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This Week in Sponsorship
The media impact of new ownership for the Perth Wildcats
Good Morning,
Welcome to the Scout Newsletter, an exploration into the data behind the Australian Sport and Sponsorship Landscape.
This Week in Sponsorship is a weekly wrap up of the latest deals and renewals with a special focus on the Deal of the Week or other noteworthy sponsorship related topics. Check out previous articles
Enjoy!
27th November 2024
Deal of the week
Perth Wildcats x Southern Cross Austereo (SCA)
Brand: SCA (Mix 94.5, 92.9 Triple M Perth, LiSTNR)
HQ: Sydney
Category: Media
Deal type: New
Context: After Sports Entertainment Group (SEN) sold their majority share in the Perth Wildcats earlier this year, the club has struck a new media deal with major competitor SCA (WA) and associated stations Mix94.5, 92.9 Triple M and LiSTNR. As part of the agreement, Mix94.5 will have a heavy brand presence at all Wildcats home games at RAC Arena.
This newsletter typically explores the positive impacts of Rights Holders on their Brand partners, but sometimes equally as important is what a partner might bring to the table. This is no more obvious than with media partnerships, that have the ability to influence the coverage, sentiment and reach of a league or club. This week we explore the tenure of SEN’s ownership of the Wildcats (from 2021 - 2024) through this lens and why the club might be poised for a period of growth under new ownership.
The importance of Radio
According to Commercial Radio & Audio (CRA) in 2023, over 79% of people in Australia aged 12 and over listen to the radio every week (around 17 million people).
Whilst just one of the ways in which fans consume coverage of sport, Radio serves an important marketing purpose for leagues and clubs. A 2022 media content consumption study by the Australian Government found that a majority (56%) of people consumed news through Radio, equivalent to that of FTA TV and more than any other medium.
In general, how do you currently access most of your news and/ or current affairs?
Although often hard to quantify, there is no doubt an indirect relationship between media coverage and a team’s popularity/fandom, audiences, attendances, memberships and brand perception, all of which directly impact the value received by their sponsors.
The impact of SEN’s takeover on Wildcats’ coverage
After SEN’s purchasing of the Wildcats in 2021, other radio stations began drastically reducing their coverage of the team, presumably so as to not support the commercial activity of a rival network. Whilst coverage on SEN skyrocketed, the relative difference in audience sizes meant that, on balance, West Australians were exposed far less to Perth Wildcats content on the radio; hurting the overall coverage, marketing and profile of the team.
Between 2019 (pre-SEN takeover) and 2023, mentions of “Perth Wildcats” on SCA’s combined stations in WA plummeted nearly 80%, from 936 total mentions to 201.
Source: Meltwater media monitoring
To understand the true impact of this decline, we must look at the relative size of these stations in the radio landscape. SCA have the largest share of listenership of all radio networks in WA, accounting for 28% of all radio listeners. SEN WA’s share, on the other hand, is too small to be reported in the radio ratings survey.
The total reach of “Perth Wildcats” mentions on SCA stations in Perth dropped from over 27M in 2019 to 4.6M in 2023, a decline of over 23M cumulative listeners.
Moving into a new ownership era, with the club now having the backing of the largest radio network in the state, will we see a reversal of these trends, boosting the future profile and coverage of the Wildcats beyond that seen before the SEN purchase?
This Week In Sponsorship: Notable deals
NEW
🎾 Chinese consumer electronics company Haier has been unveiled as the new official TV and appliance partner of the Australian Open, in a deal spanning three years.
⚽️ Football Australia has announced a landmark partnership with Hahn, which will see the brand become the naming rights partner for the Australia Cup. From 2025, and for the next three years, the Australia Cup will officially be known as the “Hahn Australia Cup”.
🏀 Perth Wildcats have announced a new three-year partnership with media giants SCA Western Australia. The partnership will see the Wildcats partner with SCA across Mix94.5, 92.9 Triple M and LiSTNR. As part of the agreement, Mix94.5 will have a heavy brand presence at all Wildcats home games at RAC Arena.
🏐 Health focused food company Forbidden Foods have signed a sponsorship deal with the Melbourne Mavericks netball team to enhance visibility among health-conscious consumers.
RENEWALS/UPGRADES
🏉 Rugby Australia and Defender (Jaguar Land Rover) have announced the renewal of their major partnership for another three years, until the end of 2027. Defender has been a major partner and official vehicle of the Wallabies since 2018.
🏉 The Western Bulldogs and ASICS have signed a new five-year agreement, which will see the global sportswear brand remain the Club’s official apparel partner until at least the end of 2028.
⚽️ Melbourne Victory have announced the continuation of its partnership with health insurer AIA Australia, who are now the Club’s Official Life and Health Insurer, and Health and Wellbeing Partner for the 2024/25 season, extending through to the 2025/26 season.
⚽️ Western Sydney Wanderers FC have announced that G&S Logistics has elevated their sponsorship becoming the official player sponsor for star forward Brandon Borrello and head coach Alen Stajcic.
🏀 The University of Canberra Capitals have announced the RCL Group as a continuing major sponsor for the club, for the 2024/25 WNBL Season. RCL Group is a privately owned development company that has been focused on building vibrant residential communities in both Australia and New Zealand since 2013.
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