Sports Sponsorship – What Next?

Peaches and cream; roast beef and Yorkshire pudding; and salt and vinegar.

No this is not some Willy Wonka concoction, but, without doubt, there are certain food stuffs that are synonymous with others. Can the same be said of sports sponsorship? Yes in some instances but very often and certainly during the excesses of the last few years, it is difficult to see why some brands have associated themselves with a particular sports event, club or athlete.

Even if there are sports that have become so ingrained with the sport or the event (e.g. Rolex and Wimbledon), does that mean that sports sponsorship is the most effective method of raising awareness of the brand and driving sales?

It is unquestionably the case that sports sponsorship is seen as an indulgence by many companies and often driven by the whim of the owner or chief executive. Many companies have pulled out of sports sponsorship altogether and others have reduced their budgets. The driver for businesses now will be extracting maximum return for minimum investment.

There are significant opportunities for businesses either to extract more for their money and other businesses who might not have been welcome before to dip their toe in the market, but it will be important that before any commitment is made that the business has a clear strategy of what it is that they are trying to achieve. If sponsorship is merely seen as a sales driver then fine but there must be a sufficiently effective data capture programme so that the metrics can be properly analysed.

For most sponsorship programmes this may be quite difficult and indeed some businesses may not view sponsorship in this crude way. The markers may be much more subtle and include customer loyalty, emotional connectivity to the brand and possibly an opportunity to use the host event or club as simply a networking opportunity.

Apart from the financial commitment, how long should a business think of signing up and what should they expect for their investment? Is it enough to accept space on club jerseys, hoardings, free tickets to games and the use of executive facilities?

At the risk of the brand being seen as simply a vehicle for financial gain, the perceived wisdom is that longer term deals achieve a better return on investment. A sponsor should look for a wider range of options than simply advertising and agree greater buy in from the club or event organiser with what it is that the sponsor is looking to achieve. This should include player time to support events, joint hosting of events, exchange of market intelligence, collaborative work with other sponsors, working jointly to achieve the greatest press coverage, website development and generally looking to achieve maximum exposure. There also needs to be an emotional element and buy in right across the business on as many levels as possible so that the sponsorship does not become the preserve of a few.

If you would like to know more about exploiting sponsorship opportunities, Foot Anstey is running a dedicated Sports Law Conference on 25 June 2009 at Salt Quay House, Sutton Harbour, Plymouth, where its specialist team of lawyers will be talking on this issue and others. To book a place please contact Mandy Lilley on 01752 675136 email mandy.lilley@footanstey.com or visit www.footanstey.com/events

Published 05/06/2009. The author of this article is Julian Summerhayes