Navigating an NFL Sponsorship Budget
- February 2, 2024
- SponsorPusle Staff
In the dynamic world of sponsorships, where brands strive to make impactful connections with their target audience, the NFL stands out as a powerhouse, drawing attention, excitement, and engagement for dozens of brands annually. In return, this results in massive revenues for the league.
According to recent reports, the sponsorship revenue for the NFL skyrocketed to an all-time high of US$2.7 billion during the 2022/23 regular season, with the 32 teams contributing a staggering US$2.05 billion alone — a substantial leap from the $1.8 billion recorded in the previous season.
We looked at SponsorPulse data to unpack an NFL sponsorship's value and potential impact and reveal why such a hefty cost of admission can often make sense for brands. Here’s what we found.
A Colossal Reach
The NFL is not just a sports league; it's a cultural phenomenon. SponsorPulse data paints a vivid picture of its immense popularity, boasting an audience of over 134 million people in the US.
More than half of them express excitement for the league, and one in five fans admits to being more likely to favor or purchase products endorsed by the league's sponsors. Now, that's the kind of engagement every brand dreams of.
Breaking the Bank or Breaking Through?
But amidst the cheers and touchdown celebrations, a crucial question arises: How much does it cost to be a top-tier player in this sponsorship game?
SponsorPulse's Opportunity Value is a tool that harnesses consumer and deal data to estimate the investment required to secure a spot in the top 25% of a property’s brand sponsors. There are brands that will invest much more to put their name on the building, and those who will invest much less just to have a presence, but the Opportunity Value provides a guideline of what it takes to be in the top 25% of sponsors.
And for the NFL? Brace yourself: SponsorPulse's Opportunity Value comes in at a staggering $176.9 million entry fee for that coveted top quartile.
It's a substantial figure that speaks to the immense potential and reach of the NFL — especially when comparing it to other properties.
Why the NFL Plays in a League of its Own
According to SponsorPulse's Opportunity Score, the NFL is in a league of its own, leaving the NBA and MLB fighting to catch-up.
However, the absolute dominance of the NFL comes with a caveat — breaking through this highly competitive market demands a significant investment premium in activation strategies.
Sportico's data from the 2022 season supports this narrative, revealing that the NFL not only leads in sponsorship revenues but does so with a substantial margin.
With $1.64 billion in sponsorship revenues, the NFL outshined competitors in 2022, like the NBA ($1.19 billion), NHL ($753 million), and MLS ($677 million).
Navigating the NFL Sponsorship Budget
Investing in an NFL sponsorship requires careful consideration of brand objectives, target consumers, geographic markets, and category relevance.
The hefty price tag demanded by the league must justify the brand's strategic goals to ensure a meaningful return on investment. Are you an international or national brand looking with a mass awareness goal, or a brand looking to connect with passionate football fans? If so, this could be the property for you.
It's crucial to note that while the numbers may seem daunting, they reflect the immense exposure and engagement the NFL promises.
However, a measured approach is key — not every brand needs to be in the top quartile to reap the benefits. There are also team-level sponsorship deals that command a more, shall-we-say, digestible premium.
A well-thought-out strategy that aligns with the brand's identity and resonates with the target audience can yield significant returns without necessarily breaking the bank. Think of it as calling the right play at the right time. A well-executed activation can amplify your brand message, drive engagement, and justify that investment.
Does an NFL Sponsorship Work?
Based on SponsorPulse's Impact data that measures sponsor awareness and impact among those aware, a sponsorship of the NFL has the potential to deliver real business results. Across 20 league partners evaluated, the league delivered:
Average Aided Sponsor Awareness of 63%, among NFL fans
Average Net Increase in Brand Favorability of 41%, among those aware
Average Net Increase in Purchase Intent of 37%, among those aware
Impressively, all of those metrics are up +2% respectively versus the previous year. These prove that despite the investment associated, a sponsorship of the NFL can deliver meaningful results.
Taking the Field with SponsorPulse
So, is NFL sponsorship a wise investment? The answer depends on your brand's goals, risk appetite, and activation prowess. But one thing's clear: it's a high-stakes game, demanding a well-defined strategy and the resources to execute it flawlessly.
Understanding the market and leveraging data-driven insights can pave the way for successful and impactful partnerships. To navigate the world of sponsorships and make informed decisions, create a free SponsorPulse account.
