• Loading stock data...
Saturday, February 8, 2025

Brands Pivot On Marketing Efforts Amid Coronavirus Cancellations

  • Marketers may choose to remain quiet and absorb losses as COVID-19 response intensifies.
  • Impact of billions of dollars in media, sponsorship, and fan activation investments remain up in the air.
Credit: Thomas J. Russo-USA TODAY Sports

A global outbreak of Coronavirus has brought much uncertainty to the sports world, and by association the brands that use marquee events to build a rapport with fans.

The consensus is the financial impact of COVID-19 will not be known until a future date, but losses due to leagues’ postponement and cancellation of events are already in the billions of dollars – between media rights deals, brand sponsorships, ad buys, and planned on-site activations.

FOS REPORT: 54.5% of industry executives believe that it would be at least 60 days before leagues resume play.

Marketers are now expected to mobilize contingency plans that rely heavily on digital and social media channels to target consumers where applicable. Some may choose to remain quiet altogether and take any financial hits.

“I think there’s going to be some understanding that now may be the right time to support your neighbor and make sure the world is sort of steady back on its feet before putting a whole lot of brand messages out there,” Tyson Webber, president of experiential marketing firm GMR Marketing, said.

There has been no shortage of sporting schedule changes or cancellations due to Coronavirus. But until this week, events have been smaller in scale, Webber said. 

The NCAA announced Wednesday that this year’s men’s and women’s DI basketball tournaments would be played with only essential staff and family in attendance. The NBA also became the first professional sports league to suspend regular season games. The NHL, MLB, and MLS all followed suit on March 12. 

Coronavirus’ impact has also been felt across global esports competitions and in international soccer leagues, with UEFA – Europe’s official governing body – said to be considering the cancellation of both the Champions League and Europa League, SkySports reports.

“I think you’re starting to see that tide turning a little bit when we talk about the NCAA potentially holding its tournament without fans and the NBA suspending its season,” Webber said. “This is evolving so quickly that it’s going to be hard to understand the impact of it until some time. In consulting conversations with our clients, they all feel that what is happening is right in the face of what the country and the world is going through.”

READ MORE: NCAA Faces New Challenges Following Decision to Hold March Madness Without Fans

Most media sponsors have already sent checks to TV Networks in advance of sporting events impacted by Coronavirus, Webber said. However, almost all of these contracts have majeure clauses built in that allow terms of a contract to be renegotiated in the case of unforeseen circumstances.

Chances are that not all of marketers’ experiential and ad buying funding has been used. Brands can now choose to either pivot by shifting dollars to network offerings outside of sports or by using capital at a later time. Built activations for the NBA playoffs, as an example, will be kept in storage. 

“Our clients are not cutting as much as tapping the breaks, postponing, and regrouping,” Chris Weil, CEO  of Momentum Worldwide, said. “We’re asking if things are going on without an audience, is there a digital play that we can do that still brings people together?”

READ MORE: NHL Suspends Season Due to Coronavirus

Brands fully expect more cancellations across sports, music, and entertainment to be announced over the next week due to Coronavirus, Weil said. 

Many of Momentum’s clients have also put a halt to on-site fan pop-up events. Some are additionally asking the agency to analyze exposure fees paid to teams and leagues for in-stadium signage. With no fans onsite, rebates or future credits may be issued. 

“We’ve been dealing with this [Coronavirus] since the Chinese New Year,” Weil said. “So we’ve been coping with this in our Asia and European operations as things have gotten worse. But now that it’s on our front page, everybody in the U.S. is at that stage that we were four or five weeks ago.”

Momentum will direct its U.S. employees to work from home beginning on Friday. Some of its employees in Asia and Europe are still remote.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Donald Trump

Trump Threatens to Eliminate Tax Breaks for Sports Owners

Amortization and other strategies have saved sports owners millions.

ESPN Faces Potential Exit from MLB Media Rights As Opt-Out Looms

A 35-year rights relationship now faces a very different media landscape.
Maverick Carter

Singapore, Saudi PIF Among Investors in Int’l Basketball League

The league is advised by Maverick Carter, a longtime friend of LeBron James.

Featured Today

Nov 24, 2024; Inglewood, California, USA; Philadelphia Eagles quarterback Jalen Hurts (1) celebrates with running back Saquon Barkley (26) after the Eagles defeat the Los Angeles Rams during the first half at SoFi Stadium.

How the Eagles Reinvented Championship Roster Construction

Philadelphia is one of the most innovative franchises in the NFL.
February 3, 2025

‘Ultimate Throwback’: The Unimpeachable Cool of Hartford Whalers Gear

Nostalgia and street cred have driven a consistent frenzy for merch.
January 20, 2024; Santa Clara, CA, USA; Kristin Juszczyk, wife of San Francisco 49ers fullback Kyle Juszczyk (44), before a 2024 NFC divisional round game against the Green Bay Packers at Levi's Stadium.
February 1, 2025

The New WAGs: Sports Wives Building Business Empires

Athletes’ wives and girlfriends are bucking stereotypes and cashing in.
Feb 3, 2019; Berkeley, CA, USA; California Golden Bears mascot dances on the court during a stoppage in play in the second half against the Stanford Cardinal at Haas Pavilion.
January 31, 2025

The Toll of Bicoastal Travel on New ACC Members Cal and Stanford

Cal and Stanford face missed flights, chaotic sleep schedules, and academic demands.

State Farm Cancels Planned Super Bowl Ad Amid California Fires Controversy

State Farm’s Super Bowl ad last year featured Arnold Schwarzenegger and Danny DeVito.
Apr 7, 2022; Augusta, Georgia, USA; Rory McIlroy (left) and Brooks Koepka set up to putt on no. 9 during the first round of The Masters golf tournament.
November 27, 2024

PGA Tour vs. LIV Golf TV ‘Showdown’ Will Pay Out $10M Crypto..

Two golfers from each tour will face off in Las Vegas.
Nov 25, 2024; Inglewood, California, USA; From left: Scott Van Pelt, Ryan Clark, Jason Kelce and Marcus Spears on the ESPN Monday Night Football Countdown set before the game between the Baltimore Ravens and the Los Angeles Chargers at SoFi Stadium.
December 17, 2024

A ‘Wave’ of Sports Content Is Coming to TikTok

The next generation is consuming sports in a different way.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Oct 29, 2024; Bronx, New York, USA; Los Angeles Dodgers first baseman Freddie Freeman (5) reacts after hitting a RBI single against the New York Yankees in the fifth inning during game four of the 2024 MLB World Series at Yankee Stadium.
October 31, 2024

Strauss Ads on MLB Helmets Annoyed Some Fans. CEO Says They Were a ‘Huge Success’

Strauss’s deal with MLB goes until 2027.
August 26, 2024

Cooper Flagg Spurns Nike Ties for New Balance

Flagg is the projected top pick in 2025.
August 22, 2024

Marketing Stunt Had Major Cycling Race Start In Grocery Store

The Vuelta has a history of creative stage kickoffs.
August 19, 2024

Jake Paul Claims He’ll Make $40 Million Off Tyson Netflix Fight

Paul and Tyson are set to fight in Texas in November.