SPONSORSHIP IN SPORTS

WHAT IS SPONSORSHIP?

• Sponsorship is a commercial deal where a business provides support, usually financial, for a team, athlete or event.

• Companies hope to enhance their advertising and brand recognition by association with a sport or athlete, presenting their brand and products in a positive light.

ECOLOGY OF SPONSORSHIP

• There are different parts of society which are involved in sponsorship

• The sports can not alone can not exist on it’s own

• Businesses and media make the sporting field an industry

AN EXAMPLE OF A FOOTBALL LEAGUE

FORMS OF SPONSORSHIP

•Brand names on kit

•Banners at grounds and in arenas

•Adverts in programmes, websites, TV

•Use of players and team in adverts

•Personal endorsement of products

•Free transport, …cars, flights etc.

•Free kit and equipment

•Achievement schemes in schools

ADVANTAGES TO THE SPONSOR

• For financial gain: by putting a sponsors name on a stadium or associated to a competition they are attracting a wide audience.

• Advertising brand name

• Promote a caring attitude and increasing goodwill.

• Tax relief.

DISADVANTAGES TO THE SPONSOR

• Sponsorship does not always guarantee success.

• Can be a risk backing new talent.

• Investing in teams and individuals can backfire if they are not as successful as they would have hoped. i.e. Club teams not qualifying for major competitions.

• Any bad publicity from the athlete will effect the brand name associated.

ADVANTAGES TO THE SPORT

• Some sports are popular due to exposure brought about through sponsorship and advertisement campaigns.

• Gives the sport financial security for a period of time.

• Attracts the best players in the world to that sport.

• Provides money for improvements in facilities and training.

DISADVANTAGES TO THE SPORT

• Sponsors can demand too much influence over the sport.

• Sponsors can attempt to make the sport more viewer friendly and enforce advert breaks and even rule changes.

• Sponsors control the day of events being played. i.e. Super Sunday football.

SCALE OF SPONSORSHIPINDIVIDUAL

PLAYER SPORT SPOSOR DEAL WORTH (Approx.)

(In Million $)

DERRICK ROSE Basketball Adidas 260

RORY MCILROY Golf Nike 250

DAVID BECKHAM Football Adidas 160.8

TIGER WOODS Golf Nike 105

SCALE OF SPONSORSHIP TEAM

INDIAN SCENARIO

• Cricket has been a king in terms of sponsorships– Sponsorship of BCCI with

Nike and Star India• Star India gives ₹40

Crores per match

• Nike has $60 Million deal for 5 years

– Sponsors supporting IPL

– Individual players endorsements

GOOD NEWS FOR OTHER SPORTS

• Other sports are also getting encouraged by sponsors

• After IPL almost every sport is getting the same kind of Franchise League

– Indian Super League ( Football)

– Pro Kabaddi League (Kabaddi)

– Indian Badminton League (Badminton)

– Hockey India League (Hockey)

CONCLUSION

• Sponsorship is need of companies and also of the sports

• Sponsorship should support growth of sports and also support needy and talented local sportspersons

• Sponsors should not interfere in the rules of sports and the administration of sports bodies

REFERENCES

• www.bcci.tv

• www.premierleague.com

• www.uefa.com/uefachampionsleague

• http://www.hindustantimes.com/specials/cricket/ipl/chunk-ht-ui-ipl2012-topstories/star-bags-bcci-deal-at-rs-3-851-cr/sp-article10-834292.aspx

• http://www.sportspromedia.com/news/nike_renew_commitment_to_indian_cricket