PepsiCo are one of the biggest sponsors in sport globally, reportedly spending over $1bn per year. So why does Mark Kirkham, PepsiCo’s Chief Marketing Officer, hate the term ‘sponsorship’?
During a guest appearance on the Unofficial Partner podcast two weeks ago, Mark revealed that he thinks the term ‘sponsorship’ is outdated and doesn’t capture the depth of PepsiCo's relationships with the likes of UEFA and the Saudi Pro League (SPL). He even dislikes the term ‘rightsholder’, which he suggests sounds too transactional.
Instead, Mark prefers the term 'partnership'.
This view reflects a broader shift in the industry. The way we value sponsorship is transforming, with huge brands driving this change in narrative. As Mark explains, the value of a partnership cannot be measured in the amount of visibility you get on an LED screen. The true value comes from both parties coming together to meet mutual business objectives - whether that’s reaching new audiences, building new platforms, or telling stories authentically.
So, what can we learn from Mark and PepsiCo?
👉 Don’t start with a term sheet. Start with writing down what you are hoping to achieve together as partners, and then determine which rights the brand will need to make this happen.
👉 Rightsholders have to be more creative in the way they package their rights. As Mark points out, rightsholders are often competing against their own athletes, leagues, and teams, who frequently offer more flexibility and value for brands.
👉 Partnerships are a two way street. Rightsholders shouldn’t underestimate the value brands bring to them, especially if the brand can help them tell their own stories and drive new audiences to the sport.
At DUNE | 23, we share Mark’s approach. We believe in commercial partnerships that go beyond traditional ‘sponsorship’. We work with brands and rightsholders to create genuine, tailored relationships that drive value and deliver tangible business results.
If you’re looking for guidance on navigating commercial partnerships in sport, we’d love to help! Feel free to get in touch at charlotte.mcging@dune23.me 🚀 📩
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