The article, “Exploring saturation levels for sponsorship logos on professional sports shirts: A cross-cultural study” analyzed the effectiveness of sponsor logos on professional hockey jerseys and their effect on the brand itself. The researchers were testing to see whether increased amounts of sponsor logos on the jerseys themselves had an effect on brand identity, affiliation, and effectiveness.
The researchers categorized jerseys into three categories: the logo-free (clean) approach used by the NHL (only the team logo present), the restrained approach used by the American Hockey League and Russian Kontinental League (up to two sponsor logos present), and the unrestrained approach (characterized by unlimited amounts of sponsor logos on the jersey). They then created three hypothetical “alternate” jerseys for various hockey teams with varying amounts of sponsor logos and surveyed hockey fans to gauge their reactions to the shirts. The study measured the intensity of the shirt advertising on the fans’ attitude toward the team, intention to purchase team merchandise/apparel, and sponsor brand recall rate among the three different shirts.
The results followed the researchers’ proposed hypotheses. In terms of the sponsors’ interests, there was an abrupt drop-off in brand recall when more than two logos were present on the jerseys. In terms of the managers of the team/franchise, it appeared that attitude towards the team and purchase intentions did not significantly drop when there were two or fewer logos on the jersey, but the presence of more logos resulted in more negative attitudes. In general, the more logos that were present lead to more negative attitudes towards the team and jersey.
I feel like this study is important and practical in several ways. As a leader in this industry, we may one day be forced to make a decision regarding issues similar to this. How we balance the financial gain and benefit that sponsorship presents with retaining a loyal fan base willing to purchase our merchandise is an extremely important discussion to be prepared for. According to the results of this study, team identity and fans’ purchase intentions do not significantly decrease with two or fewer logos; therefore, one can reasonably assume that selling two sponsorships will generate revenue while retaining desired fan behaviors and attitudes. It is also an insightful study into the benefits that sponsors receive from choosing a specific team or organization to partner with. Sponsorships should be a win-win deal for both sides, but this study shows that, at least in terms of these jersey sponsorship logos, the product will be diluted and the recall will be less significant with the presence of other sponsor logos on the same product. This creates a less effective sponsorship and could lead to certain companies severing their deals with the team. It obviously also affects the organization itself, as it has a direct influence on merchandise sales and perhaps more importantly on team affiliation and positive attitudes about the franchise.
I also think that this study is relevant because it can be expanded to include other sports and other leagues. The NBA is currently discussing adding sponsor logos on their jerseys for the first time, and this can serve as a relevant blueprint for the NBA and other leagues to follow to maintain their apparel sales and fan loyalty. It also is a telling fact that those surveyed in this study were college student-aged individuals, which is a high-priority demographic market for most sport leagues. They want to touch this demographic in order to build long-term fans, as fans who are affiliated with a team for a longer time may be more inclined to purchase that team’s merchandise.
An interesting extension of this study would be to expand it to more popular sports in the United States (NFL, NBA, and MLB) and also to analyze the effect that these logos have in professional soccer, where on-shirt advertising is already popular. A future study could also include a more broad demographic, rather than focusing almost solely on college students. I like the idea of a survey of the fans, and I think that could be especially useful (and good PR) if they are involved in a similar survey in order to choose a new alternate jersey for the team. This gets them involved, makes them feel like they have a voice with their team, and allows for the team to create a jersey that they know is popular with fans and will therefore hopefully sell well. By judging the purchase intentions and attitudes reflected onto the team by their fans, team managers can then pursue the appropriate amount and type of sponsors for on-shirt advertising while not diluting their product or the sponsor’s gain by a significant amount.
This study is interesting and applicable for our class in that it deals directly with marketing and shows the potential pitfalls of oversaturation. While we talk about the importance of lining up sponsorships and generating those revenue streams, this is a good example of how thin of a line it is at times to balance each interest (revenue and maintaining fan interest). The study is a good read for an aspiring leader of a sports organization and was an interesting discussion with the trend of on-shirt advertising becoming more popular on the professional level.
