The Evolving Role of Sponsorships in Sports
In the world of professional and collegiate sports, sponsorships extend far beyond mere logos on jerseys or banners in stadiums. The revenue from these partnerships is as crucial to an organization’s prosperity as ticket sales and media rights. Despite the substantial investments made by franchises and programs annually, the tools used to predict sponsorship value often lag behind the sophisticated analytics employed to assess on-field performance.
Innovative Approaches to Sponsorship Valuation
Dr. Jonathan A. Jensen, an associate professor in the Department of Kinesiology and Sport Management at Texas A&M University, aims to bridge this gap. With a decade of research in sponsorship analytics and collaboration with computer science students from the College of Engineering, Jensen spearheaded the creation of the Sport Sponsorship Predictive Artificial Intelligence Network (SSPAIN.ai). This tool is designed to offer a more accurate assessment of sponsorship valuations and a clearer financial outlook.
Data-Driven Decision Making
Traditionally, sponsorship agreements have been based on intuition, relationships, and historical precedents rather than data, leaving organizations susceptible to uncertainty. SSPAIN.ai tackles this challenge with an advanced machine learning algorithm, trained on data from over 5,800 sponsorships and 23,000 observations worldwide. Utilizing survival analysis, a method often used in public health, the tool predicts the likelihood of sponsor renewal and the expected duration of agreements.
Strategic Management of Sponsorship Portfolios
With SSPAIN.ai, sports teams and leagues can adopt a more strategic approach to managing their sponsorship portfolios. “SSPAIN.ai was developed to provide sports organizations with a clearer view of their future sponsorship revenue,” Jensen explained. “It helps identify which partners are most likely to renew and which require attention, enabling smarter decisions and maximizing value.” As private equity and venture capital investments continue to pour into sports, quantifying sponsorship value becomes increasingly vital for franchise valuation.
Growing Interest and Industry Impact
SSPAIN.ai is already attracting attention from both collegiate and professional sectors, including Texas A&M Athletics, the Dallas Mavericks, the National Football League, Playfly Sports, 23XI Racing, and other sports entities.
Educational and Industry Collaboration
This initiative also exemplifies how academic research can influence industry practices. It has been particularly inspiring for the computer science students involved in developing SSPAIN.ai as part of a capstone project, merging expertise in sport management, data science, and software engineering. “Their collaboration across modeling, UI/UX, product ownership, and security allowed them to quickly iterate based on feedback from both sponsors and external executives,” noted Pauline Wade, professor of practice in the Department of Computer Science and Engineering.
Real-World Learning and Future Opportunities
Grant Martinez, a student involved in the project, shared that the extensive research provided him with a deeper understanding of survival analysis, despite his initial lack of statistical experience. “This project offered us valuable exposure to real-world user feedback, especially when multiple executives from sports franchises nationwide tested our product,” he said.
Future Prospects for SSPAIN.ai
Jensen envisions SSPAIN.ai as a promising pre-seed investment opportunity for venture capital firms or a strategic acquisition for major leagues or franchises, positioning it as the benchmark in sponsorship predictive analytics. He plans to present it at the MIT Sloan Sports Analytics Conference in Boston this March, where its statistical foundation was initially showcased during the finals of the research papers competition in 2017.
Empowering Sports Organizations
“Our ultimate aim is to provide sports organizations with confidence in their financial future,” Jensen stated. “By transforming sponsorship data into actionable insights, we’re assisting teams and leagues in making informed decisions that will shape the business of sports for years to come.”
