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What sponsors should know about myths around college sports

In the six months that have passed since the NCAA board voted to give more autonomy to schools in its top five conferences, countless questions have been raised about both the future of the NCAA and college athletics in general.

And among high-paying college sports sponsors, rightly so.

By giving the power five the unprecedented ability to write their own rules when it comes to everything from athlete stipends to full cost of attendance, there’s no question that the ruling will shape a new era of college athletics.

But while change is on the horizon, it’s coming with a lot of misconceptions about just how much the ruling will affect the NCAA sponsorship landscape.

With the NCAA basketball tournament now underway, here are four things that many people are getting wrong, and what they really need to know.

“The NCAA is in trouble.”

At first glance, many people thought the autonomy ruling meant bad news for the NCAA. While the governance and power structure of college sports continues to evolve, however, the NCAA remains one of the strongest properties in the U.S.

In 2014, Forbes named the men’s Final Four one of the most valuable event brands in sports. Likewise, CBS and Turner have both secured the media rights, which ensure the financial health of the NCAA, through 2024.

The fact is the NCAA’s revenue has increased every year since 2001. It’s also projected to exceed $1 billion in 2014-15. For partners and prospective partners alike, there’s no cause for concern about the stability of the NCAA in the immediate future.

“The new ruling will have an impact on fan passion.”

The 2014 NCAA Final Four matchups were the two most watched college basketball games in cable television history. The final between Kentucky and Connecticut finished in the top 10 of all shows watched in 2014 with more than 21 million households tuned in.

With second after second, pass after pass, and point after point, attention in the stands stayed glued on the obvious: the spectacular action on the court.

And while some brand marketers are questioning the impact that the autonomy vote might have on fan passion, that’s where fan attention is going to stay for the foreseeable future. As student athletes are given more financial support and stipends, the consideration as it relates to “amateurism” may turn off would-be fans.

Regardless of things like changes in student-athlete compensation, the ruling isn’t going to have an immediate impact on fans and how they consume college sports. Fan passion will continue to thrive around deep allegiances to schools and a love of the game.

For marketers, NCAA partnerships will continue to deliver mass through heavy media and sponsorship opportunities with a considerable impact on the regional level.

“The College Football Playoff will minimize excitement around other bowl games.”

College football is thriving both in attendance and viewership. The two semifinal CFP games and CFP championship game were the three highest-rated TV shows in cable history.

For brands that desire to reach millennials, alumni, or simply college sports fans, that’s good news.

Even with the new football playoff format, fans still supported their football teams who were not in this year’s playoffs. Overall attendance for top bowl games equaled previous years. Traditional bowl games (not involved in playoffs) equaled or were close to previous attendance and/or TV viewing ratings.

As rEvolution’s John Rowady put it in a January MediaPost column, “with this football addition and the men’s NCAA basketball tournament in March, college sports are building an empire that is envious to others in the sports world.”

Now is as good a time as ever to become a sponsor of college athletics whether at the school, conference or NCAA level.

“Power five autonomy will simplify the student-athlete experience.”

In January, the NCAA’s top five conferences formally voted to redefine an athletic scholarship. While most people may think this will clarify the student-athlete experience, there are still many issues that need to be worked out.

The vote allows, but does not require, all Division I schools to award cost-of-attendance scholarships in all sports. However, many schools that do not may find themselves on the losing end of recruiting battles to the schools that do so.

When looking to partner with specific schools, brands need to understand how this might affect the reach of their partnership.

With the potential budget challenges, there may be fewer sports with which to partner across the board as schools are forced to cut some nonrevenue-generating teams.

As athletic departments start budgeting for these new expenses, they also will have to take into account the budgets for nonrevenue-generating sports. While a lot of revenue seems to be pouring into all Division I schools, according to an NCAA study, fewer than 30 Division I schools reported profits in their athletic departments.

Football and men’s basketball may be a core focus, but knowing how the budgeting has affected other sports is key for marketers who want to reach beyond the two main sports.

The truth about the state of college athletics

As the O’Bannon vs. NCAA case continues to wind its way through the appeals court, schools start figuring out budgets related to the cost of attendance, and TV money continues to pour into college athletics, college sports evolves.

So what should college athletic sponsors be focused on right now?

If it’s negotiation time, shorter-term deals will help brands monitor and act on changes more readily as they happen.

If it’s not, existing sponsorships shouldn’t just be leveraging college sports fans’ passion within stadium walls. Through engagement on second and third screens, sponsors can plant themselves at the root of fan passion both on game day and beyond.

Vince O’Brien is senior vice president of global sports and entertainment consulting at GMR.



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For further information on guest columns in Street & Smith’s SportsBusiness Journal, please contact Betty Gomes at (704) 973-1439 or bgomes@sportsbusinessjournal.com.

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