SPEX209 - Sponsorship and SCA 2

Housekeeping

• Extensions:
  • Given only in exceptional circumstances and granted by the lecturer.
  • Documentation may be required.
  • Computer failure is not reasonable grounds.
  • Illness requires a medical certificate.
  • Plan time accordingly for clashing deadlines.
  • Employment schedules are not a reason for an extension.
  • No extensions for quizzes; late submissions receive zero marks.

Learning Outcomes

• Complete Tuesday's lecture: Differentiation & measuring PCV and differentiation
• Understand 'extendability' through the example of brand extension
• Examine the international geographical brand extension of the NFL
• Examine the technological brand extension of the NFL
• Identify examples closer to home and their use of brand extension

Achieving Sustainable Competitive Advantage (SCA): Differentiation (Maanda et al., 2020)

• No other company can copy the sponsorship.
• Example: Bayleys' support for Matatu is connected to the people and places throughout the South Island of New Zealand.
• Extendable: Wednesday Whalan and Partners Ltd, Bayleys is licensed under the REA Act 2008. They support Matatu.

How are PCV and Differentiation Measured? (Crompton, 2004; dos Santos & Moreno, 2018)

• Many companies spend 0 on evaluating sponsorship.
• Use of social media (clicks) makes engagement easier to measure.
• Sponsorship is only one part of the marketing mix, leading to isolation difficulties.
• Brand recognition can be short-term and flawed.
• Ambush marketing (Lin et al., 2023).
• "Relationship quality" with individual stars can be more powerful than team association (Merten et al., 2024), e.g., Ronaldo trade to Saudi team Al-Nassr.

Sustainable Competitive Advantage (Amis et al., 1995)

• Perceived customer value, differentiation, and extendability contribute to sustainable competitive advantage.

Brand Extension

• "Attempts by companies to leverage consumer recognition into successful new product and service offerings" (Campbell & Kent, 2002, p. 117).
• Historically:
  • Physical products, e.g., Gatorade (1960s) and energy bars (2000s).
  • Brand association: Red Bull, Monster.
  • Repeated over time, e.g., Omega and Olympic Games.
• Geographical, virtual, and values-based extensions.
  • Rugby League into North America (2024, first tried in 1994); men's cricket world cup in W.I and USA.
  • Multiple sports' extension into and alongside eSports (NBA, FIFA, Rugby etc.).
  • Explicit company values, e.g., Budweiser and NWSL (2019).
  • Driven by celebrity athlete, e.g., Megan Rapinoe.

Geographical Expansion: NFL Brand Extension (Campbell & Kent, 2002)

• 1991-2007 attempted expansion into Europe:
  • World American Football League: 6 Franchises, spots for 'local' players, changed some rules, geographically diverse.
  • Lack of fan engagement.
• Re-branded NFL Europe 1998.
• Closed in 2007 with reported US30m annual losses.

NFL International Series (2022-*)

• Each NFL team (32) will have a 'home' game at an international site every 8 seasons. At least four international games per season.
• 3 games in the UK, 1 each in Brazil, Germany, Ireland & Spain (2025).
• Product and brand concept consistency.
• Relies on existing teams, associated players, mascots, etc.
• Traditions of NFL are established and maintained.
• Rules are the same.
• 3% of attendees are American (NFL Stats).
• 3 millionth in-person fan attended in 2024.
• 15 million 'self-described fans' in UK in 2024.
• NFL International started in 2007 but current version began in 2022.

Technological Expansion: Madden NFL Championship Series

• Rachel Hoagland, Vice President, Head of Gaming & Esports at NFL (August, 2019):
  • "We view esports as a key accelerant to growing the NFL. It enables new ways for young fans to engage in the sport through Madden NFL competition. The authenticity it provides enhances engagement and the connection between our 32 NFL Clubs and football fans around the world."
• Fans are able to have some control over the experience.
• Social experience.
• Playoff series mimics NFL season.
• Vicarious experiences (Rein et al. 2006).

Examples Closer to Home

• AB's tests in USA - geographical
• Super Rugby Pacific (Rugby) - geographical
• Stadium Southland (2022) – e-sports geographical and brand association
• A-League to Auckland and Canberra (2024) & others (2025) – geographical

Take Home Messages

• Commercial sport funding is an inter-connected web of business enterprise.
• Brands, sponsorship, media rights are central to that web.
• Perceived customer value; differentiation; brand extension.
• Enables passion, fandom, marketing, sales.
• Social media engagement has enabled greater measurement of exposure.
• Consider where labour (workers, athletes, coaches) fit within the web.
• E-sport expansion has been a strong revenue generator for professional leagues.
• Other e.g.s include NBA 2K: Milwaukee Bucks stadium for basketball and e-sports.
• AND Invercargill