From pariah to bonanza
Last time on “How It’s Done,” we looked at the sports sponsorships for Firekeepers Casino Hotel and Angel of the Winds.
In part two, we look at a major sports sponsorships approach by Pechanga Resort Casino and how Choctaw Casinos and Resorts takes a relational approach.
A wide range
Bill Anderson, Chief Marketing Officer for Pechanga Resort Casino in Temecula, Calif., oversees a strong roster of sports sponsorships, including the biggest teams in sports for southern California.
“Pechanga has a wide range of sponsorships in this category. Starting with the NBA, we are the sponsors for both the Lakers and Clippers, and with the Clippers, that includes a founding partnership with the Intuit dome as well.
“In the NFL, we are exclusive partners with the Rams and Chargers and also a founding partner of SoFi Stadium. So those are the top four teams in L.A. We basically own baseball. We are long-term partners with the Angels in Orange County. In San Diego, we have a partnership currently with the San Diego Wave, which is the new women’s soccer team.
“We also have the Pechanga arena in San Diego. That’s the old Sports Complex in San Diego. And then we have a minor sponsorship with a local equestrian facility called Galloway Downs in Temecula, which may be hosting the Olympic equestrian events. We also have a hospitality partnership at the PGA event in Torrey Pines.
“At Pechanga, we actually started in sports sponsorships in 2005 with the Lakers and the Angels.
Sponsorship criteria
What are Pechanga’s criteria for selecting sponsorships?
“There are three reasons why we do sponsorships. One, obviously brand awareness, which is a big one. The second is hospitality for our top players, which is huge for us. When I say hospitality, it’s not just watching the game, but it’s also experiences.
“For example, some of our partnerships, the Lakers and the Clippers, actually bring the team out. The team does a practice at our tribal gym for the tribe, which is a huge thing for them. Then we also have a VIP party for about 300 lucky VIPs who get to go to the party and spend time standing next to LeBron James and get a chance to chat and take pictures and all that good stuff.
“For cool experiences with the football teams we do alumni weekend events. And very famous alumni come out and spend the night at our property. Then we do a golf tournament with our customers playing with NFL legends from those teams. I will give you a great example: The Rams were the first one we did it with, and they brought out coach Dick Vermeil who’s a Hall of Fame coach. Thirty of our best guests got to play golf and then had a dinner with the coach. Player experience for VIPs is a big piece of it, and then last, community involvement and donating back to the communities,” Anderson said.
Regional, not national
Does Pechanga focus on the regional markets for sponsorships or a national market?
“Obviously, Pechanga is very much a regional player. Ninety-plus percent of our business comes from the southern California market, and that’s our really big focus. So, we don’t do these sponsorships per se for national or global exposure,” Anderson said.
Putting it together
What is the process Pechanga goes through when selecting a potential sponsorship?
“We target certain brands that we know are going to be big in the LA and southern California areas. Some opportunities come to us, and then we look at the costs because we have limited resources to spend, and you have to pick and choose.
“These sponsorships are expensive. Sometimes, you have to set ego to the side and say, ‘Does this really make sense for us?’ We do that a lot when we go into major partnerships. We do research on pricing, and we use outside companies to do evaluations and make sure that we are getting our bang for our buck as far as exposure.
“Usually, there’s a lot of negotiation in these partnerships. You have to really work through that and know what the value of it is. That’s a big key for me when negotiating these sponsorships,” Anderson said. “When you come down to it, we probably turned down as many opportunities as we contracted. There’s a plethora of people coming at you with these sponsorships,” Anderson explained.
Dedicated department
“Prior to COVID, we created a position, assistant director of partnerships. We carved out a small department that just focuses on that. I usually get involved when it comes down to the contract talks and the final sealing of the deal. But we do our legwork through that area. Then, we also do execution of deliverables and activations and community relations. I mean, it’s a lot of work, and we realized quickly as we expanded these partnerships, we needed to dedicate some staff,” Anderson said.
What you can’t buy
Sponsorships at the level Pechanga executes have perks and experiences that you could not otherwise buy.
Pechanga guests get to fly on the team plane to away games with the Rams, complete with the police escort the Rams receive. Players can present the game ball and participate in team photographs at basketball games.
“The biggest thing is when the Lakers and Clippers actually have the team come to our property and practice and have a VIP party. It’s one of only two mandatory events for the players. You can’t replicate that anywhere and it sets us way apart from our competition in this market,” Anderson said.
Relationship marketing at Choctaw
Erica Kosemund, Senior Director of Gaming Brand and Partnerships at Choctaw Nation of Oklahoma, sees sports sponsorships as relational.
“I’ve been in tribal gaming for 18 years. Obviously, there has been a lot of evolution. You know, when we started, the tribal gaming market wasn’t as big, but it got bigger. We realized the benefit of aligning both with your local community partnerships and then larger on the national level to grow. I’ve been involved in relationship marketing my whole career, but since I’ve been at Choctaw, we’ve really focused on it,” Kosemund said.
“As of last year, in 2023, we had over 24 sports-related partnerships, mainly in the Dallas – Fort Worth area and a little bit in Arkansas and east Texas as well as the Oklahoma side. We are a regional casino provider, and so we really focus on the regional market to have the biggest reach in sponsorships and sports. We do have a couple of national sponsorships, but most are regional.
“Probably our most widely known national is the PRCA, which is the professional organization of rodeos, and they put on the NFR in Vegas every year,” Kosemund said.
Choctaw Casinos and Resorts is a chain of eight Native American casinos and hotels, including Choctaw Landing, located in Okla., owned and operated by the Choctaw Nation of Oklahoma. Additionally, they manage 17 smaller casinos inside their travel plazas, known as Casino Too.
Choctaw Casinos and Resorts has been very active in the sports sponsorship scene, particularly in North Texas. They have signed endorsement deals with sports legends like Troy Aikman, Emmitt Smith, Ivan “Pudge” Rodriguez, and Darren Woodson. These partnerships are part of their Where the Players Play campaign, which aims to promote the Choctaw brand through various advertising mediums, including video, social media, radio, and TV.
In addition to these endorsements, Choctaw Casinos and Resorts has sponsorship agreements with several major sports teams and events, including the Texas Rangers, Dallas Stars, Dallas Mavericks, and the CJ Cup Byron Nelson PGA Tour stop. They are also the presenting sponsor of the Dallas Open and have official designations with events like the Dallas Marathon and the Fort Worth Stock Show and Rodeo. Choctaw Casinos and Resorts is heavily invested in leveraging sports sponsorships to enhance its brand visibility and connect with sports fans.
Brand compliments
What is Kosemund looking for when it comes to the sports sponsorships she aligns with Choctaw Casinos and Resorts?
“We look across the brand, and we have a lot of marketing filters that determine how we can align a sports sponsorship with our brand. Will a partnership complement our brand? Is it in our budget? Do they have enough assets and availability that we can activate?”
Branding or attendance?
When looking at sponsorships, are you looking more for branding? Are you looking to drive people to the casino or all the above?
“For sure, all of the above. Our end goal is always to make a new consumer an advocate of Choctaw in whatever form or fashion. That is ideally coming in and visiting our resort and enjoying themselves. We have world class venues, whether it’s entertainment, food, dining, pool amenities, and then, of course, gaming. Our goal is to always leverage so people get to know the Choctaw name and brand in a more intimate way. We know that’s not always a one-shot success story. We know it has to be multi-dimensional, and we develop plans to get people engaged and excited about something they may have not been to or may have not been exposed to,” Kosemund stated.
The PASPA effect
In the United States, the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 marked a turning point, allowing states to legalize sports betting and, consequently, paving the way for casinos to sponsor sports entities. What effect did PASPA have on Choctaw Casino and Resorts’ sports strategy?
“PASPA has obviously brought more engagement, more conversation, more alignment to the category; but Choctaw Casinos and Resorts has been in the sports marketing game a long time. We have partnered with the Texas Rangers since 2010. Obviously, that partnership has grown and developed through the years. We’ve gotten bigger and taken on more naming rights, so I think that perhaps the PASPA repeal has just elevated the conversation around sports and casinos,” Kosemund stated.
Multiple evaluations
What are the processes that Choctaw Casinos and Resorts utilize before signing a sports sponsorship?
“We look across a multitude of things. Is it affordable? Does it meet our brand objectives? Does it elevate our brand? Does it give an experience that we don’t currently have? Do we have enough activation space? And then, of course, as we’re asking ourselves that question in tandem. Are we getting information from them both on consumer insights and information about the team and the organization? In between those two, we’re making an ROI evaluation to present to our leadership to get that approved,” Kosemund related.
When it comes to assessments of sports sponsorships, Choctaw Casinos and Resorts collaborates with the teams or leagues to improve the product experienced by the guests.
“With all partnerships, we will do an internal review and ROI on our own, and then our partners give us their analysis. We go through and make sure we both align. Even if we’re working with a long-term multi-year contract, if we realize that an asset isn’t working for us, we come together and either change that asset or figure out a way to make it work for the betterment of both of us. There are a lot of times in those conversations where we’re dialing in and tweaking a little bit to make them better for everyone and especially for the consumer,” Kosemund related.
Considering sports sponsorships
What does Kosemund share with casinos who are considering sports sponsorships?
“What I hear a lot is we can’t afford to invest in sports partnerships. My advice back is you may not have to do a fully developed and executed relationship. There are ways that you can be involved in their community. Almost every sports team has a nonprofit foundation that you could be involved with, whether that’s giving away a hotel stay package or a bounce back and promotional offers back into the casino or the hotel resort.
“I would say don’t let your budget be a hindrance but find ways that you can dial in and be a part of the community within the sports organization. Make those relationships aware that you’re the one to call when they have an opportunity available. Even if the first or second answer has been ‘No,’ you want to keep that relationship and conversation going because while it may not be what you need initially, they may know more about you and find an opportunity that absolutely fits the bill,” Kosemund stated.
Summary of series
As sports betting spreads across the country and takes sports to the next level, casinos are increasingly ramping up interest in sports sponsorships. For “How It’s Done,” we discovered that sponsorships can be high-end major-league alignments, collegiate agreements, or relationship programs.
Of the four casino organizations we spoke to, the most important element seems to be ensuring that sports sponsorships benefit all participants and, most of all, increase the level of engagement with guests.
