🔒Red Sox gave nod to Dunkin’s Yard Goats deal

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Before Dunkin' Donuts agreed to attach its name to Hartford's new minor league ballpark, the restaurant chain got a nod of approval from another familiar brand to Connecticut baseball fans: the Boston Red Sox.

Because Dunkin' receives approximately 400 sponsorship requests annually, the company uses a subsidiary of the Red Sox corporate owner Fenway Sports Group to help it decide where to invest marketing dollars. After Fenway Sports Management, which is led by Red Sox Chief Operating Officer Sam Kennedy, signs off on a potential sponsorship deal, Dunkin' enters into negotiations with the team or organization and decides if it can reach a mutually favorable agreement, said Tom Manchester, Dunkin's vice president for field marketing.

“They help us evaluate each [sponsorship] opportunity individually and filter down the ones we will pursue,” Manchester said.

Dunkin's decision to pay for the naming rights to the $60 million downtown Hartford minor league stadium centered around affirming its position in an important New England market and setting itself apart from its competition in the area, particularly other coffee shops, Manchester said. The company has 400 locations in Connecticut owned by 52 franchisees.

Fenway Sports Management recommended Dunkin' pursue the Yard Goats sponsorship because it will make the restaurant chain a leader in downtown Hartford's redevelopment, as the stadium is a signature part of that revival, said Mark Lev, managing director for Fenway Sports Management. Dunkin' also will benefit from the stadium's visibility along I-84 and I-91, he said.

“The park is part of a renaissance for downtown Hartford and will be a beacon for the state of Connecticut,” Lev said. “Dunkin' taking a leadership role in sponsoring the ballpark positions it as helping serve the growth of the downtown.”

The Hartford Yard Goats, which is relocating from New Britain, will play its first of 71 annual home games at Dunkin' Donuts Park in April.

Because Dunkin' has a history of supporting sports franchises — the company is a sponsor of UConn athletics, as well as 41 professional sports teams globally including 10 in Boston and New York City — taking on the naming rights to the Yard Goats' stadium seemed like a logical way to show its force in the Hartford market, Manchester said. It will be the first outdoor stadium to bear the Dunkin' Donuts name, although the company does have the naming rights to the Providence, R.I. civic center.

The exact value of the Yard Goats/Dunkin' deal is confidential, but Yard Goats owner Josh Solomon said the city will receive at least a $225,000 cut annually, regardless of the agreement's actual value.

Sponsorship deals

At a time when corporate sponsors are re-upping their commitments to many of Connecticut's major sporting events, each company determines the return on investment (ROI) differently but largely bases their decisions on the impact to brand awareness, community giving, market fit to their core customers, and client and employee entertainment potential.

“Corporate partners are definitely more savvy than they were before. They want that ROI,” said Nathan Grube, director for the Travelers Championship PGA golf tournament in Cromwell, which starts June 22.

Having signature sponsors like Dunkin' sign on for multi-year deals is important to helping Connecticut sporting events raise enough corporate support, said Anne Worcester, tournament director for New Haven's women's tennis tournament, the Connecticut Open presented by United Technologies Corp.

The Connecticut Open must raise $3 million each year from corporate sponsorships, Worcester said, and having a multi-year title sponsor helps the tournament convince other potential partners that the event is stable, growing and provides a significant ROI. Plus, title sponsorships almost always have the highest value.

“It is always easier when you have a title sponsor or a lead sponsor,” Worcester said.

Hartford-based UTC, which became Connecticut Open's title sponsor last year, recently extended its deal through 2017.

Hartford insurer Travelers this year started a new 10-year agreement with the PGA tournament in Cromwell that, when complete, will make the company the longest serving title sponsor in the event's 72-year history.

Travelers, which on June 16 also became the second corporate sponsor of the Yard Goats, considers the main ROI from its sports sponsorships to be the charitable donations these organization make as well as the community support each event yields, said Andy Bessette, executive vice president and chief administrative officer for Travelers.

“This event is so important to this region. It is great for community pride, and it is great for our brand,” said Bessette.

Measuring return

When helping companies decide to sponsor events, Fenway Sports Management will look at both the tangible and intangible return on investment, said Lev. Metrics like event attendance, television audience, and signage exposure all can be easily measured, but determining how an event's community impact and charitable giving directly impact a company's bottom line is much more difficult.

Companies all determine their ROI differently, Lev said, based on their own cultures and priorities. Some want brand awareness while others are more concerned with their philanthropic legacy. Events also provide sponsors with venues to entertain clients and provide rewards and volunteer opportunities for employees.

Hartford/Boston utility parent Eversource Energy this October enters into the second year of a three-year deal as title sponsor of the Hartford Marathon. This year will be the first Eversource Hartford Marathon following the company's February rebranding from its old name, Northeast Utilities.

“It is a huge significant event for the state that we like to support,” said Eversource spokeswoman Tricia Taskey Modifica.

UTC's Connecticut Open sponsorship is less about brand awareness since the aerospace and building systems conglomerate has few consumer-oriented products, said Peter Holland, UTC vice president for state government relations. Instead the company's focus is on community support toward military personnel and their families.

Corporate sponsors of the Connecticut Open still want to know metrics like attendance, media impressions and economic impact, Worcester said, but the less tangible charitable aspect is playing a greater role. The tournament, which starts Aug. 21, registered as a nonprofit for the first time last year.

“More and more of our sponsorship pitches center around what the tournament is doing for the community,” Worcester said.

Specific charitable opportunities give sporting events more chances to sell corporate sponsors, said Grube, who has secured 350 sponsorships for the Travelers Championship. It also encourages sponsors to spend more, he said.

When the Travelers Championship expanded its military appreciation events, St. Francis Hospital and Medical Center signed on as the main sponsor. While St. Francis already was a golf tournament partner — providing medical services — the military appreciation angle grew the hospital's investment, Grube said.

“Companies are willing to spend more if we find the right product for them,” Grube said.

More deals to come

After Dunkin' Donuts and Travelers announced their sponsorship deals with the Yard Goats, Solomon, the team owner, said he expects sponsorship interest to build for the minor league ballclub.

“We are looking at companies in the Greater Hartford area,” Solomon said. “That is our focus.”

The Yard Goats will need those sponsorships to hit its estimated revenue numbers. A Hartford-commissioned study said the team should bring in about $2.2 million in total corporate support, accounting for 27 percent of its total revenue. Solomon has not confirmed the accuracy of those estimates.

“The corporate community has been very supportive of what we are doing,” Solomon said. “They feel like we will be very positive for Hartford.”