Hi there,

Welcome to the Scout Newsletter, an exploration into the data behind the Australian Sport and Sponsorship Landscape.

This week we unpack Venue Naming Rights deals in Australia, and the implications for the Sharks as they look for a new partner for Endeavour Field.

Enjoy!

The Scouting Report

Context

• After 6-years as Naming Rights partner of Endeavour Field (Shark Park), PointsBet announced it would not be extending next year.

• PointsBet Australia CEO, Andrew Catterall, expressed the positive partnership they had with the Stadium but acknowledged the evolving community attitudes towards gambling advertising. “Stadium naming rights and perimeter signage are no longer suitable for the category in this changing landscape” he stated.

• Using Scout insights, we explore some potential targets for Shark Park’s next Naming Rights partner.

Category targeting

Using Scout’s Deals Database, we can identify categories that have shown an appetite for Stadium Naming Rights deals in the past. Here we see significant over-investment from Banking, Insurance and Telco. Why is that?

Venue deals are often seen as a safer bet when it comes to risk of damage to Brand reputation. Partners get access to the same/similar fans but stay one-step removed from issues of integrity or poor player behaviour that can affect Clubs and Leagues.

It’s no wonder that categories such as Banking, Insurance and Telco, where Brand reputation is paramount, show such outsized investment in stadium naming rights.

Audience matching

If we look at Banking specifically, who might be a fit for Endeavour Field, whose audience profile is heavy in NSW (and to a lesser degree QLD) and throughout the winter months?

Looking at major banking brands with weaker sponsorship share in NSW, Endeavour Field might represent a strong fit for Great Southern Bank, if they are looking to grow their national footprint. Budget may also be available, with their Brisbane Heat partnership coming to an end.

NSW sponsorship share of the Banking category is currently dominated by CommBank (Western Sydney Stadium) and Westpac (NRL and NSWRL). Of the Big 4, ANZ and NAB also lack representation in the NSW market.

Whilst there is evidence to support targeting a Banking sponsor, there are a number of factors that may limit the success of this approach:

• The Club owns the stadium and therefore any deal with the venue is inextricably linked to the Sharks, dampening the potential risk-mitigation effect that a venue deal provides.

• A Bank may not want to put its name on a venue that has been associated with a Betting Brand for the past 6 years.

So what other angles could the Sharks look to explore?

Competitive tension

Earlier this year, and on the other side of town, the GIANTS announced a 3-year deal with utilities company ENGIE for the naming rights to Sydney Showground Stadium. The deal propelled ENGIE to top spot by sponsorship market share in NSW, shaking up the Utilities category.

Should the Sharks consider approaching one of ENGIE’s rivals in a move to help them protect market share? AGL in particular has next to no sponsorship presence in NSW. Or, what better match is there for Shark Park than the aptly named Pacific Blue - who just entered the sponsorship market with the AO this January.

Category targeting, Audience matching and Competitive tension analysis are just some of the ways can help Brand’s or Rights Holders with their next sponsorship decision.

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