From the NFL to the NBA, the US sports industry is booming.
In 2024, Super Bowl LVIII, the annual NFL championship game, was watched by 123.7 million people and subsequently broke global viewership records. It will go down in history books as the most-watched television event ever, surpassing even the iconic 1969 moon landing.
Undoubtedly, American sports have reached peak popularity (and the mountain could yet go higher). This has led to almost all of the sports teams shifting their focus to brand expansion. Now, the likes of the San Francisco 49ers, Los Angeles Lakers, and Dallas Cowboys are no longer just sports teams. They’ve transcended the sporting world and become something much bigger: culturally significant brands that are designed to make money.
Back in the ’70s, ’80s, and ’90s, sports was all about winning. It still is to a certain extent, but building a successful off-field brand is now more important than anything else and has become a top priority for investors. To put it simply, branding is bigger than ever.
Why Is Branding So Important In Sports?
Branding has become a top priority across all major sports, including football, basketball, and soccer.
The primary reason for this is that successful branding leads to financial rewards. When you have a good sports brand, you receive lots of sponsorship offers, sell more merchandise, attract new fans, and get people emotionally invested. All of these factors contribute to achieving the financial goals that sports teams set every year.
For example, the New York Rangers, who are the most recognizable ice hockey name in America, made $265m in revenue during the 2022/23 season. This can be attributed to more than just ticket sales. The New York Rangers are a huge brand that (because of this) can pull in revenue from countless different sources, such as sponsorships.
Back in 2022, the Rangers were able to land Monster Energy as a team sponsor based exclusively on the strength of their brand name. In return, Monster Energy gets to advertise at Madison Square Garden, where the Rangers play all of their home games. It’s a win-win for both parties.
How Do Sports Teams Grow Their Brand?
Sports teams grow their brands in lots of exciting ways, including:
- National and global advertising
- Signing players with pre-existing fanbases
- Hosting local events (e.g. open training camps)
Naturally, sports teams also continue to grow their brand through the traditional method of winning games. The more success you have out on the field, the bigger your brand becomes — this has always been true in sports. As soon as you start winning trophies, you become a sports brand that fans want to associate with. In turn, this leads to greater fan engagement and financial benefits.
When it comes to signing players in the modern era, sports teams often look at player’s social media followings and engagement levels before handing out contracts. If a player has successfully built a brand for themselves, teams can expect to pay extra bigger transfer fees and salaries. This is especially true for individuals like Steph Curry, who has 56.6 million followers on Instagram clinging to his every move.
Social media campaigns are also extremely powerful when it comes to growing sports brands. On platforms like X, Instagram, and YouTube, teams can get incredible levels of engagement. The NBA is one of the best examples of this, with the league having amassed over 32 billion video views across NBA and NBA-related social accounts during the 2022/23 season. When you’re getting this many views, it leads to unparalleled levels of brand engagement. After all, it only takes one interesting social media post to convert someone from a non-fan to a fan.
There’s also the element of sponsorships, as discussed a little earlier on. Every year, the biggest teams across all of America’s major sports leagues assess their sponsorships while conducting market research for potential new partners. Gambling sponsorships are one of the hottest commodities at the moment, with countless teams now partnering up with sportsbooks across the states.
Alex Windsor, head of content for the industry review site gamble-usa.com, said: “Branding plays a key role in the success (or failure) of any iGaming operator in the US. The competition is so high and the margin for error so small, that operators are going all out in their marketing and branding campaigns. You only need to look at the amount of money companies are spending to get their brand in front of potential sports bettors.”
“If you look at some of the big names in the industry, like FanDuel for example, they’ve partnered with DC United (MLS), Chicago Bulls (NBA), Brooklyn Nets (NBA), and countless other big names. Because gambling sponsorships attract lots of attention, most other teams today are also searching for new sportsbooks to partner with. From a branding perspective, it’s a no-brainer.”
Most Valuable American Sports Teams In 2023
Courtesy of Forbes, the current most valuable American sports teams are:
- Dallas Cowboys $9 billion
- Golden State Warriors $7.7 billion
- New York Knicks $6.6 billion
- Los Angeles Lakers $6.4 billion
- New England Patriots $6.4 billion
All of these teams have been able to reach a high value thanks primarily to branding. With the Dallas Cowboys, the most valuable NFL team in history, their brand is estimated to be worth $1.730 million, which contributes to 19.2% of the team’s overall evaluation.
Conclusion
Moving forward, sports teams across the NBA, NFL, MLB, and other popular leagues will continue to focus on both branding and on-field success. However, it’s fair to say that branding is now the top priority for teams looking to make as much money as possible and stay close to the top of the sporting pyramid.
