Businesses that place ads in college football programs are using the sport as a

Advertising and sports go together as much as peanut butter and jelly.

Every aspect from stadium signs to T.V. commercials plays a role. Advertisers paid a record breaking $2.25 million for a 30 second commercial during this year’s Super Bowl according to Business Weekly. The stakes are high and advertising money helps the sports world go round.

As anyone who likes (or dislikes) sports can indicate, it is impossible to turn on the television and not find a sporting event. Advertising also is universal. No matter where you look, someone or some company is marketing their product; it's unavoidable.
Sports figures are all over advertising; they are the spokesperson for apparel and drink companies to products completely unrelated to their sport, such as watches and cars.

NHL teams have sold advertising on the boards that surround the ice and have permitted teams to sell logos to appear on the ice itself. Though the NFL does not allow corporate advertising to appear on playing surfaces, Pepsi will pay the league $180 million over the next four years for the rights to place Gatorade coolers, cups and towels with the sports drink maker's logo on sidelines according to Business Weekly.

Colleges also rely on advertising revenue for a variety of reasons. The Ohio University Bobcat athletic department generates millions of dollars of marketing exposure for the university on national, regional and local levels. As of September, Ohio University had 31 different corporate partners.

Football games on ESPN, newspaper articles and radio and television reports from around the country bring awareness and consideration to the university. All forms of marketing aid in enrollment decisions by students, and in turn, boost funding steadiness for all areas of the campus.

Although athletics provide many benefits, it comes at a cost to fund a Division I-A program. Athletics, like other campus units, aren’t financially self-supporting. Interestingly, only five percent of Division I athletic programs generate a profit. Therefore, universities have to find way’s to keep funding the coaching staff, stadium’s, travel and other expenses.

The financial implications of advertising in sports cannot be ignored. Major League Baseball tried to take it a step too far. In 2004 Columbia Pictures and Marvel Studios struck a deal that would place webbed logos of the upcoming film "Spider-Man 2" on bases and on-deck circles. Columbia thought it was an excellent idea.

"This is the perfect alliance between two quintessential national pastimes… baseball and movie-going," Geoffrey Ammer, president of worldwide marketing for the Columbia TriStar Motion Picture Group, said in a statement.

But others saw this as just another example of corporate greed.

"Some will say this reinforces the convergence of sports and entertainment, while others will suggest the only thing converging is bad taste," said David Carter, principal of The Sports Business Group, a sports marketing firm.

In the end the reported $3.6 million deal was axed and baseball purists rejoiced. Chalk up one win for the purists.

Greg Polgar, Director of Marketing for Ohio University athletics, says the key is having multiple partnerships with the corporations, but not to over do it.

“The average fan takes offense to a sport that effectively uses its players as walking billboards. Our goal is to find that fine line that makes everyone happy,” Polgar said.

In truth, the sports world is only mirroring the rest of society. Beverage companies often pay schools to allow installation of their vending machines. Video game publisher Activision and Nielsen, which measures television ratings, formed a partnership to monitor corporate advertising in video games.

In the end it appears that the 21st century has created an un-identifiable line for advertisers. As we move forward the line will only continue to be blurred unless some sort of precedent is set by the sports themselves.

The sports industry will continue to see an influx of money from new sources, shifting power dynamics in college sports, more widespread use of emerging technologies, and a greater focus on broader societal issues. Our annual sports industry outlook explores how these trends could create new opportunities and challenges for sports organizations, leagues, owners, teams, players, and fans.

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Keeping fan experiences at the center

By the end of 2021, we saw most professional sports leagues and college athletics return to a relative sense of normalcy, with full seasons and live fans. We even got to experience the Tokyo Olympic and Paralympic Games. Hopefully, we are heading towards a future where empty stands, “bubbles,” and shortened seasons are no longer challenges. It has taken an enormous amount of planning and effort to get to this point, with the return to smooth operations dominating the efforts of many leagues, owners, teams, and athletes. When pandemic-era adversities fade, we can bring their lessons and innovations forward into a new future.

Our 2021 outlook highlighted the need for sports organizations to seek new and varied revenue streams and ways to forge deeper fan connections amid the pandemic. We also underscored the need for greater focus and action on equity and justice issues regarding race, gender, and LGBT+. We have seen some progress in this space, but there is more to do.

We also see trends and opportunities that had been somewhat dormant during the pandemic emerging over the next few years. They have the potential to shift centers of power in the sports business, create massive new possibilities for growth, and cross-pollinate with each other. 

Our sports industry outlook takes a closer look at these five trends:

• We will see the blending of the real and digital worlds accelerate, with growing markets for data capture and analytics, esports, non-fungible tokens (NFTs), and immersive technologies.
• College athletics will see some of its biggest changes ever, with student-athletes exercising more self-determination.
• Blockchain-enabled innovations have a chance to open entirely new markets and options for fans beyond simple collectibles.
• Sports betting has entered the mainstream, and companies will continue their relentless pursuit of new customers.
• The role and duty of sports in society will continue to receive increased attention, with a focus on sustainability and mental health.

Download the full report to learn more about the impacts of sports industry trends, key actions to take, and critical questions to ask.

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Pete Giorgio

Global and US Sports Practice Leader

Pete, a principal with Deloitte Consulting LLP, leads Deloitte’s Global and US Sports practices, serving multiple sports clients. His main areas of focus are strategic growth, customer acquisition, di... More

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