NCAA Sponsorship Delivers Customers for UPS

2013 Final Four

(from Sports Business Journal, April 1, 2013) UPS is expecting five times more of NCAA-related revenue compared to last year’s figures.  Recent logistics and shipping deals with businesses such as Turner Sports and Populous have been key factors in UPS’s attempt to generate new revenue from their partnership with the NCAA.  The NCAA sponsorship doesn’t guarantee business with NCAA partners, but it has led to many negotiations that eventually lead to new business generated.  UPS and the NCAA formed a partnership in 2010 with a deal worth up to $10 million over 4 years.  The deal expires this year, and both participants are currently in negotiations for a contract renewal.

UPS has been the direct shipping business for the NCAA, this year using over 100 UPS trucks to ship material to Atlanta for the Final Four and logging over 1,000 driving hours in the process.  UPS will also be transporting the playing court to the Georgia Dome from a company in Michigan.  “A big part of leveraging our NCAA deal is showcasing the full suite of our solutions. People see the UPS trucks and the guy in brown delivering packages to the door, but we have evolved into a much more robust, solution-oriented company,” said Hugh Allen, the managing director of UPS’s entertainment logistics.

New revenue streams for UPS are being created through new partnerships with NCAA sponsored companies.  The Colonnade Group is an Alabama-based company who manufactured the temporary seating used at this year’s Final Four.  UPS’s new partnership with Colonnade Group has been the cause of a large increase in business this year, using over 50 UPS trucks to move the equipment to Atlanta.  Another new revenue stream has been formed with UPS’s agreement with WW&L Ticketing, the designer and producer of tickets for the NCAA.  UPS will now ship around 30,000 Final Four tickets all over the world.

The UPS and the NCAA have always had a strong relationship, but with UPS expanding and improving their logistics and shipping techniques the sky is the limit for how far this partnership can go.