SoFi (SOFI) – New Partnership – February 17, 2024
SoFi was announced as the official bank of the NBA. Many speculated that this was based on who was willing to pay the most, but, per leadership, that wasn’t the case. This was about brand fit and two organizations looking to thrive together. There’s probably some truth to both points of view. As part of the multi-year agreement, SoFi will be the title sponsor for the NBA’s new play-in tournament. It will also kick off the “SoFi Zero Giveaway” to award $10,000 to a lucky winner every week. All fans have to do is create a checking and savings account. Finally, SoFi is partnering with the league’s core media partners (like Disney) to organize more in-season events and on-court advertising.
The firm also announced Jayson Tatum as a new brand partner to join Chargers quarterback Justin Herbert. As part of this, Tatum and SoFi will create a co-branded Generational Wealth Fund to promote financial literacy within the basketball star’s Jayson Tatum Foundation. SoFi will contribute $1 million to the new fund via grants. Tatum’s foundation aims to help parents navigate education and financial wellness, making it quite relevant to SoFi’s overall mission.
Sports fans are passionate; these kinds of relationships and its high yield savings APY are often deciding factors for passionate viewers picking one similar bank or another. I was highly skeptical about purchasing the naming rights for SoFi Stadium, but they’ve shown that to be a great decision in brand building and eyeballs per dollar spent. I’ll give them the benefit of the doubt here. I don’t see this news as monumental, but I do see it as a positive for building brand awareness as it becomes more front and center for the NBA’s 200 million fans. Brand awareness for the still young bank is one of the most important growth levers that SoFi can pull and the NBA and NFL are two of the best organizations to do it through. As a reminder, these leagues dominate the list of the most watched shows in the USA.
Noto gave an interview with Yahoo Finance about this news. In it, he called the 2024 guidance “a conservative outlook and below macroeconomic consensus.” I think he’s gearing this company up for another year of outperformance.
