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How the NFL Chooses Sponsors

Anisha Mooradian, Chase Bloch, Daria Majlessi, Kenedi Kraten

(The DACK Sports Group)

Annenberg School for Communication and Journalism, University of Southern California

How the NFL Chooses Sponsors

Introduction

Sponsorships play a big role in the sports industry—in fact, in 2018, sport sponsorships

made up 70 percent of all sponsorships in North America (O’Reilly et al., 2018). In 2019, sport

sponsorship spending in the United States totaled $14.7 billion (Statista, 2019). The National

Football League (NFL) accounted for 10 percent of that total sponsorship expenditure in the

United States (Young, 2021). The NFL has the largest fan base across the U.S out of the four

major sporting leagues—163 million people watched the NFL during the 2020 season

(Mooradian, A. personal communication, March 31, 2021). Being such a huge player in the

sports industry, it is very important for the NFL to choose sponsors wisely and effectively. The

NFL does an objectively good job, as it is raking in billions of dollars a year from sponsorships

alone, and this number keeps growing year after year (Young, 2021). In 2019, the NFL made an

estimated $1.47 billion, and in 2020, the NFL made an estimated $1.62 billion in sponsorship

revenue (Young, 2021). These sponsorship deals are not only beneficial to the NFL, but also to

the sponsors who are able to market themselves to over 160 million viewers (Young, 2021).

With any partnership, it is wise for both entities to analyze the strengths, weaknesses,

opportunities, and threats (SWOT) of the relationship in the decision-making process (Helms &

Nixon, 2010). This is something that the NFL seems to do well, as it has a good track record of

bringing in revenue; however, there is not much current research on specific NFL sponsorship

deals and numbers, which makes it hard for outsiders to understand the NFL’s specific

partnership strategies. The research in this paper will analyze both small and large corporate

sponsor deals with the NFL. It will look at how the NFL seems to maintain positive corporate

social responsibility (CSR), partnering with nonprofits and putting on events with objectively
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good causes (Lee et al., 2018). This paper will also explore brand alignment as another factor

that seems to be of importance to the NFL, as success in this area usually also leads to success

for both parties in a sponsorship deal (Grohs, 2016). Additionally, the research in this paper will

examine the NFL’s notable and interactive sponsorship activations, which not only allow the

NFL to strengthen its fanbase, but also help sponsors reel in customers and positive brand

association (O’Reilly et al., 2018).

The NFL continues to remain successful in the selection of sponsors and sponsorship

deals. With that being said, what is the NFL’s secret to success? How do they choose sponsors

and which factors are the most important? The NFL is so notably fortunate that knowing its

strategies can be useful and applicable for any organization as a guideline or plan for future

partnerships and sponsorships. Unfortunately, with a lack of public research and information on

the specific deals, it is hard for organizations to successfully understand and use the NFL’s

strategies. Through the lenses of several different theoretical frameworks, this paper looks to

explore and examine revenue, corporate social responsibility, brand alignment, and activation

benefits of NFL sponsorship deals. This research will also show how social identity theory,

faultline theory, collective action theory, and sensemaking theory have contributed to how the

NFL has been successful with sponsors.

Sponsorships

The evolution of sponsorships can be dated back to the Roman Empire as a way to pay

athletes or performers for their services (Jedel, 2018). More recently, sponsorship is seen as a

marquee marketing opportunity for companies to communicate their brand and values to

customers (Jedel, 2018; Demirel et al., 2018). Increased media usage such as television, internet,

streaming services and social media can all be seen as a direct link to increased sponsorship
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exposure and financial growth (Jedel, 2018). Research on sponsorships has shown that

partnerships with companies and sponsored events should include mutual benefits for both

parties involved (Jedel, 2018). Papadimitriou et al. (2008) showed that “[Sponsorship is] the

provision of resources (money, people, or equipment) by an organization directly to an event or

activity in exchange for a direct association to the event or activity” (p.212). In 2013, the New

York Mets began a sponsorship deal for 20 years valued at $400 million dollars with Citibank to

rename the Mets’ stadium (Lee, 2007). While some fans may argue that the Mets were the only

ones to benefit, Citibank decided to invest their marketing efforts into sports sponsorships by

displaying their name and logo on the stadium, offering a unique platform for consumers to

consistently see the Citi brand at any game in person or viewed on TV (Lee, 2007).

Sponsorship dollars have grown exponentially and continue to grow in congruence with

expanding TV revenue deals and social media increasement (Speed & Thompson, 2000).

Sponsorships allow companies to engage with its customers through a variety of “marketing

with” opportunities (O’Reilly et al., 2018). For example, technology companies can sponsor a

stadium and not only promote its brand through the naming rights deal, but can also interact with

its fans by being the exclusive WiFi provider for the stadium (O’Reilly et al., 2018). Oftentimes,

sport sponsorships and brand management are tied in with the Olympic Games, since it is the

largest worldwide sporting event and an optimal opportunity for companies to advertise in front

of a diverse group of consumers (Papadimitriou et al., 2008). Coca-Cola is an exclusive sponsor

of the Olympic Games, which allows fans to see the company name on the field or in arenas, and

ensures the athletes and visitors of the Games are drinking only Coca-Cola products on site

(Meenaghan, 2001). Estimates from the 1984 to 1996 Games show an increase from $2 billion to

$16.6 billion in worldwide sponsorship dollars (Speed & Thompson, 2000). Between the 1996
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Atlanta Olympic Games and the 2004 Athens Olympic games, worldwide sponsorship spending

grew to an estimated $28 billion by 2004 (Papadimitriou et al., 2008).

In reviewing sponsorship deals from the early 2000’s one can find a big increase in

financial support from banks and other financial institutions sponsoring sporting events or

stadiums as the marketing return on investment (ROI) has the potential to be much greater than

television ads or direct mailing (Lee, 2007). During the last decade there has been a yearly

average growth of 4.5% which boosted the 2017 worldwide sponsorship spending up to $62.8

billion (Leonard et al., 2016). Sponsorship dollars continue to rapidly increase, and “according to

research conducted by the financial analysts Price waterhouse Coopers (PwC), the global market

is projected to reach 73.5 billion by 2021” (Lawrence, 2019, p.58). Advancement in technology

has been the biggest reason for increased sponsorship opportunities and the growing sponsorship

dollar amount as companies are trying to keep up with the latest social media trends.

Companies now look not only at customers’ attitudes towards sponsorships, but also at

how their own employees view potential sponsorships in which the company is involved

(Demirel et al., 2018). Research has shown that employees who are in favor of companies and

events with which their own employer partners, are more likely to work harder on projects

involving that sponsorship, as they feel comfortable working with the in-group (Demirel et al.,

2018). The idea that individuals identify themselves as part of a social in-group or an out-group

to justify their involvement with a sponsored event or company is part of a bigger concept known

as social identity theory (Demirel et al., 2018). When consumers positively associate brands with

an event, this memory creates a favorable fit for companies to partner together (Martin et al.,

2020). Ultimately, sponsorships boil down to marketing a brand in association with another, with

the goal of financial benefits for both companies.

Revenue

Professional sports leagues grow exponentially, every year (Bradbury, 2019). The

average annual revenue growth rate for professional sports leagues in the last decade, is three

times the growth rate of the United States economy (Bradbury, 2019). The NFL generates the

most revenue across all professional sports leagues in the United States (Gough, 2020) which is a

combination of high demand, strong leadership, teamwork, and faultline theory. With a group of

diverse leaders, employees, and players all striving for good performance, the revenue continues

to grow (Chung et al., 2020). As of 2019, the NFL generated over $15 billion in revenue. This

number has increased every year since 2001 (Bradbury, 2019; Gough, 2020). To put things into

perspective, in 2019, MLB (Major League Baseball) generated about $10.3 billion, and the NBA

(National Basketball Association) generated about $8.7 billion (Gough, 2020).

Sports leagues in America work off a revenue-sharing model (Ehrlich et al., 2020). The

NFL is one of the leaders in this space because it has a unique and complex revenue and revenue

share model. The NFL equally shares 61% of all revenue with the teams (Bloom, 2014; Ehrlich

et al., 2020). Ultimately, this means that regardless of how a team performs, they get the same

amount from the League for that year (Ehrlich et al., 2020). This is something that has been

discussed year after year in owner’s meetings and continues to be agreed upon - a collective

action theory approach to generating revenue to all teams. NFL teams can generate their own

revenue through suites, club seating and local sponsorships (Bloom, 2014). Local sponsorships

include naming rights to the stadium and direct deals with the team (Bloom, 2014). Each team

does not keep its own regular ticket sales. That revenue goes up to the League level and is then

split amongst the teams (Bloom, 2014; Ehrlich et al., 2020). Collective action theory applies to
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the revenue sharing model, as it is an example of all 32 teams working towards a collective goal

(Olson, 1965).

Though it is easy to find big picture NFL revenue numbers in research, there is a gap in

the literature when it comes to a more detailed breakdown. Personal communication with NFL

staff led to more information when looking for a revenue breakdown. NFL’s revenue streams

come from several key parts of the business (Mooradian, A. personal communication, March 30,

2021). Though broadcast deals make up about half of the revenue, many other factors contribute

to the billions of dollars in annual revenue. The other main buckets for revenue are corporate

sponsorships, ticket sales, merchandising, and licensing rights (Mooradian, A. personal

communication, March 31, 2021). When it comes to the teams, research shows more

information. NFL’s revenue is broken up by “national revenue” and “local revenue” (Ehrlich et

al., 2020). National revenue starts at the League level, but it is then split amongst the League and

the 32 teams (Ehrlich et al., 2020). The national deals are based around the deals that the League

negotiates, which are mainly focused on broadcast deals, and merchandising and licensing. On

the other hand, the local revenue is what each team can bring in on its own, which includes ticket

sales, concessions, and the team sponsors, which are different than the League-wide corporate

sponsors (Mooradian, A. personal communication, March 31, 2021).

There will be many gaps in the research when talking about the NFL's revenue model, as

most of the information is not published due to the NFL being a private company. Of all 32

teams, the only public team is the Green Bay Packers. There is a lot of available information

about the Packers’ business model and revenue (Mooradian, A. personal communication, March

31, 2021). This research will go over the breakdown of the Packers’ revenue, identifying the

financial growth of the NFL over the years, and breaking down the NFL's revenue-sharing model
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with teams and players. Long (2020), gives a detailed breakdown of the Green Bay Packers total

revenue. In the 2019 season, the Packers generated $506.9 million, which was the highest

number the team ever brought in (Long, 2020). In that year, the Packers had a $29 million

increase in revenue, due to the League revenue sharing model. With new national TV deals, the

League divided and distributed an additional $21.7 million per team, which put the Packers at the

highest revenue earned in their own history (Long, 2020; Mooradian, A. personal

communication, March 31, 2021). Overall, NFL revenue is driven from multiple parts of the

business, and the NFL continues to be a leader in generating revenue in sports.

Corporate Social Responsibility & Public Relations

Sport sponsorships take aim at capitalizing on social issues to further customer reach and

revenue streams (Plewa & Quester, 2011). Companies spend multi-millions on establishing

strong social connections to fans to show they are more than just entertainment and business

(Demirel, 2019). This type of spending is known as corporate social responsibility (CSR), and

sport sponsorships are an integral part of companies developing benefits for their stakeholders

that go beyond just the financial (Demirel, 2019). However, fans and customers often question

the true motives of companies and organizations when they get involved with cause marketing

and sponsorships (Demirel, 2019). Ultimately, companies want to know, do fans care enough

about CSR to make different consumer decisions and further increase their spending?

Every October, the NFL and its teams participate in the “Crucial Catch” initiative, which

is a partnered effort with the American Cancer Society to raise awareness about breast cancer

(Devlin & Sheehan, 2018). Athletes often wear pink gloves, cleats, socks and other accessories

that fans are able to purchase as a way to support Breast Cancer Awareness Month as well as

their favorite NFL teams (Devlin & Sheehan, 2018). However, many have criticized the NFL in
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their method of raising money for the American Cancer Society and the over emphasis on pink

gear which ultimately is not helping the cause and thus their CSR reputation in this sphere as

much as they come off to be (Devlin & Sheehan, 2018). According to data used by Devlin &

Sheehan (2018), “the NFL takes 25% royalty from the wholesale price of merchandise sales, and

that for every US$100 in pink merchandise sold, only US$11.25 is donated to the American

Cancer Society” (p.478).

A more successful form of CSR sponsorship is the NFL’s Play 60 partnership campaign

with the American Heart Association, in which they promote exercise through youth sports

(Irwin et al., 2010). The NFL hopes that if young people are exposed to the brand early through

this specific partnership and begin to associate exercising with their favorite players and teams

from the NFL then they will be more inclined to purchase gear and attend games later in life

(Montez de Oca et al., 2016). According to Montez de Oca et al. (2016), “55% of avid NFL fans,

those that buy more game tickets and merchandise as well as watch more games than casual fans,

engaged with football in elementary school or earlier” (p.103). The number of NFL viewers at a

young age are staggering and a large reason for this has been increased exposure in local

communities through sponsored outreach programs (Mooradian, A. personal communication,

March 31, 2021). The NFL uses its resources to help educate youth on fitness as well as football

safety in an effort to only encourage younger generations to become fans but also in order to

further separate themselves from concussion criticisms and negative press surrounding the

dangers of the sport (Montez de Oca et al., 2016). An important benefit to note about these

sponsored CSR initiatives compared to former marketing initiatives such as TV advertisements is

the lack of regulations by federal commissions (Montez de Oca et al., 2016). The NFL partners

with many different companies to offset costs associated with CSR initiatives like the NFL Fuel
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Up to Play 60 (Montez de Oca et al., 2016). The National Dairy Council (NDC) and the USDA

were two of the NFL sponsored partners that granted money and access to NFL athletes such as

New York Giants Super Bowl wide receiver Victor Cruz who promoted healthy living to

students by encouraging them to drink more milk (Montez de Oca et al., 2016).

Some companies invest just as much money in public relations as they do into advertising

and have developed PR crisis teams to combat any negative reactions to their company

(Bachynski & Goldberg, 2018). Executives and decision makers within the NFL collectively

decide on which companies will help them establish a stronger CSR presence (Meyer, et al.,

2017). Collective action is a theory that allows the NFL executives and its leadership team to

work together, using its resources to further a collective agenda rather than just relying on

individual efforts (Meyer, et al., 2017). The NFL uses some of its sponsors as a way to manage

PR and control the narrative of negative perceptions (Bachynski & Goldberg, 2018). The NFL

partners with one of the largest contributing concussion educators, the CDC foundation, in an

attempt to change public opinion on concussions and the dangers of playing football (Bachynski

& Goldberg, 2018). Oftentimes, the NFL determines how a potential sponsoring company’s

public image will benefit their own image of seeming socially responsible while also protecting

their brand; the NFL is simultaneously assessing how a partnership will increase its fan base and

potential revenue (LaGree et al., 2018). In research conducted by Walker & Kent (2009), a

survey of 297 participants indicated fans initially had no idea their favorite NFL team conducted

any CSR events, but once they were informed of previous specific CSR activities they had a

positive response.

Brand Alignment
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CSR plays a major role within sponsorships and partnerships affiliated with the NFL

especially when creating sponsorship deals. Sponsorship of worldwide sports and events is an

extremely popular marketing tool, especially for big time networks and events held annually, like

the NFL Super Bowl (Woisetschlager, 2009). A principle aspect of the sponsorship revolves

around well known brands. Brands are cultural, ideological, and sociological objects that reflect

and shape cultural rituals, social values, and individual dynamics (Marwick, 2010 as cited in

Wang et al., 2020). Corporate brands and the NFL rely upon positive and effective CSR because

in the business to business (sponsor and sponsored) realm, managing and developing a strong

corporate brand is key to dealing with multiple stakeholders (Aspara and Tikkanen, 2008; Liu et

al., 2018 as cited in Pranjal & Sarkar, 2020). The NFL has clearly distinguished itself amongst

competitors by having a clear sense of “who we are” and “who we want to be viewed as.”

Presenting the possibility to increase customer loyalty and achieve management goals (Blumrodt,

2017). Many corporate brands seek to utilize the power of marketing through a major platform

like the NFL. Reliability has grown on brands to fulfill people's needs for affiliation and

identification. Branding can make or break a product and the large audience the NFL captures it

is necessary to match the desired outcome of the branding. The NFL is its own brand in itself,

working with other companies through sponsorship partnerships is crucial for success in

consumer trust and reducing any perceived risk (Srivastava, 2010). The NFL brand originates

internally, as companies are responsible for creating different products with unique features in

order to identify itself by differentiation (Gehani, 2001 as cited in Srivastava, 2010). Attempting

to research the grit of the sponsorship deal information has left a lot of unknown details about the

specifics of how the deal is determined. When making decisions about branding and sponsorship

it is essential to have alignment between what the organization wishes to communicate about
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itself and what key stakeholders perceive about the organization (Blumrodt & Huang, 2017). An

organization’s climate and culture are defined as the meanings people attach to interrelated

experiences and the assumptions about the world that guide life in organizations (Schneider et

al., 2012). Organizational climate and culture influence the brand characteristics and attributes

because of the similar characteristics a brand has (Schneider et al., 2012). To differentiate a

brand it can be broken into three categories: 1) Brand image, 2) Brand identity, and 3) Brand

position (Keller, 1993). These categories break down and explain the value and importance of

brands in the context of sponsorships in the NFL.

Brand image can be defined as “perceptions about a brand as reflected by the brand

associations help in consumer memory” (Keller, 1993, p. 3). Brand associations and sponsorship

are often communicated through mass media channels (Woisetschlager, 2009). Sponsorship

refers to an investment on cash or in kind in an activity in return for access to the exploitable

commercial potential associated with that activity (Meenaghan, 1991, p. 36 as cited in

Woisetschlaeger, 2009). The role of brand identity within sponsorships is used as a promotional

vehicle (Woisetschlager, 2009). The National Football League has vastly noticeable team

fanship, the fans (consumers) of the NFL are subject to be reactive towards brands and how the

brands present themselves (Wang et al., 2020). Sporting brands have many things to account for

when creating sponsorship deals like the fan perception, sponsorship brand image, and

effectiveness.

Brand identity is made up of characteristics and attributes of the brand that align with the

unique set of associations that the company aspires to create and maintain (Esch, 2008 as cited in

Philips et al., 2014; Srivastava, 2010). Brand identity is maintained by the brand strategists,

communication is key between them and the organizations they are working with focused on
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how to build relationships with consumers (Aaker, 1997 as cited in Phillips, 2014). These

relationships can influence perceptions of the brand positions (Phillips, 2014). Brand identity can

be communicated and perceived through three main elements of brand image: attributes,

benefits, and attitudes. (Keller, 1993) Brand identity can contribute to helping sporting

organizations become big businesses. The National Football league accounts for about 10

percent of the $14.7 billion of revenue from sponsorships (Statista, 2019; Young, 2021). The

huge role and economic impact of sponsorships within the NFL is cause to have strong brand

identity and alignment from the companies that sponsor and the NFL itself (Truman, 2007).

Brand position is determined by how it will align itself with the partner and sponsor

partnership (Beverland et al., 2010). Many brands are looking to promote themselves in as many

ways as possible. Entering into sponsorship deals with an established brand like the NFL is a

way to further establish and promote individual brands. Brand alignment refers to the positioning

of the company’s vision, values, culture, image, personality to create a unified brand that is

authentic (“Mastering the multi-stakeholder art of corporate brand alignment,” 2020). These

important elements of the brand must be monitored and maintained to ensure consistent

authenticity. There are three themes focused on brand alignment practices; identifying key

stakeholders, follow through of brand promises, and engaging key stakeholders (“Mastering the

multi-stakeholder art of corporate brand alignment,” 2020). These themes contribute to building

a relationship between brand authenticity, alignment, and advocacy (“Mastering the multi-

stakeholder art of corporate brand alignment,” 2020). Brands wanting to show off their

authenticity with the proper financial means can do so through sponsorship deals with the NFL.

Sponsorship Relationships, Benefits, & Activations

In any sponsorship, partnership, or relationship, it is very important that both parties

accrue benefits in some way. When a deal is made with the NFL, the sponsor purchases a

sponsorship package including an activation and asset fund that requires the sponsor to use the

NFL’s services for their activations, marketing, promos, and media, up to the cost of the

investment (Mooradian, A. personal communication, March 31, 2021; Dalakas, 2011). In doing

so, the NFL is ensuring the sponsor gets access to all areas of the NFL, as well as keeping an eye

on the details of each activation (Mooradian, A. personal communication, March 31, 2021).

Sport sponsorship activations are the catalysts to getting a sponsorship started as well as a

way to announce sponsorships to the public (Dalakas, 2011). The more a sponsor does to engage

with the fans, including promotional events or marketing campaigns, the more likely it is to see

followership from the fans of the sponsored entity (Dalakas, 2011; O’Reilly et al., 2018). For the

NFL, the most obvious sponsorship activations are for stadium naming rights. In fact, corporate

sponsors hold the naming rights of over 75% of sport facilities for major league professional

sports in North America (Martin et al., 2020). Stadium naming rights agreements stand to be a

huge source of long-term, continuous income for the NFL. For example, the financial technology

start-up, SoFi, has committed to a 20-year deal for the naming rights of the new NFL stadium in

Los Angeles (Rooney, 2019). Like many NFL sponsors, SoFi is considered a good partner

because of their focus on technology and customer experience, which is how they believe they

can give the fans and stadium visitors the best interactive event experience, offering their

cutting-edge technologies (Rooney, 2019; O’Reilly et al., 2018). SoFi and other naming rights

sponsors of the NFL do not have to worry as much about activation in terms of recognition; their

name goes on the facilities for everyone to see, and the NFL expects them to provide the best
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services to NFL fans. On the other hand, less obvious sponsors need to make a greater creative

effort in sponsorship activation to be recognized (Dalakas, 2011).

The Super Bowl offers huge marketing opportunities and exposure for brands. Every

Super Bowl, the NFL sets up The NFL Experience, “pro-football’s interactive theme park” full

of games, booths, and attractions (NFL, 2010). The NFL Experience acts as a platform for

interactive and creative sponsorship activations which allow engagement between the sponsors

and the fans (NFL, 2010). According to O’Reilly et al. (2018), engagement is a very important

aspect of sport sponsorships, and with advancements in technology, there has been a shift “from

‘marketing to’ to ‘marketing with’ (i.e., engagement paradigm)” (p. 16). In fact, there is

something called the sport value framework, which explains that sports events need to be

examined as platforms that allow interaction between sponsors, customers, and fans; this

ultimately leads to the co-creation of the value of the event for everyone involved (O’Reilly et

al., 2018). This kind of creative interaction is made apparent at The NFL Experience, where

amongst many other activations in 2019, Pizza Hut offered free pizza and a live augmented

reality experience called “Pizza Hut Dance Party,” and Sleep Number allowed fans to take

photos against their virtual dream fan bedroom (Vladem, 2019).

This idea of the sport value framework, and through interaction, the co-creation of the

value of The NFL Experience—as well as the general NFL fandom—falls in line with

sensemaking theory, which states that people tend to assign meaning and value to collective

experiences (Weick, 2005). It has been found that fandom and communal involvement are

strongly associated with the search for meaning, even more so than just for pleasure (Tsay-Vogel

& Sanders, 2017). When looking at NFL sponsorships through the lens of sensemaking, it

becomes apparent how important and effective it is for sponsors to activate in engaging and
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interactive ways for the fans. Since fan involvement enhances enjoyment and appreciation for

fans, interactive activations that allow fans to feel even more involved in the NFL will create a

positive association for NFL fans with the respective sponsors (Tsay-Vogel & Sanders, 2017;

Grohs, 2016). Ultimately, interactive sponsorship activations and engagement are valuable for

the NFL and its partners to continue to grow and strengthen the relationship between the NFL

and its fans.

NFL Sponsorships

To NFL fans around the world, NFL sponsorships make people think of Bud Light (AB

InBev), Pepsi, Gatorade, Pizza Hut, Verizon, Microsoft, and more. Through the years, these

brands have found ways to be known as “the official” products of the NFL. Sponsorships vary in

size, but a typical sponsorship deal with the NFL ranges from three to seven years (Young,

2021). Sponsorship deal agreements start at a minimum $10 million investment, but the larger

League partners pay closer to $200 million per year to maintain an NFL sponsorship (Young,

2021). Currently, Verizon is the largest NFL sponsor, spending about $300 million annually.

Each sponsor’s contract is broken out into four main categories which include rights fees,

activation fund, NFL media fund, and broadcast enhancements (Mooradian, A. personal

communication, March 31, 2021). Rights fees are a direct revenue to the Sponsorship group

within the League for use of League marks, assets, etc. A good example of this is the NFL logo

on the Pepsi cans. The activation fund is an annual flexible fund to spend on NFL events,

licensing, NFL Films footage, player appearances, and so on. The NFL Media fund is the budget

that is set aside for NFL Media spending which is inclusive of all sponsored content integration

across linear and digital. Lastly, the broadcast enhancements are a piece the NFL League office

purchases from the broadcasters they have a partnership with, to then sell to the sponsors to
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enhance the overall relationship and broadcast presence. This includes ad slots within game

broadcasts (Mooradian, A. personal communication, March 31, 2021) Network embeddedness

comes into play here, as the partners leverage the League’s relationships with the broadcast

partners in order to expand their reach beyond the NFL fan base that is on NFL platforms.

What is most important to sponsors is the number of people that will be exposed to the

brand through the NFL (Schultz, 2014). When NFL’s viewership numbers are up, it gives them

the opportunity to charge a premium to sponsors, as the product will be reaching more people

(Schultz, 2015; Mooradian, A. personal communication, March 31, 2021) Even in controversial

times and political shakeups sponsors have stayed with the NFL, as ultimately, they view the

game of football separate than the Commissioner’s stance (Schultz, 2014).

The NFL is constantly looking for new sponsors to partner with (Mooradian, A. personal

communication, March 31, 2021). When brands that are a natural fit to the sports world, choose

to sponsor the NFL and become official partners, the stock prices of the companies usually rise

(Cornwell et al., 2005). Deals being finalized and publicly announced leads to a positive impact

on shareholders’ wealth (Cornwell et al., 2005). When a new brand becomes an NFL sponsor,

they receive a “Partnership Overview'' that maps out all the assets and exposure they get through

the NFL. This overview lays out the reach of the NFL in terms of viewership and fandom in

comparison to every other sports league. The overview also maps out the options of investment

opportunities a sponsor gets when they sign on. This is inclusive of access to players,

opportunity to activate at the tent pole events (Super Bowl, Draft, Combine, etc.), NFL themed

campaigns, and more (Mooradian, A. personal communication, March 31, 2021).

NFL sponsorship revenue continues to grow and is a leader amongst professional sports

leagues (Bradbury, 2019). With the COVID-19 pandemic, a lot of companies had challenges, the
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NFL being one of them (Young, 2021). Even though the overall NFL revenue was down this past

year, sponsorship revenue, which makes up 10% of the overall League revenue, was up for the

NFL at a total of $1.62 billion, compared to $1.47 billion the year prior (Gough, 2020; Bachman,

2021; Young, 2021, Mooradian, A. personal communication, March 31, 2021).

Conclusion

This literature review is meant to show how the NFL remains successful in its

sponsorship deals, as well as what factors go into deciding a sponsorship deal should be formed.

Analysis of how the NFL has been so successful in sponsorship selection, demonstrates that they

have done well at selecting sponsor deals effectively and consistently bringing in revenue. The

NFL is able to reach a massive number of consumers which is highly attractive to brands looking

to build sponsorship deals and create beneficial partnerships with the NFL. When designing

sponsorship contracts between a brand and the NFL there are many factors that must be

accounted for like logistical factors, a financial breakdown, and the agreements from both parties

about the deal. Unfortunately, when researching these specific factors there are many gaps due

the NFL being a private company. This gap in the literature resulted in only finding most of the

information based on the Green Bay Packers business model and revenue, as they are the only

public team. To further investigate the breakdown of what is included within the sponsorship

deal contracts, reliance on internal conversations were required to attain more information.

The research revealed some of the factors that matter when deciding on a sponsorship

deal. Corporate social responsibility (CSR), public relations, organizational climate and culture

are all factors to account for when focusing on sponsorship deals and contracts. CSR has become

an increasingly important factor that many companies are using social issues to capitalize on

customer outreach and revenue streams. Positive and effective CSR is most relied upon within
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brand sponsorship deals as well as the companies themselves. When a sponsor partnership deal is

starting to form, another important factor is brand alignment. Brand alignment is how the brands

values and goals align in the contract with the NFL. The research conveys an unclear process of

how exactly the NFL decided to move forward with a brand sponsorship deal. What is known is

that the organizational culture and cultural influence of the brand must align itself with the

sponsor partnership deal.

A principle aspect of the sponsor partnership deals is that both sides look to accrue

benefits in some way. The NFL provides an activation and asset fund that the sponsor must use

in order to remain eligible for the partnership. Sponsorship activations are crucial to starting the

sponsorship process, research shows that the more engagement is likely to result in high numbers

of followership. The NFL provides many opportunities for sponsors to get their brand exposure

to the vast audiences like the stadium naming rights, large events like the Super Bowl, and

labeling a brand as “the official sponsor of the NFL”. The tactics offer sponsors a variety of ways

to achieve success in sponsor partnerships. The NFL has a unique experience and fandom,

through their interactions sports value framework and sensemaking theory are applicable as

people tend to assign meaning and value to collective experiences. From interpersonal

communication articles, it shows how the sponsorship contracts are broken up into four

categories: Rights fees, activation fund, NFL media fund, and broadcast enhancements. When

researching the specifics of the sponsorship contracts there are major gaps about the financial

aspects and details of the contracts. The personal communications revealed insight on what is

most important to sponsors is the number of people the NFL has exposure to. As the NFL

sponsorship revenue continues to grow the search and outreach for new sponsors continues as
NFL SPONSORSHIPS 20

well. The NFL has many unique opportunities and offers that they can provide in the sponsor

partnership deals.

To answer the question of how has the NFL been so successful in sponsor deals and what

factors are most important in the selection of sponsor partnerships, research provides a general

overview of the extremely detailed process. Without the personal communication articles it

would have been very difficult to provide specific answers about the NFL selection process and

success. The NFL is a very well known brand and company, they offer unique experiences and a

massive fanbase which is attractive to brands looking to build sponsor partnership deals and

expand nationally. The NFL capitalizes on CSR social issues, utilizes their authentic brand and

fanbase, as well as continuing to bring in large amounts of revenue that reflect their success in

sponsor partnership deals. There are many factors to account for when deciding on a sponsor

partnership contract like the financials, activations, and rights details for both sides of the

contract. Researching and locating this information was difficult due to the privatization of the

NFL teams. In conclusion, the NFL continues to be successful in sponsor partnerships through

their process of building contracts and following through with the agreed upon terms.
NFL SPONSORSHIPS 21

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