Introduction
San Antonio Spurs is one of the major teams in the National Basketball Association in the United States of America representing the city of San Antonio in the league. The facility used by the basketball club and organization is the AT&T Center which was launched in 2002 (Forbes, 2022). The facility was constructed under a public-private partnership between the major stake holders of the club which include the Spurs Sports and Entertainment, the Coliseum Advisory Board, the San Antonio Livestock Show and Rodeo (Forbes, 2022).
The facility is majorly utilized to host all the home matches of San Antonio Spurs. However, the organization also utilize the venue to host various entertainment events as a way of generating more financial income for the basketball team which is the main venture of the organization (Forbes, 2022). In 2005, the facility undergone a major facelift after the major stake holders invested approximately $100 million to improve on the fan experience since the fans make a significant part of the organization.
Revenue Channel
The San Antonio Spurs club is one of the basketball teams in the National Basketball Association with the best management due to the stability of the organization in various sectors. The net worth of the organization is valued to be at $2 Billion (Forbes, 2022). The major channel of financial contribution that enable the team to enhance its financial stability is from the sporting revenue from the National Basketball Association shared amongst all teams which contributes to over $950 million. Another major channel is the organization’s city and market size which contributes approximately $500 million to their financial coffers (Forbes, 2022).
The AT&T Arena also play a significant factor in contributing to the organization’s financial contribution where by they acquire more than $300 million from the sale of tickets and other events. The brand of the organization also acts as a major financial contributor to the organization since they gain over $100 million from their brand.
Sponsorship Analysis
Sponsors are a significant aspect within a sporting organization since they enable the organization to acquire various resources that help in enhancing effective management of the organization. San Antonio Spurs is one of the organization that have been able to acquire more sponsors due to their great performance in the National Basketball Association (Forbes, 2022). Some of the major sponsors in collaboration with the organization include Anheuser-Busch Inbev which operates as a holding company majorly manufacturing alcoholic drinks and beverages. The AT&T which is one of the best performing telecommunication companies in the United States of America is also one of the major sponsors of the organization (Forbes, 2022). Coca-Cola company which is also a renowned beverage company in the world beverage market have also invested financial resources in the organization through sponsorship.
Other major sponsors of the club include human credit, a financial institution in the American money markets, Frost Bank, Valero Energy, HEB Grocery Stores, the United States Automobile Association and the South West Business Corporation. There is a great fit between the sponsors and the organization since both parties benefit from the initiative (Forbes, 2022). All the major corporation on board as sponsor benefit by enjoying the marketing opportunities provided by the organization which exposes them to a wider market range enabling them to increase their customer base. The organization is at a great position of attracting more sponsors due to their great performance great ethical codes of conduct in various aspects within their sector (Forbes, 2022). Nike and Adidas can serve as the potential sponsors for the organization since they majorly deal in the manufacture of sports wear used for playing official matches and training gears.
Merchandise
The San Antonio Spurs have also invested significant amount of financial resources in ensuring the production and availability of their merchandise to their fan. The organization has ensured the availability of their merchandise in their online shop, The Official Spurs Fan Shop. Some of the major merchandise available in their online shop include the player’s jersey both for men and women in different colors (Forbes, 2022).
The organization works with various brands to ensure the production of quality products for their fans. The merchandise is categorised in different editions which include the classic edition which are majorly made for the elderly fans who were present during the early years of the club and are still available (Forbes, 2022). Other available merchandise includes hats and other novelties which are some of the highest merchandises on demand within the platform.
One of the missing opportunities in the merchandise market that the San Antonio Spurs organization should exploit is in the production of their own energy drinks. The entity can collaborate with some of their main sponsor such as Coca-Cola in the production of the drink branded and named after the organizations brand. This will enable their fan to acquire the drinks from various outlets which increases their financial income. The strength of the merchandise offered by the organization is that they are of high quality in terms of the fabric used. The main disadvantage is that the merchandise is not available in a variety of colors other than the official colors of the organization’s match kits.
References
Forbes. (2022). San Antonio Spurs on the Forbes NBA Team Valuations List. Forbes. Web.