Tying your brand to a platform of celebrity athletes engaged in a wildly popular sport might seem a bulletproof formula, but this isn’t always the case in Asia. Here, despite the high-profile failures of the likes of the Chinese Football League and the Dynasty Cup, sports marketers believe that the serious potential of domestic sport is being overlooked, often in favour of glitzy, highly-priced platforms like the Barclays Premier League and Formula One.
1 Three new offerings may yet buck the trend. The Indian Premier League (IPL) cricket competition signed US$1.75 billion in broadcast and franchise rights within weeks of its launch. Elsewhere, last month, the National Basketball Association (NBA) of the US formed NBA China, backed by a war chest of $2.4 billion. And football’s Asean Super League, reportedly supported by Tony Fernandes’ Tune Holdings, hopes to piggyback on one of the few domestic sports successes, the AFC Champions League.
2 Unfortunately, the odds are not great. The list of failed domestic sports vehicles is long and led by the Chinese Football League, which saw title sponsor Siemens pull out after a corruption scandal, joining a line-up of well-known brands that have abandoned the league. Other notable missteps include the rebel Indian Cricket League, Australia’s PGA Tour, the Dynasty Cup and the Asian Bowling Tour. Against that is a handful which have succeeded, most notably Japan’s J-League, golf’s Asian Tour and the China Basketball League. “You can’t build Rome in a day,” explains Ben Flint, 141 Sports & Entertainment MD.
“It’s taken the Asian Tour 11 years to become a really solid platform.” Success often depends less on glamour and more on things like sales, client service, strategic revenue creation and sponsorship measurement, along with appropriate marketing and the integrity of managers and players on and off the field.
3 To date, Asian leagues are perceived to deliver less marketing value than their international counterparts, despite the fact that - in countries like Japan and Korea - domestic leagues are often more popular than international ones. “The problem with leagues in Asia is that they over-promise and under-deliver,” says Hass Aminian, business development director, Sportfive Asia. “Domestic leagues believe they can be as good as international leagues in terms of what they offer the consumer, the fan and the sponsor who comes on board.”
4 Two traits are vital to the success of a sports league - a strong domestic media partner and a following in the local press. For the most popular sport in a country – cricket in India, football in China – these two conditions may be met in every case. But once you move onto the second- or third-ranked sport, popularity can wane dramatically.
5 “A strong domestic media partner is the basis on which a league functions commercially, and the platform from which the brands work off,” says Aminian. In the US and Europe, fans demand coverage, media companies compete for rights, and bidding drives the price for rights into the billions of dollars. “Leagues know they will get media support, know they will get coverage. and know the coverage is going to have high production values,” he adds. In Asia, some national broadcasters, for example, CCTV in China, have no competition, obtain rights at bargain prices and exercise them capriciously or half-heartedly.
6 Consistency and integrity are also highly important. Japan’s J-league is a good example of a well-run professional league that is transparent. Contrast that with the Malaysian football league where, because of political considerations, every state is represented. “It dilutes what the league is offering,” says a source. The Chinese Football League has become a PR nightmare due to gambling, corrupt referees and poor levels of play.
7 Neither do agencies and brands always appreciate the intricacies of sponsoring domestic sports. Total Sports Asia group CEO Marcus Luer says: “The trick is how do you interact with the guy who walks through the gate,” says Luer. Some opportunities are obvious, for example, a beverage company obtaining pouring rights at a stadium. Others require creative thinking.
What it means for…
Advertisers
- Sponsorship exists at three levels - league, team or athlete - and each has pros and cons.
- League sponsorship is relatively neutral, regardless of which teams win or lose, but it has less emotional impact.
- Losing seasons can be painful for team and athlete sponsorships.
- Potential sponsors must critically evaluate leagues at all levels. Are there any negatives that will be linked to your brand?
Media owners
- Sports can bring ‘eyeballs’ to any medium, broadcast, print or digital. But does the league understand media? Working with a league is not a one-off deal, and it can become a season-long liability if the league does not understand media needs.
- Some questions to ask: How will the league assist in pre-event publicity and promotion? How will it help during the event in generating content? How will it work after the event to perpetuate fan loyalty?
