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Sports Sponsorship
Sports Sponsorship
Foreword
Sports Sponsorship
Contents
Contents
Introduction & Definition
REPORT COVERAGE....................................................................................................................1
MARKET SECTORS.......................................................................................................................2
Type of Sport..................................................................................................................................2
Type of Sponsor..............................................................................................................................3
1. Executive Summary
KEY DRIVERS.................................................................................................................................6
MARKET TRENDS.........................................................................................................................7
The Social Side of Sports Sponsorship.......................................................................................7
The Arrival of the Second Screen and Multi-Channel Sponsorship.....................................8
Table 2.1: Types of Content Accessed by UK Sports Fans
on Second Screens (% of respondents), 2014..........................................................................9
Emerging Sports Diversify Sponsorship Portfolios................................................................10
ECONOMIC TRENDS..................................................................................................................12
Table 2.2: UK Economic Trends (000, m, %, million and ), 2009-2013..........................12
CURRENT ISSUES........................................................................................................................14
Sports Rights in the UK to Rise to 16bn in 2014..................................................................14
17
MARKET SECTORS.....................................................................................................................20
Type of Sport................................................................................................................................20
Table 3.2: Most Popular Sports in the UK by Value
of Reported Major New Deals (000), 2008-2012.................................................................21
Sports Sponsorship
Contents
MARKET POSITION....................................................................................................................48
The UK............................................................................................................................................48
International Perspective............................................................................................................49
Table 3.5: Global Sponsorship Spending by Region ($bn), 2011-2013..............................50
Figure 3.3: Share of Global Sponsorship Spending by Region (%), 2013.........................50
FORECASTS..................................................................................................................................51
Future Trends................................................................................................................................51
The Economy.................................................................................................................................51
Table 3.6: Economic Forecasts (000, % and million), 2014-2018........................................52
String of Scheduled Sporting Events to Boost Sponsorship................................................52
The Power of Big Data................................................................................................................53
Digital Spend to Cannibalise Sponsorship Market................................................................55
Forecast Total Market.................................................................................................................55
Table 3.7: The Forecast Total UK Sports Sponsorship Market
by Value of Major New Deals (m), 2013-2017......................................................................56
Figure 3.4: The Forecast Total UK Sports Sponsorship Market
by Value of Major New Deals (m), 2013-2017......................................................................56
Market Growth.............................................................................................................................57
Figure 3.5: Growth in the UK Sports Sponsorship Market
by Value of Major New Deals (m), 2008-2017......................................................................57
Sports Sponsorship
4. Competitor Analysis
Contents
58
THE MARKETPLACE..................................................................................................................58
LEADING SPONSORSHIP CONSULTANTS AND AGENCIES............................................59
Table 4.1: Leading Sponsorship Agencies by Fee Income
(m and %), 2010 and 2011.......................................................................................................59
CSM Sports & Entertainment LLC..............................................................................................60
M&C Saatchi Sport & Entertainment.......................................................................................62
MEC Access....................................................................................................................................63
GMR (formerly Experience Worldwide)..................................................................................64
Havas Sports & Entertainment..................................................................................................65
OTHER COMPANIES..................................................................................................................67
brandRapport...............................................................................................................................67
Fuse Sports and Entertainment.................................................................................................68
Generate Sponsorship.................................................................................................................68
Right Formula...............................................................................................................................68
Synergy Sponsorship....................................................................................................................69
MARKETING ACTIVITY.............................................................................................................69
Table 4.2: Main Media Advertising Expenditure on Sponsored Sports Events
and Clubs (000), Year Ending December 2013.....................................................................70
5. Buying Behaviour
73
INTRODUCTION..........................................................................................................................73
INTEREST IN MAJOR TEAM SPORTS....................................................................................73
Table 5.1: Interest in Popular Team Sports by Sex, Age,
Social Grade and Region (% of adults), 2013.........................................................................73
Table 5.2: Interest in Team Sports by Type of Activity (% of adults), 2013.....................75
80
STRENGTHS..................................................................................................................................80
WEAKNESSES..............................................................................................................................80
OPPORTUNITIES.........................................................................................................................81
THREATS.......................................................................................................................................82
Sports Sponsorship
Contents
7. PESTEL
83
POLITICAL ....................................................................................................................................83
Select Parliamentary Committee Warns Olympics Legacy Has Not Been Upheld...........83
Sajid Javid Announced as New Culture Secretary.................................................................84
Review on Gambling Advertising Announced.......................................................................85
ECONOMIC .................................................................................................................................86
DCMS Budgets Cut But Elite Sports Protected in 2015/2016 Spending Round...............86
SOCIAL .........................................................................................................................................87
Fans Revolt as Slew of Payday Loan Sponsors Enter Market..............................................87
World Cup Sponsors Call for Inquiry into Qatar Corruption Allegations.........................89
Women in Sports Still Underrepresented...............................................................................90
TECHNOLOGICAL ......................................................................................................................91
Wearables and Virtual Reality: Game Changers....................................................................91
In-Stadia Connectivity to Drive Mobile Interactions.............................................................93
ENVIRONMENTAL ....................................................................................................................94
Corporate Social Responsibility Becoming a Focal Point in Sponsorship..........................94
LEGISLATIVE ...............................................................................................................................95
Calls Mount for Alcohol Sponsorship Ban in the UK............................................................95
8. Further Sources
97
Associations.................................................................................................................................97
Publications.................................................................................................................................97
General Sources.........................................................................................................................98
Government Publications ......................................................................................................98
Other Sources.............................................................................................................................98
100
101
Sports Sponsorship
Sports Sponsorship
MARKET SECTORS
The sports sponsorship market can be subdivided according to the type of sport
involved or by the type of industry that invests in sponsorship deals of this kind.
Both types of sector breakdown have been further categorised below:
Type of Sport
The market can be segmented according to type of sport being sponsored.
However, it should be noted that these sectors can also include income
generated by multi-event tournaments, such as the Olympics and
Commonwealth Games. The main types of sports that attract sponsorship deals
include the following:
Football including domestic tournaments such as the English Premier
League and the Football Association (FA) Cup; and overseas events including
the Fdration Internationale de Football Association (FIFA) World Cup; the
Union of European Football Associations (UEFA) Champions League; the
UEFA Europa League; and the UEFA European Football Championship.
Motorsports including the Federation Internationale de lAutomobile (FIA)
Formula 1 (F1) World Championship; as well as other motor racing
competitions such as rally, stock car, superbikes and speedway events.
Team sports (excluding football) can include rugby, for example Rugby
Union and Rugby League; and cricket, including County Cricket. Both sports
also host their own World Cups and other international tournaments.
Individual sports sponsorship deals undertaken within this sector mainly
encompass personal endorsements featuring an individual sports personality
that participates in sports such as tennis or golf.
Sports Sponsorship
Type of Sponsor
Although sponsors can include businesses from a broad range of industries, the
following list provides details of the primary vertical sectors involved in sports
sponsorship to a high degree in the UK:
Gambling/lottery providers includes online gambling companies such as
Sky Bet, Bet 365 and Red32, as well as high-street betting shop chains such
as William Hill, Ladbrokes and Paddy Power; and lottery providers (both
national and regional).
Automotive this sector is heavily dominated by major automotive brands,
such as Ford, which is one of official sponsors of the 2014 Commonwealth
Games; and Hyundai/Kia Motors, one of the official partners of the FIFA
World Cup 2014. Other significant automotive sponsors include Vauxhall,
which sponsors all four national teams in Great Britain as well as their
football associations, and Liverpool FC; Nissan, which recently signed a deal
to sponsor City Football Group, which includes Manchester City FC; and
General Motors Chevrolet, the current sponsor of Manchester United FC.
Financial services includes banking organisations and other financial
services firms. Visa is one of the leading financial sponsors, with the credit
card firm sponsoring several global sporting events, including the World Cup
and the Olympic Games. Other major sponsors in the UK market include
Barclays, which represents the official sponsor of the English Premier League;
as well as Investec, Royal Bank of Scotland (RBS), Standard Life, HSBC,
Santander, Natwest and Aviva, among many others.
Sports goods includes sportswear brands, namely Nike, Umbro and adidas.
Nike sponsors several high-performing sports stars, including Tiger Woods,
Rafael Nadal and Rory McIlroy, and became an official Olympics sponsor in
2013. adidas was an official partner of the FIFA World Cup 2014 and the 2012
Olympics, and sponsors the English cricket team as well as several football
clubs based in the UK.
Drinks brands Coca-Cola heavily dominates sports sponsorship within this
sector, with the soft drinks manufacturer continuing to remain a long-term
official partner of the Olympic Games and FIFA World Cup. Other drink
brands that have a strong presence within sports sponsorship include Pepsi,
Carling, Heineken, Robinsons, Guinness, Lucozade, John Smiths and Red Bull.
Sports Sponsorship
Sports Sponsorship
Executive Summary
1. Executive Summary
The UK sports sponsorship market has continued to decline in the years
following the London 2012 Olympics, with a noticeable drop in both the value
and volume of deals being signed since 2009, when market value peaked. Since
then, the market has observed year-on-year double-digit declines, although
much of this is due to the skewed results produced by the Olympics. Investment
in sports sponsorship has also continued to be impacted by the after-effects of
the recession, which has led to squeezed marketing budgets and reduced
business optimism in the years following the economic downturn, which hit
developed markets in 2008/2009. Increased competition from digital
marketing formats has also had a negative impact on investment in sports
sponsorship, with many businesses opting to funnel money away from
large-scale sponsorship deals and towards cheaper, and often more
measurable, marketing initiatives involving digital, mobile and social media
channels.
Despite the contractions observed across the sports sponsorship market in the
UK in recent years, the global market has continued to witness a long-term
upwards trend, with figures compiled by IEG revealing the total value of global
sponsorship rights to have topped $53bn in 2013, having grown by 20.7% since
2009. This suggests that the fluctuations that have hit the UK market in recent
years are not likely to be suggestive of a longer-term decline; particularly given
that the UK economy once again showed signs of recovery in 2013, with even
stronger growth predicted for 2014. The UKs hosting of several upcoming
sporting events is also likely to drive future growth. In 2014, alone, for example,
the country will play host nation to the Giro dItalia the second-largest
cycling race in the world as well as the Grand Dpart of the Tour de France,
the Commonwealth Games and the Ryder Cup. The emergence of several
non-traditional sports sectors, such as cycling, rowing and para-sports,
following the success of Team GB athletes at the London 2012 Olympic and
Paralympic Games are also likely to boost growth in the market going
forwards.
The development of a more sophisticated and mature approach to sports
sponsorship should also help to strengthen the position of the sector within
the wider marketing mix in the future, with new sponsorship deals secured
often offering a wide range of new asset rights and opportunities for brand
activation than was previously provided. Indeed, many current sponsor deals
now encompass a range of marketing activity across a variety of channels, from
tablet and mobile to television, online and social media. This trend is expected
to continue to develop going forwards, with sports sponsorship partnerships
likely to become increasingly integrated with wider multi-channel marketing
strategies.
These factors combined should help to secure more stable growth across the
sports sponsorship market in the future, with Key Note predicting market
growth to pick up once again from 2014 onwards, in line with the
strengthening UK economy. Overall, Key Note expects the market to achieve
growth of 14.8% over the 5-year forecast period to 2018.
Sports Sponsorship
Sports Sponsorship
MARKET TRENDS
The Social Side of Sports Sponsorship
The rising popularity of social networks in the UK and across the world has seen
brand marketers and sponsors increasingly turn to such channels in order to
leverage social media to connect with fans, followers and participants on a
much more personal level regarding sponsored sports. In this way, marketers
are able to solidify and strengthen relationships with consumers by sharing in
the passion and emotional attachments that they have for their favourite sport,
team or athlete through highly engaging social media platforms, which
facilitate and encourage two-way conversations between brands and
consumers. Not only this, but social media can also allow brands to engage
with target audiences directly and in real time, necessitating a more agile
approach to marketing activities.
Indeed, social media seems tailor-made for the incessant chatter and virtual
camaraderie engaged in by sports fans; with sports stars and teams attracting
vast swathes of followers on social networks. Barcelona Football Club (FC), for
example, now has over 60 million followers on social media, while Real Madrid
has around 49.8 million and Manchester United has 34.5 million. The 2012
Olympics has also significantly boosted social media as a platform for brand
engagement and customer interactions, with several well-known athletes from
the Games, such as Mo Farah, Jessica Ennis and Tom Daly, all having Twitter
followings of over 1 million as a result. The successful integration of social
media alongside the Olympics has paved the way for other international
sporting competitions to experiment with the platform.
The 2014 FIFA World Cup, for example, generated an enormous amount of
social media activity, with the competition overtaking the Superbowl to
become the most talked-about sporting event on Facebook. According to
Snack Media, approximately 72.4% of fans discussed the football tournament
on social networks while watching the games on television; the finale
generated 618,725 tweets per minute on micro-blogging site Twitter. The
heightened level of activity on social media has meant that such platforms have
become increasingly attractive to sponsors, with several official World Cup
sponsors increasing their following on social networks as a result of
promotional activities across such platforms during the tournament. adidas,
for example, became the most talked-about brand related to the 2014 World
Cup, following strong social media participation and its All or Nothing
campaign, with the brands social media followers increasing by 5.8 million
across all platforms as a result. The sportswear brand also benefitted from the
launch of its @brazuca Twitter account which was designed to represent the
official match ball of the 2014 World Cup which finished the tournament
with nearly 3.5 million followers.
Sports Sponsorship
Sports Sponsorship
56
24
22
Place a bet
16
13
Source: Know The Fan - The Global Sports Media Consumption Report 2014 from
PERFORM, Kantar Media and SportBusiness Group
Sports Sponsorship
The rising popularity of companion apps has been leveraged to some extent
by a select few sponsors; however, it remains an area of the market that has
yet to reach its full potential. Nonetheless, interest in sponsored companion
apps has continued to observe growth in recent years. The Royal Bank of
Scotland (RBS), for example, launched its first sponsored app back in 2012 to
celebrate the RBS 6 Nations rugby tournament. The app challenged fans to
predict the result of games, take part in opinion polls and answer rugby quiz
questions devised by RBS 6 Nations. The aim of the app was to capitalise on
the growth in duel screening and to leverage social media, through Facebook
Connect, to allow fans to interact with one another during live events,
regardless of their location. The app has continued to be used for the rugby
tournament since its success in 2012, and now offers several enhanced
capabilities designed to improve audience participation and interaction.
According to a report published by app developer Accenture in 2013, the app
was downloaded by over 325,000 people throughout the 2012 competition
and now represents the UKs leading sports app. Similar sponsored companion
apps have been launched by brands following RBSs success, with Betfair
launching a Euro 2012 companion app which allowed users to bet on games
in real time; Premier League sponsor Barclays also has an official football app,
which provides details of fixtures, results, and teams, as well as integration with
Twitter.
10
Sports Sponsorship
Several other emerging sports have also attracted the attention of sponsors in
recent years, following increased popularity and successes at international
competitions. These have included skiing and snowboarding, with UK Sport set
to triple its investment in the sport to 31m between 2014 and 2018, up from
the 14.2m that was invested in the lead up to the Winter Olympics in Sochi,
Russia, during 2014. The rise in investment reflects the strong performances of
British athletes at World Cup and Olympic level, with British Ski and Snowboard
(BSS) athletes finishing with six top-ten results during the recent Winter
Olympics. Cricket represents another sport to have seen strong growth in
sponsorship funding in recent years, with sponsorship of the sport increasing
by 14% year-on-year since 2006 to top over 250m in 2014. This growth has
predominantly been driven by the increased commercialisation of the sport;
the introduction of a shorter Twenty20 format; and the growing popularity of
the Indian Premier League.
Triathlon formats have also seen a surge in popularity in recent years, driven
by increased interest in events such as Ironman, which has seen its annual
revenue increase sevenfold over the past year, after soaring to $150m. This
comes following increased investment by backer Unit Providence Equity
Partners, which purchased the World Triathlon Corporation back in 2008, and
has since continued to expand the reach of Ironman by entering new markets,
adding new races to the event and growing its selection of popular branded
merchandise, with its Timex watch, for example, now representing the
best-selling sports watch in the world. The rising popularity of the race, which
encompasses a 2.4-mile swim, a 112-mile cycle race and a marathon spanning
26.2 miles, is reflected by a sharp growth in participants, with around 200,000
athletes set to cross the finish line in 2014, up from just 60,000 5 years ago.
Commercial organisations have been increasingly keen to take advantage of
the increasing popularity of the race, with Ironman counting several leading
brands, including Mercedes-Benz, Subaru, Powerbar, Timex, BMW and Foster
Grant, among its sponsors for events held across the world.
The diversification of sponsorship portfolios is a trend that is expected to
continue well into the future, with other key emergent sports, such as extreme
sports, ultimate fighting, martial arts and rally car racing, also expected to see
strong interest from sponsors in coming years. In this way, sponsors are
expected to spread their reach even further by tapping into new audiences
across the world. Diversifying sponsorship portfolios may also help to temper
any potential losses; for example, if a sponsored team or sports star exits a
competition earlier than expected.
11
Sports Sponsorship
ECONOMIC TRENDS
The UK economy continued to show signs of economic recovery during 2013,
during which gross domestic product (GDP) rose by 1.7% (in terms of annual
chain-linked GDP), after narrowly avoiding a double-dip recession during 2012
when GDP growth fell to just 0.3%. Inflation has also continued to stabilise
over the past year, with rates standing at around 3% in 2013 after falling
slightly by 0.2 percentage points. Meanwhile, unemployment saw its largest
decline since the recession, after the number of claimants fell sharply by 10.7%
during 2013. Despite these positive indicators, consumers have continued to
remain cautious in terms of expenditure, with household disposable incomes
per capita growing by just 1.1% during 2013, compared to a growth rate of
2.8% in the previous year; household budgets have remained tight in the face
of continued hikes in the price of energy, food and fuel.
The strengthening economy is already thought to be having a positive effect
on business confidence, with both operational and marketing departments
showing renewed optimism following a recovery in GDP growth over the past
year. This in turn is likely to lead to more flexible marketing budgets, many of
which were cut drastically in the wake of the recession as businesses attempted
to save costs. As such, the outlook for sponsorship funding across sports is
promising, with brands increasingly looking to leverage commercial
partnerships in order to secure future growth as the economy continues to
strengthen.
2010
2011
2012
2013
Female
31,728
31,954
32,188
32,390
32,556
Male
30,532
30,805
31,097
31,315
31,532
62,260
62,759
63,285
63,705
64,087
0.8
0.8
0.7
0.6
Resident Population
Estimates (000),
Mid-Years
Total population
% change
year-on-year
Table continues...
12
Sports Sponsorship
2010
2011
2012
2013
1,417,359
1,485,615
1,536,937
1,558,415
1,613,391
4.8
3.5
1.4
3.5
1,461,361
1,485,616
1,502,216
1,506,388
1,531,428
1.7
1.1
0.3
1.7
-0.5
4.6
5.2
3.2
3.0
5.1
0.6
-2.0
-0.2
1.53
1.50
1.53
1.59
1.42
-2.0
2.0
3.9
-10.7
Gross Domestic
Product (m)
Current prices
% change
year-on-year
Annual chain-linked
GDP
% change
year-on-year
Rate of Inflation (%)
Inflation
Percentage point
change
year-on-year
Actual Number of
Unemployed Persons
in the UK (million)
Actual number of
claimants
% change
year-on-year
Table continues...
13
Sports Sponsorship
2010
2011
2012
2013
15,443
16,058
16,371
16,830
17,022
4.0
1.9
2.8
1.1
Household Disposable
Income Per Capita ()
Household
disposable income
% change
year-on-year
Source: Population Estimates for UK, England and Wales, Scotland and Northern
Ireland, Mid-2001 to Mid-2010 Revised, December 2013/National Population
Projections, 2012-based projections/United Kingdom Economic Accounts Q4
2013, published March 2014/Consumer Price Inflation, April 2014/Labour Market
Statistics, May 2014, National Statistics website Crown copyright material is
reproduced with the permission of the Controller of HMSO (and the Queens
Printer for Scotland)
CURRENT ISSUES
Sports Rights in the UK to Rise to 16bn in 2014
According to a recent report published by Deloitte in January 2014, the value
of premium sports broadcast rights worldwide is expected to increase by a
substantial 14% in 2014 to reach 16bn. This increase in rights is expected to
be driven by new agreements among top-tier European domestic football
leagues and major North American sports leagues. In the UK, the English
Premier League has continued to negotiate increasingly high-value deals with
broadcasters, with Sky continuing to lead the market in terms of sports
broadcast rights despite increased competition from other competitors, such
as ITV Digital, Setanta and ESPN, in recent years. However, recent months have
seen telecommunications firm BT expand its presence in the sports broadcast
arena, with the company launching a number of new UK sports channels in a
direct challenge to the 2-decades-long dominance of Sky over sports television.
14
Sports Sponsorship
BT has spent a rumoured 738m over the past 3 years for rights to 38 live
Premier League matches each season, while Sky has paid 2.3bn for 116
matches each season. BT has also bought up rights to Premiership Rugby, as
well as a host of other sports such as Moto GP and Nascar, and has also taken
over ESPNs UK sports channels. Towards the end of 2013, BT announced that
it had secured the exclusive UK live rights for both the Champions League and
the Europa League for 3 years from 2015, following a huge bid rumoured to
worth almost 900m, further driving competition against competitor Sky.
BTs expansion into UK sport marks a concerted effort by the company to
transform its image from telecommunications firm to top-level sports
broadcaster. However, its acquisition of rights to both the Champions League
and Europa League mean an end to live European club football on free-to-view
channels such as BBC and ITV, although BTs commitment to free matches over
satellite, cable and broadband is likely to counter criticism from some fans.
According to BT, around 2 million people had subscribed to its televisions sports
channels since the launch of the BT Sport package in August 2013; while Sky
revealed that the start of the 2013/2014 football season had resulted in record
viewing numbers, with the tournament attracting an average audience of 1.55
million, compared with 1.29 million during the 2012/2013 season. However,
while Sky is likely to remain the leading sports broadcaster in the UK, it is likely
to meet with increased competition from BT Sport, as the latter continues to
seek new broadcast rights opportunities, particularly in sports other than
football, such as golf and cricket both of which have significant followings
in the UK. In May 2014, for example, BT Sport revealed that it had secured
rights for live television coverage of the Caribbean Premier League T20 cricket
tournament in a deal spanning 2 years. Sky is likely to face further competition
from BT when the International Cricket Council (ICC) auctions off the broadcast
rights to its World Twenty20, 50-over World Cup and Champions Trophy
competitions later this year, with BT already making it clear that it will be
entering the auction. Sky Sports currently has the rights to broadcast all live
international cricket fixtures played by England at home, as well as all fixtures
in India, the West Indies, Australia, New Zealand and South Africa. BT is also
expected to bid for broadcast rights for the US Professional Golfers Association
(PGA) golfing tour, which is also up for tender during 2014, despite Sky
currently owning the rights to broadcast the tournament until 2017.
BT has also strengthened its position within the sports sponsorship market
through a number of new partnership deals in recent years, with the
telecommunications company becoming the new sponsor of the Glasgow
Warriors and Edinburgh rugby teams in July 2013, which will see both clubs
sport BTs logo on their club shirts. The multi-million-pound deal effectively
bypasses Sky Sports ban on screening rival broadcasters advertising and logos
an issue which BT has contested with media regulator Ofcom in the past.
Recent months have seen BT further expand its sports sponsorship portfolio,
following the acquisition of naming rights for Scottish Rugby venue
Murrayfields; as well as a new deal with Wales four rugby regions, which will
see BT Sport become the title sponsor of the Arms Park the home venue of
the Cardiff Blues and take on shirt sponsorship for the other three Welsh
regional rugby teams.
15
Sports Sponsorship
16
Sports Sponsorship
17
Sports Sponsorship
Value (m)
% change year-on-year
Number of deals
% change year-on-year
2008
2009
2010
2011
2012
675.9
946.0
850.7
539.8
398.7
40.0
-10.1
-36.5
-26.1
151
322
414
340
335
113.2
28.6
-17.9
-1.5
Source: Find!Sponsorship
18
Sports Sponsorship
Figure 3.1 illustrates the value of the market between 2008 and 2012,
highlighting the significant increases occurring in 2009 and 2010.
2009
2010
2011
2012
Figure 3.2 illustrates the peak in the number of major new deals in the sports
sponsorship market in the UK that occurred in 2010.
2009
2010
2011
2012
19
Sports Sponsorship
MARKET SECTORS
For the purposes of this report, the sports sponsorship market has been
sub-categorised according to type of sport and type of sponsor; it has also been
assessed in terms of value (i.e. the value of sponsorship deals) and in terms of
volume (i.e. the number of sponsorship deals reported).
Type of Sport
Football continued to remain the most lucrative sport over the review period
in terms of sponsorship, with this category observing year-on-year increases
since 2009. In 2012 alone, sponsorship deals secured by football organisations
increased by 59.3% to stand at 234.1m, with this sector benefitting from the
vast global coverage and popularity of the English Premier League. The growth
in football sponsorship in terms of value is also likely to have been boosted by
an increase in activity during the run up to the 2014 Fdration Internationale
de Football Association (FIFA) World Cup, with the English Football Association
(FA) signing a number of lucrative deals with brands such as Samsung and Nike
in the years preceding the global event.
2012 also saw Rugby Union overtake the Olympics to become the second-most
lucrative area of the sports sponsorship market during 2012 after seeing
growth of 41.2%, with the total value of Rugby Union sponsorship deals struck
standing at 39.9m that year. At the same time, sponsorship deals secured off
the back of the 2012 Olympics continued to fluctuate during the 5-year review
period, with large increases observed in 2009 and 2011, but a decline of 76.2%
reported in 2012, suggesting a tapering off of interest among supporters
surrounding the event and Olympics athletes.
Elsewhere, healthy growth was observed across a number of sports during 2012
including tennis (728.1%), cycling (831.6%), multi-sports (319.9% [including
the 2014 Commonwealth Games]), golf (79.8%), sailing/yachting (235.8%), and
equestrian sports (537%). These high levels of growth are most likely to be a
result of heightened interest from sponsors in the run-up to the Olympics, as
well as the continued success of several individual British athletes, such as
tennis stars Andy Murray and Laura Robson, as well as golfer Rory McIlroy and
athletes Mo Farah and Jessica Ennis.
20
Sports Sponsorship
2009
2010
2011
2012
Football
18,868
2,985
50,782
146,918
234,050
Rugby Union
17,569
5,006
17,388
28,267
39,900
Olympics
93,850
230,224
20,409
87,132
20,750
Tennis
n.a.
n.a.
10,107
2,234
18,500
Cycling
n.a.
203
7,878
1,009
9,400
Multi-sports
n.a.
n.a.
n.a.
2,143
9,000
Golf
9,440
3,090
4,920
4,894
8,800
Sailing/yachting
7,492
n.a.
n.a.
2,472
8,300
Cricket
4,058
1,768
16,278
27,765
7,500
Rugby League
6,203
2,620
5,405
7,122
7,400
n.a.
n.a.
n.a.
832
5,300
5,569
5,773
7,995
n.a.
5,000
n.a.
n.a.
n.a.
2,143
4,600
1,971
876
n.a.
1,904
3,300
n.a.
n.a.
n.a.
2,345
2,300
Equestrian Sports
Formula 1
Motorsports
Motorcycle racing
Darts
n.a.. not available
Source: Find!Sponsorship
Football was by far the most popular sport to attract sponsorship deals in terms
of volume throughout the 5-year review period, with the number of football
sponsorship deals signed more than tripling between 2008 and 2012 to stand
at 113. Once again, this is most likely to be down to the global popularity of
the English Premier League, as well as the vast number of teams that the league
and other under-leagues comprise. The advent of the World Cup in South
Africa in 2010, as well as the Union of European Football Clubs (EUFAs) Euro
2012 competition hosted by Poland and the Ukraine, is also likely to have
helped boost player and team sponsorships in the run up to these events.
21
Sports Sponsorship
2009
2010
2011
2012
Football
36
85
108
100
113
Rugby Union
28
30
40
51
41
Rugby League
15
17
20
22
Cricket
14
20
26
20
17
Cycling
11
n.a.
17
13
14
11
16
15
Tennis
11
n.a.
13
Athletics
12
12
Horseracing
13
12
16
11
n.a.
10
n.a.
Olympics
19
12
17
Motorsports
n.a.
Sailing/yachting
n.a.
n.a.
n.a.
n.a.
10
n.a.
Golf
Multi-sports
Ice hockey
Motorcycle racing
n.a.. not available
Source: Find!Sponsorship
22
Sports Sponsorship
Football
Football has continued to dominate the sports sponsorship market, with the
English Premier League remaining one of the most valuable and most watched
sports leagues in the world. Altogether, the Premier League is now broadcast
in around 212 territories across the globe, with the television audience of
Premier League matches reaching 4.7 billion. The vast reach of the Premier
League is therefore highly attractive to commercial organisations and brands,
with sponsorship deals signed by leading football clubs, football players and
tournaments providing high brand visibility, global reach and added value to
sponsors, i.e. in the form of match tickets and naming rights on certain
merchandise. As such, football sponsorship in the UK has continued to attract
record-breaking sponsorship deals in recent years. The sector also benefits from
several popular national and international events, including the FA Cup, the
UEFA Champions League, the UEFA Europe League, the FIFA World Cup and
the UEFA European Championship; all of which have continued to garner
high-profile sponsorship deals.
Football sponsorship can encompass the sponsorship of national leagues and
other tournaments, and may include team shirt sponsorship, stadium title
sponsorships (e.g. Arsenals Emirates Stadium, Manchester Citys Etihad
Stadium and Derbys iPro Stadium), individual player sponsorship deals, and
the sponsorship of television coverage. The English Premier League, in
particular, has continued to see strong growth in the value of sponsorship deals
signed by its major football clubs. Manchester United Football Club (FC) long
upheld as the most popular football club in the world with an estimated 354
million followers worldwide has continued to attract record-breaking
sponsorship deals as a result of its huge global reach. In July 2014, for example,
the club revealed that it signed a new sponsorship deal with adidas worth
750m, which will see the sportswear brand sponsor the teams kit over the
next 10 years. adidas replaces Nike as the clubs kit sponsor, with the new deal
worth a record-breaking 75m a season to the football team just 40m less
than the Glazer family paid to acquire the club back in 2005, reflecting the
increasingly high value now attained by football sponsorship in the UK.
23
Sports Sponsorship
Aside from team sponsorship deals, the major current sponsorship deals
ongoing within the football sector include the following:
Barclays has been the official sponsor of the English Premier League since
2001, with the banks current 40m-a-year sponsorship deal set to run until
the 2015/2016 season. Barclays commercial partnership with the football
league has seen it retain its position as title sponsor of the seasonal
tournament. Sponsorship activities undertaken by the bank during the most
recent 2013/2014 season have included a new integrated campaign entitled
Thank You, which was rolled out in August 2013 ahead of the start of the
Premier League and was designed to showcase the dedication of fans from
across England. An international version of the campaign was also launched
by Barclays to target the hundreds of millions of fans that watch the Premier
League from territories overseas. The campaign was further supported by
additional promotional activity, including experiential, social and public
relations (PR) stunts, as well as ticket competitions. Despite the vast reach
that the banks sponsorship of the Premier League provides, recent news
reports have suggested that Barclays was considering exiting its current
sponsorship deal in 2015/2016 when the current contract comes to an end.
The reports come after it was rumoured that senior figures at the bank had
accused the deal of being zero value; the tournament continues to demand
greater amounts for commercial agreements and Barclays current
sponsorship agreement is estimated to be 50% higher than that negotiated
for the previous contract term. Further to this, it has been reported that the
bank has to pay additional activation costs for sponsorship activities carried
out on social media and television. Despite these reports, Barclays has
continued to maintain that it is committed to its current sponsorship deal
with the Premier League and that the bank continues to remain focused on
delivering value from the commercial partnership.
The UEFA Champions League has also continued to attract lucrative
sponsorship deals with top-level brands in recent years, with the tournament
thought to represent the most-watched annual sporting event in the world,
attracting global average audiences of around 165 million. During 2014, the
tournament announced that car manufacturer Nissan had been signed up as
its new official sponsor, replacing Ford which exited its 22-year partnership
with the annual event in 2013/2014. The new deal signed by Nissan will run
for 4 years and is rumoured to be worth over 45m a season. Other current
sponsors of the tournament include Mastercard, Unicredit, Heineken,
Gazprom and Sony. It is thought that the sponsorship deal was undertaken
by Nissan to raise the profile of the brand across Europe, where it has
revealed conditions have remained sluggish. The commercial partnership
will provide the car manufacturer with extensive rights and branding
opportunities around Champions League matches, including the final,
pre-match training sessions, and other media and hospitality benefits.
24
Sports Sponsorship
25
Sports Sponsorship
Following the 2006 World Cup, FIFA unveiled a new commercial strategy, which
comprised a three-tier sponsorship structure similar to that used in the
Olympics. The primary tier consists of FIFA Partners, the second tier FIFA World
Cup Sponsors and the third tier National Supporters for each FIFA event.
Sponsors of FIFA World Cup are also provided with rights to the FIFA
Confederations Cup, with the main rights allowing for the use of selected
marketing assets and media exposure, as well as ticketing and hospitality offers
for events. The sponsors of the 2014 World Cup, which was hosted in Brazil
during the months of June and July, are listed below according to tier:
FIFA Partners:
adidas
Coca-cola
Hyundai/Kia Motors
Emirates
Sony
Visa.
FIFA World Cup Sponsors:
Budweiser
Castrol
Continental
Johnson & Johnson
McDonalds
Moy Park
oi
Yingli.
National Supporters:
ApexBrasil
Centauro
Garoto
Ita
Liberty Seguros
WiseUp.
26
Sports Sponsorship
Following the completion of the 2014 World Cup, which was won by Germany,
a study undertaken by Millward Brown revealed that Coca-Cola topped the list
of brands most recognised as a sponsor of the tournament, with 81% of
consumers in the UK associating it with the World Cup. The research also
revealed that although non-sponsor brands such as Nike and MasterCard
scored highly before the event, after the tournament they were outscored by
official sponsors such as Visa and adidas. The research also showed that
respondents were less positive about FIFA and the World Cup organisers,
following rumours of corruption and dishonesty surrounding Qatars
tournament bid win with the country set to host the competition during
2022 and the expense of the tournament using Brazilian public funds.
The next large international football tournament to be held will by the UEFA
Euro 2016 tournament, which is due to be hosted by France. Viewing and
attendance figures for the tournament are likely to surpass those achieved by
the 2012 competition, which was hosted by Ukraine and Poland, and attracted
a television audience of 299 million for the final, as well as an overall match
attendance of 1.3 million. So far, official sponsors of the UEFA Euro 2016
tournament have included adidas, Carlsberg, Coca-Cola, Continental, Hyundai/
Kia Motors, McDonalds and the State Oil Company of the Azerbaijan Republic
(SOCAR).
27
Sports Sponsorship
Despite the vast global coverage of the events, some critics have argued that,
unlike the Olympics, the Commonwealth Games has remained more of a local
activation platform for sponsors, with the majority of online mentions for the
2014 event 667,000 in total based in the UK, according to social media
monitoring firm Brandwatch, with Glasgow and London securing the biggest
shares with 18% and 17%, respectively. As a result, a number of sponsors, such
as Virgin Media and SSE, opted to focus on localised promotional activity across
Glasgow as part of their sponsorship programmes, rather than embark on
further-reaching campaigns.
Altogether, the 2014 Commonwealth Games in Glasgow is thought to have
exceeded the 24m sponsorship revenue target set by event organisers in 2007,
despite the tournament attracting fewer sponsors than previous Games hosted
in Melbourne and Manchester. Glasgows sponsorship inventory was sold in
three tiers Partners, Sponsors and Providers mirroring the structure
utilised for the London 2012 Olympic Games sponsorship programme. Two of
the top-tier Glasgow 2014 brands Emirates and SEE already had existing
naming rights with venues used during the Games. Emirates, for example,
signed a 4.5m, 10-year naming rights agreement for the title sponsorship of
the Emirates Arena, a multi-sports facility which includes the new Chris Hoy
Velodrome; while, in 2011, energy firm SSE agreed a 15m, 10-year deal to
rename the Scottish Exhibition and Conference Centre (SECC) the SSE Hydro,
which hosted the gymnastics and netball events during the 2014 event.
Meanwhile, Virgin Media signed a deal worth an estimated 3m for its tier-one
sponsorship of the Games, with the company representing the Official Mobile
Provider during the event. Virgins sponsorship agreement also extended to
additional branding, ticketing and hospitality inventory at Glasgows
Hampden Park, which hosted the athletics events.
The list below provides further details of the tiered sponsorship structure and
current signed sponsors of the Glasgow 2014 Commonwealth Games:
Official Commonwealth Games Partners:
Longines
SSE
Virgin Media
BP
Emirates
Ford.
Official Commonwealth Games Supporters:
Harper Macleaod LLP
Search
EY
Atos
28
Sports Sponsorship
Dell
Toshiba
Barr Soft Drinks
NVT Group
Cisco
Selex ES
aggreko
ScotRail
First.
Official Commonwealth Games Providers:
Ramler RGS Global Solutions
Trespass
Riedel
Ticketmaster
Sports Technology
Icon
Boston Networks
Gymnova
DB Schenker
Malcolm Construction
Arena Group
GL Events/Field & Lawn
John Lewis
Rapiscan Systems
Yonex
Heineken
TechnoGym
The Famous Grouse
Mondo
Leith Group
29
Sports Sponsorship
Arnold Clark
Kelloggs
Toshiba
Bauer Media Group
Speedo
Genius
Gatorade.
Motorsports
Motorsports covers a wide range of sports that involve the use of motorised
vehicles, usually for a racing competition. The main types of motorsport that
attract commercial sponsorship include F1, the motorcycle competition
MotoGP, as well as rallying, superbike competitions and motorcycle speedway.
Motorsport sponsorship deals usually involve livery displays, where the name
of the sponsor and its brand logo are displayed across the vehicle body.
F1 generally attracts the most lucrative sponsorship deals, with the racing
competition continuing to represent the worlds most watched sports series,
attracting television audiences of around 450 million during 2013. F1s existing
partners include logistics firm DHL, investment bank UBS, Mumm Champagne,
watch manufacturer Rolex and communications firm Tata. These commercial
partnerships allow sponsors to use the F1 logo in advertising campaigns and
often include trackside advertising packages. There are also a whole host of
team sponsorship opportunities. The Ferrari F1 Team, for example, which is
valued at $1.15bn, is currently thought to be the richest F1 team, generating
around $384m from its races, sponsorships and merchandising altogether (as
of 2013).
Major sponsors of the Ferrari F1 Team currently include UPS, Marlboro,
Santander and Shell. McLaren, which is based in Woking, is estimated to be the
second-richest F1 team, with the group worth around $800m altogether.
However, it was revealed in 2014 that the F1 team had lost its long-time
sponsor Hugo Boss to Mercedes GP. The news comes following Vodafones
departure as a title sponsor of the brand in 2013. Since then, the F1 team has
been unable to secure a new title sponsor, although rumours have recently
circulated that McLaren is close to announcing a new title sponsor this is
now unlikely to occur until the beginning of the 2015 season. Another brand
that has significant sponsorship ties with F1 is Red Bull, which has been involved
with the sport for nearly 20 years; emerging sponsors have included Martini
and Esquire, both of which signed sponsorship deals with the Williams F1 team
during 2014.
30
Sports Sponsorship
31
Sports Sponsorship
Two main types of rugby dominate the sport Rugby Union and Rugby
League which follow different codes of play. Each type of rugby involves
various national and international competitions. Rugby Union is generally
considered to be the most popular and attracts the most lucrative sponsorship
deals as a result. The English, Welsh, Irish and Scottish rugby teams are all
ranked within the top ten for Rugby Union, while England is currently ranked
fourth in the world for Rugby League, with Wales in sixth position. The strong
performance of British rugby teams in world rankings has helped to drive
sponsorship deals across the sport in recent years.
The Rugby Football Union (RFU), which oversees and regulates the English
Rugby Union team, has continued to attract sponsorship deals from leading
brands, with the rugby premiership currently counting Avia, O2, QBE, SSE,
Lucozade Sport and Maximuscle among its official partners. The upcoming
Rugby World Cup (RWC), which is due to be held in England and Wales in 2015,
has also generated increased interest in the sport from sponsors in recent years,
with the event set to benefit from increased broadcast coverage, which will
cover 200 territories including emerging areas of interest such as Pakistan,
Iceland and Greenland. Organisers have also launched what they claim is the
biggest-ever hospitality programme for sporting events in the UK, including
the Olympic Games and F1; revenues for the tournament are already up by
146% compared with previous World Cups. According to Brett Gosper, Chief
Executive Officer (CEO) of the International Rugby Board (IRB), the RWCs
sponsorship programme has already seen record returns for organisers, with
the top tier level of the programme being filled in record time by several
high-profile brands including Heineken, Land Rover, Societe Generale, DHL,
Emirates airline and Mastercard. In total, approximately 45m worth of World
Cup sponsorship contracts are expected to be awarded during 2014 in the run
up to the beginning of the tournament in September 2015.
Scottish Rugby Union has also seen increased interest from sponsors in recent
years, with the rugby association signing a number of lucrative multi-million
pound deals, including a 4-year kit sponsorship deal with sportswear brand
Macron in 2013 and a record-breaking 20m deal with BT, secured in 2014,
which saw the telecommunications firm become title sponsor of Scotlands
home ground Murrayfield. The 2014 deal also saw BT become official sponsors
of Scotland 7s, Scotlands Club League and cup competitions, and Scottish
Rugbys four new academies, and will run for 4 years. Meanwhile, the Welsh
Rugby Union recently announced a new multi-million pound sponsorship deal
with BT Sport the largest in the countrys history covering all four regional
Rugby Union teams. The deal will see the broadcaster acquire the naming
rights for Arms Park home of the Cardiff Blues in a deal set to run for
3 years, and become shirt sponsors for the three remaining regional Welsh
teams. BTs expansion into rugby sponsorship comes after it was announced
that the telecommunications firm had taken over broadcasting rights for Aviva
Premiership Rugby from 2014 onwards; and would be sharing coverage of the
new European Rugby Champions Cup with rival Sky Sports.
32
Sports Sponsorship
33
Sports Sponsorship
Changes to the structure of Rugby League in the UK, which are due to be
implemented in 2015, are also expected to boost commercial investment in the
sport. According to the RFL, the top three leagues in Britain will change
drastically, with the Super League and the Championship set to feature 12
teams each. League One, meanwhile, will feature 14 teams, which will consist
of the five teams relegated from the Championship during the current season
as well as the eight remaining Championship One teams, and Coventry Bears.
The re-structure of Rugby League will also encompass changes to match
fixtures and the Challenge Cup, as well as the introduction of a League One
Cup Competition. The re-structure was undertaken following concerns that
annual trading deficits recorded year-on-year for some Rugby League clubs
were not sustainable and falling Championship attendances needed to be
addressed. It is also hoped that the changes made to Rugby League will help
to encourage sponsors, broadcasters and other investors from the commercial
sector.
Cricket
Cricket is another sport to have seen growth in sponsorship funding in recent
years, with a new report published by Sponsorship Today in 2013 revealing that
global cricket sponsorship is now worth around $400m. The research also
revealed that India accounted for $165m of total global spend, while
international events generated $68m, England $66m and Australia $57m. The
growth in cricket sponsorship has been attributed to the introduction of the
Twenty20 format, as well as the rising popularity of the Indian Premier League
(IPL). Similar to rugby, cricket has come to represent an increasingly attractive
prospect to sponsors due to its largely middle class audience. At the time of
writing, the English and Wales Cricket Board (ECB) had a range of commercial
partnerships, including three broadcast deals (Sky Sports, Channel 5 and BBC
Sport); a team sponsor (Waitrose); four competition sponsors (Investec,
NatWest, Royal London and LVE); ten commercial partners (Yorkshire Tea, FTI
Consulting, Jaguar, Marstons Pedigree, The Times/The Sunday Times,
Stowford Press, Hardys, Specsavers, Etihad Airways, and Kia); six sponsorship
supplier deals (adidas, Veuve Clicquot, Go Goodwins, SportsDirect.com, TM
Lewin, and Harrogate Spring Water); and two grassroots and recreational
sponsors (NatWest and Royal London).
As of 30th June 2014, England was ranked fifth in the world by the
International Cricket Council (ICC) for the ICC Test Championship and the ICC
One Day International Championship. As of 6th July 2014, however, following
a poor performance at the Twenty20 Championship, England had fallen to
eighth in the world rankings. Despite this, the ECB has continued to attract
major sponsorship deals in recent years, with NatWest renewing its contract
with the Board in August 2013 for a further 4 years. The new deal will see
NatWest become the title sponsor of the Twenty20 cricket tournament at
international, county and recreational level from 2014 onwards; it marks the
first time a single-format sponsorship of the game has been offered to one
organisation. The same year saw the ECB sign a new commercial agreement
with Yorkshire Tea, which saw the tea brand become the Official Brew of
England Cricket. The deal with Yorkshire Tea is expected to run until October
2015, and will form an integral part of the brands marketing activity, including
television advertising, social media and on-pack promotions.
34
Sports Sponsorship
The success and rising popularity of Englands female cricket team has also
served to drive sponsorship within the sport in recent years, with the English
team winning the World Cup three times in the past. England and Wales are
also set to host the next World Test Championship and the Womens World
Cup in 2017, as well as the Mens Cricket World Cup during 2019; this should
help to boost interest in English cricket and also boost the profile of womens
cricket across the globe. Increased participation by women in the sport and
their global successes have helped to encourage sponsorship in recent years,
with the England womens team signing their first standalone sponsorship
agreement in 2014 with Kia Motors, in a historic deal worth a rumoured
six-figure sum. The deal, which will run for 2 years, will see car manufacturer
Kia become the sole title sponsor of Englands home Test matches. The
sponsorship deal follows the announcement in February 2014 that England
female cricket players would be offered new central contracts for the first time.
This will see those on top-tier contracts earning up to 50,000, thus allowing
them to become full-time professionals for the first time in the history of
womens cricket.
County cricket also attracts investment from commercial sponsorships,
although to a much lesser extent than national cricket. The Pro-40 League, for
example, which is played among county cricket teams in England and Wales,
recently signed a new title sponsorship deal with Yorkshire Bank to become
the Yorkshire Bank 40. Yorkshire Bank replaces previous title sponsor
Clydesdale Bank. Several county cricket clubs have also continued to attract
sponsorship deals, although generally these are undertaken with businesses
local to the club. In April 2014, for example, Derbyshire County Cricket Club
revealed that it had signed a new sponsorship deal with telecommunications
firm A1 Comms; while, more recently, in June 2014, Durham County Cricket
Club revealed that it had extended its limited-overs shirt sponsorship deal with
The Port of Tyne to 2016.
Individual Sports
Tennis
Similar to golf, tennis sponsorship generally tends to focus on personal
endorsements or commercial agreements with tournaments, such as the
Association of Tennis Professionals (ATP) World Tour, the Wimbledon
Championships, and the Opens in the US, Australia and France. Although
Wimbledon is widely touted as the pinnacle tournament of the sport
worldwide, sponsors of the event are subject to several restrictions, such as no
sponsor hoardings and perimeter advertising within the grounds of
Wimbledon itself. Nonetheless, Wimbledon has continued to remain
exceptionally attractive to brands, and sponsors are allowed to utilise their
association with the event across their own marketing campaigns. The event
is well known for its long history with several premium-end brands, including
Slazenger, Rolex and IBM.
35
Sports Sponsorship
According to Forbes, Swiss tennis professional Roger Federer, who has a total
of 17 grand slam wins the highest number of singles tournaments won by
a male tennis player has continued to remain the highest-earning
professional tennis athlete in the world, with total earnings of around $71.5m
(as of 2013). The tennis star currently has ten major sponsorship deals, including
with brands such as Rolex, Nike, Wilson, Mercedes Benz, Gillette, Lindt, Credit
Suisse and Moet & Chandon, among others. Interestingly, female tennis star
Maria Sharapova is the second-highest paid player in the sport, which is rare
in its high participation and popularity across both genders. According to
Forbes, Sharapova currently enjoys annual earnings of approximately $29m, of
which around 80% is accounted for by endorsement deals. The female star was
recently named the brand ambassador of Porsche during 2013, in a deal which
will run for 3 years; it also participates in commercial deals with Nike, Tag Heuer
and Samsung. British-born star Andy Murray has also continued to attract
lucrative sponsorship deals in recent years, with the tennis star continuing to
perform well following his Grand Slam win at Wimbledon during 2013, as well
as his Olympic Gold Medal win during 2012. Although his current world
ranking has slipped to tenth position, the tennis star revealed that he had
signed a new 3-year sponsorship deal with Standard Life in 2014, which will
see the brand logo appear on his playing arm for all tournaments. The deal
maintains Murray as one of the most marketable tennis stars, with the player
currently participating in several other major commercial partnerships with
high-profile brands such as adidas and Swiss watch manufacturer Rado.
Golf
Golf sponsorship generally involves personal endorsement deals with
professional golfers, such as Adam Scott, Rory McIlroy, Tiger Woods and Henrik
Stenson. Recent years have seen Northern Irish star Rory McIlroy continue to
perform at the top of the game, with the golfer now ranked top in the world.
McIlroys success on the global platform, which saw him named Professional
Golfers Assocation (PGA) player of the year, European Tour golfer of the year
and winner of both PGA and European tour money lists, has seen him join the
ranks of the highest paid athletes in recent years, with the golfing star signing
a major 10-year sponsorship deal with Nike in early 2013 reportedly rumoured
to be worth around $20m per year. Other corporate sponsors of McIlroy include
Spanish bank Santander, Swiss watchmaker Omega, and Bose, a US-based
audio equipment firm. Despite this, iconic golfing stars such as Tiger Woods
and Phil Mickelson have continued to remain the top-paid golfers in the world,
according to the latest figures produced by Golf Digest for its annual Golf
Digest 50 Money List. Although Woods was at the centre of a media storm in
2009 following revelations of the stars personal life an event which saw him
lose five sponsors altogether he has continued to remain one of the most
marketable names in sports, generating total earnings of $83.1m in 2013,
through tournament winnings and sponsorship deals.
36
Sports Sponsorship
Golfing tournaments such as the Ryder Cup, the Masters Tournament and the
PGA Tour, as well as the US Open, are generally considered the most prestigious
golfing tournaments in the world, with these events often attracting highly
lucrative sponsorship deals, in part due to the affluent fan following that the
sport tends to attract. The 2014 Ryder Cup, which is due to be held in
Gleneagles in Scotland, has already attracted several high-profile sponsorship
deals, with the tournament benefitting from the introduction of a new
sponsorship buying rights platform in 2011 which allows sponsors to acquire
rights for the event in both Europe and the US. So far, the Ryder Cups official
partners include Rolex, BMW, Johnnie Walker, Ernst & Young (E&Y) and
Standard Life Investments. Although terms of the deals have not been made
publicly available, industry sources have suggested that such deals were being
offered at seven figures annually. According to the Ryder Cup Team Europe,
the 2014 tournament in Scotland will have a potential television audience of
500 million people across 183 countries; in addition, sponsors will be given
significant on-course marketing opportunities, providing further on-camera
exposure.
Athletics
Although Londons hosting of the 2012 Olympic and Paralympic Games has
helped to boost the profile and earnings of several British sports stars,
including gold medal winners Mo Farah and Jessica Ennis, the Chairman of
British Athletics has recently admitted that the governing body expects overall
sponsorship income to drop off in the run-up to the Rio Olympics in 2016. This
follows the announcement by former UK Athletics (UKA) sponsor Aviva that it
would conclude its commercial partnership with the sports organisation at the
end of 2012. Nonetheless, since then, British athletics has secured several
high-profile sponsorship deals, with BT extending its title sponsorship of the
Great CityGames tournament in early 2014, while Sainsburys has continued to
remain the title sponsor of British Athletics Summer Series after signing a
4-year deal with the sports body back in September 2012 which covered the
2014 Winter Olympics in Sochi and the Rio 2016 Olympic Games. The
partnership with Sainsburys also includes long-term support for the British
Athletics Paralympic programme, and follows the retailers successful
sponsorship of the 2012 Paralympic Games.
While the Games has helped to drive the earnings of several British sports stars,
such as Jessica Ennis and Mo Farah both of which won gold at the
tournament athletics stars still generate relatively small sponsorship deals
when compared with professional athletes in other sports, such as tennis and
golf. Indeed, according to Forbes, the only athletics star to feature in its
rundown of the top 50 highest-paid sports stars during 2013 was Jamaican
sprinter Usain Bolt, who is currently valued at around $24.2m, with the star
runner participating in sponsorship deals with several well-known global
brands including Samsung, Comcast, Virgin Media, Nissan, Hubolt watch,
Gatorade and Visa. In comparison, Mo Farah is estimated to be worth around
$5m, with the star athletes sponsorship deals currently encompassing Virgin
Media, Quorn, Lucozade and Nike.
37
Sports Sponsorship
38
Sports Sponsorship
Horseracing
Horseracing has continued to attract lucrative sponsorship deals, and has a
particularly strong commercial relationship with betting and gambling groups,
due to its popularity as a gambling sport. The sport has continued to attract
large audiences with a recent report from Deloitte entitled The Economic
Impact of British Racing 2013 revealing that total attendance at fixtures held
during the last year stood at 5.6 million altogether. However, while horseracing
in the UK generally attracts more lucrative sponsorship deals than markets
overseas, the sport still generates relatively little revenue from sponsorship
deals compared to other popular professional sports in the domestic market.
Horseracing sponsorship deals at events often involve a physical presence at
events (i.e. in the form of a retail outlet), as well as signage within the grounds
and around the track. Jockeys and horse owners/trainers also rely heavily on
investment from sponsors in the lead up to races, with sponsorship activity of
this type often including brand exposure on a jockeys clothing. According to
Deloitte, jockey sponsorship deals totalled 450,000 in 2012 across more than
180 individuals, equating to less than 3,000 per agreement and often
involving payment in kind. Individual races and annual events, such as The
Grand National, the Epsom Derby, the Cheltenham Festival and Royal Ascot,
also attract lucrative sponsorship deals.
The Grand National, for example, which consistently attracts large live
audiences of around 150,000 and high television viewing figures with the
most recent 2014 race estimated to have reached a peak broadcast audience
of 8.5 million people announced that it had signed a new title sponsorship
deal with Crabbies as part of a multi-million sponsorship package. The new
commercial partnership has seen the event renamed as the Crabbies Grand
National and will run for 3 years until 2016. As part of the deal, Crabbies will
now have the naming rights for the three races held over the Grand National
meet, including the Crabbies Fox Hunters Chase, the Crabbies Topham Chase
and the Crabbies Grand National. Elsewhere, financial firm Investec
announced in 2012 that it had extended its sponsorship deal with The Derby
for a further 10 years to 2021. The extension sees the Investec Derby reinstated
as the richest race in the UK, with a prize fund of 1.3m. More recently, in 2014,
it was revealed that the Queen has given her consent to allow sponsorship
deals to take place for Royal Ascot. Previously, sponsorship was banned from
the event; however, under the new agreed terms, the racing event is expected
to attract millions in corporate sponsorship revenues. Following the
announcement, it was revealed in January 2014 that private investment firm
Qipco had signed up as the first official sponsor of Royal Ascot. The Cheltenham
Festival, which boasts an average attendance of around 50,000 over the 4-day
period, also partners with a number of high-profile corporate sponsors,
including JCB, Ryanair, Jewson, Albert Bartlett, Paddy Power, Ladbrokes, OLBG,
Neptune Investment Management, RSA, The Irish Times and News
International.
39
Sports Sponsorship
Type of Sponsor
Table 3.4 displays the number of sponsorship deals signed in the UK by industry
sector source. According to the figures, which have been compiled by Find!
Sponsorship, the gambling/lottery sector overtook the car/automotive industry
to become the largest source of sports sponsorship during 2012, reflecting the
wider growth that gambling and, in particular, online gambling
companies have enjoyed in the UK in recent years following the deregulation
of the industry back in 2005. Sports clothing firms reported the joint
second-highest number of sports sponsorship deals in 2012 at 26, followed by
other financial services with 21 and insurance companies with 18. Both sectors
of the financial industry continue to see an increase in the number of deals
that they have signed in recent years, reflecting the more positive economic
outlook in the UK following the recession, which hit financial and banking
institutions particularly hard during 2008/2009.
2009
2010
2011
2012
Gambling/lottery
n.a.
25
25
29
35
Cars/automative
n.a.
10
22
30
26
15
35
29
19
26
10
17
27
21
11
n.a.
12
13
18
14
15
16
25
18
13
Information technology
12
Construction
11
Personal care
11
Financial services
banking
11
Clothing sports
Financial services other
Financial services
insurance
Watches/timing
Drinks beer
Table continues...
40
Sports Sponsorship
2009
2010
2011
2012
Agency/consultancy
14
14
13
Airlines
14
11
Couriers/freight
12
Energy
16
Source: Find!Sponsorship
Gambling/Lottery Providers
Leading high-street bookmakers, such as Ladbrokes, Paddy Power and William
Hill, have also continued to invest heavily in their sports sponsorship portfolios
in recent years, with these companies often having strong links with football
and horseracing in particular. In this way, such firms are able to leverage the
vast audiences that such sports attract and directly target marketing messages
to a relevant customer base. Paddy Power, for instance, is currently the title
sponsor of the Grand National, following its negotiation of a 5-year deal with
the racing tournament in 2013. In addition, the betting firm also sponsors
Farnborough FC and Manchester City FC. Ladbrokes, meanwhile, is the current
sponsor of horseracing festival St Legers, which has grown rapidly since its
inception in 2010, while William Hill agreed a new 2-year extension of its
current sponsorship deal with the Scottish FA, and recently took over from rival
Ladbrokes as the title sponsor of darts tournament, the World Darts
Championship, which is held in London.
41
Sports Sponsorship
Recent years have also seen a surge in sports sponsorship expenditure by online
gambling firms, which have represented one of the fastest-growing areas of
the sports sponsorship market over the past few years, following the rising
popularity of online gambling in the UK. Online gaming and betting firm bwin,
for example, has continued to remain a long-term sponsor of Real Madrid FC,
with the company becoming the football clubs official digital partner in a new
multi-year deal following the completion of the betting firms highly successful
6-year shirt sponsorship which concluded at the end of 2012/2013. bwin is also
in the middle of a 3-year sponsorship deal with Manchester United FC, which
has seen it become the clubs official online gaming and betting partner; and
is a sponsor of German football league team FC Bayern Munich. In addition to
its football sponsorship portfolio, bwin is also an official sponsor of MotoGP,
the premier category of the Motorcycle World Championships, and has acted
as a commercial partner to the International Basketball Federation (FIBA) since
2006.
Several other online gambling firms have also expanded their sports
sponsorship portfolios in recent years, with football representing a particularly
lucrative area of interest to such businesses. bet365, for example, is currently
the official kit sponsor of Stoke FC, while online casino firm 32Red currently
sponsors Scottish football club Glasgow Rangers, as well as Newport County
and Blackthorn, and has previously had ties with Aston Villa and Swansea.
Meanwhile, rival online gambling firm Betfred announced that it had signed
a major 3-year sponsorship deal with Premier League side Tottenham Hotspur
in 2012 to become the football clubs Official UK Betting Partner. As part of
the deal, the online gambling company has exclusive UK branding rights across
Tottenhams online, digital, mobile and social media platforms.
Automotive
Automotive manufacturers have continued to invest significant funds into
sponsorship opportunities across major sports and sporting events, such as the
Olympics. Football, in particular, has remained a popular area of investment
for automotive sponsors, with several Premier League football clubs signing
up commercial partners as official automotive sponsors in recent years.
Liverpool FC, for example, announced in January 2014 that it had replaced
former sponsor General Motors (GM), which owns the Chevrolet brand, with
rival car firm Vauxhall Motors, in a deal which will run until the 2015/2016
season. The announcement comes following GMs decision to stop selling the
Chevrolet brand in Europe. Vauxhall, meanwhile, has continued to expand its
commercial portfolio of football sponsorships in recent years, with the car
manufacturer already participating in deals with national teams across the UK,
including England, Northern Ireland, Scotland and Wales.
42
Sports Sponsorship
Nissan represents another brand that has grown its sports sponsorship
portfolio in recent years, with the car firm signing up as Tier One partner for
the Rio 2016 Olympics and Paralympics. The sponsorship deal will see Nissan
provide 4,500 vehicles to transport athletes, officials and journalists during the
Games. The move is expected to bolster the position of the car brand in the
emergent Latin American market, with Nissan aiming to increase its market
share in Brazil from 3.3% to 5% by 2016; it also follows a number of new
factory openings by the brand in the region, including sites in Parana and Rio
de Janeiro. During 2014, Nissan announced that it had signed up to yet another
lucrative sponsorship deal, this time as an official sponsor of the UEFA
Champions League in Europe. The deal replaces Fords multi-million-pound
contract with the tournament, and is expected to run for 4 years. According to
an article published by Marketing Week at the time the deal was announced,
the automotive firm is expected to leverage its association with the football
tournament to support its switch to a less regionally-driven more global-centric
structure, thus giving it a more consistent voice across its markets. Trade
sources have also suggested that the move by Nissan could be related to its
attempts to offset stagnating demand in Europe and establish a more
cost-effective brand awareness strategy after the company saw a marginal 1%
increase in global sales for the 9 months ending 2013, blaming sluggish
conditions in Europe.
Other significant automotive sports sponsors include BMW, which currently has
deals with the RFU, PGA Tour and the European Tour golf series and tennis
competition the Sony Ericsson Open; and South Korean carmaker Hyundai-Kia,
which has continued to extend its partnership with FIFA as an official World
Cup sponsor up until 2022 and recently became the first commercial
organisation to enter into a standalone sponsorship deal with the English
womens cricket team.
Sports Goods
Sportswear and equipment manufacturers have had a long history of
sponsoring sports stars, teams and clubs. Nike and adidas dominate the market,
with adidas recently representing a top-level commercial partner during the
most recent FIFA World Cup tournament in Brazil and the 2012 Olympics; Nike
sponsors several leading sports personalities, as well as sports clubs and teams
from across the world.
43
Sports Sponsorship
Financial Services
Banks and financial institutions interest in sports sponsorship has continued
to grow in recent years, driven in part by the gentrification of sport, with
stadiums benefitting from increased investment in infrastructure, ticket prices
continuing to rise and corporate hospitality packages becoming increasingly
popular. Sponsoring sport has also helped banks and other financial companies
to repair some of the damage that was done to their public image following
recent controversies, such as high bonus payouts during the recession, the
payment protection insurance (PPI) debacle and the LIBOR rate-fixing scandal.
44
Sports Sponsorship
Drinks Brands
Alcoholic Drinks
Several leading alcoholic drinks brands are heavily involved in sports
sponsorship and, in particular, sporting events such as horse racing, football
tournaments and tennis competitions. Beer brand Carling, for example,
undertakes several lucrative commercial partnerships, including sponsorship
deals with the Scottish FA and the Irish FA; Guinness has a long history with
rugby sponsorship, with the alcohol brand currently undertaking commercial
partnerships with rugby tournament Pro12, the Irish Rugby Football Union
(IRFU) and the English RFU.
Meanwhile, Crabbies alcoholic ginger beer recently signed a new 3-year deal
to become the title sponsor of prestigious horseracing competition, the Grand
National, forming part of the international drinks brands ongoing efforts to
raise the profile of its brand through sporting events. The brand, which signed
the deal in 2013, claims the new partnership will provide it access to a potential
audience of 9 million via the events television broadcast deal with Channel
4 and a live crowd of approximately 150,000. The sponsorship also builds on
Crabbies sponsorship of the Scottish Open, which the brand has used to
increase brand awareness of its new line of flavours, including raspberry,
strawberry and lime drinks. The alcohol brand other current sponsorship deals
include tie-ins with Scottish football side Hibernian FC, as well as English
Premiership teams Everton and West Bromwich Albion.
45
Sports Sponsorship
Luxury champagne brand Mot & Chandon have also had a long history of
leveraging sporting events to boost brand awareness in the past, with the
brand continuing to strengthen its partnership with relevant sporting events
that offer a more affluent target audience. Current sponsorship deals
undertaken by Mot include official partnerships with the Lawn Tennis
Association (LTA) and the US Open; while top tennis star Roger Federer has
acted as brand ambassador for the champagne drink since 2012.
Soft Drinks
Soft drink brands (including bottled water) are often involved in commercial
partnerships with both cultural and sporting events. Leading global drinks
brands Coca-Cola and Pepsi tend to dominate sports sponsorship within this
particular subsector. Both brands have a long history of sponsorship across
sports and have continued to invest in multi-million-pound sponsorship deals
in recent years.
Coca-Cola, for example, has continued to support several major sporting
events, with its commercial backing of the Olympic Games dating back to 1928.
The fizzy drinks brand also sponsors Special Olympics GB, and recently acted as
an official partner for the Winter Olympics in Sochi and the FIFA World Cup
during 2014. The company has continued to successfully leverage its
partnerships with sporting events and associations to drive brand awareness
and engagement. Indeed, according to a recent article by campaignlive.co.uk,
Coca-Colas credentials as official sponsor of the recent FIFA World Cup
tournament in Brazil helped the brand to increase its following on Facebook
by an extra 2.5 million, with its fanbase on the social media site now topping
85 million altogether. Meanwhile, the companys Twitter followers reached
nearly 26 million, after growing by around 70,000 during the football
tournament.
Pepsi also has a long history in sports sponsorship, with the drinks brand
currently investing in several high-profile commercial partnership deals,
including a title sponsorship with the IPL, an official sponsorship agreement
with the National Football League (NFL) in the US, and a multi-year regional
sponsorship deal with Manchester United FC in Asia-Pacific. In addition, the
company has a long-standing partnership with the US football tournament the
Super Bowl, which is widely touted as the most-watched television event in the
US, with the 2014 event drawing 112.2 million viewers during its finale.
According to Nielsen, PepsiCo currently represents the second-largest sponsor
of the Super Bowl, behind alcoholic drinks manufacturer Anheuser-Busch,
which owns beer brand Budweiser, with Pepsi estimated to have invested
approximately $97m in advertising surrounding the event since 2009. During
the 2014 event, Pepsi sponsored the popular Halftime Show, which attracted
a record audience of 115.3 million.
46
Sports Sponsorship
The fizzy drink brand also stepped up its marketing activity in celebration of
the FIFA World Cup 2014 with the release of its first global campaign for soccer
entitled Now is what you make it, which included the launch of a new
television advertisement featuring several star players of the tournament such
as Lionel Messi of Argentina, Robin van Persie of the Netherlands, Jack
Wilshere of England, David Luiz of Brazil, Segio Agero of Argentine and
Sergio Ramos of Spain. Altogether, Pepsi has deals with 19 football stars
around the world, a portfolio it has continued to expand in line with its efforts
to leverage the growing popularity of the sport across several key markets.
Technology
Technology firms have continued to invest in top-level sponsorship deals in
recent years, with partnerships of this kind often centering around event
sponsorship rather than sports team or individual deals. In this way, not only
are technology brands able to leverage such events to promote their product
offerings, but they can also benefit from huge contracts as official event
suppliers. Technology firms such as Atos, Samsung, Cisco, Sony, Panasonic, GE
and Acer are just some of the brands that invest in long-term sponsorship
opportunities. Atos, Panasonic, Samsung and Cisco, for example, have also
signed up in an official capacity as corporate sponsors of the 2016 Olympic
Games in Rio, while the recent 2014 Commonwealth Games in Glasgow drew
interest from several leading technology brands including Atos, Dell, Toshiba,
NVT Group, Cisco, and Selex ES, all of which secured contracts to become
official Commonwealth Games Supporters. Leading firm Microsoft, in
particular, has a long history of investing in extremely high-value sponsorship
deals, with the company signing a landmark deal worth $400m with the NFL
in 2013. The company also sponsors the British & Irish Lions rugby team and
has recently been rumoured to be considering a partnership with Spanish
football club Real Madrid which will see it secure naming rights for the clubs
new stadium.
Telecommunications and mobile phone companies also have a significant
presence in sports sponsorship. Leading consumer electronics firm Samsung,
for example, extended its sponsorship of the Olympic Games in 2007 to
encompass the 2012 London Olympics and Rio 2016. The company also provides
sponsorship support to Premiership football side Chelsea, the Asian Games, the
Asian Football Confederation (AFC), the Confederation of African Football
(CAF), the Asia-Pacific Amateur Championship (AAC) golfing tournament and
the Korean National Football team. UK-based telecommunications firm
Everything Everywhere (EE), meanwhile, recently struck a groundbreaking
sponsorship deal with Wembley Stadium to become the venues first lead
brand sponsor in a 6-year deal said to be worth millions of pounds; rival firm
O2 represents the lead sponsor of the England Rugby Team. Vodafone,
meanwhile, recently exited the sports sponsorship arena after drawing to a
close its investment in McLaren F1, following the introduction of a new social
media-led marketing strategy by the brand in 2013.
47
Sports Sponsorship
Utilities
Utilities firms such as BP, Shell, SSE, Castrol and EDF also have a long history
within sports sponsorship, with the high level of capital negotiated by such
companies translating into large multi-million pound corporate partnerships.
Such deals are often undertaken to improve the public image of energy firms
and provide an opportunity for such companies to deliver on their corporate
social responsibility (CSR) objectives.
BP, for example, provides commercial backing to the Olympic USA team, which
has entailed the company contributing around $1m to the development of a
new Olympic training centre for the athletes. The company has also acted as
an official sponsor for both the 2012 Olympic and Paralympic Games in London
and the 2014 Commonwealth Games in Glasgow. The latter is also sponsored
by Scottish power firm SSE, which in addition to its top-tier partnership with
the Games has pledged support for the four largest home nations through its
retail brands, including Team Scotland (Scottish Hydro), Team England
(Southern Electric), Team Wales (SWALEC) and Team Northern Ireland
(Airtricity). EDF, meanwhile, which also sponsored the 2012 Olympics, recently
revealed that it had renewed its corporate partnership with the British
Paralympic Association (BPA) and ParalympicsGB, extending the partnership
that began in 2012 to encompass both the 2014 Sochi Winter Olympics and Rio
2016. The France-based energy firm is also the Principal Partner of the French
Football Federation (FFF) and the French Swimming Federation (FSF).
MARKET POSITION
The UK
According to figures compiled by Find!Sponsorship, the value of the total UK
sports sponsorship market stood at 398.7m in 2012, down by 26.1% from
539.8m in 2011. It should be noted, however, that these figures are estimated
using a cross-section of deals monitored by Find!Sponsorship every year, and
that figures can often fluctuate significantly, particularly if a number of
high-value deals, such as those attracted by the Olympics or football kit deals,
are secured in any one year. As such, the fluctuations that have hit the sports
sponsorship market in recent years are not necessarily suggestive of a
longer-term declining trend, instead it is likely that increased business
surrounding the Olympics has skewed market size in the years preceding
London 2012, as is reflected by the market peak of 946m registered in 2009.
The fluctuations observed in the value of the UK sports sponsorship market
could also be down to unsettled economic conditions in the wake of the
2008/2009 recession; however, a return to economic fortunes in 2013, as well
as stronger forecast growth and renewed business optimism, is expected to see
the market return to a more stable performance going forward. It should also
be noted that data compiled by IEG on the global market for sports sponsorship
show strong growth between 2008 and 2014, suggesting that there is every
reason to believe that this upwards trend could be applied equally to the UK
sponsorship market, if underlying factors were effectively removed from the
equation.
48
Sports Sponsorship
International Perspective
According to figures compiled by IEG, global sponsorship revenues are
expected to increase by 4.3% to top $53.3bn during 2013, although growth is
not expected to be as robust as that observed in 2012, when total global
sponsorship spending increased by 5.1%. Although these figures include
revenues generated by other categories within the wider sponsorship market,
such as arts and broadcast media, sports have continued to account for the
largest sector in terms of revenue generation in recent years.
North America currently represents the largest sponsorship market in the
world, generating $19.9m in sponsorship revenues during 2013 and accounting
for over a third (37.3%) of total global expenditure, with the region
benefitting from the commercialisation of several sports specific to the US
market, such as basketball, American football and baseball all of which lack
a large following in markets overseas. In addition, several popular sporting
competitions are held in North America each year including high-profile
golfing tournament, the US Open; the annual championship game of the NFL,
the Super Bowl; and tennis tournament the US Open.
The North American sponsorship market has also continued to outpace other
regional markets in terms of growth, rising by a projected 5.3% in 2013.
However, the Asia-Pacific market has seen sponsorship expenditure increase
significantly in recent years, jumping by 7.1% in 2012 before rising a further
5% during 2013 to reach a value of $12.6bn. This growth has been stimulated
by the continued development and high economic performances achieved
across several Asian markets in recent years, including the PRC, South Korea,
Hong Kong, India, the United Arab Emirates (UAE), Indonesia and the
Philippines, among others; as well as the emergence of a more established
middle class across the region. Elsewhere, Europe the second-largest
sponsorship market in the world saw sponsorship spend increase by 2.8% to
reach a value of $14.5bn in 2013; while Central/South America saw sponsorship
revenues rise by 2.6% to stand at $4bn. However, the latter is expected to see
growth speed up in forthcoming years, with Brazils hosting of both the FIFA
World Cup in 2014 and the Olympic and Paralympic Games during 2016 likely
to help drive commercial investment opportunities across the region.
The proliferation of international sporting events in Brazil reflects a much
wider shift in the way the hosting of major events is now being allocated on
the global stage. This reflects the shift of geo-political and economic power
towards developing regions such as South America and Asia. Russia, for
example, recently played host to the Winter Olympics in 2014 in Sochi; and is
due to host the next FIFA World Cup in 2018; while Middle Eastern nation Qatar
recently won the bid to host the following edition of the event in 2022 and
South Korea was chosen as host nation for the Winter Olympics 2018.
Meanwhile, India has continued to benefit from the rising popularity of its IPL,
with IPL rights holders the Board of Control for Cricket in India (BCCI) recently
selling title sponsorship of the tournament to global drinks brand Pepsi for
$14m.
49
Sports Sponsorship
2012
p2013
North America
18.1
18.9
19.9
Europe
13.5
14.1
14.5
Asia/Pacific
11.2
12.0
12.6
Central/South America
3.7
3.9
4.0
2.1
2.2
2.3
48.6
51.1
53.3
Total
p projected figures
Note: these figures also encompass sponsorship revenues generated outside of sports,
e.g. arts and media sponsorship revenues.
Source: IEG
Central/South
America 7.5%
North
America
37.3%
Asia/Pacific
23.6%
Europe 27.2%
Note: these figures also encompass sponsorship revenues generated outside of sports,
e.g. arts and media sponsorship revenues; figures for 2013 are projected.
50
Sports Sponsorship
FORECASTS
Future Trends
The Economy
The UK economy is expected to continue to strengthen over the next few years,
particularly during 2014 with gross domestic product (GDP) growth expected
to sit at 2.8% over the next year, before dropping slightly to 2.5% in 2015, and
remaining at 2.4% thereafter. Inflation, meanwhile, is likely to continue to
stabilise, rising slightly over the 5-year forecast period from 2.8% in 2014 to
3.2% in 2018; while unemployment is forecast to fall by 15.2% over the same
period to stand at 1.06 million.
Continued economic growth and the stabilisation of other economic measures
is likely to help drive business confidence over the next 5 years, which should,
in turn, help to fuel investment in marketing activities, including sponsorship.
During the recession and the years following, slow economic recovery served
to keep marketing budgets tight, with many businesses cutting sponsorship
entirely in order to remain cost-effective; however, with economic prospects
for the UK looking promising, a more positive outlook is likely in terms of
commercial sponsorship. Despite this, brands are still likely to be looking for
value for money across sponsorship opportunities, with sponsorship deals now
often encompassing much more than simple brand stamping or logo
representation, e.g. social media integration, the development of branded
applications (apps), etc.
It should also be noted that, while the strengthened economic climate in the
UK is already helping to drive business optimism, consumers have continued
to take a cautious approach in terms of expenditure, with household budgets
remaining tight in the face of rising fuel and energy prices all of which have
resulted in average wage declines in real terms over the past few years.
Rumours that the UK could be near to raising interest rates could also have a
significant effect on consumer expenditure over the next couple of years if such
a move gets the go ahead; although the Bank of England (BoE) is likely to err
on the side of caution for fear of harming economic recovery.
51
Sports Sponsorship
2015
2016
2017
2018
64,511
64,938
65,386
65,825
66,266
2.8
2.5
2.4
2.4
2.4
Inflation (%)
2.8
2.9
3.1
3.1
3.2
1.25
1.14
1.07
1.03
1.06
UK resident population
(000)
Unemployment (million)
GDP gross domestic product
at retail price index (RPI)
actual number of claimants; claimant count measures the number of people claiming
Jobseekers Allowance
52
Sports Sponsorship
Another major sporting event due to be hosted by the UK over the next few
years is the 2015 Rugby World Cup, which will be hosted in 11 venues in
England, as well as one in Wales. The event is expected to attract around 2
million fans in stadiums, and will have the widest-ever broadcasting coverage,
with around 200 territories expected to televise the tournament. The event has
already performed well on the sponsorship front, with the Top Tier sponsorship
programme filled in record time by several high-profile brands including
Heineken, Land Rover, Societe Generale, DHL, Emirates, and Mastercard.
Furthermore, an additional 45m in World Cup-related contracts are expected
to be awarded during 2014. England will also play host to the IAAF World
Championships in Athletics and the IPC Athletics World Championships during
2017; as well as the Cricket World Cup in 2019; both of which are likely to boost
spending on sports sponsorship in the UK over the coming years.
53
Sports Sponsorship
For sports sponsors that have begun to develop integrated digital and social
media campaigns into their commercial partnerships with sports organisations,
the monitoring and analysis of big data has become increasingly important,
with many large sporting events now generating vast amounts of online data.
The monitoring and analysis of such data ultimately improves the efficiency of
marketers and marketing campaigns, by providing insight into real-time
customer interactions with sponsored brands before, during and after the
event in question. In this way, big data allows marketers to improve the
effectiveness of targeted advertising and can help them to more efficiently
assess the return on investment (ROI) that is resultant from such activities.
Moreover, the rise in sports organisations themselves opening up new data
streams regarding team and individual performances is only likely to further
drive the utilisation of big data by potential sponsors. In 2012, for example,
Manchester City FC became the first Premier League team to open up its archive
on player data and statistics to the public, allowing analysts a keen insight into
the performance and value of the team and individual players. While
Manchester City is the first to open up its data archives to the public, it is not
the only Premier League side to store and analyse such data, with specialist
analytics firm Prozone Sports now providing analytics technology to all 20
Premier League clubs. The Prozone technology provides details of ten data
points for each player every second, totalling 1.2 million per match overall, and
compiles information on around 2,000 to 3,000 match events. However, much
of this data is still being stored and analysed by teams in-house, with sports
organisations using it to improve their own performance, scout upcoming
opposition and locate new talent signalling a much more scientific
approach to club management and recruitment. If such data, however, were
to become publicly available, the implications for marketers and sponsors could
be huge, with the success of sports sponsorship partnerships often relying
heavily on team and player performance. Such data could also help sponsors
seeking new opportunities to more efficiently locate the most relevant
potential partners; while also improving the efficiency of determining ROI to
existing sponsors.
54
Sports Sponsorship
55
Sports Sponsorship
Renewed business optimism across the UK is also likely to help drive future
growth in the sports sponsorship market, with marketing budgets expected to
become increasingly flexible in light of stronger economic prospects in the UK
and across other developed markets. The UKs hosting of several future
sporting events over the next 5 years, including the 2014 Commonwealth
Games, the Ryder Cup 2014, the RWC during 2015, the IAAF World
Championships in Athletics and the IPC Athletics World Championships in 2017,
should also help to boost investment in sports sponsorship going forward; as
should the emergence of non-traditional sports categories such as cycling,
rowing, para-sports and athletics, all of which have observed a resurgence in
popularity following the successes of British athletes in these sectors at the
2012 Olympics.
Value (m)
% change year-on-year
2013
2014
2015
2016
2017
359.7
372.3
382.3
396.8
413.0
-9.8
3.5
2.7
3.8
4.1
2014
2015
2016
2017
56
Sports Sponsorship
Market Growth
Since reaching a peak of 946m in 2009, the value of the sports sponsorship
market in the UK has continued to fluctuate, with Londons hosting of the
Olympic and Paralympic Games in 2012 effectively skewing results in recent
years. Investment in the sports sponsorship market has also been significantly
affected by the global financial crises of 2008/2009, with marketing budgets
remaining squeezed in line with a cautious approach to spending across both
the public and private sectors. However, renewed economic growth in the UK
from 2013 onwards should serve to create more flexible marketing budgets,
thus driving expenditure on sports sponsorship going forwards; while the UKs
hosting of several international competitions over the next 5 years is likely to
further bolster market growth. Altogether, however, Key Note estimates the
market to have fallen by 38.9% between 2008 and 2017; a more stable level
of growth is expected to return to the market from 2014 onwards.
2009
2010
2011
2012
2013
2014
2015
2016
2017
57
Sports Sponsorship
Competitor Analysis
4. Competitor Analysis
THE MARKETPLACE
The sports sponsorship market remains highly competitive, with leading brands
continuing to invest huge amounts in commercial partnerships with leading
sports organisations, teams and clubs, and individuals. The market structure
comprises a number of different key stakeholders, including:
rights-holders the sponsored organisation which controls the assets and
rights included in sponsorship agreements; rights-holders can include sports
organisations/associations, sports clubs and teams, and sports personalities/
individuals
sponsors can include any corporate body, from large commercial
organisations and global brands to local businesses ranging across all vertical
industries; often the size and value of the sponsorship deal is dependent on
the size of the sponsor organisation
marketing agencies including specialist in-house departments and
independent agencies that have a specialist focus on sports and
entertainment sponsorship; these organisations play a vital role in brokering
sponsorship agreements, as well as developing sponsorship campaigns and
branding.
The media also plays a vital role in the sports sponsorship market, with
commercial sponsorship agreements often encompassing rights to media
appearances/televised events, encompassing a variety of media channels such
as television, radio, digital media, and newspapers and magazines; as well as
other publications, such as match-day programmes.
This chapter concentrates specifically on the marketing side of the sports
sponsorship industry, with specialist sponsorship marketing agencies playing a
pivotal role in matchmaking sponsors with relevant sports organisations,
clubs or individuals. These agencies act on behalf of rights-holders and sponsors
in order to deliver effective, relevant and creative sponsorship partnerships and
campaigns which are beneficial to both parties. It should be noted, however,
that large corporations often broker their own commercial partnerships using
large, dedicated in-house marketing departments, which are also responsible
for developing and delivering sponsorship campaigns for the brand. However,
due to the difficulties in quantifying and assessing in-house operations, details
of these organisations have not been included within this chapter.
58
Sports Sponsorship
Competitor Analysis
2010
2011
% Change
2010-2011
13.0
11.2
-13.8
Rank
Agency
Fast Track
Essentially Group
9.1
9.8
7.7
5.3
6.0
13.2
MEC Access
4.6
5.2
13.0
Experience Worldwide
3.6
4.5
25.0
Synergy Sponsorship
3.0
4.1
36.7
WSM Communications
3.1
3.8
22.6
Brand Rapport
3.4
3.4
0.0
Ed Coms
3.1
2.9
-6.5
10
2.9
2.6
-10.3
11
Capitalize
1.4
1.5
7.1
12
1.1
1.2
9.1
13
Generate Sponsorship
1.1
1.1
0.0
14
0.7
0.8
14.3
15
Education Connections
0.2
0.2
0.0
59
Sports Sponsorship
Competitor Analysis
60
Sports Sponsorship
Competitor Analysis
Corporate Strategy
Over the past year, CSM Sport & Entertainment has continued to concentrate
its efforts on consolidation and strategic development. Although the
companys revenues declined in the wake of the 2012 Olympic and Paralympic
Games, the company has continued to observe strong performance from its
brand consultancy and rights management businesses. The company made a
number of strategic acquisitions to grow and develop its sports marketing
business during 2013, including motorsports sponsorship agency JMI, and
Shanghai-based People Marketing. As a result of these acquisitions, CSM has
expanded its presence to several new international markets including the US,
the PRC, Brazil, Qatar and Abu Dhabi. The acquisition of JMI has also helped
to strengthen the companys presence in motorsports, providing access to new,
annualised income streams which will help to offset the often cyclical nature
of its other events-related businesses, such as ICON and iLUKA both of which
rely heavily on generating business from events held in alternate years, such
as the Olympics, the Winter Olympics, the Commonwealth Games and the
Fdration Internationale de Football Association (FIFA) World Cup. The
acquisition of JMI should therefore help to drive revenues by concentrating on
areas of sport that do not revolve around these major events. JMI generates
revenue through three separate motorsports: Formula 1 (F1), IndyCar and
NASCAR.
Meanwhile, the acquisition of Shanghai-based agency People Marketing is
expected to greatly strengthen the companys presence in one of the most
important emerging markets for sports sponsorship; it will add value to the
companys partnerships with existing clients as well as strengthening its offer
to other international brands seeking to grow their presence in the PRC. In
addition, the acquisition is expected to provide CSM with access to the growing
market of Chinese companies seeking international sponsorship deals to help
grow their global profile.
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Sports Sponsorship
Competitor Analysis
Financial Results
In the year ending 31st December 2013, CSM Sports & Entertainment
generated total revenues of 116.9m, down by 33.4% from 175.4m in the
previous year. The company also reported a decline in operating income, which
fell by 15.6% between 2012 and 2013 to stand at 55.6m.
Corporate Strategy
In recent years, M&C Saatchi has continued to concentrate its efforts on
growing its client portfolio in both the domestic market in the UK and overseas,
with the company opening two new offices in Germany and South Africa
during 2012, as well as offices in New York and Sydney. According to the
companys 2013 Annual Report, the company is expected to continue to grow
throughout 2014, with a continued focus on expansion in Australia and the US,
in particular.
The company has also benefitted from a strong domestic performance in recent
years, with the agency recently appointed by online gambling firm Sky Bet to
activate its sponsorship of the Football League, following a competitive pitch.
The agency has said that it will be creating a campaign that focuses on Sky Bets
re-investment of revenue, which it generated through registered fans, back
into the Football League. The campaign is expected to be launched in time for
the 2014/2015 football season. Furthermore, early 2014 saw M&C Saatchi Sport
& Entertainment launch a new experiential campaign on behalf of England
rugby sponsor O2, using cutting edge virtual reality (VR) software from VR
headset manufacturer Oculus Rift. The new campaign the first of its kind
creates a 360-degree VR sporting experience which allows fans to virtually train
with the England rugby team.
Financial Results
For the year ending 31st December 2013, M&C Saatchi Sport & Entertainment
reported total billings of 9m, down slightly by 5.4% from 9.5m in the
previous year. However, revenue for the company increased by 6.9% over the
same period, with figures rising from 4.5m in 2012 to 4.8m in 2013.
62
Sports Sponsorship
Competitor Analysis
MEC Access
Company Structure
MEC Access is one of the top five media planning and buying agencies in the
UK and offers 65 diversified services beyond its core media planning and
buying services, such as broadcast sponsorship, social media insight, mobile
advertising, search engine optimisation (SEO), and data and analytics. The
company provides sponsorship campaign solutions to several high-profile
client brands including Lloyds TSB, Visa and McCoys. Altogether, the agency
employs around 400 people, with offices based in London and Manchester.
The company forms part of MEC Global a founding partner of media
investment firm Group M which is owned by UK-based global advertising
network WPP. Altogether, WPP employs almost 175,000 people and has 3,000
offices based across 110 countries, with total reported billings of 46.2bn and
reported revenues of 11bn (as at 31st December 2013).
Corporate Strategy
During March 2014, MEC Access announced the launch of its first phase of the
new activation programme for the Marriot London Sevens rugby tournament,
which took place in May 2014, for its client Marriott Hotels International. The
campaign, entitled Brilliant 7s launched on the last day of the RBS 6 Nations,
and primarily targeted Generation X and Y frequent business travellers and
rugby fans, encompassing social media activity. The following month saw the
company broker a new 3-year deal between Volvic and Tough Mudder, a 10to 12-mile obstacle race, including mud run events, which has been designed
by British Special Forces. The deal will see the launch of a new activation
campaign by MEC Access during 2014, worth around 550,000, which will aim
to drive awareness and engagement of Volvics strapline Volcanicity across
the UK. The sponsorship partnership will also see the development of
Volvic-branded obstacles at Tough Mudder events across the UK, with Volvic
also providing drinks to event participants along the course.
During June 2014, MEC announced that it had launched its 2014 Wimbledon
campaign for drinks brand evian, now in its seventh year in partnership with
the All England Lawn Tennis and Croquet Club (AELTC) as the tournaments
Official Water sponsor. The campaign involved social media activity and
showcased youthful-themed branded content featuring brand ambassadors
Maria Sharapova and Rizzle Kicks. The following month saw the agency
negotiate a deal extension between trade tool and hardware supplier Screwfix
and The Football League, which will see the supply firm continue as broadcast
sponsor of Football League matches televised on Sky Sports during the
2014/2015 season. The contract extension will include sponsorship of all live
games within the Championship, League One and League Two, as well as on-air
sponsorship. Screwfix will also become the full sponsor of The Football League
pages on SkySports.com.
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Sports Sponsorship
Competitor Analysis
Financial Results
According to holding company WPPs Annual Report 2013, its media
investment arm Group M (which includes Mindshare, MEC, MediaCom, Maxus,
Group M Search and Xaxis), together with marketing agency tenthavenue,
generated estimated net new business billings of 3.2bn, up from 2.15bn in
the previous year.
64
Sports Sponsorship
Competitor Analysis
Corporate Strategy
During the 2014 Sochi Winter Olympics, which were held in February, GMR
worked alongside a roster of eight clients in total, including four top-tier
sponsors Procter & Gamble (P&G), Visa, Samsung and Omega. Overall, GMRs
work during the 2014 Winter Olympics on behalf of these clients saw the
company manage over 7,000 guests; more than 1,200 hotel rooms across 12
hotels; 48 motorcoaches; build four custom websites and enrolment platforms
developed in three different languages; handle 2,500 guest registrations; and
manage over 100 athlete appearances. May of the same year saw the agency
named Sports Event and Experiential Marketing Agency of the Year at the 2014
Sports Business Awards. The award builds on GMRs previous Sports Business
Award wins, including 2011 Sports Consulting Agency of the Year and 2009
Sports Event Marketing Firm of the Year.
During June 2014, GMR worked on the activation programme for SAPs
sponsorship of the German international football team, who later went on to
win the tournament. The programme included corporate hospitality, a
showcase of SAP analytics tools which the German national team used during
the event, and question and answer (Q&A) sessions from several international
football legends.
Financial Results
For the year ending 31st December 2012, GMR Marketing announced a
turnover of 1.1m and a pre-tax profit of 101,000.
65
Sports Sponsorship
Competitor Analysis
Corporate Strategy
At the start of 2013, holding company Havas Group announced that the
company would undergo an operational re-structure designed to ensure
streamlined operations and a more simplistic structural approach across the
Havas network. In line with this, the company ended its partnership with media
agency brand MPG, and consolidated its media operations under a new
umbrella unit called Havas Media Group, which is now in charge of two
Paris-based agency brands including Havas Media and Arena Media. Havas
Sports & Entertainment, Cake, Havas Event and Havas Productions were also
grouped together under the Havas Media Group umbrella. Meanwhile, Havas
Creative, which recently replaced the Euro RSCG brand with Havas Worldwide,
was split to create two clear agency brands Havas Worldwide and Arnold.
The restructure was undertaken by Havas to create a more scalable, global
media network, and to provide a more consistent approach across media
platforms and media agencies. In addition, the restructure is aimed to make
the media groups speciality capabilities, such as its global data unit, more
central and accessible to Havas global offices.
Havas Sports & Entertainment has continued to expand its client portfolio over
the past year. Most recently, in June 2014, the company revealed that it had
been appointed as the corporate PR agency of the International Association of
Athletics Federations (IAAF) following project work in 2013. As part of the new
2-year deal with the IAAF, Havas will help the athletics organisation promote
its 2014-2016 strategic plan, which features a range of innovations and social
inclusion initiatives to showcase athletics status as the number-one Olympic
sport. The following month saw the specialist sports marketing agency win a
bid for Barclays as its global lead sponsorship agency, following a competitive
pitch process. The agencys remit will encompass the banks Premier League and
ATP World Tour Finals partnerships, as well as corporate social responsibility
(CSR) led partnerships with Beyond Sport and Barclays Spaces for Sports.
Financial Results
In the year ending 31st December 2013, Havas Sports & Entertainment
generated net revenue of 20.1m, but reported a net profit loss of 2.6m for
the same financial year. This compares to net revenue of 24.1m and a net
profit loss of 2.8m in the previous year.
66
Sports Sponsorship
Competitor Analysis
OTHER COMPANIES
The following provides brief profiles of smaller agencies based in the UK that
specialise in the provision of sports and entertainment sponsorship services and
solutions.
brandRapport
Established in 1982, brandRapport specialises in sponsorship strategy
advertisement activation. In 2007, the company was acquired by Ingenious
Media Active Capital Ltd (IMAC), a Guernsey-based, closed-end investment firm
listed on the Alternative Investment Market (AIM). Brand Rapport provides a
range of sponsorship marketing services, including consultation, activation,
social sponsorship, event marketing, communications and digital services; and
works across sports, arts and culture, music and community platforms. The
company is headquartered in London, with an extended network that
comprises locations in the UK, Hong Kong and Singapore. During 2014,
brandRapport was the subject of a management buyout (MBO), which was
orchestrated by the senior management team at the company. Following the
buyout, the company will undergo a rebranding as it seeks to offer a more
comprehensive service package to clients. The rebrand, which will include the
introduction of a new logo, was instigated by changes in the sponsorship
landscape, with clients increasingly demanding to work with agencies which
offer services beyond solely buying sponsorship properties and which have an
international reach. Following the MBO, MD Andy Kenny revealed that the
company was seeking to partner with an international agency in order to
remain competitive against the larger network agencies.
The company has continued to expand its client portfolio in recent years,
winning new business from property website Primelocation for its commercial
partnership with the Investec Ashes Series, and with online global sportsbook
Marathonbet to manage its principle team sponsorship of Fulham FC in 2013.
More recently, in January 2014, brandRapport revealed that it had been
appointed to manage the communications of the prestigious Concours
Complet International (CCI) four-star eventing competition, LandRover
Burghley Horse Trials. The new deal will see brandRapport oversee the creation
and implementation of a year-round PR campaign to help drive engagement
and awareness for the trials; it will also be responsible for managing the media
operations at the 2014 event, which is due to take place in September. The
event will be added to brandRapports existing client portfolio, which includes
several big name brands such as Jaguar (Team Sky, Cricket and ambassadors),
Allianz (Saracens and Allianz Park), and Prudential (RideLondon), among
others.
67
Sports Sponsorship
Competitor Analysis
Generate Sponsorship
Generate was originally founded in 2003 and has since become one of the
leading independent specialist sport and entertainment agencies in the UK.
The company has also continued to expand its presence overseas in recent years
and now has offices in London, Paris, Atlanta, Beijing and Doha. Generate
provides a range of services to both sponsors and rights-holders, including
consultancy, activation, PR, digital, rights sales and event productions; and
works across a range of sectors including sport, entertainment, the arts and
charity. Generates client portfolio has included organisations such as QBE
Insurance, eBay, Timberland and The Co-operative in the past. The company
has also recently secured a number of new activation agreements with several
new clients including retail fund management firm Octopus Investment for its
2014 sponsorship of Twenty20 cricket; and the British Darts Organisation (BDO)
to handle its brand development and strategy over the next 5 years.
Right Formula
Right Formula is a full-service marketing and activation agency dedicated to
the business of F1. It is primarily engaged in working alongside brands linked
to the sport to enhance and drive their sponsorship programmes. The company
manages a diverse portfolio of F1 Partners, which includes brands such as
Santander, Johnnie Walker, British Sky Broadcasting (BSkyB), SAP, Hilton
Worldwide, TAG Heuer, Hugo Boss, ExxonMobil and Aon, among others.
68
Sports Sponsorship
Competitor Analysis
Synergy Sponsorship
Synergy Sponsorship was originally founded in 1984 as a specialist sponsorship
agency, providing consultancy, communications, digital and experiential
marketing services, including corporate hospitality, and brand and sponsorship
integration solutions. It also provides branded content solutions, employee
engagement and sales promotions services. In addition, Synergy has a long
history of providing Olympic Games marketing solutions (including
sponsorship services) and has worked with several global and domestic
sponsors in the past, including Coca-Cola and BMW. Other top brands that have
been represented by the firm in the past have included Betfair, Mini,
Schweppes and Sky.
The past year has seen Synergy win bids for a number of new contracts, with
the firm announcing in July 2013, that it had been appointed by athletics
organisation Sport England to help roll out a 1bn post-Olympic push to inspire
people to get more active. The previous month saw the firm win a new contract
with energy firm SSE, which appointed Synergy as its lead agency for the
management of its sponsorship activity during the 2014 Commonwealth
Games in Glasgow, including strategy and activation services. More recently,
Synergy revealed that it had set up a PR and social shop in Brazil during June
2014 for the FIFA World Cup. The pop-up Ideas Shop opened in Rio de Janeiro
during the tournament, with a PR and social team creating proactive and
reactive content and ideas from brands live from the centre of the World Cup.
The move follows on from Synergys launch of real-time social media service
Synergy Live during 2013, which already works across the agencys client base
and formed a core part of the activities undertaken by the pop-up office during
the World Cup.
MARKETING ACTIVITY
Table 5.2 displays the breakdown of expenditure on advertising invested by
major sports sponsors and sports organisations for the year ending December
2013. However, it should be noted that the figures provided in the table refer
only to the amounts spent on advertising in the main media, and thus does not
include expenditure on wider sponsorship activities, i.e. in-kind funding or
services provided by the sponsor to the sports event or organisation. According
to the data, which has been compiled by Nielsen, nearly 12m was spent on
advertising sports events and sponsorships during 2013 a relatively small
amount given the high value of sponsorship agreements that are signed in the
UK every year.
69
Sports Sponsorship
Competitor Analysis
HSBC reported the highest expenditure on main media advertising for its
sponsorship of the Lions Rugby club for 2013, with the bank spending 3.4m
on media activities surrounding the partnership; this was followed by Russian
energy firm Gazprom, which spent the second-highest amount 1.3m on
main media activities for its sponsorship of the UEFA Champions League
tournament during the same year. In terms of sports advertising, Glasgow 2014
Ltd reported the highest media spend for the year ending December 2013, at
887,000, in promoting the upcoming Games; US football league, the National
Football League (NFL), reported the second-highest expenditure at 300,000
and Premiership club Liverpool FC registered the third-highest at 271,000.
3,443
1,348
619
563
557
307
269
220
214
167
160
155
110
91
90
86
8,399
Table continues...
70
Sports Sponsorship
Competitor Analysis
887
300
Liverpool FC
271
Football Association
227
216
Manchester City FC
188
176
163
151
Fulham FC
131
125
124
102
Manchester United FC
98
Falkirk FC
93
Wigan Athletic FC
87
Celtic FC
84
Chelsea FC
83
82
3,588
11,987
Source: Nielsen
71
Sports Sponsorship
Competitor Analysis
EXHIBITIONS/TRADE SHOWS
The following provides details of leading trade shows with a focus on the sports
sponsorship market:
Sports Sponsorship Expo next scheduled for 10th December 2014, Palexpo,
Geneva
The UK Coaching Summit previously held on 3rd and 4th June, at Crowne
Plaza, Glasgow.
72
Sports Sponsorship
Buying Behaviour
5. Buying Behaviour
INTRODUCTION
This chapter analyses consumer participation in relation to several sports,
including team sports and individual sports. The research covers the most
heavily sponsored sports in the UK, including team sports such as football,
rugby and cricket; and individual sports, such as tennis, athletics, motor racing
and snooker.
Football
Rugby
Union
Cricket
Rugby
League
46.3
21.0
19.9
13.5
Men
62.6
28.6
30.0
18.5
Women
30.8
13.8
10.3
8.7
All adults
Sex
Table continues...
73
Sports Sponsorship
Buying Behaviour
Football
Rugby
Union
Cricket
Rugby
League
15-19
47.8
13.7
12.3
12.9
20-24
45.9
14.3
11.6
11.7
25-34
49.7
14.1
14.9
9.8
35-44
45.8
20.6
18.1
10.8
45-54
48.5
23.6
21.2
15.4
55-64
44.9
26.9
23.8
15.3
65+
43.0
26.1
27.4
16.5
49.8
34.2
29.1
15.6
47.8
27.0
25.4
12.8
C1
46.3
21.9
20.9
13.8
C2
47.5
19.2
17.5
14.4
44.2
14.2
14.6
12.7
42.1
13.6
13.7
12.1
Scotland
49.1
22.1
9.7
9.2
North West
53.5
17.0
20.8
21.0
North
52.1
17.5
20.4
16.1
46.4
14.8
19.0
20.4
East Midlands
47.2
22.6
23.9
12.5
East Anglia
42.8
18.9
22.8
8.7
South East
42.3
21.6
21.5
11.6
Greater London
48.2
16.3
19.4
8.7
South West
42.1
29.9
23.7
14.2
Wales
42.0
39.4
18.0
17.3
West Midlands
45.2
19.2
18.9
12.0
Age
Social Grade
Region
74
Sports Sponsorship
Buying Behaviour
Table 5.2 shows the ways in which UK consumers accessed sports by type of
activity, covering live viewing (i.e. at a venue), television, newspapers and
online. The most popular channel through which consumers accessed sport was
television, with football attracting the greatest audience through this channel
at 40.8%; followed by Rugby Union (19.3%), cricket (17%) and Rugby League
(12.1%). Reading about sport through newspapers was generally found to be
the second-most popular way of accessing information on major team sports.
Once again football attracted the highest readership, at 16.3%, followed by
cricket (6.9%), Rugby Union (5.6%) and Rugby League (3%).
Interestingly, accessing information regarding sport online was the third-most
used method, behind traditional newspaper reading, despite the proliferation
of specialist football news-sites and fan-sites, with football attracting the
highest online audience at 13.7%. Meanwhile, cricket reported an online
penetration of 5.3%, followed by Rugby Union (4%) and Rugby League (1.8%).
Watching sport live at a venue was generally found to be the least popular
option for accessing team sports, due in part to the high price that sport event
tickets often have, with match day tickets for some Premier League sides
costing up to 126. Once again, football attracted the greatest live audiences,
with just over one in ten (11.5%) respondents watching the sport at a venue
during 2013. In contrast, Rugby Union and cricket each registered penetrations
of just over 2% for those watching events live at a venue, while Rugby League
reported a penetration of only 1.2%.
11.5
Rugby Union
2.6
Cricket
2.2
Rugby League
1.2
Watched on Television
Football
40.8
Rugby Union
19.3
Cricket
17.0
Rugby League
12.1
Table continues...
75
Sports Sponsorship
Buying Behaviour
16.3
Cricket
6.9
Rugby Union
5.6
Rugby League
3.0
13.7
Cricket
5.3
Rugby Union
4.0
Rugby League
1.8
76
Sports Sponsorship
Buying Behaviour
Tennis
Athletics
Motor
Racing
Snooker
20.3
18.2
18.1
15.8
Men
20.8
19.5
25.6
22.3
Women
20.0
17.0
11.0
9.5
15-19
14.1
13.5
7.1
9.0
20-24
16.6
15.9
10.4
9.8
25-34
18.0
14.3
15.3
12.0
35-44
19.7
16.4
18.4
14.1
45-54
21.3
19.5
22.4
15.0
55-64
20.9
22.4
23.5
16.9
65+
25.2
21.6
20.2
24.6
26.8
23.1
21.5
19.4
26.6
22.4
19.5
14.7
C1
21.2
18.7
18.0
15.1
C2
16.1
18.0
20.5
16.8
16.9
12.8
14.5
16.2
15.6
13.8
14.1
15.6
Scotland
26.4
17.2
18.0
19.1
North West
17.2
17.4
16.3
16.2
North
16.7
15.3
16.1
15.7
17.0
17.5
17.7
18.4
East Midlands
20.6
18.1
22.7
18.0
East Anglia
18.3
17.0
20.6
14.9
South East
20.7
18.9
20.5
14.0
All adults
Sex
Age
Social Grade
Region
Table continues...
77
Sports Sponsorship
Buying Behaviour
Tennis
Athletics
Motor
Racing
Snooker
Greater London
25.0
20.8
12.2
12.8
South West
21.1
20.7
22.2
16.2
Wales
17.5
17.0
15.6
15.4
West Midlands
17.2
16.0
18.2
16.1
Region (cont.)
Similar to team sports, television was by far the most popular way to watch
individual sports, with tennis found to attract the highest viewership at 19.4%,
followed by athletics and motor racing (both at 17%), and snooker (15%).
Newspapers represented the second-most popular channel through which to
access individual sports. Tennis once again reported the highest penetration in
terms of newspaper audience at 3.9%, followed by athletics (3.6%), motor
racing (3.1%) and snooker (1.7%).
Accessing information regarding individual sports online still reported
relatively low penetrations, with just 3% of people reading up about tennis
online, along with 2.9% of motor racing fans, 2.2% of athletics fans and just
1.2% of snooker followers. However, watching events live at a venue
generated the lowest level of response, with only 1.2% of respondents paying
to watch a match event live; along with 1% of motor racing fans, 0.9% of
athletics followers and only 0.5% of snooker fans.
78
Sports Sponsorship
Buying Behaviour
1.2
Athletics
0.9
Motor racing
1.0
Snooker
0.5
Watched on Television
Tennis
19.4
Athletics
17.0
Motor racing
17.0
Snooker
15.0
3.9
Athletics
3.6
Motor racing
3.1
Snooker
1.7
3.0
Athletics
2.2
Motor racing
2.9
Snooker
1.2
79
Sports Sponsorship
WEAKNESSES
Expenditure on sports sponsorship, like the wider marketing mix, is highly
susceptible to fluctuations in the economy, with corporations tending to
squeeze budgets in times of economic crisis in order to save costs.
Sponsors may sometimes be subject to negative press attention or bad
publicity, e.g. cricket match-fixing scandals and Luis Suarezs match ban
following a biting incident at the FIFA World Cup, which can often have
negative implications for sponsors aligned with the sport or relative sports
personality.
Some sports have a very specific demographic following, thus potentially
limiting audience reach for sponsors.
There is a chronic lack of investment in womens sports in the UK, with just
0.4% of the total sponsorship market thought to be generated by
commercial partnerships with professional womens sports and sports
personalities.
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Sports Sponsorship
OPPORTUNITIES
Sports clubs and associations have become increasingly sophisticated in terms
of their approach to marketing, offering brands an ever-growing range of
sponsorship rights, thus widening their reach and appeal among fans.
Para-sports have continued to generate increased interest from both
broadcasters and sponsors following the success of the London 2012
Paralympic Games; a trend that is likely to continue in the future.
Other sports, such as cycling and athletics, have also continued to increase in
terms of participation and general interest following the success of British
athletes in these categories at the 2012 Olympics. The UKs hosting of several
events particular to these sports in recent years, such as the Grand Dpart of
the Tour de France, the Giro dItalia and the Commonwealth Games, has also
helped to drive sponsorship in these emergent areas of the market.
The rise of digital media and the continued migration of consumers onto
mobile platforms has created new rights and assets that can be leveraged by
sponsors as part of their campaign, e.g. through video-on-demand (VoD),
online, applications (apps), etc.
Social media is being used more and more in sponsorship campaigns as a way
to connect with fans regarding shared passions and interests relating to
sport. The vast audience now on social networking platforms also means that
sponsors can use such channels to drive brand awareness and boost their
online presence.
The UKs hosting of a number of upcoming sporting events over the next few
years is expected to help drive sponsorship spending in the UK. Events
scheduled to be held in the country include the Ryder Cup 2014 in Gleneagles,
the Rugby World Cup (RWC) in 2015, the International Association of
Athletics Federations (IAAF) World Championships and the International
Paralympic Committee (IPC) Athletics World Championships in 2017 and the
Cricket World Cup in 2019.
81
Sports Sponsorship
THREATS
Sponsorship programmes involving gambling firms could be under threat
depending on the outcome of a Government review into gambling
advertising rules, which was launched in March 2014.
Alcohol sponsorship is another area under threat following a leaked report
from the Labour Party in early 2014 which revealed that sponsorship
agreements with alcohol brands could be subject to a ban if the Party wins
the next General Election. Alcohol sponsorship has also continued to come
under increased pressure from health lobbies, medical associations and
charities across Europe, many of which have suggested that such partnerships
promote unhealthy attitudes to drinking which is at odds with the positive
attributes of the sports being sponsored.
Although some countries, such as the UK and US, have recovered from the
economic turmoil that hit developed markets in 2008, the Eurozone remains
weak, which could serve to dampen spending on sports sponsorship across
the region in the future.
Some critics have raised concerns that the rising number and value of
sponsorship deals signed by top-level sports organisations and individuals is
leading to the over-commercialisation of sports in developed markets.
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PESTEL
7. PESTEL
POLITICAL
Select Parliamentary Committee Warns Olympics Legacy Has Not
Been Upheld
In November 2013, the Select Committee on Olympic and Paralympic Legacy
published a new report assessing the legacy impact of the London 2012 Games,
which aimed to consider the strategic issues for regeneration and sporting
legacy from the Olympic and Paralympic Games, and to make
recommendations. The report found evidence to suggest that the Olympics
Legacy had not been upheld to the best standards, and warned that the
prospect of an effective and robust legacy from the Games was in jeopardy
unless a change in Government approach was made. Although the Games was
highlighted by the Committee as an outstanding success, the report urged
the Government to appoint a minister with overall responsibility for producing
legacy benefits, which it warned are in danger of faltering.
The report found little evidence that the Olympics and Paralympics legacy has
resulted in increased participation in sport in the UK and drew attention to an
uneven distribution of economic benefit following the Games, with London
and the South East found to have benefitted most from the competition, while
other regions have seen little or no financial payoff. The report also criticised
funding body UK Sports for its no compromise policy on sports, which resulted
in funding being cut across several sports following poor performances at the
Olympics. Five sports altogether, including swimming, had their budgets cut
following the Games, with volleyball suffering an 88% reduction in its funding
after all four Team GB teams were eliminated in the Olympic group stages
during 2012. Instead, funding has been directed towards medal-winning sports
only and, while this has improved top-end performance, this approach has
been found to have an inherent bias against team sports and has failed to
help emerging sports, some of which (e.g. handball and volleyball) generated
strong enthusiasm during London 2012.
Despite the reports numerous recommendations and its criticism of UK Sport,
a response published by the Mayor of London and the Government in February
2014 stated that there were no plans to review the sporting organisations no
compromise approach, which it revealed has created greater opportunities,
particularly for winter sports, and has taken Team GB from 26th in the rankings
for the Atlanta 1996 Games to third place in the rankings for London 2012.
Nonetheless, it does appear that in terms of sponsorship the UK has
struggled to attract interest from sponsors since the 2012 Games, with the
Greater London Authority (GLA) continuing to meet with difficulties in its
attempt to raise funds for sports participation projects despite the success of
the competition in London.
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Sports Sponsorship
PESTEL
As part of the Legacy programme following the Olympics, City Hall has so far
committed 7m into grass-roots projects in the capital over the next 2 years as
part of the Mayors Sports Legacy Programme. To boost that sum, the Mayors
department has approached several domestic sponsors of London 2012, such
as Lloyds TSB, Cadbury, adidas and BT, with requests for funding of between
100,000 and 1m. However, according to sources, the GLA has failed to secure
any backing from such brands as of yet. The lack of sponsorship investment
from Olympics sponsors following the Games has only been compounded by
the announcement by UK Athletics sponsor Aviva following the Olympics that
it would not be renewing its 13-year sponsorship of British athletics. However,
since then, UK Athletics has amended its sponsorship structure to encompass
a group of corporate partners rather than a single over-arching brand. The new
sponsorship structure has already had positive implications for UK Athletics,
with the sports body recently announcing a 4-year contract extension with
Sainsburys, as well as a 7-year kit deal with Nike.
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Sports Sponsorship
PESTEL
Despite the ascension of Javid to the role of Culture Secretary, the move has
attracted criticism from a number of opponents questioning Mr Javids
knowledge of the arts and sport, due primarily to the MPs former background
in the Treasury and, before that, the corporate financial world. Most
poignantly, British childrens literature writer, Michael Rosen, wrote an open
letter in April 2014 which suggested that Javid was unsuitable for the position
due to his lack of background in arts, pointing to the Secretarys previous
employment in banking. Following Rosens letter, another novelist, Blake
Morrison, added further weight to the argument against Javid, with a
statement from the writer reported in an article published by The Guardian on
11th April 2014 stating that:
The record of culture secretaries is dismal. It seems to be a job
they give to people when they cant think of what else to give
them but they want to encourage their career. It doesnt count,
so give them culture. Its all a bit grim.
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Sports Sponsorship
PESTEL
ECONOMIC
DCMS Budgets Cut But Elite Sports Protected in 2015/2016
Spending Round
In July 2013, the DCMS announced details of its budget plans for 2015/2016,
including the breakdown of expenditure by the organisation bodies that it
supports, including Sport England and UK Sport. The new Spending Round
revealed that the DCMSs overall budget would be reduced by 7% during
2015/2016, in line with the Governments wider austerity measures and its aims
of reducing the UKs budget deficit, which has resulted in widespread public
sector spending cuts since the recession of 2008/2009. A further breakdown of
the DCMSs Spending Review revealed that, while funding for grassroots sports
would be reduced by 5%, spending on elite sports has been protected, in line
with the Governments promise towards a lasting Olympics sporting legacy.
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PESTEL
SOCIAL
Fans Revolt as Slew of Payday Loan Sponsors Enter Market
Recent months have seen criticism mount over the rising use of payday loans
firms such as Wonga.com as sponsors across sport (in particular football) within
the UK. The entry of payday loan lenders into the sponsorship marketplace
comes following the phenomenal success of such companies since the start of
the recession, with a year-long review published by the Office of Fair Trading
(OFT) in September 2013 revealing that nine of the ten largest payday loans
firms in the UK had seen their turnover double in the last 3 years alone.
However, the prevalence of payday loan lenders has also resulted in growing
criticism, with many such firms blamed for putting cash-strapped households
at even greater risk of financial collapse and bankruptcy. Nonetheless, the
continued growth of such firms has resulted in increased exposure for payday
lenders, with many continuing to step up their advertising activities in the
wake of their financial success.
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Sports Sponsorship
PESTEL
Increased investment by payday lenders has seen several such firms invest
significant amounts in sports sponsorship as part of their wider marketing
strategies in the UK. Indeed a number of leading football clubs in the UK,
including Hearts, Newcastle and Blackpool, have signed up major new
sponsorship deals with payday loan lenders, such as Wonga.com. However, the
growing level of criticism attracted by such deals from fans and lobbyists has
seen a number of proposed sponsorship agreements with payday lenders fall
through. In June 2013, for example, Bolton Wanderers revealed that it had
dropped plans to be sponsored by payday loan firm QuickQuid, following
protests from the clubs fans; while Hearts recently announced that it had
ditched Wonga as its sponsor in a bid to distance the club from the unethical
connotations surrounding payday loans, after the sponsorship deal came up
for renewal following its original inception in 2011.
Wongas deal with football club Newcastle United has also come under intense
pressure in recent months, following calls from Labour MPs. Despite this, the
payday loans firm has continued to underline its commitment to the club. It is
not the first time the companys sponsorship deal with the Premiership football
side has hit the headlines, with the firm attracting negative press in 2013 after
it was revealed that Newcastle United player Papiss Cisse had refused to wear
the Wonga-sponsored team shirt after the deal was first announced. Since
then, the partnership between the football club and the payday lender has
remained strong, with Newcastle United continuing to stand by its sponsor
despite allegations earlier this year that the company had threatened
customers with legal action using letters from a non-existent law firm. In
another blow to payday loan sponsorship, it was announced in early 2014 that
the Glasgow Commonwealth Games had banned sponsorships from such
companies after the Scottish Government revealed that it would not support
any proposal for a payday loan company to become a Games sponsor.
The sponsorship of sport by payday lenders is expected to continue to be met
by resistance and criticism, with a number of advertising campaigns already
being banned by the ASA in recent months following complaints from Citizens
Advice. In addition, the launch of a review into the payday loan market by the
Financial Conduct Authority (FCA) in 2014 is also expected to put added
pressure on such companies, with the industry watchdog already in the process
of drawing up tougher regulations for the high-cost short-term loans market
in the UK, which could lead to around a quarter of payday lenders pulling out
of the market altogether if the legislation is passed.
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Sports Sponsorship
PESTEL
89
Sports Sponsorship
PESTEL
90
Sports Sponsorship
PESTEL
Some changes have, however, already been undertaken to level the playing
field between womens and mens sports. Tennis tournament Wimbledon, for
example, began awarding women the same amount of prize money as men in
2007; with tennis continuing to represent one of the most significant
mainstream sports where women and men both attract lucrative sponsorship
deals and equal television coverage. Meanwhile, the Tour de France
announced that a new cycling event, Le Course, would be introduced for the
first time during 2014, which will see elite women cyclists race the Paris circuit
of the mens Tour de France route. The prize money for Le Course will also be
equivalent to that for a stage winner of the Tour de France. Nonetheless,
womens sport has a long way to go before it is seen as equal to that played
by men; although an increase in sports participation by women over the past
decade should help to yield more professional female sports stars in the future,
with the number of women participating in sport and physical activity
estimated to have increased by more than 1 million since 2005, according to
National Statistics estimates.
TECHNOLOGICAL
Wearables and Virtual Reality: Game Changers
The wearable technology market, while still very much in its infancy at present,
is set to observe significant growth over the next few years, with research from
IDC revealing that wearable device shipments will reach 19 million worldwide
by the end of 2014, and will grow to 111.9 million by 2018. Several technology
firms, such as Samsung, Nike, Fitbit, Jawbone and Google, have continued to
develop wearable technology, while Apple is currently thought to be working
on a smartwatch rumoured to be called the iWatch which could launch as early
as this year. The majority of wearables currently on the market offer a more
mobile experience for customers, with unique selling points (USPs) focusing on
integration with other devices and the provision of big data in real-time direct
to users. In this way, such devices have shown particularly strong growth
among sports fanatics due to their ability to measure and monitor performance
during sport, e.g. heart rate, pace, distance travelled, etc.
91
Sports Sponsorship
PESTEL
92
Sports Sponsorship
PESTEL
93
Sports Sponsorship
PESTEL
ENVIRONMENTAL
Corporate Social Responsibility Becoming a Focal Point in
Sponsorship
Nowadays, an increasing number of companies have begun aligning their
sponsorship activities with their corporate social responsibility (CSR) strategies,
in order to effectively promote their positive social and environmental
contributions. The social value of brands has become increasingly important to
corporations and has been driven by a need to build more personal
relationships with customers through active engagement. Supporting social
and environmental issues, and promoting activities undertaken to help achieve
CSR aims related to such issues, therefore provides a route through which
brands can engage with consumers on topics of shared interest. In this way,
customer relationships are able to go beyond price point and product, and
towards a relationship based more on shared ethics and social responsibility.
Football, in particular, has become a powerful brand for change, with around
250,000 community visits undertaken by footballers in the UK relating to social
and environmental issues, such as anti-racism projects for example. By
undertaking such projects, sports organisations and individuals are able to use
their positive public image to draw attention to issues of significant social
importance; with sponsors in turn benefitting from the positive PR that these
types of social strategies offer. The emergence of organisations specialising in
the social aspect of sport such as Beyond Sport reflects the move towards a
more CSR-centric approach within the sport sponsorship market. The
organisation, which counts several high-profile brands including Barclays, Time
Magazine, Unicef, PwC and United Airlines among its client base, is primarily
engaged in facilitating relationships between sports projects and business
backers. The company backs around seven community projects around the
globe each year, and estimates such packages to be worth approximately
$200,000 each (including in-kind services). Indeed, since being founded in 2009
by founder Nick Keller, Beyond Sport has helped to provide over 4m worth
of support to projects across the globe. According to a statement by Keller
published by the BBC in 2011, the growth of the company reflects the shift
towards more sustainable and socially-motivated sponsorship models by big
business:
I think this model of sponsorship, with a social element, will be
the model of sport sponsorship over the next 20 years... I dont
think we will see many blue-chip brands take up sponsorship in
[the] future without a social element... Sport and sport for
development offers a [CSR] vehicle that allows brands to market
themselves in different ways.
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Sports Sponsorship
PESTEL
For businesses that have aligned their commercial partnerships with social
projects, there is an opportunity to benefit from increased profile, networking
opportunities, and improved business expertise. One example has been current
Olympics sponsor Procter & Gamble (P&G), which has continued to use its
market-leading position and commercial tie-ins to promote environmental and
social messages. One of its main brands, Ariel, for example, ran a campaign
called Cool Clean to try and get customers to wash their clothes at 30 degrees
in order to save energy. Such campaigns have proved successful, with around
30% of consumers thought to now be washing their clothes at 30 degrees,
compared to just 2% back in 2002.
LEGISLATIVE
Calls Mount for Alcohol Sponsorship Ban in the UK
Arguments for a ban on alcohol sponsorship at music and sports events in the
UK have once again surfaced in recent months, after a leaked report revealed
that the UKs Labour Party was backing plans to ban alcohol sponsorship in the
future if it takes office following the 2015 General Election. Health activists
and legislators have also stepped into the debate, with a number of powerful
organisations, such as the British Medical Association (BMA) and the House of
Commons Health Select Committee, throwing their weight behind a potential
ban. Similar bans are already in place in several other European countries, such
as France, which bans the placement of alcohol advertising on television, in
cinemas, and in sponsorship campaigns at sporting events. On top of this, 2015
is expected to see the European Commission launch a new Alcohol Strategy
encompassing the entire EU, which could also be used to implement stricter
regulations surrounding alcohol sponsorship of sports, in line with the World
Health Organizations (WHOs) recommendations outlined in its Global
Strategy to Reduce the Harmful Effects of Alcohol.
The argument in support of a ban on alcohol sponsorship comes after Ofcom
figures revealed the increasing level of exposure that children now have to
alcohol advertising, with an average of 3.2 alcohol advertisements witnessed
by children per week in 2011, compared with 2.7 per week in 2007. If such a
ban is eventually implemented it could have a negative impact on several
popular professional sports, such as Formula 1 (F1) motor racing, horseracing,
rugby and football, which all rely heavily on generating income through
commercial partnerships with drinks brands. F1, in particular, has been subject
to increased criticism from anti-alcohol charities and road safety lobbies in a
move not unlike the ban against tobacco sponsorship which hit the sport
during 2005, with several high-profile F1 teams currently engaging in major
sponsorship deals with global drinks brands. Martini, for example, recently
re-joined F1 as a title sponsor for Williams, while McLaren is backed by whiskey
manufacturer Johnnie Walker in a deal thought to be worth around 15m a
year. Meanwhile, Force India signed a deal with vodka brand Smirnoff in early
2014, with the commercial partnership encompassing branding on all team
cars.
95
Sports Sponsorship
PESTEL
The ban on tobacco sponsorship back in 2005 is thought to have cost F1 teams
millions of pounds in revenue, with the sport now thought to be bracing itself
for a similar situation following the mounting criticism over alcohol
sponsorship. However, it is hoped that the introduction of a new code aimed
at regulating all new alcohol sponsorship agreements in the UK earlier in the
year may go some way towards quelling arguments in support of a ban.
Alcohol regulator Portman Group, which helped to draw up the new code,
claims that it carries clear sanctions, through the negative publicity that drinks
brands risk by breaching the code and through the financial cost of having to
renegotiate a sponsorship agreement or having to withdraw it completely. The
code represents the first of its kind for UK-wide alcohol sponsorship and
introduces a new and binding commitment for all drinks companies to promote
responsible drinking through their sponsorship agreements. Several leading
sports, arts and venues organisations have already endorsed the code including
AEG, British Horseracing, the England and Wales Cricket Board (ECB), the FA,
the Premier League and all UK rugby bodies; with several leading drinks brands
already signing up to the code such as AB InBev, Pernod Ricard and Diageo.
96
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Further Sources
8. Further Sources
Associations
Advertising Standards Authority
http://www.asa.org.uk
British Cycling
http://www.britishcycling.org.uk
Gambling Commission
http://
www.gamblingcommission.gov.uk
Publications
Campaign
http://www.campaignlive.co.uk
The Economic Impact of British
Racing 2013
Deloitte
http://www.deloitte.com
Forbes
http://www.forbes.com
Find!Sponsorship
http://www.findsponsorship.co.uk
The Guardian
http://www.theguardian.com
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Sports Sponsorship
Further Sources
General Sources
Kantar Media
http://www.kantarmedia.com
Nielsen
http://www.nielsen.com
Government Publications
Department of Culture, Media and
Sport
https://www.gov.uk/government/
organisations/department-forculture-media-sport
Spending Review 2014/2015
HM Treasury
https://www.gov.uk/government/
organisations/hm-treasury
Forecasts for the UK Economy: a
comparison of independent forecasts,
May 2014
National Statistics
http://www.statistics.gov.uk
Consumer Price Inflation, April 2014
Labour Market Statistics, May 2014
National Population Projections,
2012-based projections
Population Estimates for UK,
England and Wales, Scotland and
Northern Ireland, Mid-2001 to
Mid-2010 Revised, December 2013
United Kingdom Economic Accounts
Q4 2013
Other Sources
Accenture
http://www.accenture.com
BBC
http://www.bbc.co.uk
BT
http://www.bt.com
Deloitte
http://www.deloitte.com
IDC
http://www.idc.com
IEG
http://www.sponsorship.com
Millward Brown
http://www.millwardbrown.com
Ofcom
http://www.ofcom.org.uk
Office of Fair Trading
https://www.gov.uk/government/
organisations/office-of-fair-trading
Sky
http://www.sky.com
98
Sports Sponsorship
Further Sources
Snack Media
http://www.snack-media.com
UK Sport
http://www.uksport.gov.uk
Sponsorship Today
http://imrpublications.com
99
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100
Sports Sponsorship
Edition
Published
Title
C2DE Consumer
ABC1 Consumer
2014
Access Control
14
2014
Accountancy
17
2014
Activity Holidays
2014
Advertising Agencies
2014
Airlines
24
2014
Airports
17
2014
All-Inclusive Holidays
2012
Alternative Healthcare
2013
2014
Automatic Vending
27
2014
Automotive Services
2014
20
2012
Autoparts
B
B2B Marketing
Baby Products
2014
Edition
Published
2014
20
2014
Car Dealers
2014
Care Homes
2014
18
2014
Catering Equipment
15
2012
Catering Market
21
2009
Canned Foods
Charity Funding
2013
16
2014
Childcare
2012
Childrens Publishing
2012
Childrenswear
10
2013
Chilled Foods
18
2014
30
2014
27
2013
Closed-Circuit Television
15
2014
13
2010
Clothing Manufacturing
18
2014
Clothing Retailing
10
2013
2013
Commercial Dynamics in
Financial Services
2010
Chemical Industry
2013
16
2013
26
2013
21
2014
Book Publishing
22
2012
2014
Bookselling
18
2012
2014
29
2014
Commercial Vehicles
17
2014
Breakfast Cereals
18
2014
Computer Hardware
11
2013
31
2014
Computer Services
11
2014
18
2013
Computer Software
2013
Bridalwear
2013
2008
Builders Merchants
18
2013
Confectionery
32
2014
Building Contracting
12
2013
Construction Industry
11
2009
Building Materials
15
2013
2012
12
2014
Consumer Magazines
19
2014
2013
Contact Centres
2013
Business Press
16
2014
Contraception
2014
Business Travel
2014
22
2013
Contract Cleaning
23
2013
2012
2013
101
Sports Sponsorship
Title
Corporate Hospitality
Corporate & Promotional
Giftware
Edition
Published
2014
Title
Edition
Published
2009
14
2014
2013
Cosmetic Surgery
11
2014
26
2013
18
2013
27
2013
2012
Film Market
2009
2014
2009
Cruise Market
Customer Magazines
Customer Relationship
Management
2013
2010
2010
2009
2013
2009
2014
12
2014
Diet Foods
2013
Digital Broadcasting
2014
10
2013
Digital Communications
2012
15
2012
Direct Insurance
2010
Fitted Kitchens
12
2013
Direct Marketing
21
2014
Food Industry
20
2010
Direct Mortgages
2013
2014
Discount Retailing
10
2014
Footwear
14
2013
Forecourt Retailing
Distribution Industry
10
2009
11
2009
Domestic Heating
15
2013
Drinks Market
19
2009
Defence Equipment
2014
2008
11
2014
Electrical Wholesale
2013
Electricity Industry
2013
Electronic Banking
2008
Energy Industry
2010
2014
E-Recruitment
2012
Estate Agents
18
2011
2012
18
2013
2008
2008
2008
European Telecommunications
2010
2010
Electrical Contracting
18
2013
2012
Franchising
13
2012
Freight Forwarding
18
2011
Frozen Foods
27
2014
24
2014
16
2014
Functional Foods
2010
2014
15
2013
2014
General Insurance
13
2010
Giftware
20
2011
Glassware
17
2013
2013
Greetings Cards
28
2014
Grey Consumer
2013
17
2013
Garden Equipment
Gas Industry
13
2014
Healthy Eating
2008
2014
Home Entertainment
2012
Home Entertainment
(Audiovisual)
2013
102
Sports Sponsorship
Title
Edition
Published
2013
22
2014
Mobile Marketing
Home Insurance
2014
Mobile Phones
10
2014
Home Shopping
16
2014
Motor Finance
2013
Horticultural Retailing
18
2013
Motor Industry
12
2008
2014
2014
Hotels
27
2013
Music Industry
2014
Housebuilding
21
2013
13
2013
2012
Home Entertainment
(Computing & Gaming)
Home Furnishings
Hot Beverages
Title
Metal Recycling
Edition
Published
2014
27
2013
2014
Natural Products
Newspapers
20
2014
2013
19
2013
Non-Metal Recycling
2014
18
2014
Nutraceuticals
2008
Household Furniture
21
2014
2010
17
2014
Office Furniture
2013
Insurance Companies
12
2009
Insurance Industry
10
2009
Insurance Market
13
2012
2008
Insurance Prospects
23
2013
2013
19
2013
2010
2012
OTC Pharmaceuticals
17
2014
2009
16
2014
2010
2013
Over-50s Consumer
Internet Advertising
2013
Own Brands
IT Recruitment
2014
IT Security
12
2014
IT Training
15
2014
Packaging (Glass)
13
2008
14
2014
17
2014
Packaging (Plastics)
17
2014
Kitchenware
Pensions
2013
Personal Banking
2012
2012
Personal Loans
2008
Pet Insurance
2014
Pet Market
2014
Pharmaceuticals Industry
2008
2008
Plus-Size Fashion
2009
Poultry
2014
Power Tools
2013
12
2014
Printing
18
2014
Private Healthcare
23
2014
28
9
2014
2013
Laboratory Equipment
12
2014
2013
2010
2010
Lifestyle Magazines
2013
12
2014
2010
2008
2012
24
2014
Medical Equipment
20
2014
2012
Medical Insurance
2014
2012
2013
Lingerie
2014
29
2013
2012
13
2010
103
Sports Sponsorship
Title
Edition
Published
Title
Edition
Published
2014
2014
UK Internet Market
2009
Utilities
2013
Vegetarian Foods
2012
2014
2011
Tyre Industry
Ready Meals
14
2013
Recruitment Agencies
(Permanent)
13
2014
Recruitment Agencies
(Temporary & Contract)
13
2014
2013
Restaurants
27
2013
Retail Pharmacies
19
2014
Road Haulage
23
2012
Rural Economy
2009
13
2012
2013
Security Industry
13
2010
Shopfitting
16
2014
Shopping Centres
2013
Singles Market
2012
Slimming Market
2013
2010
14
2013
Snack Foods
22
2013
2014
20
2013
Soup Market
2013
2014
16
2014
Sports Equipment
18
2013
Sports Market
13
2010
Sports Sponsorship
10
2014
27
2013
2013
Supermarket Services
2013
16
2010
18
2011
2013
21
2013
Toiletries
26
2014
2013
27
2014
Training
22
2014
2014
17
2010
Rail Travel
Renewable Energy
Take-Home Trade
Teenage & Pre-Teen Magazines
Tourist Attractions
Travel Insurance
Travel & Tourism Market
Travel Agents & Overseas Tour
Operators
Trends in Food Shopping
26
2014
2008
Vehicle Security
11
2014
Video Gaming
2014
2013
20
2014
Waste Management
13
2014
2013
22
2013
Wine
24
2014
2013
Working Women
2009
2014
Water Industry
Y
Youth Fashionwear
Aerospace
12
2003
2002
Air Freight
2005
2003
Animal Feedstuffs
11
2001
2000
Baby Foods
2006
2000
Bearings
2007
2000
Bottled Water
2001
10
2004
2006
16
2001
2001
Clothing Retailers
2000
Commercial Radio
2004
2004
2000
Contracted-Out Services
2007
12
2002
Convenience Retailing
104
Sports Sponsorship
Title
Edition
Published
Cross-Border Shopping
2000
2000
2004
Defence Industry
2003
Design Consultancies
2000
Digital TV
2003
DINKY Market
2007
2007
Domestic Telecommunications
2006
2005
Electronic Component
Distribution
Electronic Component
Manufacturing
Electronic Games
Equipment Leasing
12
2002
11
2002
2003
12
2003
E-Shopping
2002
2007
2007
2007
2007
2005
2003
11
2000
2000
2006
2004
2004
Title
Edition
Published
Generation Y
2007
2002
2070
Health Foods
22
2003
Healthcare Market
10
2005
2002
In-Car Entertainment
2000
2005
Industrial Fasteners
2001
Industrial Pumps
2000
Industrial Valves
2001
2005
2005
2002
2006
15
2005
Lighting Equipment
14
2002
Management Consultants
10
2003
2003
Mechanical Handling
2001
Millenium Youth
2002
Mobile Telecommunications
2007
2002
Off-Trade Spirits
2004
2007
Over-40s Consumer
2005
14
2002
2007
Pay TV
2004
2007
Free-To-Air TV
2004
Pension Extenders
2002
14
2005
Plant Hire
13
2007
2005
10
2003
Pre-School Childcare
2001
Private-Sector Opportunities in
Education
2001
Plastics Processing
105
Sports Sponsorship
Title
Edition
Published
2000
Public Transport
2001
Edition
Published
2001
2005
2000
2003
2005
2001
Title
Railway Industry
2006
Tweenagers
2000
Retail Credit
2000
2005
Retail Development
2001
Videoconferencing
2007
2003
2003
2002
White Goods
2000
2001
White Spirits
2005
Short Breaks
2004
Women Over 45
2007
2001
2001
Sponsorship
2000
20
2003
Teenage Magazines
2007
Telecommunications
21
2007
2003
11
2004
2002
Teleworking
The Computer Market
The Film Industry
106