With pre-season already underway and the regular season kicking off next week, get ready to see a lot more credit union in your weekly NFL games.
Lenexa, Kan.-based CommunityAmerica Credit Union is the latest CU to sign the dotted line on an NFL partnership, inking a deal with the Kansas City Chiefs on a "long-term contract."
According to CEO Lisa Ginter, the terms of the deal include a "prominent stadium presence with branded digital signage, use of the 'Proud Partner of the Kansas City Chiefs' language in our marketing materials and a host of other assets."
CommunityAmerica is just the latest credit union to hitch its wagon to the NFL's star. Among the others to do so are Detroit's Diversified Members CU, which bills itself as "The Official Credit Union of the Detroit Lions," and Phoenix-based Desert Schools Federal Credit Union, which for the last six years has had a partnership with Arizona Cardinals star wide receiver Larry Fitzgerald.
These kinds of sponsorships give CUs the opportunity to interact directly with members of the community in a big way. Participating in tail-gating and other promotional events at stadiums means access to thousands of potential members; rarely do credit unions have the opportunity to interact with such a large number of individuals potentially within their field of membership.
Major television networks like Fox and CBS report viewers of around 20 million per game during the season. Add that to a dozen or so games every Sunday pulling in an average of 65,000 fans into stadiums and tens of millions of radio listeners (traditional and internet) and CUs are accessing a large chunk of American eyes and ears feeding their obsession with the gridiron pastime.
Jen D'Amico, board chair of the Marketing Association of Credit Unions (MAC) and AVP of marketing at the Commonwealth Central Credit Union of San Jose, Calif., suggested sports sponsorships are a great way to connect to a loyal audience. "[The partnerships] can drive some of that loyalty and connect with some of that passion [members of the community] have and loyalty they have with those local teams," she said.
Chief Marketing Plan
That's what CommunityAmerica is banking on. CEO Ginter noted that the $2.2 billion credit union organizes events to promote the sponsorship with the Chiefs.
"From attending games, to Red Friday, to flying Chiefs flags at our branches, we have endless idea on how to bring this to life in fun ways for employees and [205,000] members," she said.
The sponsorship is not only in effect during the football season; it runs through the entire year and includes non-sporting events like concerts held at the Chiefs' Arrowhead Stadium.
Throughout the year, CommunityAmerica looks to utilize the company suite provided as part of its sponsorship deal. Called a "proud partner" suite, CACU hopes to get the most out of it through "one-of-a-kind experiences for our members, employees and prospects," Ginter said.
CommunityAmerica was unable to disclose the specific cost of the deal but Ginter said, "We have the upmost confidence this partnership will add meaningful and tangible value for our employees, members and prospects."
Strong WR Returns
Desert Schools FCU's sponsorship deal with Larry Fitzgerald is six years old at this point, and is part of an exclusive deal — usually singed in three-year increments — that includes a Fitzgerald-branded debit card, a 30-second television ad and the exclusivity restricting Fitzgerald from working with any other Arizona financial institution.
Although most would assume an exclusive deal with a multi-millionaire star player who holds nine NFL records and six Cardinals team-records would be extremely costly, Desert Schools' AVP of Corporate Partnerships and Events Kari Watts said Fitzgerald was "very fair" when it came to cost.
"When you look at a marquee player like that [and] you wrap your head around what you think it would cost," one expects something significant, she said. Desert Schools had also sponsored Matt Leinart during his tenure as the Cardinal's quarterback.
Not the Only Game in Town
The NFL may be the most popular sports league in America, but it's far from the only game in town for credit union sponsorships.
CommonWealth Central CU, with $469 million in assets serving 36,000 members, has also ventured into the branded card space, focusing on NHL fans in its field of membership by offering a San Jose Sharks credit card. Launched last year, the branded card comes with discounts during promotional nights at Sharks games. Additionally, all purchases made with the Sharks card donate 0.5% of the purchase to the Sharks Foundation, an organization that has donated $10 million to area non-profits since its inception in 1994. The biggest challenge, D'Amico said, has been increasing awareness of the card and getting members to sign on.
Several credit unions have also partnered with Major League Soccer franchises, including TruMark Financial and the Philadelphia Union, Mazuma CU and Sporting Kansas City, and
CommunityAmerica is also the naming rights owner of the CommunityAmerica Ballpark, home of the Kansas City T-Bones, a member of the American Association of Independent Professional Baseball league. Bethpage FCU, a $6.7 billion institution in New York took a similar route when they acquired naming rights in 2010 for the Long Island Ducks, an independent minor league team in the Atlantic League of Professional Baseball, on a 10-year deal worth $2.1 million. And San Diego Community CU holds naming rights to the annual San Diego Community Credit Union Poinsettia Bowl college football game, held each winter.
Still, no American sports league holds a candle to the NFL when it comes to popularity.
Desert School's most recent update to its Fitzgerald-branded debit card occurred during the EMV card transition's peak, which caused the release to be delayed until late into the 2015 NFL season. When the card was finally released, it coincidently happened at the time of Fitzgerald's best game of the season. Watts suggested the timing could not have been more perfect and really boosted the demand for the branded card.
"We initially ordered 5,000 cards for 3 months — those cards were gone in two days," she said.
As of this time last year, there were around 8,000 Fitzgerald-branded cards in circulation, DSFCU said. Today, there are a little more than 24,000 in member's wallets — 4,000 of which are held by new members. During February of this year, existing members who converted to the branded card accounted for an $833,000 increase in debit card spending, suggesting the card went from a second or third choice to a first choice by members, according to Watts.
Interestingly enough, Fitzgerald has joined the CU as a member of the credit union after being involved with their promotions for the past six years. "We have helped him with some of his [finances]," Watts said.
Join the Team
In addition to the player sponsorship, DSFCU has also sponsored the Arizona Cardinals organization. The sponsorship includes the traditional amenities: radio, television, print ads and signage. The real value, according to Watts, has been through leveraging the sponsorships to open new checking accounts.
Desert Schools is located just 20 miles from the University of Phoenix Stadium where the Cardinals play their home games. Top sales associates from the credit union attend every Cardinals home game in order to interact with tailgating fans. Those representatives also offer promotional contests where fans can win autographed merchandise and a meet-and-greet with Fitzgerald.
"Our game plan when we are there is to really be having the conversations with [the fans] and engage with them in a fun and interactive way," Watts said. "It's not as much selling but really connecting with them." The sales team uses the interactive experience to generate interest and get contact information which they utilize through email marketing plans and phone call campaigns, in hopes of pulling in new members and opening new accounts.
The Cardinals and Fitzgerald are not the only sponsorships the credit union has acquired. Desert Schools also participates in sponsorships with other professional teams like the NBA's Phoenix Suns and NHL's Phoenix Coyotes.
When it comes to naming rights for the Cardinals' stadium, although interested in the opportunity, it is something out of the realm of possibility for an institution like Desert Schools. Currently the stadium's naming rights are owned by the for-profit College University of Phoenix who purchased the deal for $154 million over 20 years in 2006.
