Gemba CEO Rob Mills Becomes Global CEO

New research from Gemba, a leading independent advisory firm to brands and rights holders in sport and entertainment, reveals that employees of major sports sponsors believe conflicts of interest are damaging the credibility of the marketing channel.

The survey found that 42% of respondents believe conflicts of interest, stemming from agencies both selling rights and advising potential buyers, are a ‘significant problem’ for the sponsorship industry. This figure rises to more than half (52%) of people with 10+ years’ experience in the sector.

Just 10% of the people surveyed said that sport sponsorship does not suffer from any conflicts of interest. 40% of respondents believe that these conflicts impact the credibility of sponsorship more broadly, with only 16% thinking it has no impact.

The research reinforced that sponsors want to understand how their agency will deal with conflicts, with one in five (20%) stating that they won’t appoint an agency that also sells rights.

More than a quarter (28%) of the interviewees did not know whether their partner was involved in selling or not. A third (34%) of respondents believe that agencies selling and advising is an unsustainable position.

“Our research clearly shows that the practice of agencies acting for both the buyer and the seller is unsustainable if we are to maximise the amazing potential of sponsorship,” said Rob Mills, global CEO of Gemba.

“When executed properly sponsorship is a powerful enabler of business and brand outcomes. As governance and procurement practices increasingly impact sponsorship, we need to adopt models that have been standard in other industries for decades.

“The industry needs great sales businesses who are commissioned to sell rights for sport and entertainment properties. The industry also needs independent, and fan insight-led agencies to support the needs of brands and build the credibility of sponsorship as a marketing channel. But it’s going to be increasingly hard to do both,” Rob added.

In line with the ambition to build the world’s best sponsorship practice and to meet the evolving needs of the market, Gemba has today announced an increased investment in its Sponsorship services. This includes the hiring of additional staff and the development of new fan focused data tools to enhance the sophistication of sponsorship. The division will incorporate Gemba’s leading fair market sponsorship valuation solution, Turnstile.

Turnstile has evaluated over USD$5 billion of deals and transformed how sponsorship is measured since its launch in 2018. Its holistic and independent valuation methodology helps brands and rights holders transact more efficiently, transparently, and sustainably.

Under Gemba’s new structure, Rob Mills will move from his CEO role for the Tenka Group to assume the position of global CEO for Gemba. Andrew Condon and Claire Kelly will lead Gemba’s Asia Pacific and European and Middle East regions, respectively. The Turnstile teams based in London, New York, Sydney, and Munich will report to Kelly.

Rob explained that Gemba's independence and deep understanding of both buyers' and sellers' needs uniquely position the company to add value to the sponsorship transaction process.

“Gemba’s approach is to identify the best property for a brand based on fan insights and the client’s objectives. Then, we present the opportunity to a rights holder without expectation of commission. This has resulted in millions of dollars remaining with rights holders, instead of being taken as commissions. We believe in this model because it provides the transparency and independent advice that we know clients are craving,” said Rob.

Gemba currently works with major brands in the sports and entertainment industries, including Decathlon, Coca-Cola, Toyota, Diageo, HSBC, Ralph Lauren, and Google. The company also advises and provides valuations to major rights holders, including the ICC, Arsenal FC, the WTA, City Football Group, AC Milan, the Australian Grand Prix Cooperation, and Real Madrid. The company’s Sponsorship division is now fully operational and Gemba is actively recruiting for a head of sponsorship.