Capital One MLB partnership ties fan perks to cardholder growth
Capital One is using MLB All-Star Week access, cardholder perks and Discover integration to support a broader credit-card growth push.
By Daniel Okafor · Business Editor
3 min read
The Capital One MLB partnership is becoming a test of how a credit-card issuer can use sports access to build longer customer relationships. At Major League Baseball’s All-Star Week in Philadelphia, the bank tied cardholder benefits to fan experiences while also reporting stronger quarterly results and moving ahead with its Discover integration.
Capital One became MLB’s official bank and credit card partner in 2022, Fortune reported. The company has treated the sponsorship as more than a branding deal, linking card perks to baseball events and using those relationships in customer lifetime value models, according to Fortune.
Customer lifetime value is a measure companies use to estimate how much revenue a customer may generate over time. In this case, the idea is to use sports-related benefits to attract cardholders and keep them engaged beyond a single event.
How does the Capital One MLB partnership work?
During MLB All-Star Week, Capital One operated an All-Star Village at the Pennsylvania Convention Center in Philadelphia, spanning about 500,000 square feet, Fortune reported. The site included youth baseball drills, food vendors, player tributes, mascot photo opportunities, early access for Capital One cardholders and premium experiences for Venture X Business customers.
The event drew 111,616 attendees from July 11 to July 14, according to MLB. MLB said that was the event’s highest attendance since 2022, when All-Star Week was held in Los Angeles.
For Capital One, the sponsorship sits inside a competitive push for consumer credit-card loyalty. Fortune reported that the company is using exclusive experiences and cardholder access as part of a long-term customer acquisition strategy, based on discussions with Capital One and MLB executives.
What Capital One reported in the quarter
The marketing push comes as Capital One integrates Discover Financial Services and reports results that topped analyst expectations. In its second-quarter results, Capital One reported adjusted diluted earnings per share of $5.81, above Wall Street expectations, while reported diluted earnings per share of $4.73 also beat estimates.
Revenue was $15.85 billion, slightly ahead of analyst forecasts, according to Capital One’s results. Fortune said the quarter was supported by top-line growth, strong credit performance and lower provisions for credit losses.
Capital One completed its acquisition of Discover in May. On the July 21 earnings call, CEO Richard Fairbank said about half of new Discover accounts and loans were being booked on Capital One’s platform.
Fairbank also said the company expects Discover to be fully on Capital One’s technology stack for new originations by the end of the third quarter. That integration gives investors another way to assess how the company is using its capital as it pursues long-term growth, Fortune reported.
This story draws on original reporting from Fortune.