two times MVP. Since then, they have reached a level where they can compete with Nike, Adidas, and other famous brands. All because of a single deal.

Concerns

The most touted concern about sports betting sponsorship deals is that games of chance have been seen as a risk to public health. It was the same reason why Formula One banned tobacco manufacturers from plastering their logos all over racing cars. However, alcohol is a much bigger health risk, and that doesn’t stop Heineken from being one of the biggest sponsors of the Champions League. In the United States, alcohol brands are a common sight in all NFL stadiums. Formula One also allows their team to take money from companies like Martini and Johnnie Walker. This only goes to prove that public health will be just fine, even with betting companies sponsoring sports teams.

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