FOS PM: Super Bowl Ads Fetching $7M – Front Office Sports

The NFL season kicks off tonight in Los Angeles — and it’s already creating buzz around February’s Super Bowl.

Fox Sports has sold 30-second Super Bowl commercials for more than $7 million each — a record for the big game — and has sold “north of 95%” of available inventory, according to Mark Evans, head of ad sales at the network.

Evans said the prices are rising partially due to other shows and events moving to commercial-free streaming services, leaving companies with fewer places to advertise. But the Super Bowl can guarantee brands some exposure.

• The 2022 Super Bowl generated approximately $434.5 million in ad spending.
• Companies received an estimated $170 million worth of “in-game exposure,” according to a report by Hive and Elevate.
• Super Bowl LVI had an estimated total viewing audience of more than 208 million, averaging 99.2 million viewers on NBC.

Fox last broadcast the Super Bowl in 2020 and sold out of inventory by November 2019. Fox is reportedly on pace with NBC’s sales last year.

Super Switch

Some of the Super Bowl’s biggest advertisers are shrinking their footprints on the game. 

Pepsi will no longer serve as the presenting partner for the Super Bowl halftime show as it looks to transition more of its media spend toward digital audiences.

Anheuser-Busch did not renew its exclusivity deal for Super Bowl LVII, clearing the way for other alcohol brands to advertise during the game. Shortly after the June announcement, Molson Coors purchased its first spot in more than 30 years.

Before NIL rules were passed, schools could only sell generic jerseys that didn’t represent actual players. Customizable jerseys have been one of the most highly anticipated products of the new NIL era.

On Thursday, Fanatics launched what is likely the largest customizable jersey program in the country. 

• The company now has an online college football store selling jerseys for more than 4,300 players across the country from 40-plus schools.
• The shop was facilitated by the OneTeam Partners group licensing program — athletes can opt in to have their NILs featured on official school merchandise. 
• Players will receive a cut of sales, though the specific percentage wasn’t disclosed.

Some college sports officials previously questioned whether group licensing deals would be possible. In professional leagues, group licensing is negotiated by players’ unions — and there’s no official union at the intercollegiate level to bargain on behalf of athletes. 

But the Fanatics program proves group licensing can be done at scale without a union, as companies like OneTeam Partners can simply set terms and allow athletes to opt in if interested. 

Easy Money

There’s a benefit for athletes, too, as opting into group licensing deals allows for “passive” NIL income. 

While some deals require major time and effort on the part of athletes — attending events or creating social media content — group licensing deals often require none at all.

GameStop failed to meet expectations in its latest earnings report. 

The video game retailer posted net sales of $1.13 billion in Q2 2022 — missing Wall Street estimates of $1.3 billion and down from $1.18 billion for the same period last year. 

• GameStop reported a net loss of $108.7 million in Q2, up from $61.6 million in Q2 2021.
• Selling, general, and administrative expenses reached $387.5 million during the quarter.
• The company’s hardware and accessories segment generated $596.4 million in sales.
• Its software segment saw sales reach $316.4 million — making up 27.9% of total sales. 

GameStop, which has reported significant losses over the past calendar year, has made recent changes to its business to expedite profits. 

The Texas-based company launched a digital asset wallet in May that allows consumers to send, receive, and use cryptocurrencies and NFTs across decentralized apps. In July, GameStop launched its first NFT marketplace where members can buy, sell, and trade NFTs. 

The company saw its collectibles segment, which includes the NFT marketplace, generate $223.2 million in sales in Q2 2022, up from $177.2 million for the same period last year. 

Big Deal 

On Wednesday, GameStop announced that it has secured a deal with cryptocurrency exchange FTX. The two companies will collaborate on e-commerce and online marketing initiatives, which will include GameStop carrying FTX gift cards at select brick-and-mortar stores.

In January, FTX raised $400 million in Series C funding, valuing the company at $32 billion.