The Sports Marketing Company

_ Is football really that big in Texas?

High school sports continue to make a major impact on not only student athletes, but also for fans and corporations that participate in games over the weekends throughout the fall.  Certainly basketball and baseball (to a lesser extent) have some impact on parents; but, by and large, there is nothing that compares to numbers at high school football games.

The record for attendance for a single high school game is quite old.  It happened in October 1948 when Kensington High School played Bennett High School at Civic Stadium in Buffalo, New York.  The official attendance was 50,988.  Other big games include St. Xavier and Trinity in Louisville, Kentucky in 2004 when 38,500 attended the game at Papa John’s Cardinal Stadium (note the name on the stadium…they did not miss this marketing opportunity). 

Everyone knows football is big in Texas and here are some facts to support this premise.

Plano vs Port Neches                  Groves Texas Stadium           1977    49,953

Southlake Carroll vs Euless Trinity  Texas Stadium                    2006     46,339

Highland Park vs Waco                Cotton Bowl                        1945     45,790

Houston Washington vs Galveston   Rice Stadium                     1968     45,000

Dallas Adams vs Richardson         Cotton Bowl                        1967     45,000

The University Interscholastic League (the overseer of high school athletics here in Texas) elected to have a single-site football championship facility and Jerry Jones little ole tribute in Arlington, Cowboys Stadium, has been the selected site for the past few years.  And, it seems to be working out just fine.  The December 17 attendance for the three championship games 5A-I, 5A-II and 4A-II attracted a combined total attendance of 101,283.  Just one year prior, the combined attendance was 101,582, only a difference of 299.  The largest attendance was for the Aledo-Manvel 4A-II title.  Announced attendance for that game was 43,369.  The 1977 Plano-Port Neches game still holds the record.

Lots of numbers, but they don’t mean anything unless you consider the potential advertising and promotional reach available using these opportunities.  As we have posted previously, there are numerous marketing options available for high schools seeking ways to offset rising operating costs, or just looking for ways to add special services and benefits for its high school athletes.

From entry signs and ticket stubs to electronic digital advertising, high schools can generate revenue while partnering with exceptional local companies in providing enhanced finances for athletics within the school districts.  Whether doing it yourself, or retaining the services of a professional firm, the results can be positive in terms of impact on everyone walking into the stadium.

And, while the numbers are far less significant, sports arenas where teams play basketball and volleyball can also use sports marketing to offset costs and generate revenue for the district.  For any additional information on how to take advantage of these kinds of programs, contact our company and one of our professionals will be happy to meet with you personally to discuss the options available for your district.

_Would it surprise you to learn that there were almost as many participants in high school basketball as football?  The National Federation of High School Associations’ recent release of participation numbers for 2010-2011 shows that there were 1,109,836 high schoolers playing football and 984,777 playing basketball.  Was I surprised; I really expected the football number to far exceed basketball. 

And, overall, there were a total of 7,667,955 participants in all high school sports; give or take a few hundred either way.  Obviously many of these athletes played several sports, but that is still an impressive number.  But, that is just a piece of the big picture.  Earlier this year, the NFHS released the statistics from its first survey on fan attendance.  And, the results are staggering.  “More fans attend high school basketball and football events that the same sports at the college and professional levels combined” (NFHS August 2011).  During the 2009-10 school year, approximately 336 million fans attended high school regular season and playoff games in football and girls & boys basketball…more than 2 ½ times the 133 million who attended events in those sports in college and professional levels.

Bob Gardner, NFHS executive director was recently quoted, “A ticket to a high school sporting event remains one of the best values for the entertainment dollar.” Parents and avid fans are cheering on their teams in record numbers.  And they are doing one thing consistently… showing up in big numbers. And whether you’re optimistic and attribute that to a lot of school spirit, or whether you’re pessimistic and blame it on an economy that has us all searching for less expensive entertainment, it’s still a great trend.

More people watching can be contagious.  Hopefully, little brothers and sisters will want to be more active in sports, not just football and basketball.  There are more than 40 sports available for kids today.  Everything from golf to water polo and field hockey.  And at a time when childhood obesity is a concern, this can be good news across the board.  Parents should encourage their kids to try out for sports.  Trying is part of the learning experience, whether little Johnny or Jenny makes the team.  I remember my days…yes, I can remember that far back, and there’s no bigger motivation than the idea of a crowd of parents, siblings and peers cheering you on.

These participation and spectator rates are great news for high school administrators, athletic directors, booster clubs and others who have been continuing to find ways to fund and build better spectator facilities, including bleachers, concessions stands, parking lots and rest rooms.  This is a marketing professional’s dream.  This important data will allow schools to justify advertising rates for any myriad of elements including funding of better and more technologically advanced scoreboards and information centers in football stadiums, baseball fields and sports arenas.

There are a number of exceptional organizations available today who can assist schools in evaluating and determining how best to use this information to develop a comprehensive long term plan to make spectator sports more enjoyable for the thousands of fans watching your games.

_ What about naming rights? 

Have a need and want to use a name to fulfill that need?  Name rights are somewhat a slippery slope.  The first priority should be to determine what the needs are and what amount of money will be necessary to meet the needs of the project.  As you evaluate these needs, several questions are going to arise. 
  
    Should we build a new facility? 
    Should we renovate the current facility? 
    Should we add a new facility? 
    How do we decide about the sale of the name rights for the current     field, or new field?


Like every successful program, start with a plan.  Then determine how and where the money will come from.  If you were a college or university, you would begin with alumni; however, alumni may be students at colleges and away from the financial ability to assist their “old high school.”  The better choice then is to establish and build relationships with local businesses and corporations in your area.

When approaching potential corporate partners about naming rights, it is critical to recognize the importance of creating mutually beneficial relationships. The funding process should not be a “good old boy” network of giving.  Sponsors should be looked at as partners; partners who have needs to be fulfilled by your organization.

If possible, try to find local companies who already have a history of charitable giving and programs.  Find those who have a strong corporate presence in the local community.  Then, show them how a shared marketing and promotional program can benefit their company.  If you can find corporate executives with children at your school, even better.  If you can find someone inside the company who cares about the school, the initial groundwork is dramatically reduced.

So, how much is a naming right worth?  In some cases, just what a sponsor will pay.  But, it also depends on a number of other variables.  What is the size of the local market?  How many events will be held in the facility?  What is the potential reach to consumers and potential customers for the company?  How much exposure can you generate for the company?  Other considerations might include cross marketing value to the company.  Would it be valuable for the company to be able to use the school’s name in marketing, or the school’s logo or seal?  In the final analysis, the real value is what both parties agree the program is worth in terms of cash money.

Especially at the high school level, one potential problem of selling your naming rights is a negative response from the community. Some administrators have suggested that the process over-commercializes scholastic sports.  In order to help alleviate some of these concerns, maybe local meetings with key community leaders will help allay some of these concerns.  Many problems occur because local citizens feel they have been left out of the loop in areas like this.  It is important to help the community understand what is being accomplished, how it benefits the school and the community and how it is saving the tax payers money.

Do your homework.  Find experienced consultants that can help you.  Consult lawyers and local officials to insure that every legal issue, zoning regulation, building permit and all the other elements are covered up front.  Make sure to attend every community meeting where this may be an issue; make sure someone is watching the newspaper and listening to local radio to keep up with any concerns; and, respond positively when anything is brought to your attention.

Finally, as you evaluate a possible "renaming," it is important to remember what the impact will be if there is a person for whom the stadium or arena is currently named.  Regardless of how valuable you feel the name rights are, it is critical that you be sensitive to those attached to the previous name.

What's in a name.  Maybe more than you realize!!

Exactly what is sports sponsorship, anyway?

Sponsorship has been defined in several different ways depending on which side of the table one sits.  Obviously, there is the selling side, but also the operational and marketing sides as well.  Dr. Tony Meenaghan, in the International Journal of Sports Marketing defined it as, “… the provision of assistance either financial or in-kind to an activity by a commercial organization for the purpose of achieving commercial objectives.”  There have been many other common definitions since Dr. Meenaghan first wrote his in 1984; however, Denis Sandler and David Shani, well known authors in the sports marketing arena coined the following widely accepted definition of sport sponsorship:

            "Sport sponsorship is the provision of resources (i.e., money, people, equipment) by an organization directly to an event or activity in exchange for a direct association to the event or activity. The providing organization can then use this direct association to achieve their corporate, marketing, or media objectives”

Interscholastic athletic departments across the country are now selling almost everything: broadcast opportunities to local radio and television stations; seeking corporations who will agree to contribute financially in return for facility or event naming rights; deals with food and beverage companies to distribute their product exclusively in exchange for new electronic scoreboards, uniforms, or equipment; and soliciting  advertising revenue from game programs, field and arena signage, locker rooms, bus and rooftop signage, and halftime promotions.  And this is just the beginning.

The NFHS (National Federation of State High School Associations) signed a sponsorship deal in 1998 with the Quaker Oats Company for its brand Gatorade beverages.  Since that initial sponsorship deal, the NFHS has been involved in many other sponsorship programs including: developing the first national television package for high-school athletics made possible by sponsors; promotional ventures involving the federation's magazines and drug-awareness programs; paid endorsements by high-school coaches for athletic gear; and most recently creating the first-ever national event hosted by the NFHS in 2006, "T-Mobile Invitational" high school basketball tournament.  Sponsorship has become such an integral part of the NFHS and the programs the association offers that a marketing department was developed to design corporate partnerships and sponsorship programs to meet specific marketing goals and objectives of businesses and corporations interested in sponsoring education-based interscholastic activities.

There is no reason that a local school district should not be able to capitalize on the same kind of programs and benefits that will enable it to provide improved facilities and services to its students, all the while serving the marketing needs of local companies.  If you want to know how there are many companies available today to assist in evaluating the school districts assets and how to use them to generate valuable income. 

Why not take a chance today?

In recent years schools have been challenged to provide more for their students, not only academically, but athletically.  And costs to provide these programs have increased incrementally.  Athletic facilities have gotten bigger, fancier, and more expensive; not only to build, but to operate.  Then there is the desire to have more information.  We live in an age of information overload.  But, that seems to be what consumers and fans want.

Therefore many arenas and stadiums are adding new information centers…also known as digital electronic scoreboards.  With these boards fans have the ability to not only tell the score, but have access to minute details along with full video and instant replays.  These are great benefits; but, they come with a price.  So schools are challenged with finding a way to provide these benefits and elements in a time when school budgets are at their tightest with most schools facing cuts in many areas.

Back in 2002, Alice Costello Elementary School in tiny Brooklawn, NJ was just another 75 year old elementary school.  But, then they became the first!  Something new was added outside the gym: a seven foot illuminated sign that read “ShopRite of Brooklawn Center,” and with that ad, Costello became what is considered the first school to sell naming rights for its gym to a corporate sponsor.

Since that day as schools have looked for additional revenue means, many other deals have been made with various corporations and local sponsors.  In Texas, three small towns sold naming rights to their football stadiums for more than a million dollars.  In today’s image driven advertising arena, there are multiple identity deals from stadium naming rights to high school cheerleaders being sponsored by a company.  Sport sponsorship has evolved into a huge business enterprise with more than $15 billion being spent annually in North America alone.

There are some who feel that the commercialization in schools is not only detracting from the purpose of schools, but that it is damaging in many ways.  Having been involved in sports marketing since the early 1980’s, I am a strong believer in its merits.  I know it works and can be beneficial not only for the corporate sponsors, but also for school districts.  For schools that have little or no expertise in this arena, there are a number of seasoned professionals who can assist school districts in creating revenue programs that will enable them to offset operating costs for athletic facilities and in some cases even keep programs going that might otherwise be cut.

Using these outside sources does not cost schools anything in most cases.  There are several very experienced and quality sports marketing companies throughout the United States that can assist schools not only in the evaluation of how to fulfill their needs, but actually even handle all the work on the school’s behalf.

The question remains, “is it better to have a facility and elements within that facility that bears a corporate identity that allows students to continue to have quality facilities, or not to have any facility for them at all?”