Weekly Newsletter 9/27
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INNOVATION IN ACTION
Sports Fans Living In Luxury
In the Community-Based Monetization Model, the role of sponsorship has grown, and is becoming increasingly critical to fan acquisition and revenue generation. It’s no longer just about the sports apparel producers owning the sponsorship landscape.
Golf and tennis are often associated with luxury brands as signs for watches and high-end clothing brands are prominent at both types of events. Our data shows that tennis fans appear to be the most avid luxury brand shoppers as 41% of tennis fans have purchased from brands like Burberry, Chanel, Hugo Boss, Versace, and more.
When we break down the percentage of sport specific fans and their spend on luxury brands, tennis and basketball lead the way, followed by football and soccer fans. Despite golf’s reputation as a luxury sport, our data shows that only 34% of golf consumers shop with luxury apparel brands. In an interesting juxtaposition, basketball consumers have a higher percentage of fans who spend on luxury brands.
*Our data comes from a random panel of 10 million credit & debit card holders in the United States. Transactions portrayed here are from 1/1/2020 through 9/9/2022.
Sport sponsorships provide the opportunity to test new messaging and products, as well as explore new markets for fan (or consumer) acquisition. Louis Vuitton (LVMH) is one of the more visible examples of luxury brands in sports sponsorship. Their involvement includes a digital gaming activation with the stated goal of exploring how the space will react and to “offer a more sustainable alternative to fast fashion.” LVMH also partnered with the National Basketball Association (NBA) to create a collection of apparel, accessories, and a custom display case for the Larry O’Brien/NBA Finals trophy. European football teams like Paris Saint-Germain, for example, are also dipping into the luxury apparel vertical for fan acquisition.
The upside for luxury brands is only growing as athletes continue to demonstrate their interest in fashion. Look no further than the ‘game day fits’ that are present on Instagram through accounts like League Fits, and the number of athletes who are starting their own fashion brands.
For leagues and teams, finding luxury brands either locally or internationally can be used as a fan acquisition strategy. For brands, finding athletes who are interested in fashion as ambassadors can create new channels for marketing. Non-endemic sponsorship categories will continue to be critically important to revenue generation in the Age of the Fluid Fan.
Sports Innovation Lab Events
Apple Music to Replace Pepsi as Super Bowl Halftime Show Sponsor
Last season, Pepsi’s contract with the NFL expired. While Pepsi did renew their contract with the NFL, they did not include the Super Bowl Halftime show, which ended their decade long partnership. On May 24, 2022, Pepsi tweeted, “After 10 years of iconic Pepsi Super Bowl Halftime Show performances, we have decided it’s time to pass the mic. Thank you to the amazing artists and fans who helped us create some incredible moments along the way. Now onto the next stage… ." Since broadcast viewership has declined, Pepsi wants to focus its time (and money) on digital media.
On Friday September 23, the NFL announced Apple Music as the new sponsor. Super Bowl LVII, which will be played on Sunday, Feb. 12, 2023 in Glendale, Arizona, will be Apple Music's first year as part of the Super Bowl Halftime Show. After rumors of Taylor Swift potentially stepping into the headline spot, the media has pivoted toward Rhianna taking the stage in February instead. Apple Music now has ownership over one of the most-watched live musical performances of the year. Apple Music is set up to succeed for years to come with their catalog of over 90 million songs and innovative spatial audio technology. Unlike Pepsi, Apple Music already has a strong digital space. The Super Bowl Halftime Show gives them room to grow in the TV broadcast world. Since Apple launched iTunes and the iPod, they have been constantly stepping up the game in the music industry. They are at the forefront of music and sports and have the power to create revolutionary Super Bowl Halftime Shows in this next chapter of Super Bowl sponsorship.
Sports Innovation Lab Events
September Work Anniversaries!
Congratulations to Abe Stein (Head of Innovation) and Molly Tissenbaum (Director of Product) on 5 years at Sports Innovation Lab. Another big congrats to our CMO Gina Waldhorn on her 3 year anniversary and to Emily Edick (Executive Engagement & Women's Initiatives Manager) on hitting her 1 year mark. Thank you for your continued dedication and commitment to this company - we are so lucky to have you all!
If you're ready to create breakthrough fan experiences and connect with the Fluid Fan through technology, visit our website sportsilab.com or email info@sportsilab.com!