The NFL Set To Tarp Off Lower Rows Of Seats & Let Teams Sell Signage To Sponsors
NFL teams received word they will be able to sell camera-visible signage to local sponsors during the 2020 season. One executive stated this decision would “significantly” defray revenue losses related to the coronavirus.
On June 23rd, team president’s shared that the first six to eight rows in every stadium, including on-field suites, will be unavailable to fans. Officially this decision was made to protect players, coaches, and team staff from coronavirus exposure. However, the decision also frees up that space to sell multiple profitable sponsorships.
The available seats will now be covered with tarps that can feature sponsorship logos. However, there will be restrictions in place to protect current league/team sponsors. Current team naming rights sponsors and local sponsors cannot conflict with league sponsors, and local sponsors cannot conflict with national deals.
Certain exceptions may be made in competitive categories and it is still unclear where gambling companies will fit in with the new regulations.
“Sources said those seats will be covered by tarps that could include sponsor logos, similar to how [English Premier League] teams repurposed empty seating sections for ads during its return to play last week,” stated Ben Fischer of the Sports Business Journal. “The plan will be presented to owners at a meeting tomorrow. An NFL spokesman did not reply to a request for comment.
“There are restrictions designed to protect league sponsors. Team naming rights sponsors, local sponsors that don’t conflict with league sponsors, and local sponsors who also have national deals — such as Bud Light — will have the easiest time complying with the rules.”
Unlike both the NHL and MLB, the value of on-camera signage is high due to its scarcity. To date, only Bose, Gatorade, Microsoft, and Oakley are the only brands who see exposure on the field and on various other TV cameras. All other entities are prohibited from displaying any signage below 40 feet above the playing field.
Therefore, teams insisted that the league change its policy and allow local sponsors to buy additional advertising spots. Although the exact number has yet to be determined, teams know there will be a strict limit on fans who are allowed to be in attendance. The hope is the new sponsorships will help off-set some of the lost income.
“Static signage on the tarps have a level of value but it may not be the panacea, the cure all, for the fact there’s not hundreds of thousands or millions of people walking through the building engaging with the brand through a more lively or active manner,” stated Tatum.
However, the worry is the plan will prove to be most valuable to companies who need greater national awareness and are working off a media-centric plan. And such is not the case for local brands. While the tarps have a level of value, it is far below that of the various revenue streams being lost because of the pandemic and fans engaging with multiple brands throughout the stadium. The viewing may be somewhat jarring with the first six to eight rows being void of cheering fans.
Fortunately, the new strategy does not seem to be longterm. Fischer was quoted as stating it would only last for the 2020 season.
