Rakuten, Inc. Looks To Extend Partnership With The Golden State Warriors
Rakuten, Inc., a Japanese B2B e-commerce platform and coupon purveyor, who paid the Golden State Warriors $60 million for a three-year jersey sponsorship, is looking to extend their deal.
The NBA instituted the jersey patch pilot program in September of 2017. Each of the 30 teams was allowed to sell a 2.5 inch-by-2.5 inch logo patch which was to be displayed on their game jerseys. However, Rakuten was the only internationally-based company to participate (other than Toronto-based Sun Life Financial partnered with the Toronto Raptors). All the other jersey sponsors had some local connection to the team they were sponsoring.
“As an organization, we were really blossoming, we really felt ourselves moving into a global brand,” stated Mike Kitts, Vice President of Corporate Partnerships at the Warriors. “Rakuten was very intentional in that this was a long game for them, not just a flash in the pan. It really tied into their long-term initiatives here in North America.”
In addition to the jersey patch, Rakuten also became the Official Affiliate Marketing Partner, the Official E-Commerce Partner, and the Official Video-On-Demand Partner of the Warriors in addition to being awarded the rights to the Warrior’s practice facility.
According to Rahul Kadavakolu, Executive Director of Global & Group Marketing & Branding/Sports Entertainment Partnerships at Rakuten, the partnership has been “an extremely positive start in terms of awareness and membership.”
Rakuten hopes to increase brand awareness through its various sports sponsorships. And while it is too soon to tell what impact their sponsorships are having on revenue, brand recognition among U.S. basketball fans has grown 300% in two seasons.
“We certainly want to play the long game,” stated U.S. CEO Amit Patel on the sidelines of the Rakuten Optimism event in Yokohama. “We continue to evaluate the opportunity and look for ways to extend its life.”
According to GumGum Sports, the Warriors drove $19 million to Rakuten over the 2018–2019 season from just social media. And if you add in broadcast television, that total spikes “north of $40 million” which is a substantial ROI from their initial $20 million sponsorship investment.
Rakuten does have a long history of backing sports. According to founder Hiroshi Mikitani, sports bring in 80% of the company’s revenue. Mikitani has used his ownership of the Tohoku Rakuten Golden Eagles basketball team and the Vissel Kobe soccer team to promote and drive the companies financial services and domestic e-commerce for over 15 years. And in 2016, Rakuten signed a 4-year jersey sponsorship deal with the Spanish soccer club FC Barcelona for $235 million.
Rakuten also acquired U.S. rebates sign Ebates in 2014 for $1 billion. And while the company has begun to rebrand the Ebates business, the full impact of the partnership is yet to be felt. Consumers will need to start to associate Rakuten with Ebates to make the acquisition successful.
Because sports sponsorships are at the heart of the Rakuten brand, it follows suit that they would want to extend their partnership with the Golden State Warriors. And, technological advancements will only continue to enhance the business value of sports.
