Why is sports sponsorship valuable? What factors make it a premium asset for brands?
Sure, the ability to command large, broad, often live audiences plays a major role. But as marketing has matured, the unique value proposition for sports has only grown and has become better understood and appreciated.
Sara Toussaint has seen this play out throughout her career, with experience on all sides of the sports and athlete sponsorship complex. She’s seen fan affinities drive business outcomes through partnerships, she’s been part of tactics that activated partnerships during emotionally charged moments in live sports, and she’s seen new, once vastly undervalued opportunities emerge in women’s sports, which perhaps coalesce all of the above factors in driving the premium value of sports sponsorship.
Toussaint, who today is co-CEO of global women’s soccer-focused athlete management agency TMJ, spent nearly a decade at Wells Fargo driving the bank’s sports sponsorships. Partnerships in sports were not on an island; they were part of Wells Fargo’s overall marketing plans and expected to drive tangible, compounding cross-channel results. Standard wisdom suggests sports fans will support the partners of their favorite teams, especially when it enhances their own fandom. Toussaint explained how this played out for Wells Fargo’s sponsorships in pro and college sports.
“On the Wells Fargo side, it was how do we support the marketing initiatives that the CMO had set in place?” said Toussaint, who spent time at Major League Baseball and Major League Soccer, among other stops, before her tenure at Wells Fargo. “We would use sponsorship as a way to augment the existing media plans and marketing strategies for everything from the websites and store, etc.
“Then, from the brand side, what the property really wanted [was for] Wells Fargo, especially around the Mexican national team and Major League Soccer, to promote those properties here in the US. So to have the Mexican national team debit card on every Wells Fargo ATM was a huge win…there’s a lot of data out there on consumer affinity to brands that support their favorite teams — and we definitely saw that in terms of the number of accounts that were opened, and we could tie that to a Mexican national team card, a Florida Gator card to a new account. Like, we could say on that account that was the card that they requested, and we can presume that we had done marketing there that had caused that demand.”
It’s not just about brand associations and tailing affinities, though. Part of the magic of sports sponsorships is the inherent preponderance of high-impact moments and campaigns. Times when fans are excited, their hearts racing, and their attention focused. That feature of sport is an opportunity for brand partners to make their sponsorships active, riding the wake of the emotional highs, augmented by the real-time nature and inherent connection of sports and social media.
Toussaint had a hand and a front-row view of these opportunities, with Wells Fargo’s partner, the national soccer team for Mexico, competing in the World Cup. She described a clever, provocative campaign that saw American soccer hero Landon Donovan expressing that he’d be cheering for Mexico, and also recounted how Wells Fargo made the most of their sponsorship during the matches and moments themselves.
“We did a lot of live social moments [during the World Cup],” she said. “Our social media team at Wells Fargo had a control room, and there were probably nine screens they could monitor, whether it’s Twitter or Facebook. We had the World Cup up while Mexico played, and we pre-programmed creative and copy as much as possible, so as things happened during a match, we were ready with a post, or we were ready to then supplement, like they just won, ‘Get your Wells Fargo Mexico debit card’ or whatever, and do that in real time. So that social media piece was a really big win for us around the World Cup.”
Social media wasn’t just a way for a brand like Wells Fargo to enter the conversation alongside the properties they were sponsoring, it also gave emerging sports, leagues, and athletes a more level, meritocratic playing field to fuel their rise. These catalyzing elements helped several new sports and leagues find footing, but the impact has been (and continues to be) most evident in women’s sports.
Toussaint recounted to me how a past colleague, at the time, saw the opportunity in women’s sports as a growing and undervalued asset. She looked at the rising National Women’s Soccer League (NWSL), and it was the social and digital channels, in particular, which stood out.
“There were so many compelling reasons for sponsoring NWSL,” said Toussaint, who is also a co-owner of two pro soccer teams, the North Carolina Courage in the NWSL and Querétaro FC in Liga MX (Mexico’s top-flight men’s pro soccer league). “For me, the number one reason was the digital footprint and engagement footprint. I was like, Wow, this could be a really cost-effective way to get social media engagement.”
With more women’s sports and athletes commanding attention and audiences on social and digital media, the legacy media began catching up, with coverage going from 4% not long ago to around 15% today, Toussaint noted (citing reports from Sports Innovation Lab, among others). While the early sponsors have been followed by more brands, but the scope and scale of women’s sports still pales in comparison to most of the more mature, generations-old men’s sports properties and its traditional sponsorship assets.
That’s an opportunity, though, said Toussaint.
“With the women, aside from the data, we can also say, Look, it’s not as saturated as men’s sports, so you’re going to have a lot more awareness,” said Toussaint, who heads TMJ’s TMJ Catalyst, which focuses on connecting TMJ’s athletes with brands and business leaders for deals. “You have a lot more white space to play in. We talked about brand loyalty, you’re going to have a lot more of that. You’ve got new categories you can play with. You can try new things, and it becomes even more of a white space because you’re not competing against brands that are typically in this landscape. So that’s a big piece.”
The combination of more media coverage, more brand partnerships, bigger audiences, and more fan interest has turned women’s sports into an asset class that’s increasingly attracting institutional capital and high-net-worth individuals. That infusion and energy will only accelerate the flywheel, driving more growth and more capital in a virtuous cycle of value creation. The bigger fan bases, superstar athletes, and increased cross-channel footprint are all good signs for the continued rise of women’s sports — but it’s that investment that Toussaint cited as perhaps the most impactful factor showing the world, especially the business world, that women’s sports are far from the more charity-driven, corporate social responsibility play the properties may have been a generation ago.
“People follow wherever the money goes, and you’re seeing big money get into women’s sports, and you’re seeing billionaires buying [in],” she said. “And for whatever reason, people think billionaires are like the smartest folks in the room…That news is now on CNBC, and marketers are watching CNBC, right? So you’ve got exponential input that’s coming into the space, and that’s really important. Where the money goes, especially big money names, you’re going to have the media following, and you’re going to have the marketers follow, too.”
The marketers are here. The value proposition for women’s sports is undeniable. And the new paradigms in sports business will favor women’s sports, with its strong social and digital game. As sponsorship further appreciates elements beyond eyeballs, it’ll be the sports properties that can deliver activation and affinities, and the brands that can capitalize on sports’ special elements and emotions that will turn potential value into kinetic outcomes.
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