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Marketing Partnership Renewal StrategyConfidential/For Internal Use Only
Prepared by: Fallon ScanlanUpdated: 8/6/2014
National Basketball Association
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Anheuser-Busch Industry Analysis
Current Status of Anheuser-Busch 2013 Results
• Anheuser-Busch (AB) is focused on the world’s most profitable beer markets. The following includes AB’s earnings in these areas: 1) US ($6.7 billion), 2) Brazil ($4.7 billion), 3) Mexico ($2.6 billion) and 4) China ($1.5 billion)
• Fiscal 2013 revenues from operations were $43.2 billion, an increase of 3.3%– Brazil +9.3%, China +8.2%, Mexico +6.6%, US +3.1%
• All AB geographic zones decreased in total volume except for the Asia Pacific zone, where China beer volumes increased 8.9%
• AB remains the leader for beer sales in 2013, accounting for half of the best-selling beers in the U.S., including the top spot with Bud Light holding 19.8% of the market share and Budweiser ranking in third with 7.1%
• Anheuser-Busch InBev and MillerCoors made up 90% of the market share for the U.S. beer industry as a whole
• Major innovations (e.g. Straw-ber-ita, Shock Top brand expanded, etc.) accounted for nearly 8% of volume in FY13
• AB spends more than $5.95 billion on all sales and marketing expenses (an increase of 4.5%)
3Sources: Dayton Business Journal, Anheuser-Busch Annual Report, NPR
4
First Quarter 2014 Results• Consistent revenue growth for global brands, with a total revenue increase of 8.9%
– Stella Artois: Increased 5.2%; good growth in Argentina, Brazil and US– Budweiser: Increased 7.8%; good performance in China, Brazil and UK; brand
market share marked improvement over historical trends– Corona: Increased 10.5% - Driven by growth in Mexico
Current Status of Anheuser-Busch
*2Q 2014 released on July 31, 2014*Bud Light 1Q Unavailable
Sources: Dayton Business Journal, Anheuser-Busch Annual Report, NPR
2013 AB Volume Contribution and Revenue by Region
Sources: 2013 Anheuser-Busch Annual Report 5
27.4%
North America
$16.1
8.6%
Mexico
$2.8
8.3%
Latin America South
$3.3
27.0%
Latin America North
$10.9
10.5%
Europe
$4.8
14.8%
Asia Pacific
$3.4
3.4%
Global Export & Holding Companies
$2.8
Volume (%)
Revenue (Billions)
*Brazil alone contributes $4.7 billion in revenue; China contributes $1.5
billion in revenue
$5,941 $6,208
$2,362
$2,110 $1,868
$1,122 $844
$777 $673
$493 $476
2013 Revenue for Top Domestic Beers(Dollars in Millions)
Bud Light (AB)
Coors Light
Budweiser (AB)
Miller Light
Natural Light (AB)
Busch Light (AB)
Michelob Ultra Light (AB)
Busch (AB)
Keystone Light
Miller High Life
Other Beers
Current State of AB and Beer Industry
Sources: The Atlantic, Beverage Industry report 6
7
Partnership Analysis
Current Partnership Overview• Term: Four (4) NBA Seasons, Oct. 2011 - July 2015; Four (4) WNBA Seasons, Oct. 2011 –
Sept. 2015; Four (4) D-League Seasons, Oct. 2011 - July 2015• Territory: U.S., China, Hong Kong, Macau (NBA); U.S. (D-League and WNBA)• Category: Alcoholic and Non-Alcoholic Malt Beverages • Key Assets: Licensed Marks, Designations, Photos/Footage, Marketing, Retail and Packaging Rights,
Promotions, Media, Events and Hospitality• Team Commitment: 24 team deals• Profitability: NBA - 91%; WNBA – 99%; D-League – 77%; • Excl Negotiating: NBA and D-League - Yes, consistent with current agreement; WNBA - None• Renewal Outlook: Positive
Partner values relationship and NBA is a significant component of overall marketing mix; good relationships with Bud Light working and management team
• Current Investment Summary (4-Year Scale)
8Sources: Anheuser-Busch Marketing, Sponsorship and Advertising Agreement
FY '12 FY '13 FY '14 FY '15 Total % Total
NBA $ 6,100,000.00 $ 6,900,000.00 $ 7,500,000.00 $ 8,200,000.00 $ 28,700,000.00 95%
US $ 1,600,000.00 $ 1,650,000.00 $ 1,700,000.00 $ 1,750,000.00 $ 6,700,000.00 23%
China $ 4,500,000.00 $ 5,250,000.00 $ 5,800,000.00 $ 6,450,000.00 $ 22,000,000.00 77%
WNBA $ 100,000.00 $ 77,000.00 $ 79,000.00 $ 81,000.00 $ 337,000.00 1%
D-LEAGUE $ 300,000.00 $ 308,000.00 $ 315,000.00 $ 323,000.00 $ 1,246,000.00 4%
TOTAL $ 6,500,000.00 $ 7,285,000.00 $ 7,894,000.00 $ 8,604,000.00 $ 30,283,000.00 100%
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Broadcast Relationship Value
Anheuser-Busch 2013-2014 Broadcast Spend• ESPN - $5,519,945• TNT - $1,303,900• NBATV - $115,000• Total Value - $6,938,845*• Anheuser-Busch ranks 10th compared to fellow marketing
partners in total 2013-2014 broadcast spend
Source: 2014 NBA Media Partner Spending*Total minimum broadcast spend in a given year is $7.0 million
10
Anheuser-Busch’s 24 Team Deals
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Partnership Total Relationship Value
Sources: AB InBev P&L, AB Contract (NBA, WNBA), AB Partnership Dashboard *FY ‘15 upsells and team sponsorships are TBD
NBA TOTAL FY '12 FY '13 FY '14 FY '15
RIGHTS
Rights (US) $6,644,030 $1,600,000 $1,640,000 $1,681,000 $1,723,030
Rights (China) $4,300,000 $1,000,000 $1,050,000 $1,100,000 $1,150,000
RIGHTS TOTAL $10,944,030 $2,600,000 $2,690,000 $2,781,000 $2,873,030
MEDIA
Media (US) $3,529,640 $850,000 $871,250 $893,030 $915,360
Broadcast Actual/Contractual (4) (US) $27,565,894 $7,341,618 $6,395,431 $6,938,845 $6,890,000
Media (China) $9,962,000 $2,400,000 $2,460,000 $2,521,000 $2,581,000
MEDIA TOTAL $41,057,534 $10,591,618 $9,726,681 $10,352,875 $10,386,360
OTHER COMMITMENTS
Team Sponsorships (24) (US) $56,620,156 $22,720,538 $15,719,416 $18,180,202 TBD
EVENTS/UPSELLS
NBA All-Star $700,000 $175,000 $175,000 $175,000 $175,000
NBA All-Star Upsells $1,325,000 $0 $0 $1,325,000 TBD
NBA Tip-Off Package $100,000 $25,000 $25,000 $25,000 $25,000
NBA Playoff Promotions $800,000 $200,000 $200,000 $200,000 $200,000
NBA Marquee/Sponsorship events - China $3,800,000 $800,000 $1,000,000 $1,000,000 $1,000,000
EVENTS TOTAL $6,025,000 $1,025,000 $1,225,000 $2,550,000 $1,225,000
PARTNERSHIP TOTAL VALUE $115,346,720 $36,937,156 $29,361,097 $33,864,077 *$14,659,390
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WNBAWNBA/AB Partnership• AB Contractual Rights:
• Marketing Programs: Community initiative supporting AB’s Family Talk (or other CR) program including vignettes and media • WNBA Media Benefits: WNBA.com and social media• Hospitality Benefits
WNBA Overview• The 2013 WNBA Finals on ESPN and ESPN2 concluded averaging 345,000 views per game and a .24 HH coverage rating • 2013 Ratings:
– 231,000 viewers (ESPN2 Regular Season) – higher than MLS’s regular-season game averages– 345,000 viewers (ESPN2 Finals) – higher than average views for U.S. Open Series tennis events
• In March 2013, ESPN signed a 6-year extension for WNBA rights – since this deal, the league’s TV numbers increased 28% from last year
• WNBA appeals to a large audience through marquee events and campaigns– Inspiring Women Luncheon– WNBA Pride by Covergirl celebrating inclusion and equality– My Black is Beautiful– Dads and Daughters
• Major stars include Elena Delle Donne, Brittney Griner and Skylar Diggins – 3 well-known athletes in the sports world
Sources: AB Deal Summary, Sports Business Daily 2013
TOTAL FY '12 FY '13 FY '14 FY '15
WNBA (US and China) $415,260 $100,000 $102,500 $105,060 $107,700
13
D-League
D-League/AB Partnership• AB Contractual Rights:
• Marketing Programs: Associate Partnership of D-League Showcase – Benefits include logo lock-up, private hospitality reception with Legend appearance and courtside rotational signage
• D-League Media Benefits: NBATV, NBA.com/dleague and social media• Hospitality benefits
D-League Overview• 33% of current NBA players have D-League experience• Provides a platform for interested players to develop their skills so they are able to advance their careers in professional basketball
– After playing in the D-League for a little over a year and half, Jeremy Lin established himself as one of the best shooting guards in the NBA
– Former D-League player, Danny Green, contributed to the Spurs’ 2014 NBA Championship by setting the NBA Finals record for most 3s made in a series, putting him at 25-38 so far
• Creates a path for players, referees, coaches and executives to grow in their career• Twelve players will represent the NBA D-League on the Select Team at this year’s NBA Summer League• The number of D-League teams has expanded to 18; seeking to have a 1-to-1 relationship with the NBA
Sources: AB Deal Summary, Sports Business Daily, Bleacher Report
TOTAL FY '12 FY '13 FY '14 FY '15
D-LEAGUE (US and China) $1,245,500 $300,000 $307,500 $315,000 $323,000
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2014 Ipsos Brand Perception Study Bud Light
• Key Takeaways:– The majority of avid NBA fans prefer watching big sporting events at home– 3 out of 5 fans enjoy drinking beer while watching the game– Over the 2013-2014 year, fans still most closely associate the NBA with Budweiser– Avid NBA fans are very likely to consider and recommend Bud Light, as well as pay a premium for team-branded cans
and bottles
• Bud Light Highlights:– 57% of avid NBA fans typically drink beer while watching sports at home– 65% of avid NBA fans prefer to watch big sporting events at home– 59% of avid NBA fans would pay a premium for a limited edition beer bottle or can featuring their favorite sports team
• NBA Highlights:– 79% of avid NBA fans say they would be very or somewhat loyal towards a company that sponsored a sport they
follow– 52% of avid NBA fans say they feel positively about companies that sponsor the NBA; only 6% disagree with this
statement– Avid NBA fans are 7x more likely to feel that the NBA “has a lot going for it and is moving in the right direction” than
they are to feel that it is losing standing
Source: 2014 Ipsos Brand Perception Study – Bud Light
15
Public Perception
Sources: Sports Daily 2014
This consumer sample shows the public’s perception of the NBA’s major beer sponsor. After the recent change in brand from Budweiser to Bud Light, the 2014 statistics are showing that consumers identify a positive association
between Bud Light and the NBA.
AVID CASUAL
BEER 2014 2013 2012 2014 2013 2012
Bud Light 28.40% 23.00% 35.00% 25.60% 16.00% 24.50%
Coors 12.40% 14.00% 13.60% 8.00% 7.50% 7.10%
Miller 11.40% 12.50% 10.20% 9.00% 7.00% 7.70%
Heineken 6.00% 3.00% 4.90% 2.50% 1.00% 3.60%
Corona 4.00% 4.00% 0.00% 2.50% 0.50% 1.00%
I'm not sure 30.80% 41.50% 35.00% 49.20% 67.50% 53.10%
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Anheuser-Busch Renewal Plan
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Partner LandscapeAnheuser-Busch (AB) sees the NBA as a property that will help Bud Light continue to build on the company’s sports sponsorship portfolio. AB also heavily benefits from the ability to integrate themselves into key dates on the NBA calendar. The current partnership plays an important role in enhancing the overall experience for NBA fans as both companies grow to be category leaders on a global scale.
In the current partnership, the recent priority has been integrating Bud Light and AB products into marquee NBA events; the proposition moving forward must lead Anheuser-Busch to obtain a much larger presence in the NBA so consumers begin to see the NBA as Bud Light’s primary market, compared to fellow AB partnerships (e.g. NFL). This will encourage consumers to attend more games and increase NBA viewership and the overall fan base.
Business Goals:• Strengthen the association between Bud Light and the sport of basketball• Focus on activation and special events to drive product sales and grow a season-long platform
Anheuser-Busch Redefined: What the NBA Must Deliver in This Renewal
Digital and interactive activation to promote the Bud Light brand to basketball fans worldwideUtilize unused aspects of the contract, including tip-off events, to create a season-long platformCreate innovative ways to expand to reach a larger, more diverse consumer base (e.g. Hispanics)
Sources: Wall Street Journal, Anheuser-Busch Website, Anheuser-Busch Contract
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Partnership SWOTSTRENGTHS: Target market, public support and Bud Light interest• Switch from Budweiser to Bud Light has
proven successful• All-Star Square commitment• Interest from Bud Light to increase and
improve year-long activation • Targeting 21-25 year-olds• Category leader on a global scale• Publicly support NBA actions
WEAKNESSES: Team commitment, international interest• Tip-off promotion• Decreased number of NBA team
commitments (down from 26 to 24)• Not supportive of Ene-be-a; no connection
to Hispanic population• Difficulty contacting the brand team; limited
engagement with new personnel
OPPORTUNITIES: Platforms and activation• All-Star activation:
-Bud Light District-Up for Whatever-Good Sport Program
• Bud Light has a larger budget • Bud Light relates better to NBA fans
compared to Budweiser• Continue to increase and grow the season-
long platform • International audience reach• USAB potential/Military component• Create specific ales to win over craft beer
and whiskey consumers
THREATS: Beer competition, industry conflict, target market desires• NFL competition: Consumers identify Bud
Light much more with football• Transition from a team perspective to an NBA
League perspective• 46% of new craft beer drinkers are Millennials• Foreign beers have become popular for
foreigners and natives• Cider is popular among women for flavor and
texture • Competitive pricing from other beer
companies• Spirits bring increased competition
Sources: Beverage Media Group, AB 2013-2014 Season Plan Partnership Dashboard
19
2008 2009 2010 2011 2012 2013 2014$0
$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000
Anheuser-Busch RevenueAnheuser-Busch NBA Spend
Anheuser-Busch Revenue and NBA Spend
Sources: Sponsorship and Advertising Agreement, AB Annual Reports
*2014 is an estimated revenue projection
*
On November 18, 2008, InBev combined with Anheuser-Busch
*
*2010-2011 was the beginning of the current contract – explains NBA spend increase
The NBA’s Value Proposition to Anheuser-Busch
Our Audience• NBA is the best fit for Anheuser-Busch’s audience – millennials
– Diverse audience with different interests in beer– Watching sports aligns well with drinking beer
What We Represent• Consumers are the most valuable asset in both of our companies• We provide Anheuser-Busch with content so they may utilize the NBA and what we stand for as a
business• There is competition in both the beer and sports industry, and the NBA values the intensity of
competition while also having a desire to win. We want to make Anheuser-Busch the beer leader in the professional basketball industry
• As Anheuser-Busch promotes social responsibility in their community outreach and environmental awareness programs, the NBA also endorses the game of basketball as a platform to promote education, health and wellness to people around the world
Progressiveness• Global sports property allows the NBA to continue reaching fans through technology and innovation• The NBA is the most open-minded, forward-thinking league in professional sports. This drive in innovation
can lead to success in other industries, like the beer industry
The Opportunity: Deliver an integrated partnership that continues to engage Anheuser Busch’s sports fans (particularly in basketball) and delivers tangible value in the areas above 20
21
Renewal PlanNBA Priorities• Grow annual revenue (and rights) by at least 30%• Establish content rights• Establish social media/digital platform• Expand activation to increase social interaction with consumers• Continue to expand with media partners• Establish global integration to grow revenue• Create a multicultural platform• Incorporate commitment around social causes and social responsibility• Focus on improving the perception of Bud Light as the official basketball beer• Ensure that the Anheuser-Busch deal ends on June 30th of the calendar year (2015)
Important Considerations• Recent change in 2008 from an American company catered to serving Midwest consumers to
a Brazilian company serving on an international platform• Measuring results
– ROI: We must produce measurable results – Connect to assets they will use
• Use the assets AB is paying for (think proactively)– In creating the new contract and renewal, look ahead 3-5 years to evaluate AB’s needs
22
Renewal Plan: Potential AssetsRetain from Current Partnership:• Marketing rights• Footage rights• Photos/media rights• Playoffs and regular season activation• Hospitality
Expand and Add• Increased rights with a larger Bud Light budget to align with their other League deals• Peak event activation beyond Tip-Off, All-Star and Playoffs /Finals• Content rights
– Predict future assets of importance to Bud Light– Social & Digital Media Rights– Connect to usefulness (e.g. D-League digital media, tip-off activation, etc.)
• Multicultural component – “Ene-be-a” and others• Global territory (i.e. Brazil)• CSR platform expansion
Preliminary Financials
23
Proposal
TERM TOTALDescription Allocation Costs Margin Allocation Costs Margin Allocation Costs Margin Revenue
MAINLAND CHINACommunity Relations Platform $375,000 $100,000 73.3% $384,375 $100,000 74.0% $393,984 $100,000 74.6%Marketing Programs $875,000 $250,000 71.4% $896,875 $250,000 72.1% $919,297 $250,000 72.8%Marketing Benefits (Rights/Marks/Exclusivity/Content) $1,400,000 $0 100.0% $1,435,000 $0 100.0% $1,470,875 $0 100.0%Media $5,375,000 $270,000 95.0% $5,509,375 $270,000 95.1% $5,647,109 $270,000 95.2%
CHINA TOTAL $8,025,000 $620,000 92.3% $8,225,625 $620,000 92.5% $8,431,266 $620,000 92.6% $24,681,891
GLOBAL ALLOCATION (TBD)Community Relations Platform $125,000 $25,000 80.0% $128,125 $25,000 80.5% $131,328 $25,000 81.0%Marketing Programs $125,000 $50,000 60.0% $128,125 $50,000 61.0% $131,328 $50,000 61.9%Marketing Benefits (Rights/Marks/Exclusivity) $250,000 $0 100.0% $256,250 $0 100.0% $262,656 $0 100.0%Media $250,000 $0 100.0% $256,250 $0 100.0% $262,656 $0 100.0%
GLOBAL ALLOCATION TOTAL $750,000 $75,000 90.0% $768,750 $75,000 90.2% $787,969 $75,000 90.5% $2,306,719
UNITED STATESNBA
Marketing Programs $538,445 $150,000 72.1% $551,906 $150,000 72.8% $565,704 $150,000 73.5%Marketing Benefits (Rights/Marks/Exclusivity/Content) $471,140 $0 100.0% $482,918 $0 100.0% $494,991 $0 100.0%Media $1,144,196 $0 100.0% $1,172,801 $0 100.0% $1,202,121 $0 100.0%
Subtotal $2,153,781 $150,000 93.0% $2,207,626 $150,000 93.2% $2,262,816 $150,000 93.4%
WNBAMarketing Programs $67,306 $0 100.0% $68,988 $0 100.0% $70,713 $0 100.0%Marketing Benefits (Rights/Marks/Exclusivity) $33,653 $0 100.0% $34,494 $0 100.0% $35,357 $0 100.0%Media $33,653 $0 100.0% $34,494 $0 100.0% $35,357 $0 100.0%
Subtotal $134,611 $0 100.0% $137,977 $0 100.0% $141,426 $0 100.0%
D-League Marketing Programs $134,611 $44,000 67.3% $137,977 $44,000 68.1% $141,426 $44,000 68.9%Marketing Benefits (Rights/Marks/Exclusivity) $201,917 $2,500 98.8% $206,965 $2,500 98.8% $212,139 $2,500 98.8%Media $67,306 $30,000 55.4% $68,988 $30,000 56.5% $70,713 $30,000 57.6%
Subtotal $403,834 $76,500 81.1% $413,930 $76,500 81.5% $424,278 $76,500 82.0%UNITED STATES TOTAL $2,692,227 $226,500 91.6% $2,759,532 $226,500 91.8% $2,828,521 $226,500 92.0% $8,280,279
NBAP TOTAL $11,467,227 $921,500 92.0% $11,753,907 $921,500 92.2% $12,047,755 $921,500 92.4% $35,268,889
NBA Teams (min) $15,000,000 $15,000,000 $15,000,000 $45,000,000TV Partners (min) $7,000,000 $7,000,000 $7,000,000 $21,000,000
GRAND TOTAL $33,467,227 $33,753,907 $34,047,755 $101,268,889
FY15 % Increase 33% FY16 % Increase 2.5% FY17 % Increase 2.5%
FY16 FY17 FY18
24
Timeline*Italics are renewal-specific dates
September (2014)• Renewal tip-off meeting with AB sports team and Bud Light Brand team
in St. Louis • Begin follow up with internal teams on desired goals for AB renewal• Confirm upsell strategy• NBA International Games invitations
October• Follow up on any next steps to build and complete partnership proposal• Target October 30th to send first proposal• Send proposal #1• Contractual payment (10/1)• Confirm All-Star plans• Finalize D-League activation• NBA start of season Invitations• WNBA Playoffs/Finals invitations
November• Receive preliminary feedback from AB on proposal opportunities and
issues. Set a date for second round. • Send proposal #2• Confirm All-Star activation• Finalize D-League• NBA All-Star invitations
December• Set call/meeting to discuss outstanding items and finalize deal points• Move to contract• Send contract draft by mid-December• Initial Playoffs/Finals planning• Finalize D-League Showcase logistics• NBA All-Star invitations• Q4 meeting
January (2015)• Receive contract comments back from AB ASAP• Send second contract draft based on feedback and subsequent
follow up discussions• Exclusive negotiating window opens January 15*• Contractual payment (1/1)• Initial WNBA activation planning
February• Finalize final renewal contract for next term• Upsell status check and revision
March• Exclusive negotiating window closes on March 1*• Finalize Playoffs/Finals activation• Q1 meeting
April• Contractual payment (4/1)• Finalize WNBA activation
May • Initial Season Tip-Off activation• NBA Finals invitations • NBA Draft (if applicable)
June• Preparation for contract to end
July • (2011-2015) Contract term ends
*Exclusive negotiating window: January 15, 2015 – March 1, 2015
25
Appendix
26
Relationship Map: Critical Contacts
Anheuser-Busch GMP “Owner” Role in Renewal Status Senior Management• Carlos Brito (Chairman/CEO) AS Personally interested/approval Engage/entertain• Luis Edmond (Zone Pres., North America) AS
Marketing• Miguel Patricio (CMO) MT Final Approval Engage throughout
• Jorn Socquet (VP – U.S. MKTG) MT New – Influencer Heavily engaged • Rob McCarthy (VP-Brand MGMT, Bud Light) EC • Lucas Herscovici (VP –Consumer Connections) EW Influence – Digital mktg. Keep engaged• Ryan Garcia (VP-Regional Marketing) EW Ene-be-a influence Working team• David Daniels (Director, Brand MGMT, Bud Light) EW • Patricio Ferrara (Brand Manager, Multi-Cultural, Bud Light) ER Ene-be-a influence Working team• Katie O’Callaghan (Associate Brand Manager, Bud Light) ER
Domestic Sports Marketing• Mike Sundet (VP – Sports and Ent., Marketing) EW Leading tactical strategy Heavily engaged• Rich Browne (Director, Sports and Ent. Marketing) ER • Valerie Luther (Manager, Sports and Ent. Marketing) ER Influencer/Daily Contact Engage daily
Sources: Anheuser-Busch 2013-2014 Season Plan Partnership Dashboard
Jorn Socquet Vice
President Marketing
Lucas Herscovici Vice President
Consumer Connections (Media, Digital, Sports, &
Entertainment))
Mike Sundet Vice President
Sports Marketing
Richard Browne Director
Sports Marketing
Anheuser-Busch Contacts
Valerie Luther Manager Sports Marketing 27
28
Consumer Impact
Sources: Sports Daily 2014
This chart signifies how likely fans are to consider purchasing/using an NBA sponsor’s product or service if they are aware of the relationship the NBA has
with a particular brand or company.
CATEGORY (NBA SPONSOR)
AMONG ALL NBA FANS
AMONG NBA FANS WHO CORRECTLY IDENTIFIED THE
SPONSOR DIFFERENCE
Quick-service restaurant (Taco Bell) 38% 60% +22 pct. PointsInsurance company
(State Farm) 32% 49% +17 pct. PointsCredit card (American
Express) 36% 46% +10 pct. PointsSoft drink (Sprite) 40% 49% +9pct. Points
Sports/energy drink (Gatorade) 40% 49% +9 pct. Points
Wireless service provider (Sprint) 33% 41% +8 pct. PointsAutomotive (Kia) 35% 40% +5 pct. Points
Bank (BBVA Compass) 31% 36% +5 pct. points
Beer (Anheuser-Busch) 37% 37% +0 pct. Points
29
Consumer Response to NBA Partners
Sources: Sports Daily 2014
30
Beer Consumption Habits
Source: Experian Simmons - Adult Study
Bud Light (BL) is the leader in the beer market for people ages 21+, and this number has increased in the overall market from 2011, as well as when BL is compared to Budweiser. However, in the NBA Fan population, this data shows the need to redefine BL as the major beer for NBA fans. BL has decreased since 2011 (although not by much), as has Budweiser in consumption for 21+ year old NBA fans. This shows the potential for Bud Light to expand with the NBA in future years.
*BL Lime has increased over the 2-year span among NBA fans – important to note this popularity and recognition
# OF US 21+ YR OLD MARKET ADULTS # OF 21+ YR OLD NBA FANS % OF US 21+ YR OLD MARKET ADULTS % OF 21+ YR OLD NBA FANS
2013 2012 2011 2013 2012 2011 2013 2012 2011 2013 2012 2011
Total 21+ yr olds 222,182,999 216,512,483 214,392,256 61,560,335 60,333,853 61,158,167 100% 100% 100% 100% 100% 100%
LIGHT LOW CAL BEER - BRANDS
BECK'S PREMIER LIGHT 462,585 850,941 664,758 288,739 462,650 363,616 0% 0% 0% 0% 1% 1%
BUD LIGHT 27,599,626 27,206,818 26,121,620 9,434,456 10,341,993 9,535,296 12% 13% 12% 15% 17% 16%
BUD LIGHT GOLDEN WHEAT 745,524 532,700 947,660 305,698 387,357 342,191 0% 0% 0% 0% 1% 1%
BUD LIGHT LIME 4,590,614 4,995,341 4,167,630 2,096,279 1,724,512 1,756,089 2% 2% 2% 3% 3% 3%
BUDWEISER SELECT 2,935,096 2,486,039 2,844,083 1,116,594 1,276,505 1,497,360 1% 1% 1% 2% 2% 2%
BUDWEISER SELECT 55 1,345,229 1,153,539 1,592,699 543,156 416,425 632,431 1% 1% 1% 1% 1% 1%
BUSCH LIGHT 2,999,373 3,077,824 3,339,102 805,414 882,811 861,671 1% 1% 2% 1% 1% 1%
MICHELOB LIGHT 2,851,412 3,326,772 2,973,095 885,436 1,169,306 1,124,568 1% 2% 1% 1% 2% 2%
MICHELOB ULTRA 6,523,799 7,677,321 4,942,100 1,962,085 2,286,533 1,403,664 3% 4% 2% 3% 4% 2%
NATURAL LIGHT 2,229,300 2,592,397 2,605,444 657,738 1,151,122 729,116 1% 1% 1% 1% 2% 1%
REGULAR DOMESTIC BEER - BRANDS DRINK
BUD ICE 4,217,057 5,231,087 4,887,641 1,666,872 2,014,033 2,135,731 2% 2% 2% 3% 3% 3%
BUDWEISER 17,859,624 20,451,989 21,236,960 7,646,365 8,053,198 8,825,684 8% 9% 10% 12% 13% 14%
BUSCH 3,964,218 4,156,382 4,361,288 1,701,732 1,364,585 1,417,041 2% 2% 2% 3% 2% 2%
MICHELOB 3,848,308 3,344,854 3,093,014 1,067,758 1,157,769 1,128,558 2% 2% 1% 2% 2% 2%
MICHELOB AMBER BOCK 1,238,097 1,459,545 931,866 189,637 779,103 558,922 1% 1% 0% 0% 1% 1%
NATURAL ICE 1,368,404 1,240,885 1,747,061 539,813 476,965 854,758 1% 1% 1% 1% 1% 1%
ROLLING ROCK 2,753,237 2,824,757 1,764,241 628,973 891,711 434,894 1% 1% 1% 1% 1% 1%
NBA Media Consumption
Other Media Consumption Notes• Overall, the NBA has built one of the largest social media communities in the world
– NBA Facebook: More than 24 million likes– NBA Twitter: More than 10.6 million followers– Instagram: 2.8 million followers
• Social media interaction dramatically increases during marquee NBA Events– During the 2014 NBA Draft, #NBADraft was mentioned in a total of 3.2 million twitter posts– Twitter mentions also reached a high during the NBA Playoffs and Finals, where over 90 million total tweets were created 31
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FacebookTwitterNBA.comNational TV
Overall TV ViewershipRegular Season• The 2013-14 NBA Regular Season on ABC, ESPN, ESPN2, NBA TV, and TNT averaged 1,297,000 viewers per game,
down -10% versus the 2012-13 Regular Season average (1,439,000 viewers). The games averaged a 0.9 HH US rating, down -10% versus the Regular Season average (1.0 HH cvg rtg.).
– The 2013-14 NBA Regular Season on ABC, ESPN, and TNT (excluding ESPN2 & NBA TV) averaged 1,959,000 viewers per game, down -10% versus the 2012-13 Regular Season average (2,171,000 viewers). The games averaged a 1.3 HH US rating, down -7% versus the 2012-13 Regular Season average (1.4 HH US rtg.).
Playoffs• The 2014 NBA Playoffs on ABC, ESPN, ESPN2, and TNT (excluding NBA TV) averaged 4,633,000 viewers, up +4%
versus the 2012 NBA Playoffs (4,442,000 viewers). The games averaged a 3.0 U.S. HH rating, up +3% versus the 2013 NBA Playoffs (2.9 HH US rating).
– The 2014 NBA Playoffs across all networks (ABC, ESPN, ESPN2, TNT, & NBA TV) averaged 4,293,000 viewers, up +3% versus the 2012 NBA Playoffs (4,181,000 viewers). The games a 2.8 HH US rating, up +4% versus the 2013 NBA Playoffs (2.7 HH US rtg.).
• NBA Playoff games represented 19 of the top 25 highest rated cable telecasts during the Playoffs• ESPN and TNT combined were the most viewed networks in primetime 32 of the 36 nights NBA Playoff games aired• The 2014 NBA Playoffs on ABC, ESPN, ESPN2, NBA TV and TNT reached over 89.9 million unique viewers, up +1%
versus last season (88.9 million unique viewers)
Finals• For five games, the 2014 NBA Finals concluded averaging 15,524,000 viewers per game, down -12% versus last
year's seven game Finals average (17,665,000 viewers). The games averaged a 9.3 HH US rating, down -11% versus last year's seven game Finals average (10.5 HH US rating).
– After five games, the 2014 NBA Finals concluded averaging 15,547,000 viewers per game, up +3% versus last year's Finals average through five games (15,120,000 viewers). The games averaged a 9.3 HH US rating, up +2% versus last year's Finals average through five games (9.1 HH US rating).
– Game 5 marked the 42nd consecutive time a Finals game was the highest rated program on its respective night, dating back to Game 4 of the 2007 NBA Finals
• The 2014 NBA Finals on ABC reached 68,343,000 unique viewers, down -20% versus last year’s Finals (85,223,000 unique viewers in 2013) -- based on at least 6 minutes watched – the industry standard
Full Season• The Full 2013-14 NBA Season (Regular Season, All-Star Weekend, Playoffs and Finals) across ABC, ESPN, ESPN2,
NBA TV, & TNT reached 126,373,000 unique viewers, down -7% versus the full 2012-13 NBA Season (135,678,000 unique viewers) -- based on at least 6 minutes watched – the industry standard
• The 2013-14 Full Season reach represents 43% of all viewers in the United States
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Year # TC% Reach of All Viewers
Unique Viewers
(000)2013-14 240 29.82 87,8332012-13 242 32.38 93,7012011-12 231 33.54 97,1572010-11 238 35.04 103,2482009-10 143 31.17 91,0272008-09 143 32.37 93,8662007-08 143 30.90 88,4692006-07 142 31.05 88,0402005-06 142 32.44 90,9962004-05 143 33.96 94,3962003-04 142 34.75 95,7752002-03 143 35.72 97,177
(At least 6 minutes watched)NBA Regular Season (Since 2002-03)
Year US HH Rating Viewers (000)2014* 77 3.0 4,6332013* 73 2.9 4,4422012* 73 3.4 5,2772011* 68 3.4 5,4852010 69 2.8 4,4182009 73 3.1 4,7892008 74 2.8 4,0552007 71 2.3 3,2982006 77 2.7 3,8192005 72 2.5 3,4742004 75 2.7 3,9062003 74 2.6 3,587
Overall Playoff Rating & Viewership (Since 2003)
Year Matchup # TC HH Rtg. Viewers (000)2014 MIA / SAS 5 9.3 15,5472013 SAS / MIA 7 10.5 17,6652012 MIA / OKC 5 10.1 16,8552011 DAL / MIA 6 10.2 17,3402010 BOS / LAL 7 10.6 18,1442009 ORL / LAL 5 8.4 14,3472008 LAL / BOS 6 9.3 14,9462007 CLE / SA 4 6.2 9,2922006 MIA / DAL 6 8.5 12,9722005 DET / SA 7 8.2 12,5432004 DET / LAL 5 11.5 17,9422003 NJ / SA 6 6.5 9,864
The Finals on ABC
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NBA TV Regular Season Viewership
NBA TV Viewership – Regular Season
• The 2013-14 NBA Regular Season on NBA TV averaged 316,000 viewers per game, down -6% versus last season (336,000 viewers). The games averaged a 0.41 household coverage rating, down -7% versus last season (0.44 HH cvg rating).
– Excluding the shortened 2011-12 season, this season on NBA TV is the second most-viewed complete Regular Season in network history
– After 22 games, 2013-14 Fan Night on NBA TV concluded averaging 419,000 viewers per game, down -7% versus the 2012-13 Fan Night average (452,000 viewers). The games averaged a 0.54 HH coverage rating, down -8% versus 2012-13 Fan Night (0.59 HH cvg rtg.).
• The 2013-14 NBA Regular Season on NBA TV reached over 15.3 million unique viewers, down -11% versus last season’s reach (17.1 million unique viewers)
– Fan Night 2013-14 on NBA TV reached 8.8 million unique viewers, down -2% versus last season’s Fan Night reach (9.0 million unique viewers)
NBA TV Regular Season (Since 2010-11) (At least 6 minutes watched)
Year #TC% Reach of All Viewers
Unique Viewers
(000)2013-14 98 5.21 15,3342012-13 98 5.92 17.1432011-12 96 5.67 16,4122010-11 96 4.56 13,444
NBA TV Regular Season (Since 2010-11)
Year #TCHH Cvg Rating
Viewers (000)
2013-14 98 0.41 3152012-13 98 0.44 3362011-12 96 0.46 3372010-11 96 0.36 253
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NBA TV – Playoff Viewership
NBA TV Viewership - Playoffs
• The 2014 NBA Playoffs on NBA TV averaged 720,000 viewers per game, up +137% versus last season (304,000 viewers). The games averaged a 0.95 household coverage rating, up +150% versus last season (0.38 HH cvg rtg.).
– The 2014 NBA Playoffs on NBA TV are the highest rated and most viewed in network history
• The 2014 NBA Playoffs on NBA TV reached 8.5 million unique viewers, up +99% versus last season (4.3 million unique viewers)
Year #TCs HH CVG Rating Viewers (000)2014 7 0.95 7202013 5 0.38 3042012 6 0.63 4692011 7 0.71 520
NBA Playoffs on NBA TV (Since 2011)
Year #TCsUnique Viewers
(000)2014 7 8,4992013 5 4,2792012 6 5,8402011 7 7,260
NBA Playoffs on NBA TV (Since 2010)(At least 6 minutes watched)
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• The 2014 NBA Draft, presented by State Farm, earned a 3.1 overnight rating, marking the highest-rated NBA Draft ever on ESPN. The 2014 Draft was up 19 percent compared to last year's telecast.
• The 2014 NBA Draft on ESPN reached 12,085,000 unique viewers, up +2% versus the 2013 NBA Draft (11,860,000 unique viewers) – based on at least 6 minutes watched – the industry standard– The 2014 NBA Draft reached the most unique
viewers in ESPN history
2014 NBA Draft
Year Viewers (000)2014 12,0852013 11,8602012 11,0792011 11,6032010 11,1112009 11,6082008 11,0242007 11,7842006 10,8052005 9,7112004 9,6522003 9,535
NBA Draft on ESPN (Since 2003) -- Unique Viewership
The NBA’s Global ReachThe NBA continues to expand global reach:
• NBA games are available in 215 countries and territories in 47 languages
• Mexico and the United Kingdom will host regular-season games as part of its expanded NBA Global Games schedule for the 2014-15 season.
• The full 2014-2015 NBA Global Games schedule will include a total of nine NBA teams playing seven regular season and preseason games in seven cities in six countries and territories
– The Houston Rockets and Minnesota Timberwolves will play at the Mexico City Arena on Nov. 12, as part of NBA Global Games Mexico City 2014
– NBA Global Games London 2015 will feature a game between the Milwaukee Bucks and New York Knicks at The O2 on Jan. 15
– NBA teams will play five preseason games in four countries this October as part of NBA Global Games 2014
• The Cleveland Cavaliers and Miami Heat will play the NBA’s second game ever in South America when the teams meet on Oct. 11, at HSBC Arena in Rio de Janeiro, Brazil
• Following the 2013-14 NBA Global Games, the NBA will have staged 148 games (regular season and preseason) in 20 countries and territories across Europe, the Americas and Asia since 1978. The league will also have played a total of 18 regular-season games in London, Mexico City, and Tokyo, Japan dating back to 1990. 36Source: NBA.com – global games
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NBA DigitalNBA Digital / NBA.com• NBA.com receives more international traffic than any other U.S.-based sports website, with more than 50%
of visitors coming from outside of North America • 73% of the NBA’s digital traffic and 68% of consumption comes from mobile• Over 67% of NBA.com mobile traffic comes from outside the U.S., with monthly unique users in 215
countries and territories (localized in 7 languages)
Regular Season• In the U.S., NBA Digital saw:
– Nearly 60M Cross-Platform Unique Visitors (45% came from mobile); Over 2.1B Cross-Platform Page Views (83% came from mobile); Over 212M Cross-Platform Video Views (35% came from mobile)
• Globally, NBA Digital saw:– Over 505M Cross-Platform Unique Visitors (38% came from mobile); Nearly 18B Cross-Platform Page
Views (68% came from mobile); Over 3.3B Cross-Platform Video Views (7% came from mobile)
Playoffs and Finals• In the U.S., NBA Digital saw:
– Over 238M Cross-Platform Unique Visitors (52% came from mobile); Over 979M Cross-Platform Page Views (87% came from mobile); Over 73M Cross-Platform Video Views (44% came from mobile)
• Globally, NBA Digital saw:– Over 238M Cross-Platform Unique Visitors (33% came from mobile); Over 8.8B Cross-Platform Page
Views (70% came from mobile); Over 1.6B Cross-Platform Video Views (5% came from mobile)
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The NBA’s Attendance: FY ‘13 & FY ‘142014 Finals• All five Finals games were sold out
2014 Playoffs• Highest percent to capacity (101.3%) since the 2011 playoffs and sold out 99% of games
played (87 of 88). Average attendance was 19,125, a 1% increase YOY. • Gate receipts - Set an NBA playoff record for gate with $151.4 million in revenue, eclipsing
the previous record of $147.6 million set last season. The 89 playoff games also tied an NBA record, originally set in 2005-06.
2013-2014 Regular Season• Finished up 0.3% to 17,407, the 4th highest of all time. 10th straight year where teams
played to 90%+ arena capacity. • Gate receipts - Up 5% versus 2012-13, setting a record and crossing the $1 million per game
gate threshold for the first time. Teams averaged over 9,000 full season tickets sold for the first time, and average full season tickets sold have increased every season since 2009-10.
