Noah Garden took over as head of sales at MLB after 13 years at MLBAM.getty images
With the installation of Rob Manfred as commissioner in 2015, MLB merged its long-disputatious digital and traditional sponsorship sales staffs. Five years later, baseball’s sales side is calling its “One Baseball” reshuffle both an organizational and commercial triumph. With the MLB season commencing March 26, we thought this was a milestone warranting closer examination.
“Seeing how it’s really evolved over five years has been pretty remarkable,” said Noah Garden, executive vice president of business and sales, in his office at the league’s new midtown Manhattan headquarters. Garden moved over to head sales under the “One Baseball” mantra after 13 years at MLBAM, which operated independently of MLB. The two departments were often — no, make that usually — in conflict.
“I’d never seen a property willingly cannibalize itself, but that’s changed,” said Elizabeth Lindsey, president of brands and properties at Wasserman, which represents Scotts Miracle-Gro, an MLB corporate sponsor since 2010. “The property everyone used to think was backwards is now considered progressive.”
The old BAM offices in Chelsea Market are no more, and “One Baseball” is now a physical manifestation within the old Time-Life Building across the street from Radio City Music Hall. “Our new headquarters is an exclamation point on the whole thing,” said Garden. “There were a lot of growing pains along the way. We had two different staffs in two different places.”
Of course, sales results count more than style points, but there have been impressive increases. The number of MLB corporate sponsors has grown from around 20 five years ago to the high 30s now. Garden says MLB will surpass 40 corporate patrons this season. Revenue from MLB sponsors has increased 70% over those five years, he said, including rights fees and ad spend on league-controlled media. Given BAM’s legacy, wireless and tech companies now represent 40%-45% of revenue.
Entry-level pricing has changed, which has allowed the league to attract smaller sponsors, like Utz snack foods, and Nathan’s as its “official hot dog.” The sponsorship model changed from one of rights fees and fewer sponsors to more at various levels, and as with every sports property, a greater emphasis on selling media and providing “ownable” content to sponsors.
“They all want to be seen and tell a relevant story within baseball,” said Garden. “The smaller partners want to get a piece and learn what we can deliver. They might not end up with the biggest deals we’ve ever seen; on the other hand, they can require just as much activation.”
Those on the buy side, once among the frustrated, have noticed the change.
“Maybe the most convincing thing is that we don’t call it ‘One Baseball’ anymore, its just baseball,” said Nick Kelly, vice president of partnerships, beer culture and community at Anheuser-Busch InBev. “Most sponsorships now are driven off of social and digital assets. The biggest reason for our renewal [last year] was that ability to have one conversation. If they were still independent, I don’t know that we’d have gotten that deal done.”
Genesco Sports consults for MLB sponsors T-Mobile and A-B InBev.
“The ability for them to pivot from just selling traditional sponsorships to also selling content and digital rights at a time when that’s what brands were looking for was very much right place, right time,” said Genesco CEO John Tatum.
“There’s been a nice turnaround,” said Michael Neuman, managing partner at Scout Sports and Entertainment, which negotiated Geico’s MLB sponsorship two years ago. “When we were negotiating, they showed a new level of creativity — that was refreshing.”
The new model will be tested further. Some of MLB’s largest sponsorship categories expire after the upcoming season, and the sport must prove the Houston Astros cheating scandal hasn’t damaged its reputation with fans or sponsors beyond repair. Certainly, we’ll see if MLB’s resiliency is enduring.
Until five years ago, the politics weren’t right for adopting the “One Baseball” approach; then Manfred ushered in a regime change. Still, when asked if there was an answer to the “If I knew then what I know now” question, Garden’s reply was quick and pointed. “I’d like to have done it five years earlier,” he said.
Terry Lefton can be reached at tlefton@sportsbusinessjournal.com.
