Motley Fool Money Stadium Sponsors – Buy or Sell?
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Sep 3, 2023 With NFL season kicking off, the discussion dives into stadium sponsorships and their lackluster financial performance compared to the market. Highlights include a critique of major companies in the sports arena and the strategic brilliance of Monster Energy in extreme sports. The complexities of naming rights are unpacked, revealing transparency issues and alignment challenges. Insights into big tech's influence on sports broadcasting hint at shifting investment landscapes. There’s also a look at growth opportunities in companies like Live Nation and Ticketmaster.
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Stadium Investing
- Avoid investing solely based on stadium naming rights.
- Other factors are at play, so create a diversified portfolio.
Sponsorship Performance
- Stadium sponsorships rarely outperform market indices or industry peers.
- Long-term sponsorships (20+ years) tend to perform better.
Ford's Sponsorship
- Ford spends $2 million annually on stadium sponsorship but $2 billion on advertising.
- It is a negligible amount within their budget.