In the world of sports today, corporate sponsorships are becoming more and more important to organizations. While sports may be a game to fans, athletes, coaches and owners will be the first to tell you that sports is a business before anything else. Franchises partner with just about every type of corporate sponsor possible, from credit cards to airlines and everything in between. But how can an organization tell if their newest parnership with a corporate sponsor is the right choice?
Meet Adam Grossman, the President of Block Six Analytics, a consulting firm focused on revenue growth in sports organizations. Grossman graduated from New York University’s Stern School of Business with an MBA in May 2010. Grossman got the idea for Block Six in the summer of 2009 while working as a marketing intern for the Washington Capitals. The company was founded in February 2010 and featured a Web-based application called Partnership Scoreboard.
The Partnership Scoreboard allows any sports organization to analyze the value of sponsorships and demonstrate new engagement opporutnities for those partners. The application displays the results from the company’s Corporate Asset Valuation Model to show how corporate partners can generate new revenue and meet sponsorship goals. The application allows for organizations to showcase past partnership successes, demographics, inventory and activations elements and staff highlights.
“Sports organizations use the Partnership Scoreboard to both sell new partnerships and increase revenue from existing partnerships by showcasing different inventory items and clearly articulating the value corporate partners’ sponsorship,” Grossman said. “In addition, our clients recognize they were spending hours creating sales documents, in-season reports, and end-of-year recaps. The Partnership Scoreboard shows how targeted impressions allowed partners in different industries to generate new revenue and meet these company’s marketing goals on a daily, weekly, monthly, and annual basis.”
With the Partnership Scoreboard, Grossman believes that the quality of sponsorships is more important than quantity.
“Our model focuses not on the number of impressions but the quality of each impression,” Grossman said. “More specifically, we put a dollar amount on how sponsorship inventory items drive new sponsor revenue and help sponsors meet their organizational goals.”
Through the Partnership Scoreboard, clients have access to the corporate asset valuation model created as part of the application. How exactly does the model work? A professional sports stadium has endless opportunities to make money because of all the people watching games at the stadium in the stands and on television as well. For example, a company might have the opportunity to purchase advertising space on the walls of the stadium. Why would that be valuable? Any time a player hit a ball in the direction of the ad, viewers watching at home would see the name of the company. The trick is to make impressions on those viewing at home. Grossman’s model analyzes the value of those investments.
Grossman is also the co-author of The Sports Strategist, which identifies, examines, and advocates eight critical priorities that the sports strategist must understand to be successful in the modern sports organization. Also contributing to the nook is Block Six Board Member Irv Rein and ESPN Director of Marketing and Social Media Ben Shields. The book is expected to be published in early 2014.