SponsorUnited data illustrates purchasing power variations across major sports markets
![SponsorUnited data illustrates purchasing power variations across major sports markets](https://cdn.sanity.io/images/rdxk7lfa/production/a7ecfa85c0308acf13ad33f340212766782fdeeb-5000x3333.jpg?w=1200&h=800&auto=format)
The GIST: On Wednesday, SponsorUnited (SU) released its first “State of the Market Marketing Partnerships Report,” offering unparalleled insight into marketing dollars’ reach in various sports markets. The research shows that while the average team sponsorship deal cost $935K in 2023, the dollar goes further in some locales than others.
The report: The report analyzed four North American metropolises — NYC, LA, Chicago, and Toronto — and three burgeoning U.S. cities with populations under 1M — Charlotte, Austin, and Las Vegas. It also examined London and Madrid, two of Europe’s largest sports markets. Data was gathered about the NFL, NBA, NHL, MLB, and MLS teams from North American cities, ultimately revealing the following findings:
🏙️ The bigger the city, the more expensive the deal. The $935K value for a sports team deal is a simple average between major cities’ pricier ones and less costly partnerships in mid-size areas like Austin, Texas, where a deal costs 40% less than in LA.
🤝 Regional partnerships are effective. Brands with local presence see the highest impact of sponsorship dollars in smaller cities. For example, Austin FC leverages local partnerships more effectively than MLS teams in NYC, LA, or Chicago.
- SU founder and CEO Bob Lynch told Sportico, “It’s not seen as uniquely important for a national advertiser to be in that [smaller] market unless it has a certain industry that’s important to them—like Nashville and healthcare.”
⏰ Local sponsorships lead to long-term deals. Lynch added that major players in smaller markets invest in “tighter” long-term relationships with teams. In 2023, sponsorship measurement platform Vision Insights revealed that local fans are 3x more likely to emotionally connect with their favorite team’s sponsor, making local partnerships especially astute investments.
The women’s sports angle: In the report, SU advised brands to sponsor WNBA and NWSL teams, which — despite exponential growth — still haven’t reached their full sponsorship potential. Local opportunities are also very fruitful for women’s leagues, which typically offer a less expensive entry point for smaller companies like The Honey Pot, a sponsor of the W’s Atlanta Dream.
- Local marketing dollars are where women’s teams can make their moolah, and the healthcare industry seems especially willing to pay up. The NWSL draws lucrative healthcare sponsorships across the league, especially at Bay FC, where Sutter Health shells out a league-high $2M for its front-of-kit sponsorship. Health is wealth.
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