Gone are the days when simply showcasing a logo was sufficient for sponsorship success. New insights from sports and entertainment consultancy Gemba reveal a **transformative shift** in the branding landscape: today’s brands are no longer just purchasing visibility—they’re investing in **passion, culture, and the immense power of Intellectual Property (IP)**.
The Evolution of Sponsorship
An **IP-led sponsorship** grants a brand rights to utilize a team, event, league, or athlete’s name, logo, imagery, or story across every marketing channel, not only in stadiums but in everyday consumer interactions. Think of it as being able to proudly proclaim “Official Partner of the Olympics” or branding your product with the iconic Wimbledon logo. It’s about tapping into the **fervent emotions** that unfold around these properties and embedding that emotional equity into your own brand identity.
When Exposure Falls Short
According to Gemba’s GEM 2025 InTel Report, a staggering **80% of total deal value** for prestigious global events such as the Olympics and The Masters now hinges on IP. These major events, known for limited branding opportunities, are paradoxically some of the most lucrative in sponsorship history. Why the contrast? Because they offer something immeasurable: **emotion**. In today’s marketplace, it’s no longer merely about how many people see a brand; it’s fundamentally about how they **feel** when they see it.
Harnessing the Emotional Edge
Gemba’s Turnstile model has highlighted a **35% upswing** in sponsorship deals where IP is distinctly valued since 2023. Nearly half of modern sponsorship contracts now attribute standalone worth to IP. This represents a monumental shift within the industry, illustrating a growing recognition of **emotional connections** over mere media impressions.
Consider this: when analyzing brand creativeness through Gemba’s case study on **Real Madrid**, it was found that simply incorporating the club’s badge notched a **25% increase in likability**, a **13% boost in perceived relevance**, and a **20% jump in brand consideration** compared to generic ads devoid of any IP. The stakes are high, and the movements are undeniable.
Beyond the Stadium
The real twist to this narrative emerges from international markets. For instance, among Real Madrid admirers in the United States—where institutional ties to the club are generally weaker—creative ads showcasing both the badge and players significantly outperformed those featuring the badge alone. This finding resonates with a broader trend: **fans often relate more personally to individual athletes** than to their respective clubs, particularly in overseas markets.
“Our insights are consistent with other data trends indicating a **‘player-first, club-second’ hierarchy** in overseas fan dynamics,” the report emphasized. Consequently, negotiating effective premium player access is now pivotal for sponsoring brands.
A Crucial Creative Multiplier
Agencies and brand teams must acknowledge a straightforward takeaway: **IP is not a luxury but a necessity**. It’s a creative multiplier that should be intricately woven into campaigns from the initial idea stage, rather than an afterthought tagged onto the end of production. The conventional wisdom that audiences are more open to brand messages associated with their passions is now a recognized fact.
As Gemba states, “**Effective execution necessitates seamless integration of Intellectual Property** into the existing brand and creative narrative, ideally from the point of ideation.”
Beyond B2C: Redefining IP’s Role
While companies within sportswear, alcohol, and gambling lead the pack in IP investments—primarily due to their inherent ties to sport—unexpected sectors are strategically leveraging this trend, too. Take **NexGen**, a Canadian uranium exploration and development firm. They utilize IP-led sponsors not merely for mass outreach, but to **cultivate internal culture, attract top talent**, and reinforce stakeholder values.
Through partnerships with elite entities like the **Aston Martin Aramco Formula One Team** and Canadian teams such as the **Vancouver Canucks** and **Saskatchewan Roughriders**, NexGen aligns itself with organizations that mirror its commitment to excellence and innovation. As CEO **Leigh Curyer** asserts, “Every initiative must deliver **greater benefit than cost**, including our sponsorships.”
Analyzing Sponsorship Investment Levels
Gemba’s analysis further dissects which brand categories are shelling out the most for IP rights, and the results are intuitive. Sportswear, alcohol, and gambling naturally dominate, owing to strong emotional ties to sports. But it’s the emerging players that deserve attention—for example, **non-alcoholic beverages** represent a lucrative, under-leveraged opportunity ripe for strategic sponsorships.
In fact, Gemba’s analysis of Olympic fans reveals these individuals typically opt for premium and **health-oriented beverages**, presenting a compelling case for brands aiming to resonate with passionate fan bases. The implication is clear: sectors that align with fan identities but are currently underrepresented have a prime opportunity to foster meaningful connections through IP partnerships.
Conclusion: The New Brand Playbook
The message resonates: the **sponsorship game** has undergone a radical transformation. Today’s success isn’t determined solely by exposure—it’s defined by the value derived from emotional connections. Brands that excel are not merely the loudest; they are those who tell the most **captivating stories**, deeply rooted in **cultural credibility**.
In a world where visibility fades and emotional ties strengthen, brands must contemplate the worth of what they **truly invest in** and what audiences genuinely **buy into**. Let’s get ready to embrace this **new paradigm of branding**.
