As one of the final courses at NYU's Sports Business Masters program, we were challenged to pitch a sponsorship opportunity to a sports property. We saw an opportunity to pair two of the most recognizable brands in the world: the University of Michigan and Kellogg's.
We proposed selling Kellogg's the naming rights to Michigan Stadium, or as it is more commonly known, the Big House. By valuing TV, digital, print rights and more, as well as developing activation concepts, we were able to come up with a compelling proposal.
Note that the presentation was for a graduate school program and is in no way officially aligned with either the University of Michigan or Kellogg's. Some formatting was compromised while uploading.
2. A proposal from the University of Michigan Athletic Department to
Kelloggâs to become the
official naming rights partner of Michigan Stadium
and exclusive snack and breakfast food partner.
Provide Kelloggâs unique access to Michigan assets & fans at their primary passion point
Secure Kelloggâs as #1 in cereal/snacks
Demonstrate lift in Michigan Fans & Viewers as Kelloggâs customers
Increase brand loyalty
Kelloggâs Stadium
$6,000,000 per year for 30 years
3. Kelloggâs Company Background
» 10-16 and 35-54
» Suburban
Drive sustainable growth through the power of our
people and brands by better serving the needs of our
consumers, customers, and communities
FROM GREAT STARTS, COME GREAT
THINGS.
Commitment to sustainability and
social responsibility
Mission
Values
Target Market
» Moms & Women
» Middle-Upper Middle
Class
History Founded in 1906, Battle Creek, MI
4. Direct Competition: Market Positioning
Good Food,
Good Life
Food You Love
The Company of Champions
In a crowded marketplace,
Kelloggâs has the opportunity to
differentiate themselves from
their competition through a
unique association with
the University of Michigan.
9. Michigan Stadium
» Built in 1927 by Fielding Yost
» Eight expansions/renovations
» Largest in North America; third largest in the world
» 109,901+ capacity
» 112,252 â Average in 2012; #1 in CFB
» 115,109 â 9/7/2013 vs. Notre Dame
» Largest NCAA Collegiate Football Game Ever
» 250+ consecutive crowds of 100,000+
» Added suites, club seating, padded seatback chairs in 2010
» Big Chill, Winter Classic, Private Events
10. Why Michigan + Kelloggâs?
Michigan Based
Iconic
History
Active
Family Oriented
Tradition
11. Naming Rights Comparables
TCF Stadium
$1.4 million/year
$35 million over 25 years
Jones AT&T Stadium
$800,000/year
$20 million over 25 years
Largest capacity with deal
Average of the top 10 college naming rights deals
= $22 million over 22.7 years totaling $996,875 annually
Top 21 major league stadium deals
= $172 million over 22.8 years totaling $7.55 million annually
Top 22 major league arena deals
= $90 million over 20.5 years totaling $4.43 million annually
No food/snack stadium in college
Kabam Field
$1.2 million/year
$18 million over 15 years
Save Mart Center
$2 million/year
$40 million over 20 years
Largest deal
13. Television Ratings
» Despite a 7-5 season, Michigan is the second most-watched college
football team thus far behind Alabama for 2013
» This season, Michigan drew an average of 5,355,476 viewers and a
3.4 rating (Alabama had a 3.9 rating)
» Top teams in the Big 10:
2. Michigan (5,355,476 viewers)
6. Ohio State (4,443,167)
12. Nebraska (3,187,639)
16. Northwestern (2,684,300)
18. Wisconsin (2,619,148)
19. Penn State (2,573,806)
22. Michigan State (2,502,750)
30. Purdue (2,203,500)
33. Iowa (2,118,056)
42. Illinois (1,627,600)
45. Minnesota (1,616,524)
Source: Sports Media Watch, Nielsen, SBNation
14. Television Ratings: 2009 - Present
» Home games on national television average 3.4 over 5 years
Year Number of Games Average Rating
2009 3 3.83
2010 3 2.76
2011 5 3.35
2012 3 2.25
2013 3 4.81
Source: Nielsen
15. Broadcast Valuations
Asset Asset Metrics Impressions Estimated Value
National TV
âą 8 mentions of the stadium
per game (5 seconds each)
âą 3 national broadcasts
âą :30 second commercial
costs $110,000
5,355,476
$146,666 (per game)
$440,000 (per season)
Local TV
âą 8 mentions of the stadium
per game (5 seconds each)
âą 4 regional broadcasts
âą :30 second commercial
costs $35,000
1,000,000
$46,666 (per game)
$186,666 (per season)
TOTAL TV VALUATION: $626,666
Asset Description Metrics Impressions Est. Value
Radio
Four (4) broadcast
commercial spots (:30
second unit) at each
game
âą Est. average radio rating is 1
(9 games/year)
âą Michigan DMA: 4,525,480 HH
âą $500 each spot
814,586 $9,000
TOTAL RADIO VALUATION: $9,000
17. Social Media Presence
» 27 Team Facebook Pages
» 22 Team Twitter Pages
» 18 Twitter Pages for coaches, Dave
Brandon, and misc.
» Instagram, Tumblr, Vine
» Over 2.1 Million Fans/Followers
MGoBlue.com
» 4.75+ Uniques/Year
» 424,000 Uniques in October
» ~45% Female Demographic
MGoBlue App
» Approx. 74,200 downloads
@umichfootball (and then some)
Source: ComScore, XVO.net
18. » Code printed on specially Michigan-branded boxes of
Kelloggâs products
» Once customer purchases box, they must become a
fan of Kelloggâs on Facebook to enter code
» Code is either for a coupon for $2, $5, $10, $100, or a
yearâs supply of Kelloggâs products
Activation: Digital
Coupons for Clicks
» Increase Social Media
Presence and
Sales by:
» Appealing to the
money saver in
all of us
» Creating
anticipation to
see if you have
the lucky coupon
19. » Pre-Season: âLikeâ gated Facebook event for season tickets
» During Season: âLikeâ gated Facebook event for ultimate fan
experience
» Off-Season: âLikeâ gated Facebook event to be a Michigan
Football Player for a Day:
» Exercise with Strength and Conditioning coaches
» Meet one-on-one with Coach Hoke
» Get tips from position coaches
Activation: Digital
Like Big to
Win Big
» Increase Social Media
Presence by:
» Creating enticing
never-before-
offered
opportunities
» Appealing to
what the
Michigan Fan
wants
20. Digital Valuation
Asset Description Asset Metrics Total Value
At least 20 Twitter and 20 Facebook posts using
Kelloggâs Stadium on Football pages (1.4M total
followers/fans)
1,755,619 impressions
at $5 CPM
$8,780
At least 65 Twitter and Facebook posts using
Kelloggâs Stadium on non-Football pages (785K total
followers/fans)
831,577 impressions
at $5 CPM
$4,160
Banner Advertising
Banner Advertising on
MGoBlue.com
750,000 impressions
at $5 CPM
$3,750
On-Page Advertising
On-Page Advertising on
MGoBlue.com
600,000 impressions
at $5 CPM
$3,000
Pre-Roll
:15 Pre-Roll before
MGoBlue.com Video Content
500,000 impressions
at $10 CPM
$5,000
Sweepstakes
Execution/Prize
Fulfillment
$5,000
TOTAL DIGITAL VALUATION: $29,690
22. Valuation: Signage
Kelloggâs mounted sign
In-stadium scoreboards
Two of Kelloggâs Stadium signature features
are the two in-stadium scoreboards and the
block M, a historical landmark to fans and
alumni.
Adjacent to the highway, The Block M can be
seen by daily commuters as well as game
day fans.
23. Valuation: Signage
One of the primary points of
interest at Kelloggâs Stadium
are six, branded wrought iron
gates that fans enter each
event
Kelloggâs Stadium will have
large Kelloggâs logos painted on
the field, which will be visible to
fans in-stadium and receive
exposure to those watching on
TV.
24. Signage Valuation
Asset Description Metrics Impressions Est. Value
Kelloggâs
mounted sign
Kelloggâs logo
mounted on top of
block M, facing
outward towards
Ann Arbor
1,750,000
impressions at
$.10 each
1,750,000
âą *30,000 daily drivers+
(5,000 unique drivers*
260 work days) +
(60,000 fans * 7 game
days)
$175,000
In-Stadium
scoreboards
Kelloggâs logo
painted onto both
stadium
scoreboards
990,000 impressions
at $0.50 each
19,000,000 at $.02
each
19,990,000
âą Annual in-stadium
attendance + annual TV
audience
$825,000
(990,000*0.05) +
(19,000,000*
$.02)
Stadium
Gates
Six stadium gates
re-done to read
Kelloggâs Stadium
990,000 impressions
at $.10 each
990,000
âą (Annual in-game
attendance)
$99,000
On-Field
Logos
Two Kelloggâs logos
painted on the 30-
yard line facing
towards the TV
camera
770,000 impressions
at $.25 each
7 minutes of game
exposure at 25%
commercial value
âą 19,770,000
âą Annual in-stadium
football attendance +
annual TV audience
$1,640,000
TOTAL SIGNAGE VALUATION: $2,739,000
*Source: AnnArbor.com
28. Printed Tickets Valuation
Asset Equivalent Impression Value (per person) Total Value
Regular Tickets
(106,341/game)
= 3
impressions/attendee/game
(7 games)
$0.25/ticket price per attendee $558,290
Club Seats Tickets
(3,000/game)
= 7
impressions/attendee/game
$1/ticket price per attendee $147,000
Suite Tickets
(560/game)
= 7
impressions/attendee/game
$1/ticket price per attendee $27,440
Hockey Regular Tickets
(106,341/game)
= 3
impressions/attendee/game
(2 games)
$.25/ticket price per attendee $159,511
Hockey Club Seats
(3,000/game)
= 7
impressions/attendee/game
(2 games)
$1/ticket price per attendee $42,000
Hockey Suite Tickets
(560/game)
= 7
impressions/attendee/game
(2 games)
$1/ticket price per attendee $7,840
TOTAL PRINTED TICKET VALUATION: $942,081
29. Print Valuation
Asset Description Metrics Impressions Est. Value
Print Advertising on all
parking, booklets, print
M Club logo inclusion
on all relevant
tickets/passes/cards,
etc. and first page full
color ad in Michigan
Football Media Guide
990,000 impressions
at $.10 each
990,000
âą (avg. 110,000
fans/game*9)
âą 7 football, 2 hockey
$99,000
(990,000*0.1)
Email Inclusion on M Insider
every month, Kelloggâs
receives banners at
top of email (intent to
promote product)
1,544,000
impressions at
$0.05 each
1,550,000
âą (500,000 living
alumni, 50,000
current students,
1MM HH w/children)
$77,500
(1,550,000*0.05)
TOTAL PRINT & EMAIL VALUATION: $176,500
32. Hospitality Tickets
Asset Value (per person) Total Value
Football Regular Tickets 50 regular tickets/game (avg. $230) $80,500
Football VIP Tickets 10 VIP tickets/game (avg. $500) $35,000
Football Suite Tickets 16 suite tickets/game $85,000
Winter Classic/Big Chill
Regular Tickets
100 regular tickets/ 2 games (avg. $180) $18,000
Winter Classic/Big Chill VIP
Tickets Kelloggâs=20 VIP tickets/2 games (avg. $500) $10,000
Winter Classic/Big Chill
Suite
Kelloggâs=32 suite tickets/2 games
Included in
Football Suite
TOTAL HOSPITALITY TICKET VALUATION: $ 228,500
33. Hospitality Valuation
Asset Equivalent Impression Value
Facility Usage
âą Weddings â 1 (one) *bonus $7,000
âą Holiday Party â 1 (one) *bonus $9,000
âą Company/Client Football Game â 1 (one) *bonus $7,000
âą Univ. of Michigan Golf Course â 1 (one) *bonus $500
Exclusive Parking/Tailgate AreaâKelloggâs
Gold Lot
*bonus $50/game*20 vehicles =
$1,000/game =
$7,000/season
Former Player/Legend Usage â 1 (one)/year *bonus $2,500
TOTAL HOSPITALITY VALUE: $33,000
35. Direct Sales
Asset Estimated Sales/Year Value (Sales +
Opportunity & Site)
On-Site at Kelloggâs Stadium $2,400,000 or $268,000/game $2,600,000
Game Day
(Pre kick-off/post game)
$45,000 or $5,000/per $45,000
Union $450,000 $500,000
M-Den $25,000/5 stores $30,000
TOTAL DIRECT SALES OPPORTUNTIES: $3,175,000
37. » Expand the current Blue Bike program from 34 to 150 bikes campus
wide, brand bikes with Kelloggâs logo
» Subsidize rides during mid-term and finals week and before 10 am
» Thousands of riders over the course of the year plus 50,000 student
body exposed daily and current trendiness of bike sharing
» Value of $10 per student = $500,000 annual value
Activation: Student Body
Kelloggâs Blue
Bike Share
» Inexpensive
transportation
» Promote healthy
living
» Reinforce
campus
sustainability
38. Kelloggâs Zone
» Two annual Noon kickoffs
» Kelloggâs activation area adjacent to the Big House that will
» Provide Kelloggâs breakfast products to students
» Through contests and raffles, award the most passionate fans
with Michigan gear
» Guest appearances from former Michigan players
» 2,500 students experience area per game at $5 per impression
» 50,000 fans pass by each game at $.25 per impression
» Annual value = $50,000
Activation: Student Body
» Create a positive
association between:
» Michigan athletics
and starting your
day off right to be
at your best
» Get products into
the hands of
students at the
peak of their
passion
39. » Free breakfast products will be distributed to students in high
traffic areas of campus
» Kelloggâs branded thumb drives will be distributed outside of
the library
» Calculators and pencil distribution outside of classrooms
» Average value of $10 per student = $500,000 annual value
Activation: Student Body
Finals Week Pick
You Up
» Be the âheroâ to
students by:
» Providing food to
students during
the time they
need it the most
» Reinforce idea of
using Kelloggâs
breakfast to be at
your best when
you need it the
most
40. » âWelcome Back!â Kelloggâs Kits at Ann Arbor Hotels and Airbnb
homes for alumni returning to campus
» Kelloggâs Pep Rally with banners, swag, and sampling around Diag
» Kelloggâs Michigan Moments highlights families who attended U-M
» Film with your family in a booth during the Pep Rally
» Air edited content throughout football game
» Value of $10 per hotel room alumni kit = $25,000
» Impressions through Pep Rally: 10,000 at $0.25 = $2,500
» Michigan Moment Video in Stadium: 70,000 at $.50 = $45,000
» Total Homecoming Value: $72,500 annual value
Activation: Kelloggâs Homecoming Week
Kelloggâs
Homecoming
Week
» Connect with
Alumni
» Emphasize
Family Legacy
» Support the
team off the field
41. » Highly interactive âfun zoneâ for parents to take their kids
» Mascots such as Tony the Tiger, Snap, Crackle, and Pop
» Educating and fun experience for everyone
» Value of $2 for engaged kids/parents; $0.25 for aware kids/parents
» 5,000 engaged kids + 5,000 parents = 10,000 impressions/game=
$140,000 annual value
» 5,000 aware kids + 5,000 parents = 10,000 impressions/game =
$17,500
Activation: Kids & Parents
Kelloggâs Kids
Club
» Connect with
kids and parents
» Make it fun
» Interactive
» Emphasize
healthy eating
habits and an
active lifestyle
42. » For fans who want to experience the benefits of choosing healthier
breakfast and snack options
» Mascots such as Dig âEm or Toucan Sam
» A safe area where fans can come enjoy the interactive opportunities
offered by Kelloggâs
» Value of $1 for engaged fans
» 7,500 fans/game= 7,500 impressions= $52,500 annual value
Activation: Game Day Fans
Kelloggâs Kickoff
Corner
» Create a fun and
safe place for
pre-game
activities for fans
» Make it fun and
positive
» Interactivity
43. Total Activation Valuation
Asset Value
Bike Share $500,000
Kelloggâs Zone $50,000
Finals Week $500,000
Homecoming $72,500
Kelloggâs Kids Club $157,500
Kelloggâs Kickoff Corner $52,500
TOTAL ACTIVATION VALUE: $1,332,500
45. Cause Marketing
» Kelloggâs Michigan Fund
- $1 of every ticket sold goes to feeding hungry in Detroit
» Kelloggâs Michigan Volunteer Day
» Kelloggâs Coaching Clinic for area schools
» Kelloggâs Field Day
- Way to teach inner-city youth about health and wellness through fun
activities with football team
47. Total Valuation
Asset Impressions Value (Annual)
Television 6,355,476 $626,666
Radio 814,586 $9,000
Digital 4,437,196 $29,690
Signage 42,500,000 $2,739,000
Printed Materials 3,530,000 $1,118,581
Hospitality - $261,500
Direct Sales - $3,175,000
Activation 432,500 $1,332,500
58,069,758 Value: $9,291,937
15% Premium for Intellectual Property $1,393,790
Total Value: $10,685,727
Cost: $6,000,000/year
Value:Cost 1.78:1
Hinweis der Redaktion
55 team national championships in 11 sports
303 individual national championships
No man, no coach is greater than the team.
All data from Scarborough Research 2011 â Detroit, MI
-top 15 of the wealthiest alumni bases
59,000+ students
41,000+ employees
526,000+ alumni
212,000+ alumni in Michigan
Millions of fans worldwide
Yost is legendary coach and then athletic director
Historic stadium with centuries of stories of players, coaches, families
Radio Impressions: (4,525,480*0.01*9*2)
Est Value: (2*9*500)
Season Ticket Cost â $500 + 500 = 1000
Game tickets, locker room, etc. â 130 + 300
1,189,326 Fans of Football * 1.36 = 1,617,483
181,758 Twitter Followers * .76 = 138,136
784,507 nonfootball SM * 1.06 = 831,577
Mgoblue
236,844 Average Uniques/Month
Four Months of football = 948,000 uniques during season
Estimated average radio rating is 1 (7 home games/year * 30 years=210 home games)
Impressions: 4,525,480 *0.01*7*2=633,567 impressions per season
If Big Chill and Winter Classic are added then impressions increase to 815,000 and value of radio would be $9,000
Est. Value: 2*7*500=$7,000
110,000 average fan attendance for UMich home game
If Big Chill and Winter Classic are added then impressions increase to 1 million and value of print would be $100,000
M Insider is the official newsletter of the U of Michigan Athletics Department
500,000 living UMich alumni, 44,000 current students, 29% of Michigan population is 18 years or younger, roughly 1 million HH have children living at home
Assume four (4) email blasts per year (pre-sale season tickets, beginning of season, middle of season, and end of season)
DMA = Demographic market area
M Insider Newsletter (Monthly) = 500,000 alumni and 45,000 students + subscribers
HBO Special about the game and the impact
107,000 regular tickets *0.25 *7*3 =
Estimated 50 VIP tickets/game =350 VIP tickets a season * 7 * 1 =
35 suites that arenât Kelloggâs
35 *16 ppl in each suite =560 people/game * 7 =3,920 suite tickets annually. 3,920 * 7 = 27,440
Field/locker room access
80% cost of suite is tax deductible
Necessary to include Big Chill and Winter Classicâmost sought after hockey tickets in the nation
Kelloggâs Kids Club is a new area built at the stadium which has all types of interactivity events and activation opportunities. Engagement and awareness is high.
Roughly 5,000 kids + 5,000 parents = 10,000 impressions
Estimated average radio rating is 1 (7 home games/year * 30 years=210 home games)
Impressions: 4,525,480 *0.01*7*2=633,567 impressions per season
If Big Chill and Winter Classic are added then impressions increase to 815,000 and value of radio would be $9,000
Est. Value: 2*7*500=$7,000
110,000 average fan attendance for UMich home game
If Big Chill and Winter Classic are added then impressions increase to 1 million and value of print would be $100,000
M Insider is the official newsletter of the U of Michigan Athletics Department
500,000 living UMich alumni, 44,000 current students, 29% of Michigan population is 18 years or younger, roughly 1 million HH have children living at home
Assume four (4) email blasts per year (pre-sale season tickets, beginning of season, middle of season, and end of season)
DMA = Demographic market area
Access elements, benefits, etc
Avg price per ticket of Winter Classic = $205 and will have 113,000 attendees
Avg price per ticket of Big Chill = $150 and had 109,000 attendees
Avg ticket between the 2 is $180 and attendance is 111,000 between the two
Estimate these two games will happen every 4 years so 7 times throughout the length of the contract
Math regular tix: 220,000*6*.25 = 330,000
Big part of college football, maybe not as much monetary value as tv or intellectual, but important nonetheless
Using all of these as incentive add-onsâif it is a tough sell to Kelloggâs then proposing we throw in additional bonuses with various facility usages is huge
Kelloggâs is designated their own, private Gold Lot for parking and tailgating activities
Michigan will secure one previous player/legend appearance in the Kelloggâs suite each season for one half of the football game
Kelloggâs Kids Club is a new area built at the stadium which has all types of interactivity events and activation opportunities. Engagement and awareness is high.
Roughly engaged 5,000 kids + 5,000 parents = 10,000 impressions
Roughly aware 5,000 kids + 5,000 parents = 10,000 impressions
Kelloggâs Kickoff Corner is a game day activation opportunity for fans and as well as allowing Kelloggâs to entertain their clients with various aspects of this activation
Area where Kelloggâs brand ambassadors are on site, interacting with fans with various tailgating games centered around Kelloggâs products
Roughly engaged/aware fans 7,500 = 7,500 impressions 7 times a year
Viewed as bonus impressions, not guaranteed events, or events that are not seen as marketing driven
Naming rights deal differs a little in that Kelloggâs has the opportunity to sell their products on site as opposed to a TD Bank or communications sponsor
Products in stadium: Kelloggâs choice for the most part, weâre not going to tell them what they can and canât have
Anything from cereal, granola and nutri grain bars, fruit snacks, pop-tarts, eggos, etc
Sodexo just signed contract with Michigan to be the official catering and dining services provider for the university
Must find way around that âDONâT MENTION IT UNLESS THEY BRING IT UP
Generally a 30-50% split with concessionaire on revenue
In 7 home games Louisville sold $2,600,000 worth of concessions and an average of $375,000 per game (capacity was 42,000 in 2010)
In 7 home games for Michigan + 2 hockey games, I estimate concession sales at $8.775 million and an average of $975,000 per game (capacity at 110,000)
Kelloggâs could take an estimated 25-30% of those sales for their products totaling at $2.4 million and an average of $268,125 per game
Math = Michigan holds 2.6x the capacity as PJCS. Take 375,000/game * 9 games at Kelloggâs Stadium * 2.6 = 8,775,000 for the year. Then take that and divide by 9 to get the per game amount =975,000.
Similar to what Papa Johnâs gets at PJCS, they probably even get more than that because it is pizza
Student Union sales: Extremely low end estimate = sell 1 box of cereal ($4) to 50,000 students one time = $200,000 for the year. Sell 1 box of granola bars ($5) to 50,000 students = $250,000
M-Den has 5 locations in Michigan â open year round
Rough estimate of selling $5,000 worth of products in each store for the year totaling $25,000
Only have to sell (1) one Kelloggâs product to 5,000 people (could be duplicates) in one year
208 rooms at campus inn, 66 bell tower, 238 courtyard,
1,000 hotel rooms x 2.5 people per room = 2,500 impressions x $5 = 12,500
670 x 5 = 1400
Math = $2 engaged fan
0.25 for an aware fan
5,000 kids + 5,000 parents = 10,000 impressions per game * 7 games = $140,000
5,000 kids + 5,000 parents = 10,000 impressions per game * 7 games = $17,500
Big part of college football, maybe not as much monetary value as tv or intellectual, but important nonetheless
Using all of these as incentive add-onsâif it is a tough sell to Kelloggâs then proposing we throw in additional bonuses with various facility usages is huge
Kelloggâs is designated their own, private Gold Lot for parking and tailgating activities
Michigan will secure one previous player/legend appearance in the Kelloggâs suite each season for one half of the football game
Kelloggâs Kids Club is a new area built at the stadium which has all types of interactivity events and activation opportunities. Engagement and awareness is high.
Roughly engaged 5,000 kids + 5,000 parents = 10,000 impressions
Roughly aware 5,000 kids + 5,000 parents = 10,000 impressions
Kelloggâs Kickoff Corner is a game day activation opportunity for fans and as well as allowing Kelloggâs to entertain their clients with various aspects of this activation
Area where Kelloggâs brand ambassadors are on site, interacting with fans with various tailgating games centered around Kelloggâs products
Roughly engaged/aware fans 7,500 = 7,500 impressions 7 times a year
Viewed as bonus impressions, not guaranteed events, or events that are not seen as marketing driven