Advertising in the form of sponsorship is seen everywhere. Sponsorship is when a company will pay to be associated with a particular event, cause, team, person etc.
In addition to the sponsorship of charity events, businesses will also sponsor sports teams in various sports. For example Premier League club Everton signed a deal with sports betting firm SportPesa, which saw event receive a massive £48m over the term of the sponsorship. SportsPesa saw sponsorship of Everton as a massive opportunity to get their brand out there by being associated with a big name in the world’s biggest football league, which attracts huge audiences worldwide.
Another Premier League club (the league which has been previously sponsored by Barclays), Manchester United secured an incredible sponsorship deal with sports company Adidas, worth a whopping £750m. But it is not just in the UK that we can see these types of partnerships, with Fonbet being the official partner of LaLiga.
Sponsorship can be a positive thing for many reasons. If you sponsor a charity event or good cause people may then see your business as kind and generous. In fact, it is often the case this kind of sponsorship can be a win-win for everyone. Money will go to organisations and charities in need, whilst the businesses will receive good levels of exposure to potential new customers and get their brand out there.
Sponsoring the right kind of event, person or organisation can also shape the attitude and views of consumers towards a business. If you sponsor an environmental or children’s event for example, this would give the impression your business cared about these things. There is also a massive benefit to be realised by receiving sponsorship in many cases, as it will give many organisations, teams and entities the necessary funds to acquire much needed equipment and services such as kit, specialist personnel and training facilities.
On the other hand, there are potential downsides to sponsorship. If a sponsor associates themselves with an individual or group that later on receive bad press, this could then have a negative effect on the reputation of the business. Unless a business is able to have an exclusive sponsorship when supporting an event or organisation, it is likely the business will also be looking for other financial sponsors. This could then result in a co-sponsored event with potential competitors or even other businesses that may have very conflicting values to yours, and consequently, negative views on your brand and/or service.
Furthermore, there can also be disadvantages to actually receiving sponsorship in some cases. When a team or individual is sponsored by a certain company this will give the impression that they endorse the sponsor’s products, ideas or brand. This may not always be the case and could have a negative effect, for example, on an athlete who becomes very successful and finds themselves associated with a brand that sponsored them who then are involved in some type of scandal or questionable moral decisions. This could then result in a loss of credibility for the athlete.
Also, when a team or person obtains a high profile sponsorship, this may result in an increase pressure to succeed, especially if the sponsor is offering a lot of benefits. Many sponsors will be happy to sponsor teams or athletes who are performing well, but then be ready to drop them immediately if they have a loss of form.
In conclusion, there is no doubt that in the main, sponsorship is a great idea which usually benefits all parties involved. However, like everything else, one must always be aware of the pitfalls that must be avoided. Currently, sponsorship is an activity that is on the up and will continue to increase throughout all sporting genres and associated activities. Plus, with the likes of social media and advances in technology, there are new trends constantly emerging to make the activity more engaging, effective and fun.