Building Better Value into an NFL Team & Stadium Renewal

CASE STUDY: Beer Client | Evaluation | NFL Team + Stadium | USA

ASSIGNMENT

Advise a beer brand client on the potential renewal of an NFL team and stadium sponsorship with a 20+ year history, where category rights were split with one of the brand’s closest rivals.

SOLUTION

Lumency provided a holistic business case to understand overall value, how to optimize the asset mix and value proposition (recommending against expanding to a category exclusive deal) and crafted a renewal strategy to include negotiating for increased value.

APPROACH & EXECUTION

PERFORMANCE VALIDATION

Through a Performance Validation (and Activation Scorecard) exercise, we determined the client’s sponsorship rights were being activated reasonably well, and the client’s and competitor’s brands were at a draw for share-of-voice.

ASSET VALUATION & SPEND LENS

To understand benchmarks and value-drivers, we assessed the value of both the tangible and intangible (the value of the property’s IP) for the category rights in an Asset Valuation exercise. In a Spend Lens analysis, we examined data around the client’s local urban market share and vs. national market share, and alignment to brand and commercial strategy, among other considerations.

ASSET SCOPING

A comprehensive Asset Scoping (covering 80+ assets) review prioritized assets being considered for renewal, based on their ability to deliver against brand and commercial objectives. They were ranked as ‘must-haves’, ‘nice-to-haves’ and ‘flares’ (assets that may have high value to the property but low value to the client).

KEY INSIGHT

A key insight was that the expiring agreement was too heavily weighted in visibility assets from static signage and contained limited active and experiential assets.

A sponsorship always needs some visibility assets to reinforce the association between the brand and the sponsored property. In this case, the brand did not have an awareness issue. Over-indexing on visibility assets was not helping to drive against objectives.

All these findings—and more—were compiled and presented to the client’s leadership to gain internal stakeholder support and align around spend limits.

WINS

Working with both the property and the client, we identified new, not-yet-commercialized assets, enabling the property to develop a customized initial proposal for a potential renewal term.

The Asset Valuation, Asset Scoping and Spend Lens analyses outputs included starting, ideal settle point and walk-away spend levels.

Our Recommendation/POV presented scenarios around asset package, spend levels (cash and non-cash), preliminary activation plans, deal structure and deal points, including sponsorship term and rights fee (cash and non-cash) escalator.

We proposed a better positioned set of more leverageable sponsorship assets that would increase activation opportunities to better demonstrate brand values and bring fans closer to the game, while building attribution and brand advocacy.

Lumency supported in the development of a sound Negotiation Strategy that delivered a sponsorship renewal with an 18.75% increase in value over the expiring agreement.

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Building Better Value into an NFL Team & Stadium Renewal