As NFL teams await directives from their municipalities on having fans in attendance during the 2020 season, gate revenue is not the only value being lost at stadiums. Brands occupying in-venue signage continue to lose exposure value that could climb to six figures by the end of the season.
According to estimates calculated by SportsAtlas, brands occupying four of the primary in-venue assets — stadium naming rights, ribbon board, billboard and tunnel cover signage — will lose an average of $106,000 in exposure value compared to last season if capacities remain the same after each team’s initial home game. Even if conditions improve and stadiums are granted 25% capacity for the final six home games, the average value lost this year would sit north of $86,000 for a team’s most invested partners. Unaccounted for in these projections — but also dependent on fan attendance — are additional losses partners face from hospitality, non-signage related activations, and other stadium-specific signage.
Brands expected to experience the most noticeable loss in value are those with partnerships in the Northeast, where CPMs (cost per impressions) exceed the cost to reach individuals across the rest of the country. With no attendance in 2020, the primary in-venue sponsors of the New York Jets ($254,000), New York Giants ($234,000), Baltimore Ravens ($219,000), Pittsburgh Steelers ($213,000) and New England Patriots ($201,000) are projected to take the biggest hit.
Sponsors of the other major leagues returning to play are not expected to experience nearly the decline in exposure value that NFL brands will endure because of the proximity of most assets to the field of play. NFL sponsors are largely dependent on value earned through in-venue exposure as assets are usually far removed from the field of play. NFL team partners are now challenged to recoup value historically gained through traditional sponsorship via other avenues.
Many savvy NFL sponsorship departments began forecasting the potential value lost by their partners months ago and formulated plans to provide sponsors with an equitable return on their investment. Seat-cover sponsorships are one solution. This newly created asset provides higher television visibility than traditional NFL sponsorship inventory, expanding partner reach. Social media and community-related initiatives are other areas where sponsors are recapturing value.
Factors contributing to estimates in charts below
■ Market CPM (Cost per Impression)
■ 2019 Attendance
■ Sponsorship Asset Size
■ Sponsorship Asset Quantity
■ Sponsorship Asset Visibility
■ Estimated Fan Exposure
When spending on sponsorship inventory, brands will typically pay a discounted rate compared to the expected exposure value — an inexact formulation because of the difficulty of tying exposure to action. Although many brands’ investment with the teams they sponsor may not reach six figures without the inclusion of other inventory, partners losing even a fraction of the estimated exposure value will turn to new strategies as the season continues.
Will Cavanaugh is a market analyst at SportsAtlas, a new business intelligence platform powered by Sports Business Journal. To explore the potential value lost by sponsors across a variety of attendance scenarios, visit www.sportsatlas.com/sports/NFL.
