Sports Business Evolves Beyond Single Events to Year-Round Value

This conversation, ostensibly about the upcoming Super Bowl and Milan Cortina Olympics, subtly reveals a deeper truth about how major sporting events and their associated industries are evolving--and where the real value lies. Beyond the immediate narratives of ticket prices and ad sales, the discussion highlights the growing importance of year-round media rights, the shifting landscape of advertising categories, and the complex, often understated, operational challenges of global events. Those who can look past the immediate spectacle to understand these underlying systemic shifts will gain a significant advantage in navigating the future of sports business. This analysis is crucial for anyone involved in media, sponsorship, or event management who wants to move beyond short-term wins and build sustainable, long-term success.

The Shifting Sands of Super Bowl Value

The Super Bowl, long the undisputed king of single-day sporting events, is showing cracks in its previously unassailable pricing power, at least in the secondary market. While still one of the most expensive games on record, the significant drop in get-in prices--nearly 30%--from the initial matchup announcement signals a potential recalibration. This isn't just about this specific game; it suggests a broader trend where the immediate, high-stakes pricing of such an event might be less predictable than in years past. The average sold ticket price, while astronomically high, is also noted as being second only to Super Bowl 58, indicating that while the top tier remains robust, the broader market is showing more variability.

This phenomenon, when viewed through a systems lens, points to the increasing importance of year-round media engagement. NBC's strategy, as highlighted by Peter Lazarus, is to position itself as a "year-round sports property" thanks to deals with the NBA and Major League Baseball. This means the Super Bowl, while still a massive tentpole, is now part of a larger ecosystem. The network isn't solely reliant on the Super Bowl's ad revenue; it's leveraging the game to promote its other, ongoing sports offerings. The consequence? The perceived value of a single Super Bowl ad slot might be influenced by the network's ability to deliver consistent eyeballs throughout the year.

"So, get ready for plenty of promotion around the Olympics, the All-Star Game, and NBC's Sunday Night Baseball that will debut later this year."

This shift has a direct impact on advertising. The traditional heavy hitters like autos and studios are being supplanted by tech, consumer packaged goods, and weight loss categories. This isn't just a change in who's buying; it reflects a fundamental alteration in how brands perceive the Super Bowl's audience. It suggests a move away from broad, splashy brand announcements towards more targeted, performance-oriented advertising, especially from tech and CPG sectors that often rely on direct consumer response. The fact that NBC sold out inventory before the NFL season began, even at an average of $8 million for 30 seconds, underscores the enduring demand, but the nature of that demand is evolving. The conventional wisdom that the Super Bowl is the place for any brand to make a massive statement is being challenged by a more nuanced understanding of audience segmentation and media consumption.

Olympic Spectacle: Spreading Thin and Losing Its Spirit

The Milan Cortina Games present a fascinating case study in the challenges of modern global event management, particularly concerning the dispersion of venues and the impact on the "Olympic spirit." While over 1.1 million tickets have been sold, and the executive director calls it a "really good performance," the reality on the ground appears to be a diluted experience. The opening ceremony, a traditional focal point of unity and excitement, is spread across four locations, with the main event in Milan but athlete parades and other elements in different cities.

This decentralization, while perhaps operationally necessary, has a clear downstream effect: a lack of palpable buzz. Athletes like Swiss skier Marco Odermatt are reporting "no Olympic spirit in Bormio at all." This isn't a minor detail; the intangible "spirit" is a core component of the Olympic brand. When it's absent, the event risks becoming a series of disconnected sporting competitions rather than a unified global celebration.

"What I can tell you with absolute certainty is that I am really excited to compete in these games without COVID tests every 24 hours and just the pandemic breathing down our necks. It's a very different situation to go into these games, and that's a wonderful thing."

Mikaela Shiffrin's relief at the absence of COVID-19 protocols highlights another critical factor: the lingering impact of recent global disruptions. While the removal of testing is a welcome return to normalcy, the memory of those restrictions, coupled with the logistical complexities of a geographically dispersed event, seems to be dampening the usual pre-Games excitement. This illustrates how external shocks can have compounding effects on the perceived success and atmosphere of an event, even when core metrics like ticket sales appear strong. The conventional approach of simply selling tickets and hosting events overlooks the crucial element of creating a cohesive, inspiring atmosphere--a lesson that organizers must learn if they are to recapture the full magic of the Olympics.

Sponsorships: The Quiet Revolution in Team Deals

While the Super Bowl and Olympics capture headlines, the underlying financial engine of professional sports--team sponsorships--is undergoing a significant, albeit less visible, transformation. NFL team sponsorship revenue is growing at nearly three times the rate of new team deals, indicating that existing deals are becoming more valuable, or new deals are structured for higher revenue. This 11% year-over-year growth, reaching $2.7 billion, is impressive, but the devil is in the details: average team deals are up, but the number of deals is growing more slowly.

This suggests a strategic consolidation and intensification of sponsorship efforts. Ticketing, once a standard category, has surged to become the second-biggest sponsorship category for NFL teams, after financials. This is a profound shift. It implies that teams are not just selling brand visibility but are actively partnering with companies that can enhance the fan experience directly through ticketing solutions, access, and premium offerings.

"Ticketing is not a new category by any means, but it appears to be spending as never before, to the degree that it's now the second biggest sponsorship category for NFL teams after financials."

The rise of "Ready to Drink" alcoholic beverages as a rapidly growing sponsorship category, with a 54% increase in new deals and teams often splitting previously exclusive alcohol sponsorships, further illustrates this trend. Brands are finding innovative ways to segment and activate sponsorships, moving beyond simple logo placement to more integrated partnerships. This requires a more sophisticated approach from teams, one that understands the granular needs of different industries and can offer tailored solutions. The consequence of this evolution is that teams with the foresight to build these deeper, more data-driven sponsorship relationships will create a distinct competitive advantage, one that is less susceptible to the seasonal fluctuations of a single game or event. They are building year-round revenue streams by understanding and catering to the evolving needs of their partners, a strategy that pays dividends long after the confetti has fallen.

Key Action Items

• Immediate Actions (Next 1-3 Months):
  • Analyze Advertising Spend: Re-evaluate Super Bowl advertising strategies. Prioritize tech, CPG, and weight loss categories if your brand aligns, and explore performance-based metrics over pure reach.
  • Assess Sponsorship Portfolio: For sports organizations, review existing sponsorship agreements. Identify opportunities to deepen partnerships beyond traditional visibility, particularly in categories like ticketing and beverages, focusing on shared value creation.
  • Monitor Olympic Fan Engagement: For Olympic organizers and broadcasters, actively seek athlete and fan feedback regarding the "spirit" and cohesion of the games. Develop strategies to foster a more unified atmosphere, even with dispersed venues.
  • Evaluate Media Rights Strategy: For broadcasters, continuously assess how major event promotions can effectively drive year-round engagement with other sports properties.
• Longer-Term Investments (6-18 Months):
  • Develop Year-Round Fan Value Propositions: For sports leagues and teams, invest in initiatives that provide consistent value to fans throughout the year, reducing reliance on single-event spikes. This could include enhanced digital content, loyalty programs, or exclusive access.
  • Build Data-Driven Sponsorship Platforms: Invest in the technology and personnel needed to offer sophisticated, data-backed sponsorship solutions that cater to the evolving needs of advertisers across various industries.
  • Innovate Broadcast Experience: For broadcasters, continue exploring and implementing innovative broadcast technologies (like wind-mapping graphics) that enhance viewer engagement and offer new avenues for sponsorship integration.
  • Foster Event Cohesion: For global event organizers, critically evaluate venue dispersal strategies. Invest in creating a unified "spirit" and shared experience for athletes and fans, even across multiple locations.