Target Signs Multiyear Deals To Become MLS Partner, Minnesota United Jersey Sponsor

Target has signed a multiyear deal with MLS to become an official partner of the league in what the Minnesota-based retailer is calling its largest-ever push into team sports. The company also has signed a multiyear deal with expansion club Minnesota United to put its bullseye logo on the front of the team’s jersey. Financial terms of the deals were not disclosed, but Target Senior VP/Marketing Rick Gomez said combined it positions the company as one of the largest supporters of soccer in the U.S. As part of its deal with MLS, Target will have airtime during league broadcasts on ESPN, Fox Sports and Univision, as well as in-stadium exposure and on-site activation at MLS events. Target will not have a designated sponsorship category as its business crosses multiple lines, so it will just be an official partner. However, Target will be an official partner of Minnesota United, receiving on-field branding and in-stadium activation rights. Minnesota United will begin play this season in TCF Bank Stadium and is expected to move into its new stadium in ’18. Target will not be the naming-rights partner for that stadium. Gomez said the impetus to move into soccer came from trends it saw from customers. Sales of soccer merchandise was up 10% across all Target stores, and it is the fastest growing sports category in sales for the company. Gomez noted that it sold more than 1 million soccer balls last year, marking an opportunity to reach multicultural families, a key demographic for the retailer. Gomez said the company is still discussing how it will activate around the partnership. The retailer has worked with a number of sports marketing agencies, including Aquarius Sports & Entertainment for its motorsports activation. Gomez said Target is aiming to partner with several of its vendors on its push into soccer. The Target-branded jerseys will be unveiled late next month.

STRONG BELIEF IN SOCCER: Target last summer announced it was leaving IndyCar and its relationship with Chip Ganassi Racing after 27 years in the sport, as new Target Chair & CEO Brian Cornell was said to be re-examining all its marketing platforms. Gomez said as the retailer considered the statistics and trends around soccer, the push of young kids into youth soccer leagues and other data points made it a compelling investment. While Gomez said he could not speak to future sports sponsorships, he said Target continues to look for ways to connect with fans. Target will also become a partner of both U.S. Youth Soccer and the U.S. Soccer Foundation. It will serve as presenting sponsor of the Target United Cup, the largest recreational soccer tournament in the U.S., and will be featured within several youth soccer programs, including digital media integrations and event activations. SUM President Kathy Carter said that Target’s innovative approach to reach multiple levels of soccer in the U.S. makes it a very valuable partner to MLS. Carter also noted the corporate support for expansion clubs coming into the league with Target’s shirt sponsorship. “Brands are really seeing the value of being able to come in on the ground floor, and what the growth opportunity is ahead,” she said.

HOW IT'S PLAYING: Target's push into soccer made headlines across the Twin Cities this morning. The Minneapolis Star Tribune put it on the front page with the header, "Target Corp. Shakes Hands With MLS," while the St. Paul Pioneer Press teases its coverage on the front page with the header, "Target Sets Its Sights On Soccer." The Minneapolis/St. Paul Business Journal notes Target is "moving off the race track and onto the soccer pitch."