9. INDUSTRY, INNOVATION, AND INFRASTRUCTURE

SBJ Esports: Honda, TD Bank latest big brands to extend team deals – Sports Business Journal

Written by Amanda

Overwatch 2 will be a free-to-play game, and it feels like any other decision here would’ve been a tire fire. I’m glad Activision Blizzard has recognized just how the team shooter market has evolved since the first Overwatch released way back in 2016. But they’re going to have to sell a whole bunch of skins to pay for those 25,000 voice lines.

— Jason Wilson

Honda is expanding its sponsorship of Team Liquid to include naming rights for its squad in the North American circuit for League of Legends (LCS). Team Liquid Honda will debut the moniker in competitive play on Friday in the start to the Summer Split.

No financial details were released. Last year, L.A.-based TSM sold naming rights to FTX in a 10-year deal worth $210 million (covering all of its teams). But TSM’s team in LCS cannot wear FTX on their jerseys due to a Riot Games restriction on team crypto deals (Riot is still in the process of reviewing that policy). Earlier this year, Progressive linked up with Great Lakes-based Immortals in a multiyear deal for similar naming rights for its LCS squad.

The two sides have been partners since 2019. As is the case with many esports sponsorship pacts, this extension was brokered directly between the two sides without any agency negotiating on their behalf. L.A.-based Rubin Postaer and Associates, will assist Honda and Team Liquid on activation for the deal, including experiential work.

The deal comes ahead of the League of Legends World Championships returning to North America later this year. “Worlds being in the U.S. is really exciting, but [it] wasn’t a driving force in our decision,” said Phil Hruska, who heads media for American Honda Motor. “Our expanded relationship … will further our engagement with esports enthusiasts — and specifically the young, multicultural, passionate audience of fans. … We get to work closely with the players, coaches, and the marketing team in development of our creative.” 

Naming-rights deals for teams have become increasingly popular due to the prominent, static nature of jersey signage during competition livestreams. It has become the most-valuable inventory for a team because of that viewership reach, especially for teams that play in popular leagues like the LCS, or in other competitive circuits around games like Valorant, Counter-Strike: Global Offensive or Overwatch. — Kevin Hitt

Honda gets naming rights for Team Liquid’s squad in the LCS

OverActive Media (OAM) has renewed and expanded a sponsorship pact with TD Bank that began in August 2020. The deal comes just as OAM, parent company for the Toronto Ultra, hosted Canada’s first Call of Duty League major. The Toronto Defiant of the Overwatch League will also be covered by the renewal. Terms were not disclosed.

“This is an opportunity that is helping the bank make meaningful connections with esports fans and our customers across Canada,” said TD VP/Brand and Corporate Sponsorships Michael Armstrong. “We have seen rapid growth of the esports industry from coast to coast, and collaborating with OverActive helps to provide TD with very unique and innovative opportunities to engage with an extremely passionate fanbase.” An OAM rep tells SBJ the organization was pleased with the extension because it shows TD’s recognition of the “growth potential in the esports industry.”

The deal involves a variety of new sponsorship elements, including activations at the Toronto Major and the OWL Summer Showdown, which the Defiant will host September 8-11. Also covered with the is a remodel of the TD Player Lounge at OAM HQ in Toronto, activation around the Defiant’s Fan Appreciation Weekend, the launch of the Canadian Overwatch Fest and integration into Ultra and Defiant matches on CDL and OWL broadcasts, along with custom content and product placement.

OAM is still partnered with Imagin in the banking category for its Spain-based Mad Lions team in the European League of Legends circuit (LEC). — Jason Wilson

TD Bank has extended a deal with OverActive Media that began back in 2020

A saturated auto category within traditional sports continues to give rise to new auto sponsorships within esports, allowing car brands to reach a younger demo in the process.

It was a trend that began back in esports in 2017, with multiple manufacturers entering the scene, including Mercedes-Benz sponsoring a Dota 2 event (ESL One Hamburg), Audi Denmark becoming a partner Astralis’ top-tier CS:GO team and BMW getting its branding at the LEC finals in Paris. Today, more than 30 brands are actively involved in esports.

Thus far, auto brands have focused on traditional sponsorships of teams and events within esports, featuring brand placements in digital assets, broadcasts, content segments, venue spaces and audience activations. Some brands, though, have gotten creative with in-game content in titles like Rocket League, Fortnite and other racing games. There also has been integration through employer branding or brands outright owning esports teams.

Increased sim racing amid the pandemic — something that replaced at-track races for many circuits — allowed for more natural synergies in the esports space. Several car brands created their own sim racing events and started supporting professionals. Despite the return of real racing, many of those brands stuck with sim racing and continue to build synergies between the two worlds.

Read more on this subject next week at SBJ Esports. — Tobias Seck

BMW is among the higher-end auto brands that have found success in esports

  • Days after leaving FlyQuest as its CEO, Tricia Sugita has joined Cloud9 as its CMO. FlyQuest COO Michael Choi will slide into the CEO role with the transition.
  • The Cavaliers made a move with its NBA 2K League team ops, promoting Jonathan Sumers to VP/Cavs Legion GC & esports operations.
  • Vishal Parekh is the new CMO of India-based Nodwin Gaming. He’s coming from Kingston Technology, where he was marketing director.

  • Team Vitality tapped Garnier Fructis of the L’Oréal as its official haircare supplier through 2023, a deal that will continue the successful V for Veuch campaign.
  • Tournament organizer Blast Premier rolled out sponsorships for its Counter-Strike: Global Offensive Spring Finals with HP Omen, Magnum, Moche and Teleperformance.
  • Banco Santander of Spain has signed a three-year deal to sponsor the League of Legends European Championship (LEC) and the Liga Latinoamérica (LLA).

  • What the metaverse is and can be remains open for debate, but NASCAR views it “as an interconnected community of virtual worlds that are accessible through massive platforms,” said Managing Director of Gaming & Esports Nick Rend at SBJ’s Brand Innovation Summit this week.

Source: sportsbusinessjournal.com

About the author

Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai