NHL Selling Division Sponsorships, Will Other Leagues Follow Suit Among COVID-19 Financial Loss?

SALT LAKE CITY, Utah – The COVID-19 pandemic has forced sports leagues to think differently about many things – ranging from how the team is covered by media, health protocol, how to practice, but most importantly figuring out how to make money with few to no fans at games.

The NHL has decided to make a bold move and sponsor its divisions for the upcoming shortened 56-game season, and this sponsorship deal is expected to be just one season.

The @NHL partners with @Discover, @Honda, @MassMutual and @Scotiabank to name divisions for the 2020-21 NHL season. https://t.co/gwBySMQgis pic.twitter.com/dV2io6Rimv

— NHL Public Relations (@PR_NHL) January 5, 2021

There used to be off-limit areas to apply sponsorships within North American sports such as jerseys and to not morph into soccer where the sponsor name is more prominent than the team name.

Over the years selling ad space on jerseys has slowly eroded to include small patches on practice jerseys in the NFL and a small patch on NBA jerseys. In addition to sponsoring divisions, the NHL is selling ad space on its helmets, but it is not yet to the level of soccer sponsorships.

This would be unthinkable just a few short years ago but COVID-19 made people rethink money and this is a way to bring in extra cash. For this to really show its value and work, the goal would be for those who discuss hockey in print, online, calling games, or people just talking about the sport to say these sponsored division names and create brand awareness

According to Forbes, 70 percent of revenue comes from in-game purchases from tickets, parking, sponsorships, and parking. Last year, 15 percent of the regular season games were played without fans and all of the playoffs as well. Plus, this season the NHL is starting off with no fans in the stands so once again revenue will be lacking.

However, if sponsoring divisions works out, this could extend beyond a one-year deal.

What About Major American Sports?

If we are being honest, hockey is one of the lesser professional leagues in America. It is behind the NFL, NBA, college basketball, and college football. The NHL really needs the money compared to the rest of the major American sports.

It would be weird if an NFL division was called the Popeye’s Chicken NFC South or the Piggly Wiggly AFC South. Never say never, but the NFL prints money and one down year will not subject the league to gimmick nicknames, according to the guys of KSL Unrivaled.

Code for sponsored regions coming. https://t.co/q6CrsTMFvQ

— Jeremy Mauss (@JeremyMauss) January 4, 2021

KSL Sports’ Alex Kirry is of opinion that March Madness could be the one major event to get away with sponsored regions since the typical Midwest,  East, West, and South are so nondescript and don’t really matter for the NCAA Tournament to be successful.

“How about college basketball? NCAA’s [Senior Vice President of Basketball] Dan Gavitt has said that they haven’t named their regions yet for the NCAA Tournament. They don’t know what they’re going to call the regions,” Kirry said. “They never make sense anyway. BYU is playing in the Northeastern region of the NCAA Tournament. No idea why, but that’s what they’re doing. Why don’t we just have the BYU Creamery NCAA West region?”

The NCAA Tournament could get away with this as this as a one-time event every year that lasts about a month, and that is very different than a pro sports league that goes six to eight months of the year and is used for standings and determining playoff positioning.

Plus, the NCAA and its schools really need money after March Madness was canceled last year and the payout from insurance was nowhere near the typical amount if the games had been played. Adding sponsors to the bracket would help recoup some of that.

Advertising is everywhere so what is the real harm in slapping a name in front of the East Region of the NCAA Tournament?

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