Spencer Hidge, Founder and CEO of Premier Sports Network – provides insight into how the sponsorship landscape has changed and the benefit sports sponsorship continues to provide brands.
The link between sports and business is not new – it’s been well over a century since forward-thinking brands began seeing the benefit of publicly supporting a particular event, team or athlete. But this doesn’t mean they’re a thing of the past, far from it; sports sponsorship has evolved over time and it’s an opportunity missed if businesses aren’t considering whether they can take advantage of the often lucrative deals to be made.
There are brands whose alignment with sports sponsorship is obvious – those who produce sportswear or equipment, for example. Yet even seemingly unrelated businesses can work successfully in partnership with sporting enterprises. Among the first entrepreneurs to realise this were cigarette manufacturers, who began producing tobacco cards featuring the nation’s favourite athletes back in the 1870s.
Whilst they had found a way to associate society’s love of sport with their brand, it’s unlikely they could have guessed the sports sponsorship market would be worth $100 billion some 140 years later.
The growth of sports sponsorship
Advances over time, and particularly the explosion of digital technology, have given rise to many more opportunities for businesses when it comes to sports sponsorship and endorsement. Many athletes and teams are now utilised as digital influencers, with fans flocking to buy products and services reviewed positively by their favourite stars.
There are the more obvious associations: such as Nike’s endorsement deals with the likes of Serena Williams, LeBron James and Christiano Ronaldo (who have 10.2m, 159m and 1.02b social media followers respectively). But there are also profitable deals to be made for brands like Persil, who recently chose Usain Bolt to front the launch of their new detergent designed for short wash cycles. They cleverly drew parallels between their ‘fast’ product and the world’s fastest man, for their Fast Just Got Better campaign.
While it’s unlikely to ever be publicly revealed how much Bolt was paid to appear in the campaign, or how many bottles of detergent have been sold as a direct result of his association with Persil, it’s clear from the reported ‘multi-millions’ invested by parent company Unilever that they believed the endorsement from Bolt would prove highly profitable for them.
Social media has given brands a broader range of opportunities when considering sponsorship and endorsement deals, but there remain many off-line ways to create an association between a company and a sports star, team or event. Among the longest running association is Coca-Cola’s sponsorship of the Olympics, which began in 1928. By securing its place as the exclusive non-alcoholic beverage sponsor, Coca-Cola has ensured it’s seen front and centre worldwide during not only the main summer games, but also the Paralympics and Youth Olympics.
Statista reports 5 billion people tuned in to watch the last Olympic Games in Paris. Where else could a brand ensure it’s seen by that many eyes?
The business benefits
A guaranteed audience of millions, or even billions, is a compelling reason for companies to consider sports sponsorship. But there are other benefits too: associating a business with a sports organisation which also has a charitable element can help boost that brand’s reputation, and meet Corporate Social Responsibility (CSR) requirements which are considered crucial by many consumers.
One of the most successful examples of this has been the Barclays bank partnership with the Wimbledon Foundation, which has helped the latter donate more than £24 million to local, national and international charities to strengthen communities and inspire young people through sport.
The Wimbledon tennis tournament is the most lucrative annual event in the UK in terms of its economic contribution, meaning competition for their limited number of partnership opportunities is fierce. Slazenger and Evian respectively provide all of the tennis balls and water needed throughout the two-week competition, and luxury brands such as Range Rover and Rolex have maintained a long-time association with the tournament.
While bigger and international brands may have the budget to be able to associate themselves with the largest events and most well-known sports stars (reaping the monetary benefits of doing so), this doesn’t mean smaller or less established businesses need to sideline sports sponsorship as an option.
As partnerships have evolved over the years, the scope has also expanded meaning even the most amateur of clubs are often seeking the support of local businesses. Whether it’s a banner around the pitch at the nearest hockey club, or becoming the front-of-shirt sponsor for a junior football team, even start-ups can stand to gain from exploring the options. In a world where brand awareness is crucial, having eyes on your logo every week – especially if your target audience aligns with the demographic likely to be watching local sports matches – can help establish a loyal consumer base within the area around your headquarters.
And, as the business grows, so too can the options on the table for sports sponsorship – striking deals with more high-performing teams, sponsoring up-and- coming athletes, and seeking out well-attended events to support.
At a time when traditional advertising avenues have been so diluted by the vast amount of options technology has given consumers when it comes to their watching, listening and reading habits, sport has managed to maintain – and increase in some cases – its influence and viewership.
Companies who sponsor stadiums and teams have the opportunity to showcase their brand week-in week-out to almost 300,000 individuals who have a football season ticket. Upwards of 3.5 billion watch the Tour de France, and around 5 billion tuned in to the last FIFA World Cup, meaning sports sponsorship remains a unique proposition for businesses looking to secure maximum brand awareness.
Sport’s popularity shows no sign of waning any time soon, and the individuals who rise to the winner’s podium are now considered celebrities in the same vein as actors and musicians. This means the products and services they endorse – or those endorsed by specific teams or events – are seen as the ‘must-haves’ for fans everywhere.
Final Thoughts
Businesses considering whether sports sponsorship really works only have to look at Michael Jordan’s long-running partnership with Nike, which saw the launch of Air Jordan clothing and footwear. The deal undoubtedly helped make Jordan a billionaire, and Nike certainly haven’t done too badly out of it either – with $5 billion worth of sales every year.
Air Jordan trainers aren’t fundamentally different from any other trainer on the market, but they’re associated with the most famous basketball player of all time. That’s why they continue to fly off the shelves. And that’s why making smart sports sponsorship deals can be an absolute slam dunk for business growth and success.
Spencer Hidge is a seasoned commercial leader with over 20 years of experience in the finance and sports industries. He is the Founder of Premier Sports Network (PSN), a global sports marketing and advisory business, connecting athletes, clubs, and brands with sponsorship, financial, and career development opportunities. Under his leadership, PSN has built a network of over 42,000 professionals and worked with clients such as the EPL, NFL, MLS, and LiV Golf.
Previously, Spencer held senior roles in sales and business development at organisations including St. James’s Place, Soccerex, Upper Street Events, and Octagon.
