BBVA, Spain’s second-largest lender by assets, has
signed a multi-year deal with the National Basketball Association,
reportedly worth around $100m. Farah Halime spoke to BBVA Group
chief marketing officer Ignacio Maldonado about whether its
self-proclaimed title as the ‘bank of sports’ is
justified.
Go deeper with GlobalData
BBVA’s decision to sponsor the
US-based National Basketball Association (NBA) is not just one of
the biggest sports sponsorship deals since the economic crisis: it
is the biggest-ever sports sponsorship deal signed by a Spanish
bank.
The agreement, signed in
mid-September, extends the bank’s positioning as the “bank of
sports” – a big claim considering the extent of sports sponsorship
in the banking sector.
BBVA will also become the official
sponsor of the Women’s National Basketball Association (WNBA) and
the NBA Development League (NBA D-League) in the US, Spain and
Puerto Rico. It already sponsors La Liga, Spain’s premier football
league, a deal worth an estimated €60m ($80.5m) when it was inked
in 2008.
In the US, where the bank operates
its BBVA Compass subsidiary, the bank will capitalise on the
popularity of basketball and its growing network of 700 branches to
run NBA-themed promotions around key sporting events. The bank said
BBVA Compass will have “significant presence”, advertising during
national games on major US television networks.
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By GlobalDataBanesto, in which BBVA’s main
domestic banking rival Santander has a near 90% stake, can also
claim to be among sports biggest bank sponsors. In February 2010,
Banesto launched a savings account tied to its sponsorship of
Spain’s international soccer team.
The bank became an official sponsor
of La Roja, as the Spanish team is affectionately known by
supporters, in November 2009, in the process replacing
Barcelona-based rival La Caixa as the only bank sponsor of the
team.
Ignacio Maldonada, chief marketing
officer for BBVA Group, is not phased by the competition, however,
and discussed with RBI the latest sponsorship deal and how
it will propel the BBVA brand.
RBI: How much is the
sponsorship deal worth?
Ignacio Maldonado
(IM): The nature of the agreement with the NBA, as well as
BBVA’s policies, don’t allow us to discuss the financial terms of
the agreement. It is important to mention, though, that this is an
agreement with long-term intention.
“Multi-year” implies that we hope
to work with the NBA for many years. There are many synergies in
the growth strategies of the NBA and BBVA – both in the markets
where we currently have a presence and where we want to grow: the
US, Europe, Latin America and Asia.
RBI: How will this
sponsorship be measured a success?
IM: BBVA’s
sponsorship strategy is based on three main focus areas: global
visibility, an association with “values”, and commercial use. All
of the bank’s sponsorships are measured according to these 3
variables.
The final goal of a sponsorship of
this scope is that our clients, potential clients and basketball
fans not only “see” the BBVA brand, but “live” it through their
favourite sport.
RBI: BBVA Compass,
the bank’s US subsidiary, is one of the biggest banks by branches
in the US – and as basketball is a very American sport – will
BBVA’s target audience stretch beyond the Spanish speaking
community in the US?
IM: That is
correct. BBVA Compass is a general market bank, serving all
segments of the US population. In addition, BBVA is a global Group,
with more than 105,000 employees in 30 countries, including China,
where we have an important presence.
With these demographics, it is easy
to see that BBVA’s business strategy is not just focused on Spanish
speaking audiences.
RBI: What products
will come out as a response to the sponsorship?
IM: We are
presently in the activation phase of the sponsorship in the US,
Puerto Rico and Spain. Our clients will benefit directly from the
agreement between BBVA and the NBA. Likewise, general basketball
fans will see benefit as well. Within this context, it is
interesting to note that this agreement also includes the WNBA and
the NBA D-League. We will focus a great deal of our attention on
the NBA’s Social Responsibility Program, NBA Cares, where we will
actively participate.
RBI: What will the
bank be doing in-branch to tie in with the sports
sponsorship?
IM: At BBVA, our
branches represent an important channel of communication and
relationship building with our customers. Through them, our
customers will notice direct benefits from this sponsorship.
We are also planning multitude of
marketing and communications actions, as well as geo-localised
content over the internet and through traditional media.
Our sponsorship style is innovative
and includes a diversity of activation pieces, from TV programs to
movies and social responsibility events. Over time, we will deploy
of all these types of actions as we activate our agreement with the
NBA.
RBI: You claim BBVA
is the “bank of sports”. Is this tagline justified?
IM: Of course it
is justified. At a local level, BBVA sponsors a variety of sports
like tennis, racquetball and volleyball. Additionally, on an
international level, we have agreements with two of the most
important and followed leagues in the world – the BBVA Spanish
Soccer League and the NBA. Across the globe soccer and basketball
now represent the two most-played sports in the world – solidifying
our role as the “bank of sports”.
