Venture-Backed Growth Stage Startups Make for Strong Sports Partners

Venture-Backed Growth Stage Startups Make for Strong Sports Partners

Sports properties tend to target large, mature, and oftentimes local companies, with a history of sponsorship spending for their highest profile partnerships assets (think: jersey patches). Those are the types of entities that have historically had the budget to invest, ability to activate, and desire to collaborate in/on them. 

Not the Brooklyn Nets.

It is hard to imagine many of the team’s existing fans were familiar with Berlin-based GetYourGuide before the startup was announced as the new patch partner in late September. While the travel booking and tourism marketplace has 75,000 experiences listed on its platform, just 192 of them are located in Brooklyn (as of Oct 1). 

The team’s previous partner was Webull, a Chinese-owned electronic trading platform that launched less than a half decade ago.

“The Nets fan base is increasingly global, and our team is excited to capitalize on [that] momentum by expanding our reach even further through unique partnerships,” Catherine Carlson (EVP of Global Partnerships, BSE Global) said.

But GetYourGuide (and Webull) increasingly fit the profile of what sports properties should be looking for in large-scale sponsorship partners–growth stage companies with millions of dollars in venture funding. Even if those entities have never spent in sports before and/or are located in a different city.

“Part of our long-term growth strategy at BSE Global is to continually create distinct partnerships with brands who do not traditionally activate in the sports and entertainment space,” Carlson said.

Some organizations have already gone down this road. The Dallas Mavericks inked a jersey patch partnership with Chime back in 2020.

However, many more would benefit from expanding their potential partner consideration set.

“Our team first identified an increasing trend in the sports tourism space,” Carlson said. “37% of international visitors are interested in sports experiences as part of their trips and with that information in mind, we sought alignment with a company who could help us bring together sports and travel in mutually beneficial ways.”

While GetYourGuide is not yet a household name in the U.S., it has a large customer base abroad (see: 100 million+ experiences booked in ’23).

And more importantly, deep pockets. The startup raised $192 million at a $2 billion valuation last May to expand into desirable new markets and add new and/or unique experiences to the marketplace (the company earns a 20-30% commission on each booking placed via the platform).

Its Nets partnership should support both endeavors. Brooklyn is a growing tourist destination and the tie-up enables GetYourGuide to offer users exclusive club ticketing and hospitality packages that competitors, like Viator, do not have access to.

“Together, we want to reimagine how a sports experience is defined,” Carlson said.

The tie-up should also benefit the company from an awareness perspective–and not just amongst New York (and New Jersey) fans, either. Remember, unlike other assets that sports organizations sell, jersey patches ‘travel’ with the team. 

The Nets will wear their uniform –and subsequently the GetYourGuide patch– in every home and away game this season. NBA fans across the country will see the company’s logo in their local venue, on television, and across the multitude of social media platforms. 

For context, announcement of the partnership alone generated 8,280 engagements and 365,000 impressions on Instagram, Facebook, and X (Twitter) according to Zoomph. The company has averaged 3,440 cross-platform engagements on its other recent posts.

Those watching league games and highlights are GetYourGuide’s target audience.

“Sports Innovation Lab fan intelligence shows that the NBA fan is a traveler,” Josh Walker (CEO, Sports Innovation Lab) said. 

The demographic increased spending on travel-related experiences every year between 2021- 2023, and that trend is expected to continue in the year ahead. 

“Only MLS fans outpace NBA fans in this category [amongst] major professional U.S. sports [leagues],” Walker said.

The jersey patch is going to open doors to a new market full of travel enthusiasts. So, GetYourGuide should see some top line growth from having its logo on the asset. 

But it’s possible that the greatest direct ROI will come from having been named presenting sponsor of a new video series entitled “Best of Brooklyn” that will highlight the Nets and New York Liberty’s players and coaches’ favorite places to go and things to do in the borough. Travel content creators and influencers drive much of the traffic to the company’s site (they are compensated with affiliate marketing fees). 

Should players or coaches begin promoting their segments on social media channels, it could become a new source of off-floor revenue for them and provide the company with an unexpected lift in bookings.

There is always some risk in doing a deal with a startup. Multiple crypto and blockchain companies raised —and spent— tens of millions of dollars on sports partnerships only to cease operation and/or renege on partnership agreements in the years following.

However, that should not prevent rights owners from engaging them. Well-funded growth companies that can leverage partnership assets to raise awareness, expand their customer base, and grow revenues can make a business case for spending millions annually on these tie-ups. 

That is exactly who sports properties ought to be targeting as they work to keep partnership revenues climbing.

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