Kaseya Reaps Benefits of Miami Heat Arena Naming Rights Deal
IT software firm Kaseya has received over $8.6m in media value for its in-venue assets on linear TV, and each NBA Finals game hosted by the Miami Heat could be worth an additional $20.7m in brand exposure, according to marketing data. The sum is partially owed to the fact the Kaseya Center naming deal, worth $117m over 17 years, didn’t technically start until 1 July 2021 but the company has already been credited with high-profile branding and access, thanks to the Heat’s unprecedented run to the NBA Finals.
A Tremendous Coup for Kaseya
The Miami Heat weren’t supposed to be in the position to offer Kaseya such prominent branding, and there was no indication that Kaseya would secure a deal to partner with the Heat. FTX had previously offered $135m over 19 years for those naming rights, but the crypto company’s scandalous crash left the door open for Kaseya. The Heat jumped at the chance to plug their new $117m deal, and Kaseya’s marketing team has identified two reasons for moving forward with the venue sponsorship. Firstly, the firm is planning to hire 3,000 people in Miami and secondly, it is attempting to develop its brand awareness among customers who use IT services. Kaseya likened the strategy to Intel’s pivotal “Intel Inside” campaign, which helped the microchip manufacturer increase its leverage with computer manufacturers.
Benefits of a Naming-Rights Deal
Naming-rights partnerships are becoming more popular among B2B companies as there is a clear economic case. It may take time for the Kaseya Center partnership to be fully maximised, but a deep playoff run can help cement the association more quickly in fans’ minds. The key is the profile of a company that benefits the most from this type of deal is one that wants to use sports as a platform for growth and where brand awareness is an important strategic consideration, highlighted Adam Grossman, Vice President of Business Insights and Analytics at Excel Sports Management.
Advice for Companies Entering into a Naming-Rights Deal
Companies that are considering a naming-rights deal must do their research to see whether it is the right fit for their brand. They need to take into account the nature of the sporting franchise’s fanbase, their purchasing power, and their brand loyalty. The location of logos and access should also be taken into account. Timing is also crucial; companies should time their deal to coincide with pivotal moments for the sporting franchise they plan to partner with, such as a deep playoff run in the case of the Miami Heat. This will help to foster a quicker and more memorable awareness of the partnership with fans.
It remains to be seen whether Kaseya’s investment will help to raise its brand awareness among local small and medium-sized businesses, but so far the signs are positive and the naming-rights deal has increased Kaseya’s leverage in Miami.
<< photo by KoolShooters >>
