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As sports increasingly gets commercialized there is a real scramble by companies to get their names on the merchandize of top teams, or top players for that matter. Brands now literally throw ridiculous sums of money just to outbid their competitors in winning over a high level sports team or individual.
The first question on the mind of various pundits and fans alike who hear reports of these vast sums of money directed at athletes is whether such a move is actually worth it? Companies brand for one major reason, and that is for increased visibility of their product in order to promote sales, attract new customers and encourage customer retention. When I see my sporting Idol using a particular product over and over again it no doubt registers in my subconscious a need to follow suite.
How effective is it? Perhaps a great example would be the crash in the stock value of Coca-Cola after he shoved the said drinks aside and opted for water during a press conference at the Euro's earlier this year. While such a move definitely won't be fatal for such a huge brand, the fact that it affected its value Worldwide and had millions of people talking about the incident shows why brands are tumbling over big sporting names.
But which is the more effective strategy between individual branding and team branding? From the surface, it does seem like the teams have a better case argument due to their longevity in terms of continuity and performance. Players afterall experience peak periods before they inevitably decline and retire. Teams on the other hand continue in perpetuity and can remain at the top for longer with the right investments in their personnel.
It seems these days though that there are individuals whose marketability surpasses that of entire teams. We essentially have Icons who can lay claim to be bigger than entire organizations. Using Cristiano Ronaldo as an example again, his time at Juventus brought massive publicity to not only the club but Serie A in general. His departure however, has pretty much returned things to the status quo, ultimately highlighting the effect of one individual on an entire League. In the NBA a few players are so good that teams build their entire structures around them from their On-field play to their off-field marketing strategies. These players are known as franchise players.
Teams have realized the importance of having superstar individuals, and are more than happy to share the spotlight with such big name players. The WWE for instance seems to out look for its mega-popular superstars of the attitude era when they experience rating declines and are in need of a boost. Teams now experience some sort of a symbiotic relationship with individual players that seems to benefit both players.
There is actually no need for a superiority contest between which endorsements offer the most benefits, as it is obvious that brands are willing to pay both ways as long as the keep enjoying increased visibility and sales. In the long run however, a more sustainable brand would be one that can rely on the long term viability of its sponsorship.
