In this SM101 lesson we look at the issue of sponsorship and how over dependancy on it can affect sport. We highlight sports events, endorsements and how it affects sports.
Has sport become overly dependant upon corporate sponsors to meet expenses? Many would believe so and there are numerous examples to prove the relationship of sports being dependant on sponsorships, following are a few examples from the past:
1. A major badminton event in China was cancelled last minute during Asia’s economic down turn.
2. A major WTA event in Chicago was called off because IMG could not secure a sponsor for the event.
3. Madrid Open Golf event was cancelled due to financial troubles and lack of sponsors.
4. The Iberdrola Open in Portugal was taken of PGA calendar as they struggled to find sponsors.
If you look at it sponsorship play a major part in funding sports events and whilst many argue that sponsorship is not the sole element for the success of sports events but is enough being done to protect sponsors from getting publicity?
In US sports associations there have been cases of apparel manufactures complaining about the size of sponsor logos on uniforms and similar cases did float in the past with branding on sports equipment.
Is it possible to have a solution to this issue? Yes there can be solutions and following are a list of solutions:
1. Policies for control of logos must be made easy and in accordance with respective sports administration bodies.
2. Endorsements by individual players to be registered by sports bodies.
3. Vigilant watch on ambush marketing/advertising.
Most importantly sports governing bodies and corporations have to create symbiotic relationships that are bigger than the sum of separate entities. Sponsors invest in sports with a view to increase revenues and the exposure of their brand/products. Asports sponsorship agreement fulfils needs for organisations involved.