Each morning begins with a perusal of the trades. Keeping up with the business of sports marketing requires a fair…
Winning During the MLB Lockout: A Sports Sponsorship Strategy for Brands
Major League Baseball’s current collective bargaining agreement is going to expire on December 1st. An agreement before that date isn’t happening, so it looks like another lockout will impact the 2027 season. A lockout has a real and measurable impact on brands whose sports sponsorship strategy is tied to a partnership with a local MLB franchise.
From a sports marketing perspective, there is a lot to like about partnering with a Major League Baseball team. The game is popular, the season is long, the fan base is somewhat upscale, and the game itself offers ample opportunities for fan engagement.
Many brands wisely buoy their 2nd and 3rd-quarter marketing strategies with a sponsorship of a major league baseball team.
WHAT SPONSORS SHOULD DO WHEN MAJOR LEAGUE BASEBALL STRIKES
The first thing you should do is review your contract. Note any contractual reference to a work stoppage and abide by these terms as you formulate your next steps. At this point, it’s not a bad idea to have an idea of what you’d like to do based on your brand’s unique marketing conditions and goals.
After reviewing your contract, I would meet with the team to hear their contingencies. There is no doubt that they will endeavour to provide revenue-saving solutions to their partners. Depending on the particulars of your contract, they may offer incentives to retain the money for future considerations or additions to the existing contract. They most certainly should be considered, but only after thorough evaluation of what you need to accomplish as a brand.
It’s important to know that the longest work stoppage in history was in 1994-95. That lasted 7 ½ months and resulted in the cancellation of 948 games. In 1985, a two-day work stoppage forced the cancellation of 25 games.
Pundits seem to think this one will last 2 to 4 months, with difficult issues relative to players’ salaries and team budget inequalities needing to be resolved. The hope is that this next work stoppage will be similar to the last one in 2021-22, which delayed and shortened spring training but did not force any cancellation of regular-season games.
I’m not a pundit, but I would bet the over on this one.
The most important point I want to make here is that sponsors should not wait until games are missed to understand their options.
Yet another step a brand should take is exploring alternative means to invest this money in an impactful sports partnership. The length of baseball’s season gives you options, but options you need to start exploring now.
Spring: March Madness, the end of NHL and NBA, MLS soccer, and PGA Golf
Summer: College World Series, WNBA, MLS, PGA Golf, NFL pre-season
Fall: NFL, College Football, NHL
If the primary driver of your sponsorship is hospitality, engaging another team is mandatory (and easy). This does require careful negotiation and good planning, as the nature of a work stoppage is fluid.
I’ll reiterate my self-serving advice that a pivot of this nature is best done with the assistance of a sports marketing professional.
ADDITIONAL ADVICE FOR MLB SPONSORS DURING A WORK STOPPAGE
Unfortunately, work stoppages in Major League Baseball are not all that uncommon. In fact, Major League Baseball has more season-impacting labor disputes than any other North American professional sports league.
Sponsors need not weigh in or be vocal about a work stoppage. It is what it is, and there is little to no gain in taking sides. Your goal should be to remain visible either through alternative sports opportunities or by other means, like social media or community engagement. The goal is not to abandon the sport. The goal is to keep the brand visible without relying on game day activations, digital engagement, or broadcast impressions.
If you feel that you absolutely must execute a baseball-centric campaign during the work stoppage, here are a few ideas that your brand could execute in place of a work stoppage:
- “Favorite baseball memories” campaigns
- Youth sports spotlights
- Community coach or volunteer recognitions
- Baseball trivia
- Fan photo contests
- Charitable campaigns tied to local recreation programs
This will keep your brand and fans of the game engaged. Done properly, it will differentiate your brand from other sponsors who simply move on or stand pat.
HOW SHOULD A BRAND EVALUATE A TEAM’S MAKEGOOD PROPOSAL?
When a team or media entity proposes a make-good for a missed deliverable, the client should not look at this as a simple one-for-one trade. A missed promotion or ad is not “made good” with extra social posts or more website impressions.
It’s important to evaluate make-goods on audience size, quality, and engagement. I don’t blame teams for trying to do what they can in difficult circumstances, but that’s not a burden for the paying sponsor to carry. Sponsors need to seek opportunities when promised deliverables are not executed. A proper make-good needs to go above and beyond the contract term.
The question should not just be, “What are we getting instead?” It should be, “Does this still help us reach the audience we paid to reach?”
YOUR RETURN TO PLAY STRATEGY
It’s important that brands also give careful consideration to when the teams return to play. It’s human nature just to be relieved and move on, but it’s strategically advantageous to plan for this.
My advice to sponsors is to lean into this opportunity with creative messaging that helps re-engage the fan base and celebrate the return of baseball. The consumer looks favorably on brands that are associated with positive messaging. It’s also important to closely monitor game attendance, broadcast ratings, and digital engagement to ascertain if there is a significant drop-off that needs to be addressed with your team partner.
DO YOU NEED HELP WITH YOUR MAJOR LEAGUE BASEBALL SPONSORSHIP?
There is a great deal of certainty about what is being described as an inevitable work stoppage in Major League Baseball. Sponsors should take this time to evaluate if their sponsorship is wholly reliant on games or a deeper connection with fans.
A good sports sponsorship strategy includes both.
The keyword for all MLB sponsors should be PREPARATION. Take a proactive approach to your walkout strategy and minimize the negative impact it will have on your brand. Review, plan, and pivot to this unfortunate reality of doing business with a professional sports franchise. In life and in business, problems are opportunities. A good plan will protect your investment, preserve your relationships, and keep your brand connected to your team’s most important asset: their fans.
Ed has bought, sold, and consulted on sports sponsorships for over 30 years. If you’re looking to learn more about how you can make your sponsorship investment more impactful or if you’d like Ed to review your partnership efforts, contact him at ed.olsen@linedrivesportsmarketing.com or call his cell at 602.284.6722
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