Digital Marketing Redux   //   September 3, 2024

‘It goes beyond the patch’: Why retailers like QuikTrip are putting their logos on MLB uniforms

In the 2023 season, Major League Baseball began allowing sponsor patches on jersey sleeves for the first time ever through a new collective bargaining agreement with the MLB Players Association. It presented a major opportunity for teams to generate millions of dollars in new revenue and for advertisers to shine a spotlight on their brands.

Since then, 23 of the 30 Major League Baseball teams have signed onto uniform patch deals. The league average for patches is said to be around $7 million to $8 million per year, with the priciest being the New York Yankees and Toronto Blue Jays in the low-to-mid $20 million range, according to The Athletic.

The patch partnerships alongside new digital dugout signage have helped to boost deal volume across the MLB. According to one estimate from SponsorUnited — a data platform used by teams and sponsors — team sponsorship revenue grew 23% to more than $1.5 billion from the 2022 to 2023 seasons, surpassing the NFL and NHL in deal volume.

Sponsor logos have been part of European soccer kits for decades. Now, jersey deals have expanded to American leagues that have been slow to adopt the practice, perhaps to not upset fans or hurt brand equity. The NBA finally adopted jersey sponsorships beginning in the 2017-18 season, and the NHL did the same in 2022-23 before the MLB in 2023-24. Team sponsorship revenue has since grown 7% year over year for the NBA and 10% for the NHL this season, according to SponsorUnited.

Even back in Europe, sponsorship deals have grown in scope, with Manchester United adding U.S. tech brand Snapdragon as its first back-of-shirt sponsor this season.

Massachusetts insurance company MassMutual began a 10-year deal with the Boston Red Sox last season, including the jersey patches, a huge logo above the Fenway Park scoreboard, a logo behind the home plate and a STEM education initiative with Boston Public Schools.

“It goes beyond the patch,” said Jennifer Halloran, head of marketing and brand for MassMutual. “We really thought it was a good opportunity for us to make this partnership with them to deepen existing relationships with our own customers and partners, but also look at new markets and new opportunities for customers to bring in through the sponsorship.”

Sports marketing has been a focus of MassMutual’s brand since refreshing its visual identity and brand strategy in 2017, Halloran said. Unlike a national sponsorship the company has with the National Hockey League, the Red Sox deal is locally focused, but the patch and the association with the team offer national visibility.

“Red Sox fans are pretty strong, and they live all across the country, so it’s a really nice way to connect with them, no matter what market they’re in,” Halloran said.

Big with retailers

Many of the branded partnerships are for grocers, convenience stores and gas stations, such as Kroger, Meijer, QuikTrip, Sheetz and Marathon.

Jeff Lenard, vp of strategic industry initiatives for the National Association of Convenience Stores, said retailers especially may want to be involved in these deals as people might notice the patches during the game and think to go make a run to a convenience store, for example. It’s less likely someone would stop for building materials after a trip to the ballpark, he said, referring to concrete manufacturer Quikrete’s deal with the Atlanta Braves.

“I think it’s very clever because there are lots of ways that corporations can spend their money and feel good about it, but you have to drive sales,” Lenard said. “And so, I think the retail patches make way more sense than some cryptocurrency or bank or fast-drying concrete.”

QuikTrip announced its four-year jersey patch deal with the Kansas City Royals in February. The brand’s sponsorship of the Royals also includes a large sign in the outfield, naming rights to a party area, sponsored theme nights and a giant replica of its “Big Q” drinking cup for players to dunk their teammates with. While based in Tulsa, Oklahoma, QuikTrip has 78 stores in Kansas. The company has also partnered with the Texas Rangers and the St. Louis Cardinals.

Aisha Jefferson, the company’s corporate communications manager, said the main focus for the brand in partnering with the Royals was to invest in youth literacy (one component of the partnership is a fundraising program called “Hit the Books,” supporting public schools in Kansas City).

Still, brands and teams need to be cautious in promoting these sponsorships. MLB Players Inc., the for-profit corporate subsidiary of the MLB Players Association selling publicity rights to its players, sued the Pittsburgh Pirates and convenience store chain Sheetz for misappropriation of player names, images and likenesses, CSP Daily News reported. The organization claimed Sheetz did this by promoting images of players wearing the patches on social media platforms without the required license.

Local deals, national reach

Brands will often sponsor MLB teams in the cities in which they are based or have substantial operations. In addition to the uniform patches, which are seen nationally during game broadcasts and streams, the patches are often part of larger partnerships involving various other programs and initiatives, such as in-ballpark promotions, community events and fundraisers.

In one of the latest announcements this August, the Chicago Cubs announced Motorola Mobility as the team’s jersey patch partner. Motorola’s deal placed the smartphone maker’s signature “batwing” logo on home, road and alternate jerseys and also promoted the brand on signage throughout Wrigley Field including behind home plate, through sponsored fundraisers and in a permanent storefront next to the Cubs’ team store. Motorola previously partnered with the San Diego Padres in 2022 on the league’s first jersey patch deal.

The Cubs partnership allows Motorola, a Chicago-based subsidiary of Lenovo, to both engage with local fans on the ground and drive brand growth, visibility and a stronger connection with sports fans, Maria Jose Martin, director of marketing strategy and planning for Motorola Mobility in North America, told Modern Retail in an email. She said the key to successful partnerships is meaningful experiences engaging consumers on and off the field.

“It’s meaningful for us and for Cubs fans to see these two iconic Chicago brands that represent tradition and innovation come together,” Martin said. “Sports partnerships have always been an integral part of our marketing strategy in North America and they continue to play a key role in driving brand growth, visibility and affinity.”