Herbalife Products with Galaxy Deal

Herbalife Nutrition Ltd. The recent announcement of a multi-million dollar deal that extended its longstanding partnership with the LA Galaxy demonstrates the increasing value of sports sponsorships for companies and their brands.

Under the sponsorship announced in August, downtown Los Angeles-based Herbalife will continue to put its name on the front of Galaxy players’ jerseys for another five years. The reason such deals are so valuable is because “sports has power that few other industries have,” according to many experts, and fans become sponsors’ customers at a high rate.

AEG Global Partnerships, a subsidiary of Anschutz Entertainment Group, or AEG, owner of the LA Galaxy, represents the new partnership between Herbalife and the team, the longest partnership in Major League Soccer history. It has been going on for 15 years.

The value of the deal was not disclosed, but the Sports Business Journal reported that it will be $7 million more per year compared to the $4.4 million annual value of the previous 10-year contract that ends this season.

“This partnership with Herbalife is a central partnership across our global portfolio. It’s an excellent example of longevity, global reach, grassroots initiatives and activities,” said Nick Baker, AEG’s Chief Global Partnerships Officer. (return on investment) This is a more impactful and meaningful relationship at AEG than in our entire company.”

With the extension of the partnership, nutritional supplement marketer Herbalife will fill multiple roles as the team’s official jersey sponsor, sponsor and official, exclusive nutrition partner. The company sponsors the teams’ international and exhibition games.

Although Herbalife sponsors several teams and elite athletes worldwide, the Galaxy represents the company’s largest investment in sports sponsorship.

Adidas has been the official kit – uniform and equipment – manufacturer for MLS teams since 2007 and continues to produce LA Galaxy team kits, which include uniforms and jerseys with the Adidas logo.

In addition, UK-based digital marketing brand Honey will be featured as a sponsor on LA Galaxy jersey sleeves. As the official jersey sponsor, Herbalife will be featured front and center on Galaxy jerseys.

As evidenced by such deals, sports sponsorship has increasingly been considered an effective form of advertising. Sports sponsorship accounts for an estimated 70% of spending on all sponsorship deals, according to IEG, a Chicago-based global consulting firm that specializes in partnership strategy and evaluation for sponsors and rights holders.

Brand game plans

Herbalife’s deal with the team will see the company’s logo featured prominently on the team’s home and away jerseys, team training gear, LA Galaxy academy jerseys, replica jerseys and club merchandise.

Jersey sponsorship offers brands maximum visibility and keeps them close to a team.

According to a Deloitte study on sports sponsorship titled “Sports in the Digital Age,” “Sports has the power that few industries have like art sponsorships and product placement on TV shows.”

Herbalife supplements in the fitness, nutrition and sports realm create a strategic setting with the sports team. Galaxy, which is popular not only in the country, but nationally and internationally, played at a high level and won many championships in the league. As such, it represents an athletic, healthy and active lifestyle.

From the Big 4 to the Big 5?

With the growing popularity of Major League Soccer in North America and around the world, Apple’s recent $2.5 billion global distribution deal with MLS will expand the reach and visibility of all MLS sponsorships to broadcast all of its games.

The Galaxy’s value has risen in line with the average value of MLS teams over the past few years. Last year, the price of the Galaxy was 835 million dollars, according to Sportico, the average price of MLS teams is 550 million dollars. That’s up from $313 million just two years ago, according to Forbes.

Another factor that makes team investments and sponsorships attractive is that MLS, founded in 1993, is still a fledgling professional sports league with plenty of room for growth.

MLS is often compared economically to the Big Four sports leagues. However, MLB was formed in 1876, NHL in 1917, NFL in 1920 and NBA in 1946. All four leagues reflect impressive growth patterns over time.

MLS is the fastest growing league in the world and has doubled in size in the last 15 years. “The Big Four is now arguably the Big Five,” Steve McCaskill, a sports reporter at Sports Pro Media, said of MLS expansion. American sports scene.

Sports sponsorship is evolving as the internet, social media and digital platforms offer new opportunities for companies to develop and operate partnerships.

“While sports continue to draw crowds to stadiums, digital advances and the proliferation of social media have brought new opportunities for brands to increase visibility and improve their sponsorship messaging,” according to the Deloitte report.

“Ten years ago, the sponsorship landscape was a lot simpler than it is today,” said Tuck Burch, head of brand marketing at Excel Sports Management. Commercial rights of franchises, teams, and athletes have been the primary means of marketing in the sports landscape. There are endless opportunities to connect with consumers through sports today and they come in all shapes, sizes and levels of investment.

Ultimately, adaptability will be key to brand success, says Deloitte. “The future of sports events and sports sponsorship will always depend on the brands Wr to achieve the greatest mutual benefit.”