Several sports properties, including the Dodgers, have signed incentive-based deals with A-B InBevGETTY IMAGES
A-B InBev is "instituting incentive clauses within its deals as they come to term and offering properties" as much as a 30% bonus if "specific on-field performance and marketing criteria are met or surpassed," according to Terry Lefton in this week's SPORTSBUSINESS JOURNAL. A-B is "believed to be the first major sponsor to make it a standard part of its sponsorship contracts." A handful of sports properties have "signed incentive-based deals" with the brand -- the T'Wolves were first, followed by the Dodgers, Saints and NASCAR. All of A-B's "90 or so U.S. team and league sports sponsorships are up" by or in '21 and the brewer "hopes to have completely overhauled its sponsorship model by then." So far, "no property that has been asked to accept an incentive-laden model has said no." Clubs "won’t get paid less if they fail to meet those targets." A-B also is "instituting this new model across its portfolio of arts and entertainment sponsorships" (SPORTSBUSINESS JOURNAL, 4/2 issue).
GETTING WITH THE NEW: FORBES' Kurt Badenhausen notes under the new model a "playoff appearance or boost in attendance could lead to more sponsor money" from A-B. A new digital platform that "engages fans or increases awareness of A-B brands might spur larger payouts." A-B will "work with teams and leagues to choose metrics on a case-by-case basis." A-B InBev VP/Consumer Connections Joao Chueiri said that the shift was "triggered by changing consumer behavior." Chueiri: “Every team and league is under pressure for TV ratings and live attendance. The current deals did not address any of that. More people are consuming sports through social and other roots. We want to start bringing those components to our deals” (FORBES.com, 4/2).
