The NBA will set another record in total full-season-ticket sales when the 2014-15 season tips off on Tuesday night.
Amy Brooks, executive vice president of the NBA’s team marketing and business operations division, said the league this year will count more than 50,000 new full-season tickets sold. With those new sales, the league will have more than 275,000 full-season tickets for the coming season, a new record.
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Brooks
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Brooks also said the league will have a renewal rate of between 80 percent and 85 percent for the coming season, the fifth consecutive season of an 80-plus percent renewal rate.
The return of LeBron James to Cleveland and the rebranding of the Charlotte Hornets have been prime drivers of the league’s new full-season-ticket sales; both teams rank among the league leaders in new full sales. But Brooks also attributed the increase to more teams across the league using LinkedIn’s Sales Navigator product. It’s a lead-generation tool that Brooks said is part of the league’s growing focus on using social media to boost business.
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LeBron James’ return has boosted the Cavs’ sales.
Photo by: GETTY IMAGES
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Two teams used Sales Navigator last season. This season, 21 teams and the league’s global marketing partnership division are using the prospecting tool to find more targeted leads — not just in season-ticket sales, but also for help in selling suites and sponsorships.
Brooks said the idea is to use the tool to better target potential customers instead of cold-calling customers.
“It creates better relationships,” Brooks said. “It’s not to replace the phone, but it’s an essential complement.”
■ ENTERING FANTASYLAND: Sports fantasy company FanDuel made a big splash at the NBA team level last month with a $2 million annual deal with the Orlando Magic. Now, it appears that the New York-based company, backed by $70 million in new financing, is making a strong play for a leaguewide deal in the daily fantasy sports sponsorship category.
The league is in discussions with FanDuel as well as competitors in that space for possible new business.
“We are in some positive and active discussions across the daily fantasy category,” said Emilio Collins, the NBA’s executive vice president of global marketing partnerships.
The negotiations come after the NBA in September lifted its ban against teams selling sponsorships to fantasy sports game companies.
The company that lands the rights to the category on a league level could view that as an “in” for securing additional deals at the team level.
■ ROUNDBALL RENEWALS: While the news would be far more significant if they’d departed, the NBA starts the season having renewed two of its largest and most active sponsors: Kia, and Nike (whose deal had been completed but not signed as of press time).
Nike has been an NBA corporate patron since 1992, while Kia, on board since 2008, gilded its league assets with a deal this month with Cleveland’s James.
Also back in the fold is BBVA Compass in the banking category. Autotrader.com and Cisco are returning as well.
With brands now seeking content rights to match their sports IP, the NBA, like other leagues, is adjusting.
“Categories will remain what they are, but we are moving away from more of the traditional rights around advertising to how we can build effective stories in the digital and content space,” Collins said.
New sponsors signed during this year’s offseason were Harman (in the audio category) and Chinese athletic footwear brand Anta.
■ MAGIC MARKETING: The Orlando Magic is looking south to Brazil to mine new business opportunities. Brazilian tourists flock to Orlando during the winter months — in large part because of Disney World — and Magic CEO Alex Martins said the team now is in talks with Brazilian ticketing management companies to sell to the influx of international visitors.
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Orlando CEO Alex Martins thinks Brazilian visitors may want to pair Mickey Mouse and the Magic.
Photo by: AP IMAGES
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The hope is that some of those tourists, while in town for a trip to see Mickey & Co., might also be inclined to go see the Magic.
“We are also talking about sponsorships,” Martins said.
■ TIPOFF TALK: Activation for this week’s NBA tipoff week includes a Times Square location for the “NBA on TNT” pregame show along with on-site sponsor support from Samsung and NBA video-game licensee Take-Two Interactive.
Looking to encourage tune-in, the media schedule behind the Kia-titled NBA Tipoff effort includes spots on A&E, BET, CNN, MTV and VH1, along with print and digital advertising support. There also are NBA-themed TV ads slated to air from 11 league corporate sponsors: Adidas, Take-Two, BBVA, Foot Locker, Kia, Kumho Tire, Nike and its Jordan Brand, Sprint, Sprite, and State Farm.
Unfortunately for a handful of those sponsors — including Take-Two, BBVA, Sprint and Sprite — their ads feature reigning league MVP Kevin Durant, who is off the court until at least December after foot surgery.
Staff writer Terry Lefton contributed to this report.
