Second-String Sports are on a Fast Track

Posted on by Chief Marketer Staff

many american sports fans dismiss pro soccer as a slow, low-scoring game, and regard women’s pro basketball as a second-class sport to the men’s game.

But in the minds of U.S. marketers, these sports are on a fast track because of the grassroots support giving them momentum. Youth soccer leagues and girls’ basketball are flourishing, and those sports, along with non-mainstream entries like pro lacrosse, are effectively competing for marketing dollars with the traditional powerhouses of pro football and baseball.

Right now, the financial future across all sports looks flat. The growth rate has declined to 1.8% from 14.7% in 2008, according to sponsorship services provider IEG.

Even so, that means opportunity. By sponsoring “smaller” sports, marketers can reach niche audiences for modest investments. “It’s all about value,” says Tom George, senior vice president of athlete and property marketing for sports marketing agency Octagon. “Sports that demonstrate they can deliver that value will do well in difficult times.”

Octagon is focusing on top-tier athletic properties, but George says that even non-mainstream franchises can play: “They do deliver a niche efficiently.”

One such franchise is the Women’s National Basketball Association. It has a rising profile based on family appeal and a core fan base of young women. And it offers “a fully integrated media asset platform that companies can use to reach a very compelling audience,” according to WNBA Commissioner Donna Orender.

The WNBA has added Hewlett-Packard, the California Milk Processor Board and an unnamed pharmaceutical company to its sponsorship roster for next season, according to Orender. But she acknowledges that some companies are not as quick to open their checkbooks. “Their budget process is a little slower than in recent years,” she says.

Worse, the league lost its Houston Comets franchise in December because of the owner’s financial issues. And that wasn’t the only non-mainstream sports franchise to suffer a personal foul. The Arena Football League suspended its 2009 season so it could reorganize.

On the positive side, Orender says there are several markets where prospective owners are set to establish WNBA franchises. And the league has a new eight-year TV deal and attendance averaging nearly 8,000 per game. The WNBA has signed more than 20 corporate supporters including Adidas, McDonald’s, Nike and Toyota.

Toyota participates in a community relations program with the WNBA and its parent National Basketball Association called “Toyota Project Rebound,” which funds refurbishment of YMCAs and learning facilities.

“It’s just a way to give back to the local communities,” says Toyota spokesman Chad Harp.

Like everyone else, Toyota is evaluating all of its sports sponsorships.

“Everything is being looked at heavily,” Harp says.

But that doesn’t include its support of the National Bass Anglers Association. Toyota set up ride-and-drives at bass fishing tourneys to introduce its Tundra truck to prime consumer targets.

“When we launched the Tundra, we wanted to go after people who use their vehicles as a tool,” he says.

Ford Trucks saw a similar opportunity in its Professional Bull Riders (PBR) sponsorship, comprising 34 events this year in the Built Ford Tough series. Ford’s research indicates that 46% of Ford F-series pickup owners watch or attend bull-riding events.

“They’re the sweet spot for sure when it comes to full-size pickup customers,” says Ford Truck Marketing Manager Doug Scott.

Ford also perceives bull-riding arenas as great showcases for its F-150s and Super Duty trucks. Ford and Fenway Sports Group, which recently became exclusive sponsorship agent for PBR, foresee great growth potential.

“PBR becomes a complement with partnerships we have in place with other blue-chip brands,” says Brian Corcoran, Fenway’s chief operating officer.

Corcoran says Fenway is looking to tap partnerships it has with the Boston Red Sox, and is in preliminary talks about PBR with companies in the beer, soda, home improvement and consumer electronics categories.

PBR appears on the Versus cable network and buys telecast time on NBC and Fox, lending it mass-market credibility. In light of market conditions, Fenway’s “modest activation” entry packages include ad inventory on Fox and NBC along with arena signage, according to Corcoran. “Where there’s a correction going on in corporate America, there’s a correction going on in the marketplace,” he says.

There’s a strong crossover between PBR and fans of NASCAR, which has achieved a national following beyond its Southeastern regional origins. Boasting a $10 minimum ticket price for its events, PBR drew 40,000 fans to three weekend dates in a Ford series event in New York’s Madison Square Garden last month.

The National Lacrosse League, another action sport with grassroots support originally planted in the Northeast, also shares a young, blue-collar demographic with NASCAR and pro wrestling. The NLL has fueled average attendance of 10,000 for its 16-game season with tickets at less than $10 (and premium seats behind the glass at field level of indoor arenas for $30).

“We’ve already positioned ourselves as a lower-cost form of entertainment,” says NLL Commissioner George Daniel.

The NLL recently added its 12th team, the Boston Blazers, and streams its games online through 13 channels on NLL.com, which fans can embed on their MySpace or Facebook pages.

When Reebok broke into the hockey equipment market three years ago, it saw lacrosse as a logical next step because of the similarity in requisite hardware — and the smash-mouth action, according to Chad Whitman, head of Reebok Lacrosse.

“We’ve always been an edgy brand, trying to push the limits,” Whitman says. “Lacrosse was one of those edgy sports that enabled us to reach down to the youth level.” The “instant credibility” Reebok has gained as a primary NLL sponsor among lacrosse players could make it the sport’s leading equipment purveyor, according to Whitman.

Pro beach volleyball, organized as the Association of Volleyball Players (AVP), also claims a young core demographic of 18- to 34-year-olds. Relaunched in 2002, it opened with Crocs as title sponsor for its 18-event beach tour, with McDonald’s sponsoring live music at some events for a $20 entry fee.

“We like to communicate that we offer the ultimate beach experience,” says AVP CEO and Commissioner Leonard Armato.

Pro beach volleyball gained a high profile with the prime-time success of stars like Misty May-Treanor and Kerri Walsh in the recent Beijing Summer Olympics.

The nascent Women’s Professional Soccer league (WPS) could also benefit from beach volleyball’s Olympics profile, despite the legacy of the star-crossed Women’s United Soccer Association, which failed in 2003 from lack of attendance and TV viewership. “We found last year that 2009 budgets were not being committed as early as in the past, but there’s still interest in our league,” says Tonya Antonucci, WPS commissioner.

Puma has provided a $10 million multiyear sponsorship, and the recent signing of 22-year-old Brazilian star Marta by the Los Angeles Sol is another bright spot.

The seven WPS franchises will be individually owned. And Antonucci says lower sponsorship costs and $99 season ticket prices should give the league a good kick-start.

It will doubtless come down to young players and their soccer moms showing up for enough games to make sponsorships seem like an easy score.

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