sports sponsorship 2014

Market Report 2014

Tenth Edition September 2014Edited by Robert Hucker

ISBN 978-1-78304-203-6

Sports Sponsorship

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Sports Sponsorship Foreword

© Key Note Ltd 2014

Contents

Introduction & Definition 1

REPORT COVERAGE....................................................................................................................1

MARKET SECTORS.......................................................................................................................2

Type of Sport..................................................................................................................................2

Type of Sponsor..............................................................................................................................3

1. Executive Summary 5

2. What’s KEY in the Market? 6

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 Fanson 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

HOW ROBUST IS THE MARKET?...........................................................................................16

3. Market Size, Segmentation & Forecasts 17

MARKET SIZE AND SEGMENTATION...................................................................................17

The Total Market.........................................................................................................................17

Table 3.1: The Total UK Sports Sponsorship Marketby Value and Number of Reported Major New Deals(£m and number), 2008-2012....................................................................................................18

Figure 3.1: The Total UK Sports Sponsorship Market by Value (£m), 2008-2012............19

Figure 3.2: The Total UK Sports Sponsorship Marketby Number of Major New Deals, 2008-2012...........................................................................19

MARKET SECTORS.....................................................................................................................20

Type of Sport................................................................................................................................20

Table 3.2: Most Popular Sports in the UK by Valueof Reported Major New Deals (£000), 2008-2012.................................................................21

Sports Sponsorship Contents


Table 3.3: Most Popular Sports in the UK by Numberof Sponsorship Deals, 2008-2012..............................................................................................22

Football..........................................................................................................................................23

2014 Commonwealth Games.....................................................................................................27

Motorsports...................................................................................................................................30

Team Sports (excluding football)..............................................................................................31

Individual Sports...........................................................................................................................35

Athletics.........................................................................................................................................37

Horseracing...................................................................................................................................39

Type of Sponsor............................................................................................................................40

Table 3.4: Origins of Sports Sponsorship in the UK by Industry Sector(number of deals), 2008-2012....................................................................................................40

Gambling/Lottery Providers.......................................................................................................41

Automotive...................................................................................................................................42

Sports Goods.................................................................................................................................43

Financial Services..........................................................................................................................44

Drinks Brands................................................................................................................................45

Technology....................................................................................................................................47

Utilities...........................................................................................................................................48

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 Marketby Value of Major New Deals (£m), 2013-2017......................................................................56

Figure 3.4: The Forecast Total UK Sports Sponsorship Marketby Value of Major New Deals (£m), 2013-2017......................................................................56

Market Growth.............................................................................................................................57

Figure 3.5: Growth in the UK Sports Sponsorship Marketby Value of Major New Deals (£m), 2008-2017......................................................................57



4. Competitor Analysis 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 Eventsand Clubs (£000), Year Ending December 2013.....................................................................70

KEY TRADE ASSOCIATIONS....................................................................................................72

EXHIBITIONS/TRADE SHOWS.................................................................................................72

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

INTEREST IN MAJOR INDIVIDUAL SPORTS........................................................................76

Table 5.3: Interest in Popular Individual Sports by Sex, Age, Social Grade and Region(% of adults), 2013......................................................................................................................77

Table 5.4: Interest in Individual Sports by Type of Activity (% of adults), 2013.............79

6. Strengths, Weaknesses, Opportunities and Threats 80

STRENGTHS..................................................................................................................................80

WEAKNESSES..............................................................................................................................80

OPPORTUNITIES.........................................................................................................................81

THREATS.......................................................................................................................................82



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

Key Note Research 100

The Key Note Range of Reports 101



Introduction & Definition

REPORT COVERAGE

This Key Note Market Report examines the sports sponsorship market in theUK. Sports sponsorship can be defined as a mutually beneficial transactionalrelationship between a sports organisation and a commercial partner, in whichthe former benefits financially and the latter from the communicationsopportunities that such partnerships offer, in terms of advertising andmarketing. According to industry experts IEG, sponsorship therefore refers tothe ‘cash and/or in-kind fee paid to a property (i.e. a sports, arts orentertainment organisation) in return for access to the exploitable commercialpotential associated with that property. Although sponsorship deals can boostbrand awareness by positively aligning commercial brands alongsideinspirational sports organisations or personalities, sports sponsorship deals donot tend to focus on specific product advertising.

Title sponsorship is generally the most expensive and sought after type ofsports sponsorship available. This form of sponsorship refers to deals where thename of the sponsor or commercial brand is positioned directly and exclusivelyalongside that of a sports competition, team or individual. Title sponsorship isoften the most prestigious class of sports sponsorship and therefore tends toattract the most lucrative deals. Barclays, for example, has continued to remainthe football Premier League’s title sponsor since 2012, while Rugby Union isheaded by the Heineken Cup and English Test cricket is sponsored by SouthAfrican investment bank Investec in a 10-year deal encompassing title rights.Title sponsorships have also been extended in recent years to include thecorporate sponsorships of sports stadiums, and in particular football stadiums;for example, Manchester City Football Club’s (FC’s) deal with Etihad Airwayswhich saw its home stadium reamed the Etihad Stadium and Arsenal FC’sagreement with Emirates Airlines, with the club’s stadium now known simplyas the Emirates. Similar deals have seen Derby FC rename its home ground theiPro Stadium, while Bolton Wanderers FC now play at the Macron Stadium andWigan FC at the DW Stadium following a deal with DW Sports Fitness.

The potential benefits of sponsorship agreements for commercialorganisations are vast, with such deals providing brands with access to a vastlive audience and, in some cases, coverage overseas. Sponsorship deals can alsoboost the public image of a brand by aligning it to the successes and positiveattributes of the sponsored organisation or personality. In addition,sponsorship opportunities allow brands to engage with consumers acrossseveral channels, encompassing on-site sales offices, merchandise, television/broadcast deals and/or title sponsorships.

Sports Sponsorship Introduction & Definition

© Key Note Ltd 2014 1

Personal endorsement constitutes another form of sports sponsorship andrefers to the sponsorship of an individual sports star or personality by aparticular brand, named product or service. These types of sponsorship dealoften encompass appearances by the sports personality on televisionadvertisements and other forms of advertising (e.g. billboards, direct mail, etc.)undertaken by the commercial partner. Often personal endorsement dealswithin sports are undertaken by sportswear brands and energy drinks, whichare already aligned with the sports industry to some extent.

Sports sponsorship can also include the sponsorship of live broadcast sportsevents, as well as other events, e.g. exhibitions and conferences. The EnglishPremier League, for example, which as mentioned has been sponsored byBarclays since 2012 and also represents the world’s richest soccer league,currently generates $9.4bn (approximately £5.7bn) in television deals, $5.7bn(£3.46bn) of which is accounted for domestically and the rest by overseaschannels; with broadcast deals continuing to represent the largest source ofrevenue in England. It should be noted that sponsorship of broadcasted eventsfalls under the auspices of both Key Note’s Sports Sponsorship and Arts &Media Sponsorship Market Reports.

MARKET SECTORS

The sports sponsorship market can be subdivided according to the type of sportinvolved 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 incomegenerated by multi-event tournaments, such as the Olympics andCommonwealth Games. The main types of sports that attract sponsorship dealsinclude the following:

• Football — including domestic tournaments such as the English PremierLeague and the Football Association (FA) Cup; and overseas events includingthe Fédération Internationale de Football Association (FIFA) World Cup; theUnion of European Football Associations (UEFA) Champions League; theUEFA Europa League; and the UEFA European Football Championship.

• Motorsports — including the Federation Internationale de l’Automobile (FIA)Formula 1 (F1) World Championship; as well as other motor racingcompetitions such as rally, stock car, superbikes and speedway events.

• Team sports (excluding football) — can include rugby, for example RugbyUnion and Rugby League; and cricket, including County Cricket. Both sportsalso host their own World Cups and other international tournaments.

• Individual sports — sponsorship deals undertaken within this sector mainlyencompass personal endorsements featuring an individual sports personalitythat participates in sports such as tennis or golf.



• Athletics — this sector encompasses multi-event games, such as the Olympics,Paralympics and Commonwealth Games, but can also include marathons andfun-runs.

• Horseracing — also includes other equestrian activities, such as sponsorshipof racing events, jockeys, racing courses and, sometimes, venues.

Type of Sponsor

Although sponsors can include businesses from a broad range of industries, thefollowing list provides details of the primary vertical sectors involved in sportssponsorship to a high degree in the UK:

• Gambling/lottery providers — includes online gambling companies such asSky Bet, Bet 365 and Red32, as well as high-street betting shop chains suchas William Hill, Ladbrokes and Paddy Power; and lottery providers (bothnational and regional).

• Automotive — this sector is heavily dominated by major automotive brands,such as Ford, which is one of official sponsors of the 2014 CommonwealthGames; and Hyundai/Kia Motors, one of the official partners of the FIFAWorld Cup 2014. Other significant automotive sponsors include Vauxhall,which sponsors all four national teams in Great Britain as well as theirfootball associations, and Liverpool FC; Nissan, which recently signed a dealto sponsor City Football Group, which includes Manchester City FC; andGeneral Motors Chevrolet, the current sponsor of Manchester United FC.

• Financial services — includes banking organisations and other financialservices firms. Visa is one of the leading financial sponsors, with the creditcard firm sponsoring several global sporting events, including the World Cupand the Olympic Games. Other major sponsors in the UK market includeBarclays, 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 in2013. adidas was an official partner of the FIFA World Cup 2014 and the 2012Olympics, and sponsors the English cricket team as well as several footballclubs based in the UK.

• Drinks brands — Coca-Cola heavily dominates sports sponsorship within thissector, with the soft drinks manufacturer continuing to remain a long-termofficial partner of the Olympic Games and FIFA World Cup. Other drinkbrands that have a strong presence within sports sponsorship include Pepsi,Carling, Heineken, Robinsons, Guinness, Lucozade, John Smith’s and Red Bull.



• Technology — includes IT, telecommunications and mobile networkcompanies and brands. Leading consumer technology firm Sony is currentlyan official partner of FIFA, while its PlayStation (PS) brand sponsors the UEFAChampions League and UEFA Super Cup. Other major global technologysponsors include Samsung and Panasonic, both of which represent officialsponsors of the Olympics; as well as Acer, BT and Everything Everywhere (EE).

• Utilities — including energy and fuel firms. Energy company SSE and oil firmBP are among the top-level sponsors associated with the 2014Commonwealth Games; while industrial oil firm Castrol became an officialsponsor of the FIFA World Cup for 2014. Other utilities companies with strongties to sports sponsorship include EDF Energy, Scottish Power and British Gas.



1. Executive Summary

The UK sports sponsorship market has continued to decline in the yearsfollowing the London 2012 Olympics, with a noticeable drop in both the valueand volume of deals being signed since 2009, when market value peaked. Sincethen, the market has observed year-on-year double-digit declines, althoughmuch of this is due to the skewed results produced by the Olympics. Investmentin sports sponsorship has also continued to be impacted by the after-effects ofthe recession, which has led to squeezed marketing budgets and reducedbusiness optimism in the years following the economic downturn, which hitdeveloped markets in 2008/2009. Increased competition from digitalmarketing formats has also had a negative impact on investment in sportssponsorship, with many businesses opting to funnel money away fromlarge-scale sponsorship deals and towards cheaper, and often moremeasurable, marketing initiatives involving digital, mobile and social mediachannels.

Despite the contractions observed across the sports sponsorship market in theUK in recent years, the global market has continued to witness a long-termupwards trend, with figures compiled by IEG revealing the total value of globalsponsorship rights to have topped $53bn in 2013, having grown by 20.7% since2009. This suggests that the fluctuations that have hit the UK market in recentyears are not likely to be suggestive of a longer-term decline; particularly giventhat the UK economy once again showed signs of recovery in 2013, with evenstronger growth predicted for 2014. The UK’s hosting of several upcomingsporting events is also likely to drive future growth. In 2014, alone, for example,the country will play host nation to the Giro d’Italia — the second-largestcycling race in the world — as well as the Grand Départ of the Tour de France,the Commonwealth Games and the Ryder Cup. The emergence of severalnon-traditional sports sectors, such as cycling, rowing and para-sports,following the success of Team GB athletes at the London 2012 Olympic andParalympic Games are also likely to boost growth in the market goingforwards.

The development of a more sophisticated and mature approach to sportssponsorship should also help to strengthen the position of the sector withinthe wider marketing mix in the future, with new sponsorship deals securedoften offering a wide range of new asset rights and opportunities for brandactivation than was previously provided. Indeed, many current sponsor dealsnow encompass a range of marketing activity across a variety of channels, fromtablet and mobile to television, online and social media. This trend is expectedto continue to develop going forwards, with sports sponsorship partnershipslikely to become increasingly integrated with wider multi-channel marketingstrategies.

These factors combined should help to secure more stable growth across thesports sponsorship market in the future, with Key Note predicting marketgrowth to pick up once again from 2014 onwards, in line with thestrengthening UK economy. Overall, Key Note expects the market to achievegrowth of 14.8% over the 5-year forecast period to 2018.

Sports Sponsorship Executive Summary


2. What’s KEY in the Market?

KEY DRIVERS

The sports sponsorship market has continued to evolve and diversify in recentyears, with several factors serving to drive growth in specific areas of themarket, as detailed below:

• Digital and social media has emerged as a major channel for sports sponsorsin recent years. Nearly a quarter of the world’s population are now thoughtto use social media, with sponsors increasingly keen to leverage theexpansive reach and potential benefits of this particular medium. Sponsorshave therefore begun to utilise their commercial partnerships to engage fansvia social media channels; for example, by delivering relevant, interestingand engaging content to fans of both the brand and the sport in real time.

• Sponsorship portfolios have continued to become increasingly diverse inrecent years, with a greater number of brands moving into non-traditionalareas and emergent sectors, such as cycling, athletics and para-sports.

• The migration of consumers onto mobile devices such as smartphones andtablets has intrinsically changed the way people are now consuming media,resulting in a noticeable shift away from live television viewing. As a result,it has become increasingly necessary for sponsors engaging in broadcastdeals to extend coverage to a wide range of communications channels, manyof which also offer a higher level of engagement and interactivity thantraditional channels such as television and radio.

• The mobile revolution has also resulted in sponsors developing creative andengaging content purely designed for mobile platforms, such as brandedapplications (apps) which tie into the sponsored sport or event. In this way,brands are able to reach out to consumers by providing exclusive content onthe sport involved, thus connecting with consumers on a more personal levelregarding a subject that they are passionate about. In this way, popularmobile platforms can be leveraged to provide improved customer relations,brand engagement and increased brand loyalty.

• Sports sponsorship has moved beyond simple traditional sponsored activities,such as in-stadium advertisements and kit insignias, towards more ‘active’commercial partnerships, which allow brands to engage with fans, membersand participants in a number of different ways from promotions, hospitality,competitions and the use of social media, thus resulting in much closerpartnerships between brands and their sponsored parties.

• Shifts in geo-political power and economic growth have seen the emergenceof developing countries, such as Brazil, Russia and Qatar, as host nations toleading international sports events like the Olympics and the FédérationInternationale de Football Association (FIFA) World Cup in recent years, withthis trend expected to continue well into the future.

Sports Sponsorship What’s KEY in the Market?


MARKET TRENDS

The Social Side of Sports Sponsorship

The rising popularity of social networks in the UK and across the world has seenbrand marketers and sponsors increasingly turn to such channels in order toleverage social media to connect with fans, followers and participants on amuch more personal level regarding sponsored sports. In this way, marketersare able to solidify and strengthen relationships with consumers by sharing inthe passion and emotional attachments that they have for their favourite sport,team or athlete through highly engaging social media platforms, whichfacilitate and encourage two-way conversations between brands andconsumers. Not only this, but social media can also allow brands to engagewith target audiences directly and in real time, necessitating a more agileapproach to marketing activities.

Indeed, social media seems tailor-made for the incessant chatter and virtualcamaraderie engaged in by sports fans; with sports stars and teams attractingvast swathes of followers on social networks. Barcelona Football Club (FC), forexample, now has over 60 million followers on social media, while Real Madridhas around 49.8 million and Manchester United has 34.5 million. The 2012Olympics has also significantly boosted social media as a platform for brandengagement and customer interactions, with several well-known athletes fromthe Games, such as Mo Farah, Jessica Ennis and Tom Daly, all having Twitterfollowings of over 1 million as a result. The successful integration of socialmedia alongside the Olympics has paved the way for other internationalsporting competitions to experiment with the platform.

The 2014 FIFA World Cup, for example, generated an enormous amount ofsocial media activity, with the competition overtaking the Superbowl tobecome the most talked-about sporting event on Facebook. According toSnack Media, approximately 72.4% of fans discussed the football tournamenton social networks while watching the games on television; the finalegenerated 618,725 tweets per minute on micro-blogging site Twitter. Theheightened level of activity on social media has meant that such platforms havebecome increasingly attractive to sponsors, with several official World Cupsponsors increasing their following on social networks as a result ofpromotional activities across such platforms during the tournament. adidas,for example, became the most talked-about brand related to the 2014 WorldCup, following strong social media participation and its ‘All or Nothing’campaign, with the brand’s social media followers increasing by 5.8 millionacross all platforms as a result. The sportswear brand also benefitted from thelaunch of its @brazuca Twitter account — which was designed to represent theofficial match ball of the 2014 World Cup — which finished the tournamentwith nearly 3.5 million followers.



Similarly, official tournament partner Coca-Cola saw its following on Facebookincrease to 85 million as a result of activity on the social network during thetournament, as did several other top level sponsors including Sony, Visa,McDonald’s and Budweiser. Sony, in particular, took participation in social onestep further through the launch of its own social network, One Stadium Live,which was dedicated solely to social media chatter surrounding the World Cup.The social network, aimed to unite fans’ passion for football by curating socialmedia activity from several social networks including Facebook, Twitter andGoogle+ from across the world into the most popular, relevant and recentfootball topics under one domain. The site also provided live, in-depthperformance statistics for each team and player, with the platform acting as a‘second-screen’ experience during live games, delivering real-time, filteredstreams of fan chatter from around the globe.

The Arrival of the Second Screen and Multi-Channel Sponsorship

The rapid migration of consumers onto mobile platforms has intrinsicallychanged the way in which media is being consumed, with the proliferation ofhighly sophisticated mobile devices, such as smartphones and tablets, helpingto facilitate the consumption of television programming and live broadcastevents in real time across the world. According to data compiled by KantarMedia’s Target Group Index (TGI), nearly six-in-ten (59.3%) UK adults arethought to own a smartphone, while around a third (32.6%) have a tabletcomputer.

The sharp uptake of mobile devices has undoubtedly had an effect on how liveevents (including sporting events) are being broadcast and viewed by fans —a trend which has resulted in the emergence of the so-called second screen.Indeed, according to research undertaken by PERFORM Kantar Media andSportBusiness Group in 2014, 43% of sports fans now use a second screen, suchas a smartphone or tablet, when watching sport on television, with aroundone-in-four (39%) doing so via a mobile device — up from 33% in 2013. Theresearch undertaken by Kantar Media also analysed the type of content UKsports fans accessed using their second screen, with the most popular found tobe live text commentary of other matches, which over half (56%) ofrespondents revealed that they had accessed. Meanwhile, nearly a quarter(24%) were found to have accessed non-sports-related content, while 22%watched live sports, 16% placed a bet, and 13% accessed social networksregarding sports content.



Table 2.1: Types of Content Accessed by UK Sports Fanson Second Screens (% of respondents), 2014

Follow live text commentary of other matches 56

Use for non-sports-related content 24

Watch live sports 22

Place a bet 16

Social network around sports content 13

Source: Know The Fan - The Global Sports Media Consumption Report 2014 fromPERFORM, Kantar Media and SportBusiness Group

The diversification of media consumption across a range of devices has meantthat it has become increasingly necessary for sponsors to embark on strategiesthat ensure coverage across a multitude of channels in order to reach as a widean audience as possible. Although the rise of digital media could represent athreat at a superficial level, with brands tending to divert funds away fromcore sponsorship and towards digital activities, it can also give rise to severalnew opportunities for sponsors, particularly in terms of brand activation, bycreating new rights and assets which can be leveraged as part of a widersponsorship campaign. The advanced technological capabilities ofsecond-screen devices, such as tablets and smartphones for example, offer ahigh level of interactivity, thus allowing brands to engage with consumers ina more creative and engaging way. Not only this, but by using such platforms,brands can integrate their online promotions with social media, and in doingso target real-time marketing at fans, thus strengthening the relationshipbetween event, brand and consumer.

The launch of a number of event-companion apps in recent years reflects thecontinued development of the second screen as an integral part of broadcastviewing, with several large-scale events, such as the 2012 Olympic Games andthe Commonwealth Games launching their own apps over the past few years,which contain exclusive player and tournament information, as well asup-to-date leader boards, event schedules and social media buzz. Leadingsports channel, Sky Sports, has also entered the second-screen playing field inrecent years, following the launch of its own app for iPad, which contains anew Formula 1 (F1) companion experience and allows Sky customers to viewsporting events broadcast on the channel from a range of perspectives usingtheir tablet device in real time.



The rising popularity of companion apps has been leveraged to some extentby a select few sponsors; however, it remains an area of the market that hasyet to reach its full potential. Nonetheless, interest in sponsored companionapps has continued to observe growth in recent years. The Royal Bank ofScotland (RBS), for example, launched its first sponsored app back in 2012 tocelebrate the RBS 6 Nations rugby tournament. The app challenged fans topredict the result of games, take part in opinion polls and answer rugby quizquestions devised by RBS 6 Nations. The aim of the app was to capitalise onthe growth in duel screening and to leverage social media, through FacebookConnect, to allow fans to interact with one another during live events,regardless of their location. The app has continued to be used for the rugbytournament since its success in 2012, and now offers several enhancedcapabilities designed to improve audience participation and interaction.According to a report published by app developer Accenture in 2013, the appwas downloaded by over 325,000 people throughout the 2012 competitionand now represents the UK’s leading sports app. Similar sponsored companionapps have been launched by brands following RBS’s success, with Betfairlaunching a Euro 2012 companion app which allowed users to bet on gamesin real time; Premier League sponsor Barclays also has an official football app,which provides details of fixtures, results, and teams, as well as integration withTwitter.

Emerging Sports Diversify Sponsorship Portfolios

According to an article published by The Guardian in June 2014, the ‘highestgrossing’ sports for sponsorship investment currently include F1, major USleagues such as the National Football League (NFL), and the Olympics.However, the rising popularity of emerging sports such as cycling, extremesports, and skiing and snowboarding has seen sponsors shift expenditure tonewer, non-traditional areas of sport. As a result, sports sponsorship portfolioshave become increasingly diverse in recent years.

The success of the British cycling team during 2012 at the Tour de France andthe Olympics represents just one example of an emerging area within thesports sponsorship market, reflected by the lucrative sponsorship deals that theBritish cycling team have attracted recently, with Sky continuing to sponsor theteam since 2008 following the signing of a $10m sponsorship deal; thebroadcaster renewed its commercial partnership in 2012 for a further 4 years.The success of British cycling has been further driven by the UK’s hosting ofseveral international events focusing on the sport, including the Giro d’Italia— the world’s second-largest cycling event — in Northern Ireland and theGrand Départ of the Tour de France in Yorkshire, both of which were heldduring 2014. In addition, increased participation in cycling, as well as a growingfan base, has served to make cycling a hugely interesting prospect for sponsors,with sporting organisation British Cycling revealing in 2013 that itsmembership has surpassed 75,000 after soaring by 50% since Bradley Wiggins’win at the Tour de France.



Several other emerging sports have also attracted the attention of sponsors inrecent years, following increased popularity and successes at internationalcompetitions. These have included skiing and snowboarding, with UK Sport setto triple its investment in the sport to £31m between 2014 and 2018, up fromthe £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 ofBritish athletes at World Cup and Olympic level, with British Ski and Snowboard(BSS) athletes finishing with six top-ten results during the recent WinterOlympics. Cricket represents another sport to have seen strong growth insponsorship funding in recent years, with sponsorship of the sport increasingby 14% year-on-year since 2006 to top over £250m in 2014. This growth haspredominantly been driven by the increased commercialisation of the sport;the introduction of a shorter Twenty20 format; and the growing popularity ofthe Indian Premier League.

Triathlon formats have also seen a surge in popularity in recent years, drivenby increased interest in events such as Ironman, which has seen its annualrevenue increase sevenfold over the past year, after soaring to $150m. Thiscomes following increased investment by backer Unit Providence EquityPartners, which purchased the World Triathlon Corporation back in 2008, andhas since continued to expand the reach of Ironman by entering new markets,adding new races to the event and growing its selection of popular brandedmerchandise, with its Timex watch, for example, now representing thebest-selling sports watch in the world. The rising popularity of the race, whichencompasses a 2.4-mile swim, a 112-mile cycle race and a marathon spanning26.2 miles, is reflected by a sharp growth in participants, with around 200,000athletes 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 ofthe increasing popularity of the race, with Ironman counting several leadingbrands, including Mercedes-Benz, Subaru, Powerbar, Timex, BMW and FosterGrant, among its sponsors for events held across the world.

The diversification of sponsorship portfolios is a trend that is expected tocontinue well into the future, with other key emergent sports, such as extremesports, ultimate fighting, martial arts and rally car racing, also expected to seestrong interest from sponsors in coming years. In this way, sponsors areexpected to spread their reach even further by tapping into new audiencesacross the world. Diversifying sponsorship portfolios may also help to temperany potential losses; for example, if a sponsored team or sports star exits acompetition earlier than expected.



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 annualchain-linked GDP), after narrowly avoiding a double-dip recession during 2012when GDP growth fell to just 0.3%. Inflation has also continued to stabiliseover the past year, with rates standing at around 3% in 2013 after fallingslightly by 0.2 percentage points. Meanwhile, unemployment saw its largestdecline since the recession, after the number of claimants fell sharply by 10.7%during 2013. Despite these positive indicators, consumers have continued toremain cautious in terms of expenditure, with household disposable incomesper capita growing by just 1.1% during 2013, compared to a growth rate of2.8% in the previous year; household budgets have remained tight in the faceof continued hikes in the price of energy, food and fuel.

The strengthening economy is already thought to be having a positive effecton business confidence, with both operational and marketing departmentsshowing renewed optimism following a recovery in GDP growth over the pastyear. This in turn is likely to lead to more flexible marketing budgets, many ofwhich were cut drastically in the wake of the recession as businesses attemptedto save costs. As such, the outlook for sponsorship funding across sports ispromising, with brands increasingly looking to leverage commercialpartnerships in order to secure future growth as the economy continues tostrengthen.

Table 2.2: UK Economic Trends (000, £m, %, million and £),2009-2013

2009 2010 2011 2012 2013

Resident PopulationEstimates (000),Mid-Years

Female 31,728 31,954 32,188 32,390 32,556

Male 30,532 30,805 31,097 31,315 31,532

Total population 62,260 62,759 63,285 63,705 †64,087

% changeyear-on-year - 0.8 0.8 0.7 0.6

Table continues...




...table continued

2009 2010 2011 2012 2013

Gross DomesticProduct (£m)

Current prices 1,417,359 1,485,615 1,536,937 1,558,415 1,613,391


Annual chain-linkedGDP 1,461,361 1,485,616 1,502,216 1,506,388 1,531,428


Rate of Inflation (%)

Inflation -0.5 4.6 5.2 3.2 3.0

Percentage pointchangeyear-on-year - 5.1 0.6 -2.0 -0.2

Actual Number ofUnemployed Personsin the UK (million)

Actual number ofclaimants 1.53 1.50 1.53 1.59 1.42

% changeyear-on-year - -2.0 2.0 3.9 -10.7

Table continues...




...table continued

2009 2010 2011 2012 2013

Household DisposableIncome Per Capita (£)

Householddisposable income 15,443 16,058 16,371 16,830 17,022


† — does not sum due to rounding at source

GDP — gross domestic product

Note: inflation is at retail price index (RPI); inflation data shown are annual averagechanges; claimant count measures the number of people claiming Jobseeker’s Allowance.

Source: Population Estimates for UK, England and Wales, Scotland and NorthernIreland, Mid-2001 to Mid-2010 Revised, December 2013/National PopulationProjections, 2012-based projections/United Kingdom Economic Accounts Q42013, published March 2014/Consumer Price Inflation, April 2014/Labour MarketStatistics, May 2014, National Statistics website © Crown copyright material isreproduced with the permission of the Controller of HMSO (and the Queen’sPrinter 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 valueof premium sports broadcast rights worldwide is expected to increase by asubstantial 14% in 2014 to reach £16bn. This increase in rights is expected tobe driven by new agreements among top-tier European domestic footballleagues and major North American sports leagues. In the UK, the EnglishPremier League has continued to negotiate increasingly high-value deals withbroadcasters, with Sky continuing to lead the market in terms of sportsbroadcast rights despite increased competition from other competitors, suchas ITV Digital, Setanta and ESPN, in recent years. However, recent months haveseen telecommunications firm BT expand its presence in the sports broadcastarena, with the company launching a number of new UK sports channels in adirect challenge to the 2-decades-long dominance of Sky over sports television.



BT has spent a rumoured £738m over the past 3 years for rights to 38 livePremier League matches each season, while Sky has paid £2.3bn for 116matches each season. BT has also bought up rights to Premiership Rugby, aswell as a host of other sports such as Moto GP and Nascar, and has also takenover ESPN’s UK sports channels. Towards the end of 2013, BT announced thatit had secured the exclusive UK live rights for both the Champions League andthe Europa League for 3 years from 2015, following a huge bid rumoured toworth almost £900m, further driving competition against competitor Sky.

BT’s expansion into UK sport marks a concerted effort by the company totransform its image from telecommunications firm to top-level sportsbroadcaster. However, its acquisition of rights to both the Champions Leagueand Europa League mean an end to live European club football on free-to-viewchannels such as BBC and ITV, although BT’s commitment to free matches oversatellite, cable and broadband is likely to counter criticism from some fans.According to BT, around 2 million people had subscribed to its televisions sportschannels since the launch of the BT Sport package in August 2013; while Skyrevealed that the start of the 2013/2014 football season had resulted in recordviewing numbers, with the tournament attracting an average audience of 1.55million, 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 likelyto meet with increased competition from BT Sport, as the latter continues toseek new broadcast rights opportunities, particularly in sports other thanfootball, such as golf and cricket — both of which have significant followingsin the UK. In May 2014, for example, BT Sport revealed that it had securedrights for live television coverage of the Caribbean Premier League T20 crickettournament in a deal spanning 2 years. Sky is likely to face further competitionfrom BT when the International Cricket Council (ICC) auctions off the broadcastrights to its World Twenty20, 50-over World Cup and Champions Trophycompetitions later this year, with BT already making it clear that it will beentering the auction. Sky Sports currently has the rights to broadcast all liveinternational cricket fixtures played by England at home, as well as all fixturesin India, the West Indies, Australia, New Zealand and South Africa. BT is alsoexpected to bid for broadcast rights for the US Professional Golfers’ Association(PGA) golfing tour, which is also up for tender during 2014, despite Skycurrently owning the rights to broadcast the tournament until 2017.

BT has also strengthened its position within the sports sponsorship marketthrough a number of new partnership deals in recent years, with thetelecommunications company becoming the new sponsor of the GlasgowWarriors and Edinburgh rugby teams in July 2013, which will see both clubs’sport BT’s logo on their club shirts. The multi-million-pound deal effectivelybypasses 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 venueMurrayfields; as well as a new deal with Wales’ four rugby regions, which willsee BT Sport become the title sponsor of the Arms Park — the home venue ofthe Cardiff Blues — and take on shirt sponsorship for the other three Welshregional rugby teams.



HOW ROBUST IS THE MARKET?

The UK sports sponsorship market has continued to fluctuate in recent yearsdue to its vulnerability during periods of economic downturn. Like othersectors of the advertising industry, the market has struggled to achieve stablegrowth in recent years, with marketing budgets continuing to be squeezed inthe wake of the 2008/2009 recession. While the UK’s hosting of the Olympicand Paralympic Games during 2012 helped to secure growth in the yearspreceding the tournament, it also served to skew market value, with anoticeable decline apparent in the years following the event. Nonetheless,British athletes’ successes in several sports during the Games and at otherinternational events has led to a diversification of sponsorship portfolios, asbrands seek to capitalise on the rising popularity of emergent sports, such ascycling, skiing and snowboarding, and triathlon racing, to name but a few.

Despite the fluctuations in market value over the past few years, the UKsponsorship landscape remains robust, with the country benefittingsignificantly from the popularity of mainstream sports, such as football, rugbyand cricket, all of which have established leagues, a vast following and are wellknown on the international stage. As such, these sports have continued toattract lucrative sponsorship deals, with marketers continuing to put a highvalue on such deals and reap the benefits of the wide reach and positiveassociations that commercial partnerships with sports teams and personalitiesprovide. The UK’s sports sponsorship market has also been boosted by itselection as host nation for several upcoming international sporting events,including the Commonwealth Games, the Ryder Cup, the Giro d’Italia and theGrand Départ of the Tour de France in 2014; as well as the Rugby World Cupin 2015.



3. Market Size, Segmentation & Forecasts

MARKET SIZE AND SEGMENTATION

Although the sports sponsorship market observed sharp growth in the yearsrunning up to London’s hosting of the 2012 Olympic and Paralympic Games,recent years have seen a drop off in terms of value and the volume of dealsbeing signed in the UK. It can therefore be assumed that the UK’s hosting ofthe Games has skewed results slightly in recent years, with the internationalevent widely considered to attract historically large sponsorship deals everytime it is held.

While the UK market has continued to benefit from the after-glow of theGames, with several non-traditional sports such as cycling, athletics and rowingemerging as key areas of growth following British athletes’ success at theOlympics, new sponsorship deals attracted by such sports have not been largeenough to offset the tail-off in new business that has been observed in recentyears. Nonetheless, the continued popularity of Premier League football inEngland — the most watched football league in the world — has meant thatthis particular sector has continued to attract highly lucrative sponsorship dealsin recent years, and remains an enticing prospect for brands seeking newsponsorship opportunities.

Furthermore, despite its decline in recent years, sports sponsorship remains themost lucrative area of the overall sponsorship market in the UK, with themarket benefitting from strong global coverage and commercial investmentof several sports, such as football, golf, rugby, Formula One (F1) racing andcricket. In addition, the UK’s hosting of several upcoming internationalsporting events, such as the Giro d’Italia in Northern Ireland, the Grand Départof the Tour de France in Yorkshire, the Commonwealth Games in Glasgow andthe Ryder Cup in Gleneagles, has once again helped to position the countrycentre stage on the global platform following its widely lauded success as hostnation for the 2012 Olympics.

The Total Market

In order to assess the size of the sports sponsorship market in the UK, Key Notecommissioned specialist market analysts Find!Sponsorship to estimate theperformance of the market between 2008 and 2012. According to the datacompiled by Find!Sponsorship, the total UK sponsorship market has declinedin value since 2009 and in volume since 2010, following peaks of £946m and414 deals during those years, respectively. However, while the total value ofthe market fell by 41% between 2008 and 2012 to stand at £398.7m, the totalnumber of deals signed has actually increased over the same period, rising by121.9% since 2008 to reach 335 in 2012.

Sports Sponsorship Market Size, Segmentation & Forecasts


As stated previously, this could be down to a rise in the number of smallersponsorship deals being signed in the UK in the lead up and following the 2012Olympic and Paralympic Games, with a number of new non-traditional sports,such as cycling, rowing, para-sports and athletics, seeing a surge in popularityand a rise in participation following the successes of British athletes in theseparticular areas during the competition.

Despite these sports growing in popularity in the UK, they remain relativelysmall areas of the wider sponsorship marketplace, and therefore any increasein terms of volume of deals being signed within these areas has not beenenough to offset the wider decline in market value that has hit the UK since2009. While this decline could be down to wider economic pressures andsqueezed marketing budgets, it is more likely to reflect the abnormally highlevel of large sponsorship deals being signed in the UK in the run up to theLondon 2012 Olympic and Paralympic Games. Indeed, data compiled by IEGsuggest that the global sponsorship market actually increased by 17.7%between 2008 and 2012 to reach $51.8bn, suggesting an overall upwards trendin the market in more general terms.

Table 3.1: The Total UK Sports Sponsorship Marketby Value and Number of Reported Major New Deals

(£m and number), 2008-2012

2008 2009 2010 2011 2012

Value (£m) 675.9 946.0 850.7 539.8 398.7

% change year-on-year - 40.0 -10.1 -36.5 -26.1

Number of deals 151 322 414 340 335

% change year-on-year - 113.2 28.6 -17.9 -1.5

Note: caution should be used in interpreting these figures as Find!Sponsorship monitorsa cross section of deals reported online and in the press each year, while some deals andrenewals go unreported, which may result in estimates being lower than actual marketfigures; as a result any conclusions based on such figures should be considered Key Note’sown.

Source: © Find!Sponsorship



Figure 3.1 illustrates the value of the market between 2008 and 2012,highlighting the significant increases occurring in 2009 and 2010.

Figure 3.1: The Total UK Sports Sponsorship Marketby Value (£m), 2008-2012

2008 2009 2010 2011 20120

100

200

300

400

500

600

700

800

900

1,000

1,100

Source: © Find!Sponsorship/Key Note

Figure 3.2 illustrates the peak in the number of major new deals in the sportssponsorship market in the UK that occurred in 2010.

Figure 3.2: The Total UK Sports Sponsorship Marketby Number of Major New Deals, 2008-2012

2008 2009 2010 2011 2012

150

175

200

225

250

275

300

325

350

375

400

425




MARKET SECTORS

For the purposes of this report, the sports sponsorship market has beensub-categorised according to type of sport and type of sponsor; it has also beenassessed in terms of value (i.e. the value of sponsorship deals) and in terms ofvolume (i.e. the number of sponsorship deals reported).

Type of Sport

Football continued to remain the most lucrative sport over the review periodin terms of sponsorship, with this category observing year-on-year increasessince 2009. In 2012 alone, sponsorship deals secured by football organisationsincreased by 59.3% to stand at £234.1m, with this sector benefitting from thevast global coverage and popularity of the English Premier League. The growthin football sponsorship in terms of value is also likely to have been boosted byan increase in activity during the run up to the 2014 Fédération Internationalede Football Association (FIFA) World Cup, with the English Football Association(FA) signing a number of lucrative deals with brands such as Samsung and Nikein the years preceding the global event.

2012 also saw Rugby Union overtake the Olympics to become the second-mostlucrative area of the sports sponsorship market during 2012 after seeinggrowth of 41.2%, with the total value of Rugby Union sponsorship deals struckstanding at £39.9m that year. At the same time, sponsorship deals secured offthe back of the 2012 Olympics continued to fluctuate during the 5-year reviewperiod, with large increases observed in 2009 and 2011, but a decline of 76.2%reported in 2012, suggesting a tapering off of interest among supporterssurrounding the event and Olympics athletes.

Elsewhere, healthy growth was observed across a number of sports during 2012including tennis (728.1%), cycling (831.6%), multi-sports (319.9% [includingthe 2014 Commonwealth Games]), golf (79.8%), sailing/yachting (235.8%), andequestrian sports (537%). These high levels of growth are most likely to be aresult of heightened interest from sponsors in the run-up to the Olympics, aswell as the continued success of several individual British athletes, such astennis stars Andy Murray and Laura Robson, as well as golfer Rory McIlroy andathletes Mo Farah and Jessica Ennis.



Table 3.2: Most Popular Sports in the UK by Valueof Reported Major New Deals (£000), 2008-2012

2008 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

Equestrian Sports n.a. n.a. n.a. 832 5,300

Formula 1 5,569 5,773 7,995 n.a. 5,000

Motorsports‡ n.a. n.a. n.a. 2,143 4,600

Motorcycle racing 1,971 876 n.a. 1,904 3,300

Darts n.a. n.a. n.a. 2,345 2,300

n.a.. — not available

† — includes sponsorship deals signed for the Commonwealth Games 2014

‡ — motorsports other than F1



Football was by far the most popular sport to attract sponsorship deals in termsof volume throughout the 5-year review period, with the number of footballsponsorship deals signed more than tripling between 2008 and 2012 to standat 113. Once again, this is most likely to be down to the global popularity ofthe English Premier League, as well as the vast number of teams that the leagueand other under-leagues comprise. The advent of the World Cup in SouthAfrica in 2010, as well as the Union of European Football Clubs’ (EUFA’s) Euro2012 competition hosted by Poland and the Ukraine, is also likely to havehelped boost player and team sponsorships in the run up to these events.



Despite the Olympics attracting the third-largest expenditure from sponsorsduring 2012, only seven major deals were registered for the year — down froma peak of 19 in 2009. However, this suggests that, while the number of dealssigned for the event were limited, each deal was highly lucrative, with manyOlympics sponsorship partnerships worth millions of pounds. Elsewhere, RugbyUnion and Rugby League attracted relatively high numbers of sponsorshipdeals during 2012, at 41 and 22, respectively. However, Rugby Union saw aslight drop in the volume of deals being signed during the year, while RugbyLeague appears to have gone from strength-to-strength since 2009, suggestingthat this sport has increased in terms of popularity and broadcast audience inrecent years.

Table 3.3: Most Popular Sports in the UK by Numberof Sponsorship Deals, 2008-2012

2008 2009 2010 2011 2012

Football 36 85 108 100 113

Rugby Union 28 30 40 51 41

Rugby League 15 9 17 20 22

Cricket 14 20 26 20 17

Cycling 3 7 11 n.a. 17

Golf 13 14 11 16 15

Tennis 4 6 11 n.a. 13

Athletics 4 4 2 12 12

Horseracing 6 13 12 16 11

Multi-sports† n.a. 3 10 n.a. 7

Olympics 6 19 12 17 7

Motorsports‡ 1 6 5 n.a. 5

Sailing/yachting 6 3 8 n.a. 5

Ice hockey n.a. n.a. 2 n.a. 4

Motorcycle racing 5 7 10 n.a. 4

n.a.. — not available

† — includes sponsorship deals signed for the Commonwealth Games 2014

‡ — motorsports other than F1





Football

Football has continued to dominate the sports sponsorship market, with theEnglish Premier League remaining one of the most valuable and most watchedsports leagues in the world. Altogether, the Premier League is now broadcastin around 212 territories across the globe, with the television audience ofPremier League matches reaching 4.7 billion. The vast reach of the PremierLeague is therefore highly attractive to commercial organisations and brands,with sponsorship deals signed by leading football clubs, football players andtournaments providing high brand visibility, global reach and added value tosponsors, i.e. in the form of match tickets and naming rights on certainmerchandise. As such, football sponsorship in the UK has continued to attractrecord-breaking sponsorship deals in recent years. The sector also benefits fromseveral popular national and international events, including the FA Cup, theUEFA Champions League, the UEFA Europe League, the FIFA World Cup andthe UEFA European Championship; all of which have continued to garnerhigh-profile sponsorship deals.

Football sponsorship can encompass the sponsorship of national leagues andother tournaments, and may include team shirt sponsorship, stadium titlesponsorships (e.g. Arsenal’s Emirates Stadium, Manchester City’s EtihadStadium and Derby’s iPro Stadium), individual player sponsorship deals, andthe sponsorship of television coverage. The English Premier League, inparticular, has continued to see strong growth in the value of sponsorship dealssigned by its major football clubs. Manchester United Football Club (FC) — longupheld as the most popular football club in the world with an estimated 354million followers worldwide — has continued to attract record-breakingsponsorship 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 team’s kit over thenext 10 years. adidas replaces Nike as the club’s kit sponsor, with the new dealworth a record-breaking £75m a season to the football team — just £40m lessthan the Glazer family paid to acquire the club back in 2005, reflecting theincreasingly high value now attained by football sponsorship in the UK.



Aside from team sponsorship deals, the major current sponsorship dealsongoing within the football sector include the following:

• Barclays has been the official sponsor of the English Premier League since2001, with the bank’s current £40m-a-year sponsorship deal set to run untilthe 2015/2016 season. Barclays’ commercial partnership with the footballleague has seen it retain its position as title sponsor of the seasonaltournament. Sponsorship activities undertaken by the bank during the mostrecent 2013/2014 season have included a new integrated campaign entitled‘Thank You’, which was rolled out in August 2013 ahead of the start of thePremier League and was designed to showcase the dedication of fans fromacross England. An international version of the campaign was also launchedby Barclays to target the hundreds of millions of fans that watch the PremierLeague from territories overseas. The campaign was further supported byadditional promotional activity, including experiential, social and publicrelations (PR) stunts, as well as ticket competitions. Despite the vast reachthat the bank’s sponsorship of the Premier League provides, recent newsreports have suggested that Barclays was considering exiting its currentsponsorship 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 hadaccused the deal of being ‘zero value’; the tournament continues to demandgreater amounts for commercial agreements and Barclay’s currentsponsorship agreement is estimated to be 50% higher than that negotiatedfor the previous contract term. Further to this, it has been reported that thebank has to pay additional ‘activation costs’ for sponsorship activities carriedout on social media and television. Despite these reports, Barclays hascontinued to maintain that it is committed to its current sponsorship dealwith the Premier League and that the bank continues to remain focused ondelivering value from the commercial partnership.

• The UEFA Champions League has also continued to attract lucrativesponsorship deals with top-level brands in recent years, with the tournamentthought to represent the most-watched annual sporting event in the world,attracting global average audiences of around 165 million. During 2014, thetournament announced that car manufacturer Nissan had been signed up asits new official sponsor, replacing Ford which exited its 22-year partnershipwith the annual event in 2013/2014. The new deal signed by Nissan will runfor 4 years and is rumoured to be worth over £45m a season. Other currentsponsors of the tournament include Mastercard, Unicredit, Heineken,Gazprom and Sony. It is thought that the sponsorship deal was undertakenby Nissan to raise the profile of the brand across Europe, where it hasrevealed conditions have remained ‘sluggish’. The commercial partnershipwill provide the car manufacturer with extensive rights and brandingopportunities around Champions League matches, including the final,pre-match training sessions, and other media and hospitality benefits.



• The English FA runs an official Partner Programme, which is currently runningfor the years between 2010 and 2014, and includes the recent FIFA WorldCup in Brazil which was held in 2014. The three major areas covered by theFA’s Partner Programme include the England team, the FA Cup and thedevelopment of the game in the UK. The England team’s lead partner iscurrently Vauxhall, with supporting partners comprising Umbro and Mars;and official suppliers including Carlsberg, Lucozade, Nivea and Marks&Spencer (M&S). The FA Cup, meanwhile, is currently sponsored by beerbrand Budweiser. However, it was announced in February 2014 thatBudweiser had decided against renewing its commercial partnershipagreement with the tournament, with the FA now thought to be seeking areplacement for the 2014/2015 competition. Nike is currently the officialsponsor of the England kit, with the sportswear brand replacing Umbro in2013 following a 50-year relationship with the national team. The new dealbetween the FA and Nike was rumoured to be worth over £20m a year andwill run until 31st July 2018. It will see Nike supply kits for England’s men’sand women’s football teams at every level, as well as provide sponsorshipand equipment to the FA’s national centre at St George’s Park. Thesponsorship landscape in Scottish football has changed significantly in recentyears following the merger between the Scottish Premier League (SPL) andthe Scottish Football League (SFL) to create a new league system, the ScottishProfessional Football League (SPFL) from 2013/2014; this was undertaken inorder to attract title sponsorship to Scottish league football. Since the launchof the SPFL, the league has entered into a new sponsorship agreement withsoft drink brand Irn-Bru, but has yet to attract a title sponsor to the leagueand the Scottish League Cup. The Scottish Football Association (SFA),meanwhile, has continued to attract sponsors for the national team, withcurrent commercial partners comprising Vauxhall, adidas, Carling andThomson Sport. Meanwhile, in Wales, the Welsh Premier League is currentlysponsored by Corbett Sports, which signed a 4-year deal with the tournamentback in 2010. Like the football associations in Scotland and England, theFootball Association of Wales (FAW) and the Irish Football Association (IrishFA) count Vauxhall as their main commercial partner, although they still havepartnership agreements with several local businesses as well.

The FIFA World Cup has continued to draw increasingly large audience viewingfigures in recent years, with the 2014 tournament estimated to have increasedits global television audience above the 3.2 billion reach of the 2010 FIFA WorldCup South Africa. The group stages of the Brazilian tournament was estimatedto have reached record numbers of viewers across the world, withbreakthrough viewing figures reported in the US and growth in audienceswatching the tournament in Europe, Asia and the rest of the Americas. Theglobal coverage of the football competition, as well as its continued popularityamong viewers and fans, has continued to attract interest from a large numberof high-profile global brands seeking to capitalise on the tournament’s globalreach and its positive public image through sponsorship agreements.



Following the 2006 World Cup, FIFA unveiled a new commercial strategy, whichcomprised a three-tier sponsorship structure similar to that used in theOlympics. The primary tier consists of FIFA Partners, the second tier FIFA WorldCup Sponsors and the third tier National Supporters for each FIFA event.Sponsors of FIFA World Cup are also provided with rights to the FIFAConfederations Cup, with the main rights allowing for the use of selectedmarketing assets and media exposure, as well as ticketing and hospitality offersfor events. The sponsors of the 2014 World Cup, which was hosted in Brazilduring 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

• Itaú

• Liberty Seguros

• WiseUp.



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 listof brands most recognised as a sponsor of the tournament, with 81% ofconsumers in the UK associating it with the World Cup. The research alsorevealed that although non-sponsor brands such as Nike and MasterCardscored highly before the event, after the tournament they were outscored byofficial sponsors such as Visa and adidas. The research also showed thatrespondents were less positive about FIFA and the World Cup organisers,following rumours of corruption and dishonesty surrounding Qatar’stournament bid win — with the country set to host the competition during2022 — and the expense of the tournament using Brazilian public funds.

The next large international football tournament to be held will by the UEFAEuro 2016 tournament, which is due to be hosted by France. Viewing andattendance figures for the tournament are likely to surpass those achieved bythe 2012 competition, which was hosted by Ukraine and Poland, and attracteda television audience of 299 million for the final, as well as an overall matchattendance of 1.3 million. So far, official sponsors of the UEFA Euro 2016tournament have included adidas, Carlsberg, Coca-Cola, Continental, Hyundai/Kia Motors, McDonald’s and the State Oil Company of the Azerbaijan Republic(SOCAR).

2014 Commonwealth Games

Altogether, the 2014 Commonwealth Games, which were hosted in Glasgowduring July and August, attracted sponsorship agreements with 49 differentbrands and companies. The competition represented the largest multi-eventsporting competition to be held in Scotland and saw the convergence of 71nations and territories to compete across 17 sports categories. According toevent organisers, the city’s hosting of the Games had already generated £180min contracts with local businesses even before the event began, with thecompetition estimated to have provided a net economic benefit of £26m toGlasgow and of £81m to the host nation Scotland.

In terms of viewership, around 1.2 million tickets were sold for the event intotal, making Glasgow 2014 Scotland’s most successful sporting event to date,which was also estimated to have a global audience reach of between 1.5billion and 2billion — equating to around 20% of the world’s population.Broadcast figures for the competition are thought to have been bolstered bythe competition’s new broadcast contract, which was secured before the eventand allowed the Games to be aired in all 71 of the competing nations andterritories. The 2014 event was also made available to broadcast audiencesoutside of the Commonwealth, including those in the US and the People’sRepublic of China (PRC).



Despite the vast global coverage of the events, some critics have argued that,unlike the Olympics, the Commonwealth Games has remained more of a ‘localactivation’ platform for sponsors, with the majority of online mentions for the2014 event — 667,000 in total — based in the UK, according to social mediamonitoring firm Brandwatch, with Glasgow and London securing the biggestshares with 18% and 17%, respectively. As a result, a number of sponsors, suchas Virgin Media and SSE, opted to focus on localised promotional activity acrossGlasgow as part of their sponsorship programmes, rather than embark onfurther-reaching campaigns.

Altogether, the 2014 Commonwealth Games in Glasgow is thought to haveexceeded the £24m sponsorship revenue target set by event organisers in 2007,despite the tournament attracting fewer sponsors than previous Games hostedin Melbourne and Manchester. Glasgow’s sponsorship inventory was sold inthree tiers — Partners, Sponsors and Providers — mirroring the structureutilised for the London 2012 Olympic Games sponsorship programme. Two ofthe top-tier Glasgow 2014 brands — Emirates and SEE — already had existingnaming rights with venues used during the Games. Emirates, for example,signed a £4.5m, 10-year naming rights agreement for the title sponsorship ofthe Emirates Arena, a multi-sports facility which includes the new Chris HoyVelodrome; while, in 2011, energy firm SSE agreed a £15m, 10-year deal torename 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-onesponsorship of the Games, with the company representing the Official MobileProvider during the event. Virgin’s sponsorship agreement also extended toadditional branding, ticketing and hospitality inventory at Glasgow’sHampden Park, which hosted the athletics events.

The list below provides further details of the tiered sponsorship structure andcurrent 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



• 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



• Arnold Clark

• Kellogg’s

• Toshiba

• Bauer Media Group

• Speedo

• Genius

• Gatorade.

Motorsports

Motorsports covers a wide range of sports that involve the use of motorisedvehicles, usually for a racing competition. The main types of motorsport thatattract commercial sponsorship include F1, the motorcycle competitionMotoGP, as well as rallying, superbike competitions and motorcycle speedway.Motorsport sponsorship deals usually involve livery displays, where the nameof the sponsor and its brand logo are displayed across the vehicle body.

F1 generally attracts the most lucrative sponsorship deals, with the racingcompetition continuing to represent the world’s most watched sports series,attracting television audiences of around 450 million during 2013. F1’s existingpartners include logistics firm DHL, investment bank UBS, Mumm Champagne,watch manufacturer Rolex and communications firm Tata. These commercialpartnerships allow sponsors to use the F1 logo in advertising campaigns andoften include trackside advertising packages. There are also a whole host ofteam sponsorship opportunities. The Ferrari F1 Team, for example, which isvalued at $1.15bn, is currently thought to be the richest F1 team, generatingaround $384m from its races, sponsorships and merchandising altogether (asof 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 thesecond-richest F1 team, with the group worth around $800m altogether.However, it was revealed in 2014 that the F1 team had lost its long-timesponsor Hugo Boss to Mercedes GP. The news comes following Vodafone’sdeparture as a title sponsor of the brand in 2013. Since then, the F1 team hasbeen unable to secure a new title sponsor, although rumours have recentlycirculated that McLaren is close to announcing a new title sponsor — this isnow unlikely to occur until the beginning of the 2015 season. Another brandthat has significant sponsorship ties with F1 is Red Bull, which has been involvedwith the sport for nearly 20 years; emerging sponsors have included Martiniand Esquire, both of which signed sponsorship deals with the Williams F1 teamduring 2014.



Reports surfacing in April 2014 suggested that US-based sandwich chainSubway was considering a new ‘groundbreaking’ sponsorship deal with F1, asit attempts to expand into Europe — the region where the sport attracts thehighest viewership. If the partnership were to go ahead it could see Subwayinstalling concessions at each of the 19 Grands Prix, which consistently attractaround 1.5 million spectators every year. An article published by Forbes in early2014 estimated that a sponsorship deal with two teams, or a team and a race,could bring Subway’s annual F1 bill to around $35m.

MotoGP, the motorcycle road racing World Championship governed by theFédération Internationale de Motocyclisme (FIM), also generates a significantproportion of its revenue through sponsorship deals. Official sponsors of thecompetition include Swiss watchmaker Tissot, insurance firm Generali, beerbrand Singha, tyre manufacturer Bridgestone, and BMW. MotoGP also offersseveral title sponsorship opportunities to brands across the 15 Grand Prixtournaments, with these types of commercial partnerships often offering thehighest level of exposure to brands. New title sponsorship deals recentlyannounced by MotoGP have included a commercial partnership with Iveco NewDaily for the 2014 edition of the Assen MotoGP in the Netherlands; and withMovistarTV for the World Championship in Spain. Sponsorship deals are alsooften secured with MotoGP teams, with oil giant Repsol recently announcingthat it had extended its sponsorship deal with the factory Honda team untilthe end of the 2017 season, continuing a partnership that first began in 1995.

Historically, tobacco brands have represented significant sponsors withinmotorsports; however, a ban on tobacco advertising and sponsorship hasmeant that several leading tobacco firms, including John Player Special (JPS),Marlboro and Benson & Hedges (B&H), have left the sport. Despite the ban,tobacco manufacturer Philip Morris International (PMI) has continued topartner the Ferrari team, even though car liveries are no longer allowed tosport tobacco brands. Instead, the tobacco firm uses the partnership as anentertainment platform for corporate hospitality and business-to-business(B2B) meetings. Indeed, in 2011, Marlboro (owned by PMI) revealed that it hadextended its sponsorship deal with Ferrari for a further 4 years, despite thebans in place regarding tobacco advertising within the sport and the name nolonger appearing as part of Ferrari’s title.

Team Sports (excluding football)

• Rugby Union and Rugby League

Although rugby sponsorship is not quite as lucrative as football sponsorship,audience attendance and television viewing figures for the sport havecontinued to grow in recent years. In addition, the sport’s popularity amongthe more wealthy middle classes has meant that it has continued to remain anattractive prospect for sponsors seeking to target this particularsocio-economic group. Sponsors for the sport often include drinks brands suchas Heineken and Guinness; as well as financial firms such as the Royal Bank ofScotland (RBS), the current sponsor of the 6 Nations Rugby Union tournament.



Two main types of rugby dominate the sport — Rugby Union and RugbyLeague — which follow different codes of play. Each type of rugby involvesvarious national and international competitions. Rugby Union is generallyconsidered to be the most popular and attracts the most lucrative sponsorshipdeals as a result. The English, Welsh, Irish and Scottish rugby teams are allranked within the top ten for Rugby Union, while England is currently rankedfourth in the world for Rugby League, with Wales in sixth position. The strongperformance of British rugby teams in world rankings has helped to drivesponsorship deals across the sport in recent years.

The Rugby Football Union (RFU), which oversees and regulates the EnglishRugby Union team, has continued to attract sponsorship deals from leadingbrands, with the rugby premiership currently counting Avia, O2, QBE, SSE,Lucozade Sport and Maximuscle among its official partners. The upcomingRugby 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 willcover 200 territories including emerging areas of interest such as Pakistan,Iceland and Greenland. Organisers have also launched what they claim is thebiggest-ever hospitality programme for sporting events in the UK, includingthe Olympic Games and F1; revenues for the tournament are already up by146% compared with previous World Cups. According to Brett Gosper, ChiefExecutive Officer (CEO) of the International Rugby Board (IRB), the RWC’ssponsorship programme has already seen record returns for organisers, withthe top tier level of the programme being filled in record time by severalhigh-profile brands including Heineken, Land Rover, Societe Generale, DHL,Emirates airline and Mastercard. In total, approximately £45m worth of WorldCup sponsorship contracts are expected to be awarded during 2014 in the runup to the beginning of the tournament in September 2015.

Scottish Rugby Union has also seen increased interest from sponsors in recentyears, with the rugby association signing a number of lucrative multi-millionpound deals, including a 4-year kit sponsorship deal with sportswear brandMacron in 2013 and a record-breaking £20m deal with BT, secured in 2014,which saw the telecommunications firm become title sponsor of Scotland’shome ground Murrayfield. The 2014 deal also saw BT become official sponsorsof Scotland 7s, Scotland’s Club League and cup competitions, and ScottishRugby’s four new academies, and will run for 4 years. Meanwhile, the WelshRugby Union recently announced a new multi-million pound sponsorship dealwith BT Sport — the largest in the country’s history — covering all four regionalRugby Union teams. The deal will see the broadcaster acquire the namingrights for Arms Park — home of the Cardiff Blues — in a deal set to run for3 years, and become shirt sponsors for the three remaining regional Welshteams. BT’s expansion into rugby sponsorship comes after it was announcedthat the telecommunications firm had taken over broadcasting rights for AvivaPremiership Rugby from 2014 onwards; and would be sharing coverage of thenew European Rugby Champions Cup with rival Sky Sports.



The introduction of new European Rugby Union tournament, the EuropeanRugby Champions Cup, which will be launched for the first time in 2014/2015,marks a new era in European Rugby Union; the competition is set to replacethe Heineken Cup, which was formerly organised by the European Rugby Cup(ERC), as the top-tier competition for clubs whose countries compete in the 6Nations Championship. It is hoped that the introduction of the newlystructured European rugby cup will provide clubs with greater financialcontrol, and could even double the £44m revenue generated from last year’sHeineken Cup; with one member of the new executive body the EuropeanProfessional Club Rugby (EPCR) claiming that the competition has the potentialto be worth £100m-a-season in 5 years’ time, the vast majority of which will begenerated by blue-chip sponsors and broadcast deals. In July 2014, it wasannounced that Heineken — long-term title sponsors of the previous Europeanrugby competition — had signed up to become headline sponsors of the newEuropean tournament in a deal worth around £4m a year. Heineken representsthe first major brand to commit to the new tournament, although the EPCRare hopeful that new sponsorship deals with four major companies, includinginsurance firm Allianz and carrier Turkish Airlines, will soon be signed.

Rugby League, although generally not considered to have as big a followingas Rugby Union, has nonetheless continued to retain a high audience,particularly in the north of England. According to Rugby Football League (RFL)CEO Nigel Wood, speaking at the sport’s annual general meeting in 2014, thesport has also continued to gain a following, with a huge increase in thenumber of people watching the sport reported during 2013. The sport has alsobenefitted from healthy growth in participation numbers, as well as a rise inthe number of commercial partnerships being brokered within Rugby Leaguefollowing the success of the 2013 Rugby League World Cup, which took placein England, Wales, France and the Republic of Ireland, and included theaddition of two new teams from the US and Italy for the first time. As a result,the sport has attracted significant commercial investment from several newsponsors, with energy firm First Utility signing up as title sponsors for RugbyLeague tournament the Super League, which is estimated to be watched byalmost 2 million people each year, in a deal set to run for 3 years. Othercommercial organisations to have signed up to new sponsorship dealsassociated with Rugby League in recent years have included Kingstone Press,Isuzu, Brut, Tetley, Irn Bru, Foxy Bingo, Elonex, ISC and Rhino. Altogether,Rugby League is estimated to have a total viewership of around 39 millionduring 2013, encompassing live participation and television audience figures— up by 40% on the previous year.



Changes to the structure of Rugby League in the UK, which are due to beimplemented in 2015, are also expected to boost commercial investment in thesport. According to the RFL, the top three leagues in Britain will changedrastically, with the Super League and the Championship set to feature 12teams each. League One, meanwhile, will feature 14 teams, which will consistof the five teams relegated from the Championship during the current seasonas well as the eight remaining Championship One teams, and Coventry Bears.The re-structure of Rugby League will also encompass changes to matchfixtures and the Challenge Cup, as well as the introduction of a League OneCup Competition. The re-structure was undertaken following concerns thatannual trading deficits recorded year-on-year for some Rugby League clubswere not sustainable and falling Championship attendances needed to beaddressed. It is also hoped that the changes made to Rugby League will helpto encourage sponsors, broadcasters and other investors from the commercialsector.

• Cricket

Cricket is another sport to have seen growth in sponsorship funding in recentyears, with a new report published by Sponsorship Today in 2013 revealing thatglobal cricket sponsorship is now worth around $400m. The research alsorevealed that India accounted for $165m of total global spend, whileinternational events generated $68m, England $66m and Australia $57m. Thegrowth in cricket sponsorship has been attributed to the introduction of theTwenty20 format, as well as the rising popularity of the Indian Premier League(IPL). Similar to rugby, cricket has come to represent an increasingly attractiveprospect to sponsors due to its largely middle class audience. At the time ofwriting, the English and Wales Cricket Board (ECB) had a range of commercialpartnerships, including three broadcast deals (Sky Sports, Channel 5 and BBCSport); a team sponsor (Waitrose); four competition sponsors (Investec,NatWest, Royal London and LVE); ten commercial partners (Yorkshire Tea, FTIConsulting, Jaguar, Marston’s Pedigree, The Times/The Sunday Times,Stowford Press, Hardys, Specsavers, Etihad Airways, and Kia); six sponsorshipsupplier deals (adidas, Veuve Clicquot, Go Goodwins, SportsDirect.com, TMLewin, and Harrogate Spring Water); and two grassroots and recreationalsponsors (NatWest and Royal London).

As of 30th June 2014, England was ranked fifth in the world by theInternational Cricket Council (ICC) for the ICC Test Championship and the ICCOne Day International Championship. As of 6th July 2014, however, followinga poor performance at the Twenty20 Championship, England had fallen toeighth in the world rankings. Despite this, the ECB has continued to attractmajor sponsorship deals in recent years, with NatWest renewing its contractwith the Board in August 2013 for a further 4 years. The new deal will seeNatWest become the title sponsor of the Twenty20 cricket tournament atinternational, county and recreational level from 2014 onwards; it marks thefirst time a single-format sponsorship of the game has been offered to oneorganisation. The same year saw the ECB sign a new commercial agreementwith Yorkshire Tea, which saw the tea brand become the ‘Official Brew ofEngland Cricket’. The deal with Yorkshire Tea is expected to run until October2015, and will form an integral part of the brand’s marketing activity, includingtelevision advertising, social media and on-pack promotions.



The success and rising popularity of England’s female cricket team has alsoserved to drive sponsorship within the sport in recent years, with the Englishteam winning the World Cup three times in the past. England and Wales arealso set to host the next World Test Championship and the Women’s WorldCup in 2017, as well as the Men’s Cricket World Cup during 2019; this shouldhelp to boost interest in English cricket and also boost the profile of women’scricket across the globe. Increased participation by women in the sport andtheir global successes have helped to encourage sponsorship in recent years,with the England women’s team signing their first standalone sponsorshipagreement in 2014 with Kia Motors, in a historic deal worth a rumouredsix-figure sum. The deal, which will run for 2 years, will see car manufacturerKia become the sole title sponsor of England’s home Test matches. Thesponsorship deal follows the announcement in February 2014 that Englandfemale 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 allowingthem to become full-time professionals for the first time in the history ofwomen’s cricket.

County cricket also attracts investment from commercial sponsorships,although to a much lesser extent than national cricket. The Pro-40 League, forexample, which is played among county cricket teams in England and Wales,recently signed a new title sponsorship deal with Yorkshire Bank to becomethe Yorkshire Bank 40. Yorkshire Bank replaces previous title sponsorClydesdale Bank. Several county cricket clubs have also continued to attractsponsorship deals, although generally these are undertaken with businesseslocal to the club. In April 2014, for example, Derbyshire County Cricket Clubrevealed that it had signed a new sponsorship deal with telecommunicationsfirm A1 Comms; while, more recently, in June 2014, Durham County CricketClub revealed that it had extended its limited-overs shirt sponsorship deal withThe Port of Tyne to 2016.

Individual Sports

• Tennis

Similar to golf, tennis sponsorship generally tends to focus on personalendorsements or commercial agreements with tournaments, such as theAssociation of Tennis Professionals (ATP) World Tour, the WimbledonChampionships, and the Opens in the US, Australia and France. AlthoughWimbledon is widely touted as the pinnacle tournament of the sportworldwide, sponsors of the event are subject to several restrictions, such as nosponsor hoardings and perimeter advertising within the grounds ofWimbledon itself. Nonetheless, Wimbledon has continued to remainexceptionally attractive to brands, and sponsors are allowed to utilise theirassociation with the event across their own marketing campaigns. The eventis well known for its long history with several premium-end brands, includingSlazenger, Rolex and IBM.



According to Forbes, Swiss tennis professional Roger Federer, who has a totalof 17 grand slam wins — the highest number of singles tournaments won bya male tennis player — has continued to remain the highest-earningprofessional tennis athlete in the world, with total earnings of around $71.5m(as of 2013). The tennis star currently has ten major sponsorship deals, includingwith brands such as Rolex, Nike, Wilson, Mercedes Benz, Gillette, Lindt, CreditSuisse and Moet & Chandon, among others. Interestingly, female tennis starMaria Sharapova is the second-highest paid player in the sport, which is rarein its high participation and popularity across both genders. According toForbes, Sharapova currently enjoys annual earnings of approximately $29m, ofwhich around 80% is accounted for by endorsement deals. The female star wasrecently named the brand ambassador of Porsche during 2013, in a deal whichwill run for 3 years; it also participates in commercial deals with Nike, Tag Heuerand Samsung. British-born star Andy Murray has also continued to attractlucrative sponsorship deals in recent years, with the tennis star continuing toperform well following his Grand Slam win at Wimbledon during 2013, as wellas his Olympic Gold Medal win during 2012. Although his current worldranking has slipped to tenth position, the tennis star revealed that he hadsigned a new 3-year sponsorship deal with Standard Life in 2014, which willsee the brand logo appear on his playing arm for all tournaments. The dealmaintains Murray as one of the most marketable tennis stars, with the playercurrently participating in several other major commercial partnerships withhigh-profile brands such as adidas and Swiss watch manufacturer Rado.

• Golf

Golf sponsorship generally involves personal endorsement deals withprofessional golfers, such as Adam Scott, Rory McIlroy, Tiger Woods and HenrikStenson. Recent years have seen Northern Irish star Rory McIlroy continue toperform at the top of the game, with the golfer now ranked top in the world.McIlroy’s success on the global platform, which saw him named ProfessionalGolfers’ Assocation (PGA) player of the year, European Tour golfer of the yearand winner of both PGA and European tour money lists, has seen him join theranks of the highest paid athletes in recent years, with the golfing star signinga major 10-year sponsorship deal with Nike in early 2013 reportedly rumouredto be worth around $20m per year. Other corporate sponsors of McIlroy includeSpanish bank Santander, Swiss watchmaker Omega, and Bose, a US-basedaudio equipment firm. Despite this, iconic golfing stars such as Tiger Woodsand 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 GolfDigest 50 Money List. Although Woods was at the centre of a media storm in2009 following revelations of the star’s personal life — an event which saw himlose five sponsors altogether — he has continued to remain one of the mostmarketable names in sports, generating total earnings of $83.1m in 2013,through tournament winnings and sponsorship deals.



Golfing tournaments such as the Ryder Cup, the Masters Tournament and thePGA Tour, as well as the US Open, are generally considered the most prestigiousgolfing tournaments in the world, with these events often attracting highlylucrative sponsorship deals, in part due to the affluent fan following that thesport tends to attract. The 2014 Ryder Cup, which is due to be held inGleneagles in Scotland, has already attracted several high-profile sponsorshipdeals, with the tournament benefitting from the introduction of a newsponsorship buying rights platform in 2011 which allows sponsors to acquirerights for the event in both Europe and the US. So far, the Ryder Cup’s officialpartners include Rolex, BMW, Johnnie Walker, Ernst & Young (E&Y) andStandard Life Investments. Although terms of the deals have not been madepublicly available, industry sources have suggested that such deals were beingoffered at seven figures annually. According to the Ryder Cup Team Europe,the 2014 tournament in Scotland will have a potential television audience of500 million people across 183 countries; in addition, sponsors will be givensignificant on-course marketing opportunities, providing further on-cameraexposure.

Athletics

Although London’s hosting of the 2012 Olympic and Paralympic Games hashelped to boost the profile and earnings of several British sports stars,including gold medal winners Mo Farah and Jessica Ennis, the Chairman ofBritish Athletics has recently admitted that the governing body expects overallsponsorship income to drop off in the run-up to the Rio Olympics in 2016. Thisfollows the announcement by former UK Athletics (UKA) sponsor Aviva that itwould conclude its commercial partnership with the sports organisation at theend of 2012. Nonetheless, since then, British athletics has secured severalhigh-profile sponsorship deals, with BT extending its title sponsorship of theGreat CityGames tournament in early 2014, while Sainsbury’s has continued toremain the title sponsor of British Athletics’ Summer Series after signing a4-year deal with the sports body back in September 2012 which covered the2014 Winter Olympics in Sochi and the Rio 2016 Olympic Games. Thepartnership with Sainsbury’s also includes long-term support for the BritishAthletics’ Paralympic programme, and follows the retailer’s successfulsponsorship 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 thetournament — athletics stars still generate relatively small sponsorship dealswhen compared with professional athletes in other sports, such as tennis andgolf. Indeed, according to Forbes, the only athletics star to feature in itsrundown of the top 50 highest-paid sports stars during 2013 was Jamaicansprinter Usain Bolt, who is currently valued at around $24.2m, with the starrunner participating in sponsorship deals with several well-known globalbrands 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 athlete’s sponsorship deals currently encompassing VirginMedia, Quorn, Lucozade and Nike.



The UK’s hosting of the Commonwealth Games in 2014, as well as London’shosting of the International Association of Athletics Federations (IAAF) WorldChampionship in Athletics and the International Paralympic Committee (IPC)Athletics World Championships during 2017, should also help to attractsponsors to athletics in the coming years. The vast appeal of the World AthleticsChampionships, which is considered to be one of the largest sporting events inthe world and is broadcast to over 200 countries with a global audience of 95million during peak times, is also expected to help generate interest fromsponsors. Toyota is currently one of the largest sponsors of the IAAF WorldChampionships, with the car manufacturer signing up a new deal with thetournament organisers in 2012 that will see it extend its partnership with theevent until 2017. As an official partner, Toyota’s logo will appear on thewomen’s athletes’ bibs, and will see the company provide official vehiclesduring the event, including the marathon lead timing car and approximately200 vehicles for athlete transportation. London’s hosting of the tournamenthas already received significant backing from the global sponsorshipcommunity, with a survey carried out by IFM Sports Marketing in 2011identifying London as the sporting destination most likely to provide thehighest return and media profile for sponsors, due to its established mediaplatforms and venue infrastructure, as well as the capital city’s diversepopulation.

The 2014 Commonwealth Games, the opening of which was staged in Glasgowtowards the end of July 2014, is already having a positive effect on sponsors,with drinks manufacturer AG Barr already optimistic in its outlook followingthe appearance of fizzy drink Irn-Bru in the opening ceremony of the event.The company revealed that it expects its half-yearly revenues to rise by 5.6%to around £135m in 2014 following the sponsorship deal, which will see itoutperform the market and major rival Britvic. Meanwhile, official sponsorsSSE and Ford have both launched high-profile marketing campaigns designedto tie in with the tournament. Energy firm SSE, for example, launched a socialmedia campaign focusing on the Games using the hashtag #GoGlasgow, whichasks fans to post hashtagged tweets to propel their competing country to thetop of a social leaderboard. The company has also set up an experiential hubat the sponsors’ village in Glasgow, which is integrated with the campaignonline. Meanwhile, rival sponsor Ford launched a new marketing campaign inline with the Games, encompassing social, print and outdoor activity, focusingon its environmentally friendly range of cars. The campaign features eightathletes from the Scotland, England, Wales and Northern Ireland teams; anduses the tagline ‘keeping the games moving’, a concept which has beenbolstered by the car manufacturer’s provision of a fleet of 1,120 cars it issupplying to the event organisers. Ford has revealed that the event willrepresent an opportunity to drive brand awareness across the home nations,as it seeks to boost the profitability of its European business by 2015.Altogether, it is estimated that the Glasgow Games will deliver commercialrevenues of up to £100m, a figure that is likely to be driven by the broadcastof the tournament to all 71 competing nations for the first time, with the eventexpected to reach 1.5 billion viewers in total as a result.



Horseracing

Horseracing has continued to attract lucrative sponsorship deals, and has aparticularly strong commercial relationship with betting and gambling groups,due to its popularity as a gambling sport. The sport has continued to attractlarge audiences with a recent report from Deloitte entitled The EconomicImpact of British Racing 2013 revealing that total attendance at fixtures heldduring the last year stood at 5.6 million altogether. However, while horseracingin the UK generally attracts more lucrative sponsorship deals than marketsoverseas, the sport still generates relatively little revenue from sponsorshipdeals compared to other popular professional sports in the domestic market.Horseracing sponsorship deals at events often involve a physical presence atevents (i.e. in the form of a retail outlet), as well as signage within the groundsand around the track. Jockeys and horse owners/trainers also rely heavily oninvestment from sponsors in the lead up to races, with sponsorship activity ofthis type often including brand exposure on a jockey’s clothing. According toDeloitte, jockey sponsorship deals totalled £450,000 in 2012 across more than180 individuals, equating to less than £3,000 per agreement and ofteninvolving ‘payment in kind’. Individual races and annual events, such as TheGrand National, the Epsom Derby, the Cheltenham Festival and Royal Ascot,also attract lucrative sponsorship deals.

The Grand National, for example, which consistently attracts large liveaudiences of around 150,000 and high television viewing figures — with themost recent 2014 race estimated to have reached a peak broadcast audienceof 8.5 million people — announced that it had signed a new title sponsorshipdeal with Crabbie’s as part of a multi-million sponsorship package. The newcommercial partnership has seen the event renamed as the Crabbie’s GrandNational and will run for 3 years until 2016. As part of the deal, Crabbie’s willnow have the naming rights for the three races held over the Grand Nationalmeet, including the Crabbie’s Fox Hunters’ Chase, the Crabbie’s Topham Chaseand the Crabbie’s Grand National. Elsewhere, financial firm Investecannounced in 2012 that it had extended its sponsorship deal with The Derbyfor a further 10 years to 2021. The extension sees the Investec Derby reinstatedas 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 sponsorshipdeals to take place for Royal Ascot. Previously, sponsorship was banned fromthe event; however, under the new agreed terms, the racing event is expectedto attract millions in corporate sponsorship revenues. Following theannouncement, it was revealed in January 2014 that private investment firmQipco had signed up as the first official sponsor of Royal Ascot. The CheltenhamFestival, which boasts an average attendance of around 50,000 over the 4-dayperiod, 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 NewsInternational.



Type of Sponsor

Table 3.4 displays the number of sponsorship deals signed in the UK by industrysector source. According to the figures, which have been compiled by Find!Sponsorship, the gambling/lottery sector overtook the car/automotive industryto become the largest source of sports sponsorship during 2012, reflecting thewider growth that gambling — and, in particular, online gambling —companies have enjoyed in the UK in recent years following the deregulationof the industry back in 2005. Sports clothing firms reported the jointsecond-highest number of sports sponsorship deals in 2012 at 26, followed byother financial services with 21 and insurance companies with 18. Both sectorsof the financial industry continue to see an increase in the number of dealsthat they have signed in recent years, reflecting the more positive economicoutlook in the UK following the recession, which hit financial and bankinginstitutions particularly hard during 2008/2009.

Table 3.4: Origins of Sports Sponsorship in the UK by IndustrySector (number of deals), 2008-2012

2008 2009 2010 2011 2012

Gambling/lottery n.a. 25 25 29 35

Cars/automative n.a. 10 22 30 26

Clothing — sports 15 35 29 19 26

Financial services — other 8 10 17 27 21

Financial services —insurance 11 n.a. 12 13 18

Watches/timing 5 7 6 4 14

Drinks — beer 15 16 25 18 13

Information technology 2 7 7 9 12

Construction 4 4 5 4 11

Personal care 2 3 7 3 11

Financial services —banking 9 11 7 3 9

Table continues...



Table 3.4: Origins of Sports Sponsorship in the UK by IndustrySector (number of deals), 2008-2012

...table continued

2008 2009 2010 2011 2012

Agency/consultancy 7 14 14 13 8

Airlines 5 9 14 11 8

Couriers/freight 1 4 3 12 7

Energy 3 5 16 7 7

n.a. — not available



Gambling/Lottery Providers

Leading high-street bookmakers, such as Ladbrokes, Paddy Power and WilliamHill, have also continued to invest heavily in their sports sponsorship portfoliosin recent years, with these companies often having strong links with footballand horseracing in particular. In this way, such firms are able to leverage thevast audiences that such sports attract and directly target marketing messagesto a relevant customer base. Paddy Power, for instance, is currently the titlesponsor of the Grand National, following its negotiation of a 5-year deal withthe racing tournament in 2013. In addition, the betting firm also sponsorsFarnborough FC and Manchester City FC. Ladbrokes, meanwhile, is the currentsponsor of horseracing festival St Legers, which has grown rapidly since itsinception in 2010, while William Hill agreed a new 2-year extension of itscurrent sponsorship deal with the Scottish FA, and recently took over from rivalLadbrokes as the title sponsor of darts tournament, the World DartsChampionship, which is held in London.



Recent years have also seen a surge in sports sponsorship expenditure by onlinegambling firms, which have represented one of the fastest-growing areas ofthe sports sponsorship market over the past few years, following the risingpopularity 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 club’s official digital partner in a newmulti-year deal following the completion of the betting firm’s highly successful6-year shirt sponsorship which concluded at the end of 2012/2013. bwin is alsoin the middle of a 3-year sponsorship deal with Manchester United FC, whichhas seen it become the club’s official online gaming and betting partner; andis a sponsor of German football league team FC Bayern Munich. In addition toits football sponsorship portfolio, bwin is also an official sponsor of MotoGP,the premier category of the Motorcycle World Championships, and has actedas a commercial partner to the International Basketball Federation (FIBA) since2006.

Several other online gambling firms have also expanded their sportssponsorship portfolios in recent years, with football representing a particularlylucrative area of interest to such businesses. bet365, for example, is currentlythe official kit sponsor of Stoke FC, while online casino firm 32Red currentlysponsors Scottish football club Glasgow Rangers, as well as Newport Countyand Blackthorn, and has previously had ties with Aston Villa and Swansea.Meanwhile, rival online gambling firm Betfred announced that it had signeda major 3-year sponsorship deal with Premier League side Tottenham Hotspurin 2012 to become the football club’s Official UK Betting Partner. As part ofthe deal, the online gambling company has exclusive UK branding rights acrossTottenham’s online, digital, mobile and social media platforms.

Automotive

Automotive manufacturers have continued to invest significant funds intosponsorship opportunities across major sports and sporting events, such as theOlympics. Football, in particular, has remained a popular area of investmentfor automotive sponsors, with several Premier League football clubs signingup commercial partners as official automotive sponsors in recent years.Liverpool FC, for example, announced in January 2014 that it had replacedformer sponsor General Motors (GM), which owns the Chevrolet brand, withrival car firm Vauxhall Motors, in a deal which will run until the 2015/2016season. The announcement comes following GM’s decision to stop selling theChevrolet brand in Europe. Vauxhall, meanwhile, has continued to expand itscommercial portfolio of football sponsorships in recent years, with the carmanufacturer already participating in deals with national teams across the UK,including England, Northern Ireland, Scotland and Wales.



Nissan represents another brand that has grown its sports sponsorshipportfolio in recent years, with the car firm signing up as Tier One partner forthe Rio 2016 Olympics and Paralympics. The sponsorship deal will see Nissanprovide 4,500 vehicles to transport athletes, officials and journalists during theGames. The move is expected to bolster the position of the car brand in theemergent Latin American market, with Nissan aiming to increase its marketshare in Brazil from 3.3% to 5% by 2016; it also follows a number of newfactory openings by the brand in the region, including sites in Parana and Riode Janeiro. During 2014, Nissan announced that it had signed up to yet anotherlucrative sponsorship deal, this time as an official sponsor of the UEFAChampions League in Europe. The deal replaces Ford’s multi-million-poundcontract with the tournament, and is expected to run for 4 years. According toan article published by Marketing Week at the time the deal was announced,the automotive firm is expected to leverage its association with the footballtournament to support its switch to a less regionally-driven more global-centricstructure, thus giving it a more consistent voice across its markets. Tradesources have also suggested that the move by Nissan could be related to itsattempts to offset stagnating demand in Europe and establish a morecost-effective brand awareness strategy after the company saw a marginal 1%increase in global sales for the 9 months ending 2013, blaming ‘sluggishconditions’ in Europe.

Other significant automotive sports sponsors include BMW, which currently hasdeals with the RFU, PGA Tour and the European Tour golf series and tenniscompetition the Sony Ericsson Open; and South Korean carmaker Hyundai-Kia,which has continued to extend its partnership with FIFA as an official WorldCup sponsor up until 2022 and recently became the first commercialorganisation to enter into a standalone sponsorship deal with the Englishwomen’s cricket team.

Sports Goods

Sportswear and equipment manufacturers have had a long history ofsponsoring sports stars, teams and clubs. Nike and adidas dominate the market,with adidas recently representing a top-level commercial partner during themost recent FIFA World Cup tournament in Brazil and the 2012 Olympics; Nikesponsors several leading sports personalities, as well as sports clubs and teamsfrom across the world.



According to an article published by Marketing Week, adidas outperformedother sponsors during the most recent World Cup tournament, with thesportswear brand supplying kits to both finalists of the competition —Germany and Argentina — and benefitting from its sponsorship deal withGolden Ball winner Argentina’s Lionel Messi, as well as Golden Boot winnerJames Rodriguez and Golden Glove winner Germany’s Manuel Neuer.Following its commercial success at the tournament, adidas revealed that it isset to achieve €2bn in football sales during 2014, and is expected to sell over8 million official jerseys — 1.5 million more than was sold during the previousWorld Cup. adidas’ commercial partnership with the World Cup has also helpedto drive brand awareness and exposure for the sportswear company, with thebrand running a new campaign under the tagline ‘all in or nothing’ during thetournament, which featured several football stars including Lionel Messi, LuisSuarez and Dani Alves, and was rumoured to have cost around £50m in total.adidas also sponsors the English and South African cricket teams; as well asseveral Premier League football teams including Chelsea, Manchester United(from 2015/2016), Sunderland, West Bromwich Albion, and West Ham; theBritish and Irish Lions Rugby Union team; and tennis stars Jo-Wilfried Tsonga,Laura Robson, Andy Murray and Novak Djokovic.

Although Nike was not an official sponsor of the most recent FIFA World Cuptournament, the sportswear brand is a leading supplier of football jerseys andsponsored ten teams during the international competition. Much of Nike’srecent advertising activity has focused on the World Cup, with the brandlaunching a new campaign entitled ‘Risk Everything’, which featured severalleading football stars including Cristiano Ronaldo, Wayne Rooney and NeymarJr. Since the campaign was launched in April 2014 in the run-up to the WorldCup, it has widely been touted as a success, with the campaign generating over6 billion impressions overall across 35 countries covering television, cinema,digital/mobile, gaming, print and outdoor. Altogether, the video campaign isthought to have amassed a staggering 372 million views combined, as well as65,000 uses of the hashtag #riskeverything on social media. Indeed, thesportswear brand has already credited the social media aspect of the campaignin driving a 13% increase in revenue for its latest fiscal quarter, with sales ofthe Nike brand rising to $7bn for the 3 months ending 31st May 2014.

Financial Services

Banks and financial institutions’ interest in sports sponsorship has continuedto grow in recent years, driven in part by the ‘gentrification’ of sport, withstadiums benefitting from increased investment in infrastructure, ticket pricescontinuing to rise and corporate hospitality packages becoming increasinglypopular. Sponsoring sport has also helped banks and other financial companiesto repair some of the damage that was done to their public image followingrecent controversies, such as high bonus payouts during the recession, thepayment protection insurance (PPI) debacle and the LIBOR rate-fixing scandal.



Barclays has continued to remain at the forefront of sports sponsorship in theUK, with the bank acting as the title sponsor of the Premier League since 2001.The company is also a title sponsor of tennis tournament The Barclays ATPWorld Tour Finals, which is held annually at the O2 Arena in London andcontinues to attract live audiences of around a quarter of a million. In addition,Barclays sponsors a golfing event called The Barclays, which is held at the endof season Fed-Ex Cup on the PGA Tour in the US and has an ongoing commercialpartnership with golfing world number-two Phil Mickelson. Several otherfinancial organisations have continued to invest heavily in sports sponsorshipincluding Aviva, which sponsors Premiership Rugby, Norwich City FC and theLansdowne Road Stadium in the Republic of Ireland (now known as the AvivaStadium); and Spanish bank Santander, which has commercial partnershipswith several sporting stars including Jessica Ennis and Rory McIlroy and hascontinued to sponsor the Scuderia Ferrari and McLaren Mercedes team drivers.Santander is also the title sponsor of the 2014 F1 Santander British Grand Prixand the Grand Prix in Germany, and also has a relevant branding presence atthe Spanish, Italian and Brazilian races. Standard Chartered Bank representsanother financial organisation to have increased its sports sponsorshipportfolio in recent years, with the bank extending its shirt sponsorship dealwith Premier League football team Liverpool FC, which began in 2010, untilthe 2015/2016 season. In addition, Standard Chartered sponsors 15 races andmarathons held across four continents.

Drinks Brands

• Alcoholic Drinks

Several leading alcoholic drinks brands are heavily involved in sportssponsorship and, in particular, sporting events such as horse racing, footballtournaments and tennis competitions. Beer brand Carling, for example,undertakes several lucrative commercial partnerships, including sponsorshipdeals with the Scottish FA and the Irish FA; Guinness has a long history withrugby sponsorship, with the alcohol brand currently undertaking commercialpartnerships with rugby tournament Pro12, the Irish Rugby Football Union(IRFU) and the English RFU.

Meanwhile, Crabbie’s alcoholic ginger beer recently signed a new 3-year dealto become the title sponsor of prestigious horseracing competition, the GrandNational, forming part of the international drinks brand’s ongoing efforts toraise the profile of its brand through sporting events. The brand, which signedthe deal in 2013, claims the new partnership will provide it access to a potentialaudience of 9 million — via the event’s television broadcast deal with Channel4 — and a live crowd of approximately 150,000. The sponsorship also builds onCrabbie’s sponsorship of the Scottish Open, which the brand has used toincrease brand awareness of its new line of flavours, including raspberry,strawberry and lime drinks. The alcohol brand other current sponsorship dealsinclude tie-ins with Scottish football side Hibernian FC, as well as EnglishPremiership teams Everton and West Bromwich Albion.



Luxury champagne brand Moét & Chandon have also had a long history ofleveraging sporting events to boost brand awareness in the past, with thebrand continuing to strengthen its partnership with relevant sporting eventsthat offer a more affluent target audience. Current sponsorship dealsundertaken by Moét include official partnerships with the Lawn TennisAssociation (LTA) and the US Open; while top tennis star Roger Federer hasacted as brand ambassador for the champagne drink since 2012.

• Soft Drinks

Soft drink brands (including bottled water) are often involved in commercialpartnerships with both cultural and sporting events. Leading global drinksbrands Coca-Cola and Pepsi tend to dominate sports sponsorship within thisparticular subsector. Both brands have a long history of sponsorship acrosssports and have continued to invest in multi-million-pound sponsorship dealsin recent years.

Coca-Cola, for example, has continued to support several major sportingevents, with its commercial backing of the Olympic Games dating back to 1928.The fizzy drinks brand also sponsors Special Olympics GB, and recently acted asan official partner for the Winter Olympics in Sochi and the FIFA World Cupduring 2014. The company has continued to successfully leverage itspartnerships with sporting events and associations to drive brand awarenessand engagement. Indeed, according to a recent article by campaignlive.co.uk,Coca-Cola’s credentials as official sponsor of the recent FIFA World Cuptournament in Brazil helped the brand to increase its following on Facebookby an extra 2.5 million, with its fanbase on the social media site now topping85 million altogether. Meanwhile, the company’s Twitter followers reachednearly 26 million, after growing by around 70,000 during the footballtournament.

Pepsi also has a long history in sports sponsorship, with the drinks brandcurrently investing in several high-profile commercial partnership deals,including a title sponsorship with the IPL, an official sponsorship agreementwith the National Football League (NFL) in the US, and a multi-year regionalsponsorship deal with Manchester United FC in Asia-Pacific. In addition, thecompany has a long-standing partnership with the US football tournament theSuper Bowl, which is widely touted as the most-watched television event in theUS, with the 2014 event drawing 112.2 million viewers during its finale.According to Nielsen, PepsiCo currently represents the second-largest sponsorof the Super Bowl, behind alcoholic drinks manufacturer Anheuser-Busch,which owns beer brand Budweiser, with Pepsi estimated to have investedapproximately $97m in advertising surrounding the event since 2009. Duringthe 2014 event, Pepsi sponsored the popular Halftime Show, which attracteda record audience of 115.3 million.



The fizzy drink brand also stepped up its marketing activity in celebration ofthe FIFA World Cup 2014 with the release of its first global campaign for soccerentitled ‘Now is what you make it’, which included the launch of a newtelevision advertisement featuring several star players of the tournament suchas Lionel Messi of Argentina, Robin van Persie of the Netherlands, JackWilshere of England, David Luiz of Brazil, Segio Agüero of Argentine andSergio Ramos of Spain. Altogether, Pepsi has deals with 19 football starsaround the world, a portfolio it has continued to expand in line with its effortsto leverage the growing popularity of the sport across several key markets.

Technology

Technology firms have continued to invest in top-level sponsorship deals inrecent years, with partnerships of this kind often centering around eventsponsorship rather than sports team or individual deals. In this way, not onlyare technology brands able to leverage such events to promote their productofferings, but they can also benefit from huge contracts as official eventsuppliers. Technology firms such as Atos, Samsung, Cisco, Sony, Panasonic, GEand Acer are just some of the brands that invest in long-term sponsorshipopportunities. Atos, Panasonic, Samsung and Cisco, for example, have alsosigned up in an official capacity as corporate sponsors of the 2016 OlympicGames in Rio, while the recent 2014 Commonwealth Games in Glasgow drewinterest from several leading technology brands including Atos, Dell, Toshiba,NVT Group, Cisco, and Selex ES, all of which secured contracts to becomeofficial Commonwealth Games Supporters. Leading firm Microsoft, inparticular, has a long history of investing in extremely high-value sponsorshipdeals, with the company signing a landmark deal worth $400m with the NFLin 2013. The company also sponsors the British & Irish Lions rugby team andhas recently been rumoured to be considering a partnership with Spanishfootball club Real Madrid which will see it secure naming rights for the club’snew stadium.

Telecommunications and mobile phone companies also have a significantpresence in sports sponsorship. Leading consumer electronics firm Samsung,for example, extended its sponsorship of the Olympic Games in 2007 toencompass the 2012 London Olympics and Rio 2016. The company also providessponsorship support to Premiership football side Chelsea, the Asian Games, theAsian Football Confederation (AFC), the Confederation of African Football(CAF), the Asia-Pacific Amateur Championship (AAC) golfing tournament andthe Korean National Football team. UK-based telecommunications firmEverything Everywhere (EE), meanwhile, recently struck a groundbreakingsponsorship deal with Wembley Stadium to become the venue’s first leadbrand sponsor in a 6-year deal said to be worth millions of pounds; rival firmO2 represents the lead sponsor of the England Rugby Team. Vodafone,meanwhile, recently exited the sports sponsorship arena after drawing to aclose its investment in McLaren F1, following the introduction of a new socialmedia-led marketing strategy by the brand in 2013.



Utilities

Utilities firms such as BP, Shell, SSE, Castrol and EDF also have a long historywithin sports sponsorship, with the high level of capital negotiated by suchcompanies translating into large multi-million pound corporate partnerships.Such deals are often undertaken to improve the public image of energy firmsand provide an opportunity for such companies to deliver on their corporatesocial responsibility (CSR) objectives.

BP, for example, provides commercial backing to the Olympic USA team, whichhas entailed the company contributing around $1m to the development of anew Olympic training centre for the athletes. The company has also acted asan official sponsor for both the 2012 Olympic and Paralympic Games in Londonand the 2014 Commonwealth Games in Glasgow. The latter is also sponsoredby Scottish power firm SSE, which in addition to its top-tier partnership withthe Games has pledged support for the four largest home nations through itsretail 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, recentlyrevealed that it had renewed its corporate partnership with the BritishParalympic Association (BPA) and ParalympicsGB, extending the partnershipthat began in 2012 to encompass both the 2014 Sochi Winter Olympics and Rio2016. The France-based energy firm is also the Principal Partner of the FrenchFootball Federation (FFF) and the French Swimming Federation (FSF).

MARKET POSITION

The UK

According to figures compiled by Find!Sponsorship, the value of the total UKsports 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 estimatedusing a cross-section of deals monitored by Find!Sponsorship every year, andthat figures can often fluctuate significantly, particularly if a number ofhigh-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 sportssponsorship market in recent years are not necessarily suggestive of alonger-term declining trend, instead it is likely that increased businesssurrounding the Olympics has skewed market size in the years precedingLondon 2012, as is reflected by the market peak of £946m registered in 2009.

The fluctuations observed in the value of the UK sports sponsorship marketcould also be down to unsettled economic conditions in the wake of the2008/2009 recession; however, a return to economic fortunes in 2013, as wellas stronger forecast growth and renewed business optimism, is expected to seethe market return to a more stable performance going forward. It should alsobe noted that data compiled by IEG on the global market for sports sponsorshipshow strong growth between 2008 and 2014, suggesting that there is everyreason to believe that this upwards trend could be applied equally to the UKsponsorship market, if underlying factors were effectively removed from theequation.



International Perspective

According to figures compiled by IEG, global sponsorship revenues areexpected to increase by 4.3% to top $53.3bn during 2013, although growth isnot expected to be as robust as that observed in 2012, when total globalsponsorship spending increased by 5.1%. Although these figures includerevenues generated by other categories within the wider sponsorship market,such as arts and broadcast media, sports have continued to account for thelargest sector in terms of revenue generation in recent years.

North America currently represents the largest sponsorship market in theworld, generating $19.9m in sponsorship revenues during 2013 and accountingfor over a third (37.3%) of total global expenditure, with the regionbenefitting from the commercialisation of several sports specific to the USmarket, such as basketball, American football and baseball — all of which lacka large following in markets overseas. In addition, several popular sportingcompetitions are held in North America each year including high-profilegolfing 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 otherregional markets in terms of growth, rising by a projected 5.3% in 2013.However, the Asia-Pacific market has seen sponsorship expenditure increasesignificantly in recent years, jumping by 7.1% in 2012 before rising a further5% during 2013 to reach a value of $12.6bn. This growth has been stimulatedby the continued development and high economic performances achievedacross several Asian markets in recent years, including the PRC, South Korea,Hong Kong, India, the United Arab Emirates (UAE), Indonesia and thePhilippines, among others; as well as the emergence of a more establishedmiddle class across the region. Elsewhere, Europe — the second-largestsponsorship market in the world — saw sponsorship spend increase by 2.8% toreach a value of $14.5bn in 2013; while Central/South America saw sponsorshiprevenues rise by 2.6% to stand at $4bn. However, the latter is expected to seegrowth speed up in forthcoming years, with Brazil’s hosting of both the FIFAWorld Cup in 2014 and the Olympic and Paralympic Games during 2016 likelyto help drive commercial investment opportunities across the region.

The proliferation of international sporting events in Brazil reflects a muchwider shift in the way the hosting of major events is now being allocated onthe global stage. This reflects the shift of geo-political and economic powertowards developing regions such as South America and Asia. Russia, forexample, recently played host to the Winter Olympics in 2014 in Sochi; and isdue to host the next FIFA World Cup in 2018; while Middle Eastern nation Qatarrecently won the bid to host the following edition of the event in 2022 andSouth 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) recentlyselling title sponsorship of the tournament to global drinks brand Pepsi for$14m.



Table 3.5: Global Sponsorship Spending by Region($bn), 2011-2013

2011 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

All other countries 2.1 2.2 2.3

Total 48.6 51.1 53.3

p — projected figures

Note: these figures also encompass sponsorship revenues generated outside of sports,e.g. arts and media sponsorship revenues.

Source: IEG

Figure 3.3: Share of Global Sponsorship Spendingby Region (%), 2013

All other countries

4.3%

Central/South America 7.5%

Asia/Pacific 23.6%

Europe 27.2%

North America

37.3%

Note: these figures also encompass sponsorship revenues generated outside of sports,e.g. arts and media sponsorship revenues; figures for 2013 are projected.

Source: IEG/Key Note



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 expectedto sit at 2.8% over the next year, before dropping slightly to 2.5% in 2015, andremaining at 2.4% thereafter. Inflation, meanwhile, is likely to continue tostabilise, rising slightly over the 5-year forecast period from 2.8% in 2014 to3.2% in 2018; while unemployment is forecast to fall by 15.2% over the sameperiod to stand at 1.06 million.

Continued economic growth and the stabilisation of other economic measuresis 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 servedto keep marketing budgets tight, with many businesses cutting sponsorshipentirely in order to remain cost-effective; however, with economic prospectsfor the UK looking promising, a more positive outlook is likely in terms ofcommercial sponsorship. Despite this, brands are still likely to be looking forvalue for money across sponsorship opportunities, with sponsorship deals nowoften encompassing much more than simple ‘brand stamping’ or logorepresentation, e.g. social media integration, the development of brandedapplications (apps), etc.

It should also be noted that, while the strengthened economic climate in theUK is already helping to drive business optimism, consumers have continuedto take a cautious approach in terms of expenditure, with household budgetsremaining tight in the face of rising fuel and energy prices — all of which haveresulted 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 asignificant effect on consumer expenditure over the next couple of years if sucha move gets the go ahead; although the Bank of England (BoE) is likely to erron the side of caution for fear of harming economic recovery.



Table 3.6: Economic Forecasts (000, % and million), 2014-2018

2014 2015 2016 2017 2018

UK resident population(000) 64,511 64,938 65,386 65,825 66,266

GDP growth (%) 2.8 2.5 2.4 2.4 2.4

Inflation† (%) 2.8 2.9 3.1 3.1 3.2

Unemployment‡ (million) 1.25 1.14 1.07 1.03 1.06

GDP — gross domestic product

† — at retail price index (RPI)

‡ — actual number of claimants; claimant count measures the number of people claimingJobseeker’s Allowance

Source: National Population Projections, 2012-based projections, NationalStatistics website/Forecasts for the UK Economy: a comparison of independentforecasts, May 2014, HM Treasury © Crown copyright material is reproduced withthe permission of the Controller of HMSO (and the Queen’s Printer for Scotland)

String of Scheduled Sporting Events to Boost Sponsorship

London’s hosting of the 2012 Olympics has helped to promote the UK as adesirable location for major sporting events, with the country already set toplay host once again to a number of upcoming tournaments and competitionsover the next few years. 2014 alone has seen the UK host several cyclingtournaments, including the Grand Départ of the Tour de France in Yorkshireand the Giro d’Italia — the world’s second-largest cycling event — in NorthernIreland, following the continued success of British cycling athletes, such asBradley Wiggins and Sir Chris Hoy in recent years; as well as the 2014Commonwealth Games, which was held in Glasgow in June and July, andgolfing tournament The Ryder Cup, which will be held in Gleneagles inScotland during September. Not only have such events helped to boost theappeal of sports outside mainstream activities, such as football and F1, it hasalso helped to improve the country’s supply of event venue infrastructure, forexample, the new SSE Hydro stadium was opened in 2013 in the run up to theCommonwealth Games and hosted the netball and gymnastics events; whilethe Olympic Park, which opened to the public in early 2014, includes severalvenues that were used for the 2012 Games including the Copper Box Arena,the Aquatics Centre, the Lee Valley Velopark, the Olympic Stadium and the LeeValley Hockey and Tennis Centre.



Another major sporting event due to be hosted by the UK over the next fewyears is the 2015 Rugby World Cup, which will be hosted in 11 venues inEngland, as well as one in Wales. The event is expected to attract around 2million fans in stadiums, and will have the widest-ever broadcasting coverage,with around 200 territories expected to televise the tournament. The event hasalready performed well on the sponsorship front, with the Top Tier sponsorshipprogramme filled in record time by several high-profile brands includingHeineken, Land Rover, Societe Generale, DHL, Emirates, and Mastercard.Furthermore, an additional £45m in World Cup-related contracts are expectedto be awarded during 2014. England will also play host to the IAAF WorldChampionships in Athletics and the IPC Athletics World Championships during2017; as well as the Cricket World Cup in 2019; both of which are likely to boostspending on sports sponsorship in the UK over the coming years.

The Power of Big Data

In recent years, much has been made about the term ‘big data’ within the widermarketing community, with marketers continuing to explore the potentials ofharnessing vast amounts of consumer-generated information in order toimprove campaigns and more efficiently target audiences. The growinginterest in big data across the marketing community has been principally drivenby the growth in digital communications and social media, which has meantthat marketers now have a vast trove of data at their disposal, from tweets,‘likes’, comments and shares to click-through rates, website traffic, e-mailcommunication, geo-location information and social media commentary, all ofwhich offer key insight into the behaviours and buying power of targetconsumers.

However, while big data is increasingly being used within the wider marketinglandscape, sponsorship marketers have yet to fully get to grips with theincreasing amount of data available to them, with the use of integrated digitaland social media activities in sponsorship campaigns still only marginal atpresent. Nonetheless, in more mature markets, such as the US, big data is nowbeing increasingly harnessed by sponsorship marketers to bridge the gapbetween sponsorship buyers and sellers. The growth of sponsorship marketingspecialist SponsorPitch.com in the US reflects the rising interest in big datawithin the sports sponsorship arena, with the company amassing a data set ofnearly 80,000 sponsorship deals from the world’s top sponsorship spenderssince being established. The company also provides what it claims is thesponsorship industry’s first completely automated recommendation engine,called Suggested Sponsorships, which analyses a brand’s past spending historyand that of its business category in order to match it with the most relevantsponsorship opportunities available.



For sports sponsors that have begun to develop integrated digital and socialmedia 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 ofmarketers and marketing campaigns, by providing insight into real-timecustomer interactions with sponsored brands before, during and after theevent in question. In this way, big data allows marketers to improve theeffectiveness of targeted advertising and can help them to more efficientlyassess the return on investment (ROI) that is resultant from such activities.

Moreover, the rise in sports organisations themselves opening up new datastreams regarding team and individual performances is only likely to furtherdrive 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 archiveon player data and statistics to the public, allowing analysts a keen insight intothe performance and value of the team and individual players. WhileManchester City is the first to open up its data archives to the public, it is notthe only Premier League side to store and analyse such data, with specialistanalytics firm Prozone Sports now providing analytics technology to all 20Premier League clubs. The Prozone technology provides details of ten datapoints for each player every second, totalling 1.2 million per match overall, andcompiles information on around 2,000 to 3,000 match ‘events’. However, muchof this data is still being stored and analysed by teams in-house, with sportsorganisations using it to improve their own performance, scout upcomingopposition and locate new talent — signalling a much more ‘scientific’approach to club management and recruitment. If such data, however, wereto become publicly available, the implications for marketers and sponsors couldbe huge, with the success of sports sponsorship partnerships often relyingheavily on team and player performance. Such data could also help sponsorsseeking new opportunities to more efficiently locate the most relevantpotential partners; while also improving the efficiency of determining ROI toexisting sponsors.



Digital Spend to Cannibalise Sponsorship Market

Although the sponsorship market is forecast to observe steady growth over thenext few years, the rapid migration of consumers onto digital and, inparticular, mobile platforms (as well as sharp growth in social mediamarketing) is expected to dampen enthusiasm for significantly increasingsponsorship expenditure, according to an article published by IEG in 2014.Indeed, virtually all spending growth on marketing activities over the comingyears is likely to be driven by mobile channels, with mobile continuing tooutpace other categories within the wider marketing mix. According to figurescompiled by the Internet Advertising Bureau (IAB), the mobile advertisingsector in the UK grew by an estimated 95.1% in 2013, with tablet adspendobserving a 400% increase over the same year. This compares with a reductionof 9.8% in the sports sponsorship market during 2013, with growth in thissector likely to continue to be outpaced by mobile adpsend, which Key Noteexpects will achieve year-on-year double-digit growth over the next 5 years,driven by the continued uptake of mobile devices around the world and theever-increasing capabilities offered to marketers by such mobile platforms.Social media represents another area thought to be cannibalising spending inother areas of the wider marketing mix, such as sponsorship, with the IABestimating social media adspend to have grown by 71% during 2013 to reach£588.4m.

However, with mobile marketing campaigns and activities likely to continueto play an increasingly important part in wider advertising campaigns forbrands going forward; and sports broadcasters continuing to develop contentspecifically for mobile channels, sponsors and sponsorship marketers will beleft with no choice but to explore more innovative and creative ways ofreaching out to the ever-growing mobile audience; for example, by integratingmobile into existing commercial partnerships and sponsorship campaigns.Indeed, it is no longer enough for sponsors to simply ‘brand stamp’ logos ontoevents, shirts and merchandise; with more modern sponsorship campaigns,such as those undertaken by Barclays (Premier League) and Sony (FIFA WorldCup) exploiting the popularity of mobile platforms and social media channelsto their benefit; thus improving customer engagement, brand interactions andbrand awareness, resulting in stronger relationships between the brand andconsumer, and between the brand and the sponsored property.

Forecast Total Market

Although Key Note expects the sports sponsorship market in the UK to declineby a further 9.8% during 2013, the market should pick up once again from2014 onwards, continuing to stabilise in line with the strengthening UKeconomy following the fluctuating performance of the market since theLondon 2012 Olympics. Altogether, Key Note predicts the sports sponsorshipmarket to grow by 14.8% over the 5-year forecast period, with market valueprojected to reach £413m by 2017.



Renewed business optimism across the UK is also likely to help drive futuregrowth in the sports sponsorship market, with marketing budgets expected tobecome increasingly flexible in light of stronger economic prospects in the UKand across other developed markets. The UK’s hosting of several futuresporting events over the next 5 years, including the 2014 CommonwealthGames, the Ryder Cup 2014, the RWC during 2015, the IAAF WorldChampionships in Athletics and the IPC Athletics World Championships in 2017,should also help to boost investment in sports sponsorship going forward; asshould the emergence of non-traditional sports categories such as cycling,rowing, para-sports and athletics, all of which have observed a resurgence inpopularity following the successes of British athletes in these sectors at the2012 Olympics.

Table 3.7: The Forecast Total UK Sports Sponsorship Marketby Value of Major New Deals (£m), 2013-2017

2013 2014 2015 2016 2017

Value (£m) 359.7 372.3 382.3 396.8 413.0

% change year-on-year -9.8 3.5 2.7 3.8 4.1

Source: Key Note

Figure 3.4: The Forecast Total UK Sports Sponsorship Marketby Value of Major New Deals (£m), 2013-2017

2013 2014 2015 2016 20170

50

100

150

200

250

300

350

400

Source: Key Note



Market Growth

Since reaching a peak of £946m in 2009, the value of the sports sponsorshipmarket in the UK has continued to fluctuate, with London’s hosting of theOlympic and Paralympic Games in 2012 effectively skewing results in recentyears. Investment in the sports sponsorship market has also been significantlyaffected by the global financial crises of 2008/2009, with marketing budgetsremaining squeezed in line with a cautious approach to spending across boththe public and private sectors. However, renewed economic growth in the UKfrom 2013 onwards should serve to create more flexible marketing budgets,thus driving expenditure on sports sponsorship going forwards; while the UK’shosting of several international competitions over the next 5 years is likely tofurther bolster market growth. Altogether, however, Key Note estimates themarket to have fallen by 38.9% between 2008 and 2017; a more stable levelof growth is expected to return to the market from 2014 onwards.

Figure 3.5: Growth in the UK Sports Sponsorship Marketby Value of Major New Deals (£m), 2008-2017

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017300

400

500

600

700

800

900

1,000

Note: caution should be used in interpreting these figures as Source: © Find!Sponsorshipmonitors a cross section of deals reported online and in the press each year, while somedeals and renewals go unreported, which may result in estimates being lower thanactual market figures; as a result any conclusions based on such figures should beconsidered Key Note’s own.




4. Competitor Analysis

THE MARKETPLACE

The sports sponsorship market remains highly competitive, with leading brandscontinuing to invest huge amounts in commercial partnerships with leadingsports organisations, teams and clubs, and individuals. The market structurecomprises a number of different key stakeholders, including:

• rights-holders — the sponsored organisation which controls the assets andrights included in sponsorship agreements; rights-holders can include sportsorganisations/associations, sports clubs and teams, and sports personalities/individuals

• sponsors — can include any corporate body, from large commercialorganisations and global brands to local businesses ranging across all verticalindustries; often the size and value of the sponsorship deal is dependent onthe size of the sponsor organisation

• marketing agencies — including specialist in-house departments andindependent agencies that have a specialist focus on sports andentertainment sponsorship; these organisations play a vital role in brokeringsponsorship agreements, as well as developing sponsorship campaigns andbranding.

The media also plays a vital role in the sports sponsorship market, withcommercial sponsorship agreements often encompassing rights to mediaappearances/televised events, encompassing a variety of media channels suchas television, radio, digital media, and newspapers and magazines; as well asother publications, such as match-day programmes.

This chapter concentrates specifically on the marketing side of the sportssponsorship industry, with specialist sponsorship marketing agencies playing apivotal role in ‘matchmaking’ sponsors with relevant sports organisations,clubs or individuals. These agencies act on behalf of rights-holders and sponsorsin order to deliver effective, relevant and creative sponsorship partnerships andcampaigns which are beneficial to both parties. It should be noted, however,that large corporations often broker their own commercial partnerships usinglarge, dedicated in-house marketing departments, which are also responsiblefor developing and delivering sponsorship campaigns for the brand. However,due to the difficulties in quantifying and assessing in-house operations, detailsof these organisations have not been included within this chapter.

Sports Sponsorship Competitor Analysis


LEADING SPONSORSHIP CONSULTANTS AND AGENCIES

Table 4.1 ranks the leading sponsorship agencies based in the UK by fee income(as of 2011). The league table, which has been compiled by MarketingMagazine, includes agencies operating in both sports and entertainmentsponsorship. According to the ranking, Fast Track, which is owned by ChimeCommunications agency CSM, continued to lead the market in terms of feeincome, which stood at £11.2m in 2011, although this was down by 13.8% from£13m in the previous year. Essentially Group, which is also owned by Chime’sCSM, was ranked in second place with a fee income of £9.8m; this was followedby M&C Saatchi Sport & Entertainment in third place, with £6m, andWPP-owned agency MEC Access in fourth position, with £5.2m.

Table 4.1: Leading Sponsorship Agencies by Fee Income(£m and %), 2010 and 2011

2010 2011% Change2010-2011

Rank Agency

1 Fast Track 13.0 11.2 -13.8

2 Essentially Group 9.1 9.8 7.7

3M&C Saatchi Sport andEntertainment 5.3 6.0 13.2

4 MEC Access 4.6 5.2 13.0

5 Experience Worldwide 3.6 4.5 25.0

6 Synergy Sponsorship 3.0 4.1 36.7

7 WSM Communications 3.1 3.8 22.6

8 Brand Rapport 3.4 3.4 0.0

9 Ed Coms 3.1 2.9 -6.5

10 Limelight Sports Group 2.9 2.6 -10.3

11 Capitalize 1.4 1.5 7.1

12 National Schools Partnership 1.1 1.2 9.1

13 Generate Sponsorship 1.1 1.1 0.0

14 The Sports Business 0.7 0.8 14.3

15 Education Connections 0.2 0.2 0.0

Source: Marketing Magazine



CSM Sports & Entertainment LLC

Company Structure

CSM Sports & Entertainment forms part of international communications andsports marketing group Chime PLC, which operates around 56 companies in 22markets across the globe, employing over 1,800 people altogether. Sisteragencies run by Chime include insight and engagement firm CIE, publicrelations (PR) agency The Good Relations Group, healthcare communicationsagency OPEN Health, and advertising and marketing firm the VCCPPartnership. CSM Sports & Entertainment, which focuses on sports marketingand is chaired by Lord Sebastian Coe, provides a wide range of services tobrands, governing bodies, and not-for-profit organisations (NPOs) seeking toengage audiences through sports and entertainment media, including eventfeasibility and planning; strategic and commercial consultancy; event creation,management and delivery; advertising and rights sales; broadcast services;athlete management and ambassador programmes; sponsorship activationand rights management; sport, commercial and cultural branding; interactivelive experiences; exhibitions and retail display; overlay, fit-out and showcasing;digital and social media; content production and distribution; sports andconsumer PR; hospitality services; business unit and employee engagement;community and grassroots programmes; and merchandise design.

The company operates through ten main brands, each of which focuses on aspecific area of expertise, as follows:

• CSM Strategic — provides major event strategy and planning services,including venues and facility planning and communications strategysolutions. CSM Strategic has a global presence of 800 staff spread across 21offices in 14 countries.

• Essentially Group — a leading athlete management agency in Rugby Union,cricket and football, providing world-class sports marketing and commercialrights across five major markets including Australia, New Zealand, SouthAfrica, France and Japan.

• Fast Track — a global sports and entertainment agency specialising in brandconsultancy and content delivery encompassing PR, media, digital and socialstrategies. The company has offices in the UK, Middle East, Hong Kong andAustralia.

• Full Access Hospitality — specialists in ticketing for hospitality and uniqueentertainment services at major sporting events, including cricket, rugby andtennis.

• Golden Goal — a leading Brazilian sports marketing and managementagency which specialises in identifying business synergies and adding valueto partnerships between the sports industry and the corporate world.

• ICON — designs and delivers branding and live event solutions in sport,commercial and retail environments. ICON has a presence in all fivecontinents, and operates 14 offices altogether.



• iLUKA — provides a range of strategic activations services for stakeholders,including both sponsors and sports organisations, at global events; as well asbespoke corporate hospitality solutions.

• JMI — a full-service agency specialising in motorsports marketing solutions,employing around 120 people worldwide.

• People Marketing — based in Shanghai, the agency provides servicesincluding strategy and campaign development, and PR to some of thebiggest brands based in the People’s Republic of China (PRC) and across theAsia-Pacific region.

• Sportseen — a specialist sales organisation dedicated to maximisingadvertising, sponsorship and other commercial opportunities, with a keyfocus on football and rugby, as well as cricket, tennis and athletics.

Corporate Strategy

Over the past year, CSM Sport & Entertainment has continued to concentrateits efforts on consolidation and strategic development. Although thecompany’s revenues declined in the wake of the 2012 Olympic and ParalympicGames, the company has continued to observe strong performance from itsbrand consultancy and rights management businesses. The company made anumber of strategic acquisitions to grow and develop its sports marketingbusiness during 2013, including motorsports sponsorship agency JMI, andShanghai-based People Marketing. As a result of these acquisitions, CSM hasexpanded its presence to several new international markets including the US,the PRC, Brazil, Qatar and Abu Dhabi. The acquisition of JMI has also helpedto strengthen the company’s presence in motorsports, providing access to new,annualised income streams which will help to offset the often cyclical natureof its other events-related businesses, such as ICON and iLUKA — both of whichrely heavily on generating business from events held in alternate years, suchas the Olympics, the Winter Olympics, the Commonwealth Games and theFédération Internationale de Football Association (FIFA) World Cup. Theacquisition of JMI should therefore help to drive revenues by concentrating onareas of sport that do not revolve around these major events. JMI generatesrevenue through three separate motorsports: Formula 1 (F1), IndyCar andNASCAR.

Meanwhile, the acquisition of Shanghai-based agency People Marketing isexpected to greatly strengthen the company’s presence in one of the mostimportant emerging markets for sports sponsorship; it will add value to thecompany’s partnerships with existing clients as well as strengthening its offerto other international brands seeking to grow their presence in the PRC. Inaddition, the acquisition is expected to provide CSM with access to the growingmarket of Chinese companies seeking international sponsorship deals to helpgrow their global profile.



Financial Results

In the year ending 31st December 2013, CSM Sports & Entertainmentgenerated total revenues of £116.9m, down by 33.4% from £175.4m in theprevious year. The company also reported a decline in operating income, whichfell by 15.6% between 2012 and 2013 to stand at £55.6m.

M&C Saatchi Sport & Entertainment

Company Structure

Established in 1997, M&C Saatchi Sport & Entertainment forms part of theinternational advertising agency network M&C Saatchi, which has 26 officesbased across 18 countries and employs over 1,800 people altogether. Theagency specialises in sponsorship, events, PR and social media for sports andentertainment, and represents a number of high-profile brands in sponsorshipdeals, including O2, Coca-Cola, adidas, Sainsbury’s and Ballantine’s Finest.

Corporate Strategy

In recent years, M&C Saatchi has continued to concentrate its efforts ongrowing its client portfolio in both the domestic market in the UK and overseas,with the company opening two new offices in Germany and South Africaduring 2012, as well as offices in New York and Sydney. According to thecompany’s 2013 Annual Report, the company is expected to continue to growthroughout 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 recentyears, with the agency recently appointed by online gambling firm Sky Bet toactivate 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 Bet’sre-investment of revenue, which it generated through registered fans, backinto the Football League. The campaign is expected to be launched in time forthe 2014/2015 football season. Furthermore, early 2014 saw M&C Saatchi Sport& Entertainment launch a new experiential campaign on behalf of Englandrugby sponsor O2, using cutting edge virtual reality (VR) software from VRheadset manufacturer Oculus Rift. The new campaign — the first of its kind —creates a 360-degree VR sporting experience which allows fans to virtually trainwith the England rugby team.

Financial Results

For the year ending 31st December 2013, M&C Saatchi Sport & Entertainmentreported total billings of £9m, down slightly by 5.4% from £9.5m in theprevious year. However, revenue for the company increased by 6.9% over thesame period, with figures rising from £4.5m in 2012 to £4.8m in 2013.



MEC Access

Company Structure

MEC Access is one of the top five media planning and buying agencies in theUK and offers 65 diversified services beyond its core media planning andbuying services, such as broadcast sponsorship, social media insight, mobileadvertising, search engine optimisation (SEO), and data and analytics. Thecompany provides sponsorship campaign solutions to several high-profileclient brands including Lloyds TSB, Visa and McCoys. Altogether, the agencyemploys around 400 people, with offices based in London and Manchester.

The company forms part of MEC Global — a founding partner of mediainvestment firm Group M — which is owned by UK-based global advertisingnetwork WPP. Altogether, WPP employs almost 175,000 people and has 3,000offices based across 110 countries, with total reported billings of £46.2bn andreported revenues of £11bn (as at 31st December 2013).

Corporate Strategy

During March 2014, MEC Access announced the launch of its first phase of thenew activation programme for the Marriot London Sevens rugby tournament,which took place in May 2014, for its client Marriott Hotels International. Thecampaign, entitled ‘Brilliant 7s’ launched on the last day of the RBS 6 Nations,and primarily targeted Generation X and Y frequent business travellers andrugby fans, encompassing social media activity. The following month saw thecompany broker a new 3-year deal between Volvic and Tough Mudder, a 10-to 12-mile obstacle race, including mud run events, which has been designedby British Special Forces. The deal will see the launch of a new activationcampaign by MEC Access during 2014, worth around £550,000, which will aimto drive awareness and engagement of Volvic’s strapline ‘Volcanicity’ acrossthe UK. The sponsorship partnership will also see the development ofVolvic-branded obstacles at Tough Mudder events across the UK, with Volvicalso providing drinks to event participants along the course.

During June 2014, MEC announced that it had launched its 2014 Wimbledoncampaign for drinks brand evian, now in its seventh year in partnership withthe All England Lawn Tennis and Croquet Club (AELTC) as the tournament’sOfficial Water sponsor. The campaign involved social media activity andshowcased youthful-themed branded content featuring brand ambassadorsMaria Sharapova and Rizzle Kicks. The following month saw the agencynegotiate a deal extension between trade tool and hardware supplier Screwfixand The Football League, which will see the supply firm continue as broadcastsponsor of Football League matches televised on Sky Sports during the2014/2015 season. The contract extension will include sponsorship of all livegames within the Championship, League One and League Two, as well as on-airsponsorship. Screwfix will also become the full sponsor of The Football Leaguepages on SkySports.com.



According to holding firm WPP, it intends to expand several of its strongnetworks, including MEC, in high-growth markets or where market share isalready significant. MEC reported a positive performance during 2013, withthe business continuing to concentrate on its key priorities of growing itsclients’ businesses, growing its own business and growing its talent base. 2013also saw the company launch MEC Momentum — its new approach to brandcommunications — a global study which aimed to help understand andquantify how consumers make purchase decisions and choose the brands theybuy. It also quantified consumer bias by category and brand; the beliefscustomers have and how they influence decisions; and the relative influenceof communication messaging and touchpoints. The same year saw thecompany launch Choreograph, a joint venture with sister agency Wunderman,which joins content, data and media together into a single integrated offer.Going forward into 2014, the company is expected to focus significant effortson its leadership in digital and data; with the goal of driving marketingsolutions encompassing data, insights, technology and content.

Financial Results

According to holding company WPP’s Annual Report 2013, its mediainvestment 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 inthe previous year.

GMR (formerly Experience Worldwide)

Company Structure

Founded in 1997, Experience Worldwide was a global sponsorship, brandexperience and employee engagement agency based in London. The company,which formed part of the Omnicom Group, was formally merged with GMRMarketing (part of the Diversified Agency Services [DAS] Network of agencieswithin Omnicom Group) in February 2014. The merger was undertakenfollowing a longstanding and successful partnership between the twoorganisations dating back to 2009, and will see Experience Worldwide tradingunder the GMR name.

According to a press release published by GMR in February 2014, the mergerwill combine the agencies’ collective expertise in engagement marketing andsponsorship, as well as a portfolio of international clients across sports,entertainment, music and lifestyle. As part of the merger, Client ServicesDirector at Experience Worldwide, James Hunt, will assume the role ofManaging Director (MD) at GMR’s London office and will lead the new mergedagency’s efforts across the Europe, Middle East and Africa (EMEA) region goingforward. Altogether, GMR has 17 offices in 10 different countries, withoperations based in North America, South America, Europe and Asia-Pacific.The agency also has a strong track record in sports and media sponsorship, withrecent work encompassing major sponsorship activations at the Sochi 2014Winter Olympics and for the FIFA World Cup in Brazil.



Corporate Strategy

During the 2014 Sochi Winter Olympics, which were held in February, GMRworked alongside a roster of eight clients in total, including four top-tiersponsors — Procter & Gamble (P&G), Visa, Samsung and Omega. Overall, GMR’swork during the 2014 Winter Olympics on behalf of these clients saw thecompany manage over 7,000 guests; more than 1,200 hotel rooms across 12hotels; 48 motorcoaches; build four custom websites and enrolment platformsdeveloped in three different languages; handle 2,500 guest registrations; andmanage over 100 athlete appearances. May of the same year saw the agencynamed Sports Event and Experiential Marketing Agency of the Year at the 2014Sports Business Awards. The award builds on GMR’s previous Sports BusinessAward wins, including 2011 Sports Consulting Agency of the Year and 2009Sports Event Marketing Firm of the Year.

During June 2014, GMR worked on the activation programme for SAP’ssponsorship of the German international football team, who later went on towin the tournament. The programme included corporate hospitality, ashowcase of SAP analytics tools which the German national team used duringthe event, and question and answer (Q&A) sessions from several internationalfootball legends.

Financial Results

For the year ending 31st December 2012, GMR Marketing announced aturnover of £1.1m and a pre-tax profit of £101,000.

Havas Sports & Entertainment

Company Structure

Havas Sports & Entertainment forms part of the Havas Group, the sixth-largestglobal advertising, digital and communications services group in the world,which has a presence in 122 markets through its agencies and contractualaffiliations. The company primarily operates as a brand engagement agencyand provides a range of services, including strategy and creative, insight andanalytics, sponsorships and partnerships, events and experiential, content,social media, PR, and employee engagement. The company’s client rosterincludes several high-profile brands and organisations including Barclays, theFootball Association (FA), British Tennis/Lawn Tennis Association (LTA),Heathrow Express, Chelsea Football Club (FC), EDF Energy, Coca-Cola, adidas,Kia and Powerade, among others. Altogether Havas Sports & Entertainmentemploys around 500 people, with 35 offices in 20 markets.



Corporate Strategy

At the start of 2013, holding company Havas Group announced that thecompany would undergo an operational re-structure designed to ensurestreamlined operations and a more simplistic structural approach across theHavas network. In line with this, the company ended its partnership with mediaagency brand MPG, and consolidated its media operations under a newumbrella unit called Havas Media Group, which is now in charge of twoParis-based agency brands including Havas Media and Arena Media. HavasSports & Entertainment, Cake, Havas Event and Havas Productions were alsogrouped together under the Havas Media Group umbrella. Meanwhile, HavasCreative, 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, globalmedia network, and to provide a more consistent approach across mediaplatforms and media agencies. In addition, the restructure is aimed to makethe media group’s speciality capabilities, such as its global data unit, morecentral and accessible to Havas’ global offices.

Havas Sports & Entertainment has continued to expand its client portfolio overthe past year. Most recently, in June 2014, the company revealed that it hadbeen appointed as the corporate PR agency of the International Association ofAthletics Federations (IAAF) following project work in 2013. As part of the new2-year deal with the IAAF, Havas will help the athletics organisation promoteits 2014-2016 strategic plan, which features a range of innovations and socialinclusion initiatives to showcase athletics’ status as the number-one Olympicsport. The following month saw the specialist sports marketing agency win abid for Barclays as its global lead sponsorship agency, following a competitivepitch process. The agency’s remit will encompass the banks Premier League andATP 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 & Entertainmentgenerated net revenue of €20.1m, but reported a net profit loss of €2.6m forthe same financial year. This compares to net revenue of €24.1m and a netprofit loss of €2.8m in the previous year.



OTHER COMPANIES

The following provides brief profiles of smaller agencies based in the UK thatspecialise in the provision of sports and entertainment sponsorship services andsolutions.

brandRapport

Established in 1982, brandRapport specialises in sponsorship strategyadvertisement activation. In 2007, the company was acquired by IngeniousMedia Active Capital Ltd (IMAC), a Guernsey-based, closed-end investment firmlisted on the Alternative Investment Market (AIM). Brand Rapport provides arange of sponsorship marketing services, including consultation, activation,social sponsorship, event marketing, communications and digital services; andworks across sports, arts and culture, music and community platforms. Thecompany is headquartered in London, with an extended network thatcomprises locations in the UK, Hong Kong and Singapore. During 2014,brandRapport was the subject of a management buyout (MBO), which wasorchestrated by the senior management team at the company. Following thebuyout, the company will undergo a rebranding as it seeks to offer a morecomprehensive service package to clients. The rebrand, which will include theintroduction of a new logo, was instigated by changes in the sponsorshiplandscape, with clients increasingly demanding to work with agencies whichoffer services beyond solely buying sponsorship properties and which have aninternational reach. Following the MBO, MD Andy Kenny revealed that thecompany was seeking to partner with an international agency in order toremain 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 commercialpartnership with the Investec Ashes Series, and with online global sportsbookMarathonbet to manage its principle team sponsorship of Fulham FC in 2013.More recently, in January 2014, brandRapport revealed that it had beenappointed to manage the communications of the prestigious ConcoursComplet International (CCI) four-star eventing competition, LandRoverBurghley Horse Trials. The new deal will see brandRapport oversee the creationand implementation of a year-round PR campaign to help drive engagementand awareness for the trials; it will also be responsible for managing the mediaoperations at the 2014 event, which is due to take place in September. Theevent will be added to brandRapport’s existing client portfolio, which includesseveral big name brands such as Jaguar (Team Sky, Cricket and ambassadors),Allianz (Saracens and Allianz Park), and Prudential (RideLondon), amongothers.



Fuse Sports and Entertainment

Fuse is principally engaged in the provision of integrated sponsorship, licensingand endorsement activities. The company, which forms part of the OmnicomMedia Group, offers a range of client services including sponsorshipconsultancy, experiential marketing, content marketing, event and hospitalitysolutions, and PR and social marketing, as well as evaluation services. Fusecurrently manages several key sponsorship activation accounts for a numberof high-profile brands, including Vodafone Group’s sponsorship of theMcLaren Mercedes F1 team; Carslberg’s international sponsorship of football;Standard Chartered Bank’s partnership with Liverpool FC; and SonyPlayStation’s (PS’s) partnership with the Union of European FootballAsociations (UEFA) Champions League. More recent account wins for Fuse haveincluded Nissan, which appointed the agency to work on its new sponsorshipof the UEFA Champions League and UEFA Super Cup in June 2014. The agencyhas been working on the programme with Nissan for 3 years and was involvedin developing the business case and global strategy for Nissan, as well asleading the tender process and contract negotiations during the sponsorshipbid. Nissan’s 4-year agreement with UEFA will start from the 2014/2015 seasononwards, and represents the car manufacturer’s largest ever sponsorship deal;Nissan replaces former sponsor Ford, following the end of the latter’s 22-yearpartnership with the football organisation.

Generate Sponsorship

Generate was originally founded in 2003 and has since become one of theleading independent specialist sport and entertainment agencies in the UK.The company has also continued to expand its presence overseas in recent yearsand now has offices in London, Paris, Atlanta, Beijing and Doha. Generateprovides a range of services to both sponsors and rights-holders, includingconsultancy, activation, PR, digital, rights sales and event productions; andworks across a range of sectors including sport, entertainment, the arts andcharity. Generate’s client portfolio has included organisations such as QBEInsurance, eBay, Timberland and The Co-operative in the past. The companyhas also recently secured a number of new activation agreements with severalnew clients including retail fund management firm Octopus Investment for its2014 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 tothe business of F1. It is primarily engaged in working alongside brands linkedto the sport to enhance and drive their sponsorship programmes. The companymanages a diverse portfolio of F1 Partners, which includes brands such asSantander, Johnnie Walker, British Sky Broadcasting (BSkyB), SAP, HiltonWorldwide, TAG Heuer, Hugo Boss, ExxonMobil and Aon, among others.



Right Formula’s expertise centres around the development andimplementation of tailor-made solutions, which ensure that brands achievetheir sponsorship objectives on local, regional and global levels. Specialistservices provided by the company include content marketing, campaigndevelopment, people agenda (i.e. inspiring and motivating employees),communication creation, online and social, experiential marketing,business-to-business (B2B) services, brand awareness, corporate hospitality, PRand evaluation.

Synergy Sponsorship

Synergy Sponsorship was originally founded in 1984 as a specialist sponsorshipagency, providing consultancy, communications, digital and experientialmarketing services, including corporate hospitality, and brand and sponsorshipintegration solutions. It also provides branded content solutions, employeeengagement and sales promotions services. In addition, Synergy has a longhistory of providing Olympic Games marketing solutions (includingsponsorship services) and has worked with several global and domesticsponsors in the past, including Coca-Cola and BMW. Other top brands that havebeen 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, withthe firm announcing in July 2013, that it had been appointed by athleticsorganisation Sport England to help roll out a £1bn post-Olympic push to inspirepeople to get more active. The previous month saw the firm win a new contractwith energy firm SSE, which appointed Synergy as its lead agency for themanagement of its sponsorship activity during the 2014 CommonwealthGames in Glasgow, including strategy and activation services. More recently,Synergy revealed that it had set up a PR and social shop in Brazil during June2014 for the FIFA World Cup. The pop-up ‘Ideas Shop’ opened in Rio de Janeiroduring the tournament, with a PR and social team creating proactive andreactive content and ideas from brands live from the centre of the World Cup.The move follows on from Synergy’s launch of real-time social media serviceSynergy Live during 2013, which already works across the agency’s client baseand formed a core part of the activities undertaken by the pop-up office duringthe World Cup.

MARKETING ACTIVITY

Table 5.2 displays the breakdown of expenditure on advertising invested bymajor sports sponsors and sports organisations for the year ending December2013. However, it should be noted that the figures provided in the table referonly to the amounts spent on advertising in the main media, and thus does notinclude expenditure on wider sponsorship activities, i.e. ‘in-kind’ funding orservices provided by the sponsor to the sports event or organisation. Accordingto the data, which has been compiled by Nielsen, nearly £12m was spent onadvertising sports events and sponsorships during 2013 — a relatively smallamount given the high value of sponsorship agreements that are signed in theUK every year.



HSBC reported the highest expenditure on main media advertising for itssponsorship of the Lions Rugby club for 2013, with the bank spending £3.4mon media activities surrounding the partnership; this was followed by Russianenergy firm Gazprom, which spent the second-highest amount — £1.3m — onmain media activities for its sponsorship of the UEFA Champions Leaguetournament during the same year. In terms of sports advertising, Glasgow 2014Ltd reported the highest media spend for the year ending December 2013, at£887,000, in promoting the upcoming Games; US football league, the NationalFootball League (NFL), reported the second-highest expenditure at £300,000and Premiership club Liverpool FC registered the third-highest at £271,000.

Table 4.2: Main Media Advertising Expenditure on SponsoredSports Events and Clubs (£000), Year Ending December 2013

Expenditure(£000)

Sports Sponsorship

HSBC Bank PLC — Lions Rugby sponsorship 3,443

Gazprom — UEFA Champions League 1,348

Capital One — Capital One Cup 619

Royal Bank of Scotland — 6 Nations 563

Aeroflot — Manchester United FC 557

Lloyds Bank PLC — National School Sport 307

Standard Live Investment — Ryder Cup 269

Qatar Foundation — football sponsorship 220

Barclays Bank PLC — ATP World Tour Finals 214

Aegon — tennis sponsorship 167

Barclays Bank PLC — Premiership Footballsponsorship 160

Bank of Scotland — Midnight League 155

Royal Bank of Scotland — Andy Murraysponsorship 110

Royal Bank of Scotand — Rugby Force 91

Adidas — Champions League 90

QBE Insurance Group — international rugbysponsorship 86

Total sports sponsorship 8,399

Table continues...



Table 4.2: Main Media Advertising Expenditure on SponsoredSports Events and Clubs (£000), Year Ending December 2013

...table continued

Expenditure(£000)

Sports Advertising

Glasgow 2014 — Commonwealth Games 887

National Football League 300

Liverpool FC 271

Football Association 227

Royal & Ancient Golf Club — Open ChampionshipMuirfield 216

Manchester City FC 188

BSkyB — Sky/British cycling 176

Arsenal FC — Emirates Cup 163

Scottish Rugby Union 151

Fulham FC 131

Rugby Football League — World Cup 125

ICC Cricket — international cricket 124

Welsh Rugby Union 102

Manchester United FC 98

Falkirk FC 93

Wigan Athletic FC 87

Celtic FC 84

Chelsea FC 83

Durham County Cricket Club 82

Total sports advertising 3,588

Total 11,987

UEFA — Union of European Football Clubs

FC — Football Club

BSkyB — British Sky Broadcasting

ICC — International Cricket Council

Source: Nielsen



KEY TRADE ASSOCIATIONS

The leading trade association operating within the field of sports sponsorshipis the European Sponsorship Association (ESA).

EXHIBITIONS/TRADE SHOWS

The following provides details of leading trade shows with a focus on the sportssponsorship market:

• Sports Sponsorship Expo — next scheduled for 10th December 2014, Palexpo,Geneva

• The UK Coaching Summit — previously held on 3rd and 4th June, at CrownePlaza, Glasgow.



5. Buying Behaviour

INTRODUCTION

This chapter analyses consumer participation in relation to several sports,including team sports and individual sports. The research covers the mostheavily sponsored sports in the UK, including team sports such as football,rugby and cricket; and individual sports, such as tennis, athletics, motor racingand snooker.

INTEREST IN MAJOR TEAM SPORTS

In 2013, a Target Group Index (TGI) survey was undertaken to examine interestin major team sports in the UK. The results of the survey, as shown in Table 5.1,reveal that football was by the far the most popular team sport, with nearlyhalf (46.3%) of respondents found to have an interest in it; followed by RugbyUnion (21%), cricket (19.9%) and Rugby League (13.5%).

Men were found to have a much higher penetration rate than women acrossall team sports assessed by the survey, with penetration among men more thandouble that seen among women in all cases. In terms of age, interest in footballwas found to be highest among those aged between 25 and 34 years old at49.7%; however, for all other major teams sports, including cricket, RugbyLeague and Rugby Union, penetration increased alongside age, with thoseaged 55 and over showing the greatest interest in these sports. By social grade,response was generally found to be higher among those belonging to moreaffluent social grades, and lower among those in poorer grades.

Regionally, those living in the North West showed the highest interest infootball (53.5%) and Rugby League (21%); while those living in the EastMidlands showed the greatest preference towards cricket (23.9%) and thoseresiding in Wales reported the highest penetration for Rugby Union (39.4%).

Table 5.1: Interest in Popular Team Sports by Sex, Age,Social Grade and Region (% of adults), 2013

FootballRugbyUnion Cricket

RugbyLeague

All adults 46.3 21.0 19.9 13.5

Sex

Men 62.6 28.6 30.0 18.5

Women 30.8 13.8 10.3 8.7

Table continues...

Sports Sponsorship Buying Behaviour


Table 5.1: Interest in Popular Team Sports by Sex, Age,Social Grade and Region (% of adults), 2013

...table continued

FootballRugbyUnion Cricket

RugbyLeague

Age

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

Social Grade

A 49.8 34.2 29.1 15.6

B 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

D 44.2 14.2 14.6 12.7

E 42.1 13.6 13.7 12.1

Region

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

Yorkshire and Humberside 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

Source: Target Group Index (TGI) © Kantar Media, Quarter 2 (January-December2013) 2014



Table 5.2 shows the ways in which UK consumers accessed sports by type ofactivity, covering live viewing (i.e. at a venue), television, newspapers andonline. The most popular channel through which consumers accessed sport wastelevision, with football attracting the greatest audience through this channelat 40.8%; followed by Rugby Union (19.3%), cricket (17%) and Rugby League(12.1%). Reading about sport through newspapers was generally found to bethe second-most popular way of accessing information on major team sports.Once again football attracted the highest readership, at 16.3%, followed bycricket (6.9%), Rugby Union (5.6%) and Rugby League (3%).

Interestingly, accessing information regarding sport online was the third-mostused method, behind traditional newspaper reading, despite the proliferationof specialist football news-sites and fan-sites, with football attracting thehighest online audience at 13.7%. Meanwhile, cricket reported an onlinepenetration 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 popularoption for accessing team sports, due in part to the high price that sport eventtickets often have, with match day tickets for some Premier League sidescosting 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 venueduring 2013. In contrast, Rugby Union and cricket each registered penetrationsof just over 2% for those watching events live at a venue, while Rugby Leaguereported a penetration of only 1.2%.

Table 5.2: Interest in Team Sports by Type of Activity(% of adults), 2013

Penetration (% of adults)

Paid to Watch at a Venue

Football 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...



Table 5.2: Interest in Team Sports by Type of Activity(% of adults), 2013

...table continued


Read About in the Papers

Football 16.3

Cricket 6.9

Rugby Union 5.6

Rugby League 3.0

Looked Up on the Internet

Football 13.7

Cricket 5.3

Rugby Union 4.0

Rugby League 1.8


INTEREST IN MAJOR INDIVIDUAL SPORTS

The TGI survey also examined interest in several individual sports. Accordingto the results, which are displayed in Table 5.3, tennis was found to be the mostpopular individual sport, with a penetration of 20.3%; this was followed byathletics (18.2%), motor racing (18.1%) and snooker (15.8%). In terms ofgender, some sports such as tennis and athletics showed little difference inpopularity; while others, such as motor racing and snooker, had a much greaterfollowing among men than women, with penetration among men for thesesports more than double that posted for women. Another noticeable trendwas the rise in penetration alongside age, with all individual sports shown inTable 5.3 attracting much greater interest among older demographics incomparison to younger respondents.

Similar to the survey results reported for team sports, individual sports showeda greater following among those belonging to more affluent social grades,compared to those with lower disposable income. Regionally, both tennis andsnooker were found to be most popular among respondents living in Scotland,while those residing in Greater London were found to have the greatestinclination towards athletics and those living in the East Midlands registeredthe highest penetration for motor racing.



Table 5.3: Interest in Popular Individual Sports by Sex, Age,Social Grade and Region (% of adults), 2013

Tennis AthleticsMotorRacing Snooker

All adults 20.3 18.2 18.1 15.8

Sex

Men 20.8 19.5 25.6 22.3

Women 20.0 17.0 11.0 9.5

Age

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

Social Grade

A 26.8 23.1 21.5 19.4

B 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

D 16.9 12.8 14.5 16.2

E 15.6 13.8 14.1 15.6

Region

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

Yorkshire and Humberside 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

Table continues...



Table 5.3: Interest in Popular Individual Sports by Sex, Age,Social Grade and Region (% of adults), 2013

...table continued

Tennis AthleticsMotorRacing Snooker

Region (cont.)

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


Similar to team sports, television was by far the most popular way to watchindividual 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 toaccess individual sports. Tennis once again reported the highest penetration interms of newspaper audience at 3.9%, followed by athletics (3.6%), motorracing (3.1%) and snooker (1.7%).

Accessing information regarding individual sports online still reportedrelatively low penetrations, with just 3% of people reading up about tennisonline, along with 2.9% of motor racing fans, 2.2% of athletics fans and just1.2% of snooker followers. However, watching events live at a venuegenerated the lowest level of response, with only 1.2% of respondents payingto watch a match event live; along with 1% of motor racing fans, 0.9% ofathletics followers and only 0.5% of snooker fans.



Table 5.4: Interest in Individual Sports by Type of Activity(% of adults), 2013


Paid to Watch at a Venue

Tennis 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

Read About in the Papers

Tennis 3.9

Athletics 3.6

Motor racing 3.1

Snooker 1.7

Looked Up on the Internet

Tennis 3.0

Athletics 2.2

Motor racing 2.9

Snooker 1.2




6. Strengths, Weaknesses, Opportunitiesand Threats

STRENGTHS

• Professional sports in the UK, such as football and rugby, continue to attractvast and loyal fan bases both domestically and overseas. This in turn hascontinued to drive investment in sports sponsorship, with brands attemptingto tap into the consumer potential of this vast potential market.

• Each sport offers different characteristics and qualities, such as strength,power, team spirit, accuracy, physical prowess, etc., which brands canpositively align themselves with in order to appeal to consumers.

• Different sports can attract followers from different backgrounds. Tennis,rugby and golf, for example, often attract a much more affluent audiencethan football; thus allowing brands to more effectively target theirmarketing messages through their commercial partnerships with such sports.

• Global events, such as the Fédération Internationale de Football Association(FIFA) World Cup, the Olympic Games and the Winter Olympics, continue toattract record-breaking deals with sponsors, with global brands such asCoca-Cola, PepsiCo, McDonald’s and Visa investing significant funds intosponsorship partnerships every year.

• A diverse range of sports are played in the UK, with British athletes and sportspersonalities continuing to do well on a global stage in several differentsports, providing a number of significant sponsorship opportunities forbrands to take advantage of.

WEAKNESSES

• Expenditure on sports sponsorship, like the wider marketing mix, is highlysusceptible to fluctuations in the economy, with corporations tending tosqueeze budgets in times of economic crisis in order to save costs.

• Sponsors may sometimes be subject to negative press attention or badpublicity, e.g. cricket match-fixing scandals and Luis Suarez’s match banfollowing a biting incident at the FIFA World Cup, which can often havenegative implications for sponsors aligned with the sport or relative sportspersonality.

• Some sports have a very specific demographic following, thus potentiallylimiting audience reach for sponsors.

• There is a chronic lack of investment in women’s sports in the UK, with just0.4% of the total sponsorship market thought to be generated bycommercial partnerships with professional women’s sports and sportspersonalities.

Sports Sponsorship Strengths, Weaknesses, Opportunities and Threats


• A much greater proportion of sport is now being broadcast solely onpaid-television, with leading sports broadcasters Sky and BT Sport continuingto acquire vast broadcast rights to popular sporting tournaments. This couldlimit television audiences to include only those that have a paid-televisionsubscription, thus excluding those with free-to-view (FTV) television.

• There has been a drop off in sponsorship expenditure since the 2012 Olympicsin the UK, with several sponsors such as Aviva failing to renew major sportssponsorship deals following the Games, suggesting that the ‘legacy’ impactof the Olympics has been minimal.

OPPORTUNITIES

• Sports clubs and associations have become increasingly sophisticated in termsof their approach to marketing, offering brands an ever-growing range ofsponsorship rights, thus widening their reach and appeal among fans.

• Para-sports have continued to generate increased interest from bothbroadcasters and sponsors following the success of the London 2012Paralympic Games; a trend that is likely to continue in the future.

• Other sports, such as cycling and athletics, have also continued to increase interms of participation and general interest following the success of Britishathletes in these categories at the 2012 Olympics. The UK’s hosting of severalevents particular to these sports in recent years, such as the Grand Départ ofthe Tour de France, the Giro d’Italia and the Commonwealth Games, has alsohelped to drive sponsorship in these emergent areas of the market.

• The rise of digital media and the continued migration of consumers ontomobile platforms has created new rights and assets that can be leveraged bysponsors 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 wayto connect with fans regarding shared passions and interests relating tosport. The vast audience now on social networking platforms also means thatsponsors can use such channels to drive brand awareness and boost theironline presence.

• The UK’s hosting of a number of upcoming sporting events over the next fewyears is expected to help drive sponsorship spending in the UK. Eventsscheduled to be held in the country include the Ryder Cup 2014 in Gleneagles,the Rugby World Cup (RWC) in 2015, the International Association ofAthletics Federations (IAAF) World Championships and the InternationalParalympic Committee (IPC) Athletics World Championships in 2017 and theCricket World Cup in 2019.



• Emerging economies are continuing to represent significant areas of growthfor sponsors, with sports audiences continuing to grow in developed marketsfollowing the expansion of sports broadcasting across the globe. The shift ingeo-political and economic power to these emergent markets has also meantthat an increasing number of important international sports events are beinghosted in developing countries, with Brazil, Qatar, Russia and Korea all setto stage global sporting competitions in the near future.

THREATS

• Sponsorship programmes involving gambling firms could be under threatdepending on the outcome of a Government review into gamblingadvertising rules, which was launched in March 2014.

• Alcohol sponsorship is another area under threat following a leaked reportfrom the Labour Party in early 2014 which revealed that sponsorshipagreements with alcohol brands could be subject to a ban if the Party winsthe next General Election. Alcohol sponsorship has also continued to comeunder increased pressure from health lobbies, medical associations andcharities across Europe, many of which have suggested that such partnershipspromote unhealthy attitudes to drinking which is at odds with the positiveattributes of the sports being sponsored.

• Although some countries, such as the UK and US, have recovered from theeconomic turmoil that hit developed markets in 2008, the Eurozone remainsweak, which could serve to dampen spending on sports sponsorship acrossthe region in the future.

• Some critics have raised concerns that the rising number and value ofsponsorship deals signed by top-level sports organisations and individuals isleading to the over-commercialisation of sports in developed markets.



7. PESTEL

POLITICAL

Select Parliamentary Committee Warns Olympics Legacy Has NotBeen Upheld

In November 2013, the Select Committee on Olympic and Paralympic Legacypublished a new report assessing the legacy impact of the London 2012 Games,which aimed to ‘consider the strategic issues for regeneration and sportinglegacy from the Olympic and Paralympic Games, and to makerecommendations’. The report found evidence to suggest that the OlympicsLegacy had not been upheld to the best standards, and warned that theprospect of an ‘effective and robust’ legacy from the Games was in jeopardyunless a change in Government approach was made. Although the Games washighlighted by the Committee as an ‘outstanding success’, the report urgedthe Government to appoint a minister with overall responsibility for producinglegacy benefits, which it warned ‘are in danger of faltering’.

The report found little evidence that the Olympics and Paralympics legacy hasresulted in increased participation in sport in the UK and drew attention to anuneven distribution of economic benefit following the Games, with Londonand the South East found to have benefitted most from the competition, whileother regions have seen little or no financial payoff. The report also criticisedfunding body UK Sports for its ‘no compromise’ policy on sports, which resultedin funding being cut across several sports following poor performances at theOlympics. Five sports altogether, including swimming, had their budgets cutfollowing the Games, with volleyball suffering an 88% reduction in its fundingafter all four Team GB teams were eliminated in the Olympic group stagesduring 2012. Instead, funding has been directed towards medal-winning sportsonly and, while this has improved top-end performance, this approach hasbeen found to have ‘an inherent bias against team sports’ and has failed tohelp emerging sports, some of which (e.g. handball and volleyball) generatedstrong enthusiasm during London 2012.

Despite the report’s numerous recommendations and its criticism of UK Sport,a response published by the Mayor of London and the Government in February2014 stated that there were no plans to review the sporting organisation’s ‘nocompromise’ approach, which it revealed has ‘created greater opportunities’,particularly for winter sports, and has taken Team GB from 26th in the rankingsfor the Atlanta 1996 Games to third place in the rankings for London 2012.Nonetheless, it does appear that — in terms of sponsorship — the UK hasstruggled to attract interest from sponsors since the 2012 Games, with theGreater London Authority (GLA) continuing to meet with difficulties in itsattempt to raise funds for sports participation projects despite the success ofthe competition in London.

Sports Sponsorship PESTEL


As part of the Legacy programme following the Olympics, City Hall has so farcommitted £7m into grass-roots projects in the capital over the next 2 years aspart of the Mayor’s Sports Legacy Programme. To boost that sum, the Mayor’sdepartment has approached several domestic sponsors of London 2012, suchas 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 secureany backing from such brands as of yet. The lack of sponsorship investmentfrom Olympics sponsors following the Games has only been compounded bythe announcement by UK Athletics sponsor Aviva following the Olympics thatit would not be renewing its 13-year sponsorship of British athletics. However,since then, UK Athletics has amended its sponsorship structure to encompassa group of corporate partners rather than a single over-arching brand. The newsponsorship structure has already had positive implications for UK Athletics,with the sports body recently announcing a 4-year contract extension withSainsbury’s, as well as a 7-year kit deal with Nike.

Sajid Javid Announced as New Culture Secretary

In early April 2014, it was announced that Member of Parliament (MP) MariaMiller had resigned as Culture Secretary following mounting public pressureand uproar over her reported misuse of expenses. Although Mrs Miller wasoriginally cleared of allegations that she had used taxpayers’ money to fund ahome for her parents, she was told to repay £5,800 of the expenses that shehad claimed by the Commons Standards Committee, despite originally beingorder to repay a much higher fee of £45,000 by the independent ParliamentaryCommissioner for Standards. The Committee also criticised her ‘attitude’during the investigation, which it was ruled had breached the parliamentarycode of conduct. Furthermore, although Mrs Miller apologised for her actionsin the Commons, she was later criticised for the brevity of her statement. Amidrising media pressure and public discontent, Mrs Miller finally announced thatshe would be handing in her resignation for her role as Culture Secretary on9th April 2014, in a statement which read:

“I hope that I could stay, but it has become clear to me over thelast few days that this has become an enormous distraction, andit’s not right that I’m detracting from the incredibleachievements of this Government.”

Following Miller’s resignation, it was later announced that Prime Minister (PM)David Cameron had appointed Sajid Javid, MP for Bromsgrove, as the newSecretary for the Department of Culture, Media & Sport (DCMS), which worksalongside 44 agencies and public bodies altogether, including sportingorganisations such as Sport England and UK Sport.



Despite the ascension of Javid to the role of Culture Secretary, the move hasattracted criticism from a number of opponents questioning Mr Javid’sknowledge of the arts and sport, due primarily to the MP’s former backgroundin the Treasury and, before that, the corporate financial world. Mostpoignantly, British children’s literature writer, Michael Rosen, wrote an openletter in April 2014 which suggested that Javid was unsuitable for the positiondue to his lack of background in arts, pointing to the Secretary’s previousemployment in banking. Following Rosen’s letter, another novelist, BlakeMorrison, added further weight to the argument against Javid, with astatement from the writer reported in an article published by The Guardian on11th April 2014 stating that:

“The record of culture secretaries is dismal. It seems to be a jobthey give to people when they can’t think of what else to givethem but they want to encourage their career. It doesn’t count,so give them culture. It’s all a bit grim.”

Review on Gambling Advertising Announced

In March 2014, the Government announced that it had commissioned theAdvertising Standards Authority (ASA) to commence a review into advertisingby gambling firms in the UK, which will investigate whether more can be doneto ensure existing rules are enforced ‘proportionately and consistently’. Thereview will also task the Committee of Advertising Practice (CAP) to examinewhether existing restrictions are robust enough following the publication of areport by the Responsible Gambling Trust in late March which investigated thelink between advertising and problem gambling. Elsewhere, trade body theRemote Gambling Association (RGA) was tasked with reviewing its voluntarystandards code, the ‘Gambling Industry Code for Socially ResponsibleGambling’, to examine whether the broadcasting of gambling advertisementsshould be restricted to after the 9pm watershed and whether advertising spotsshould carry more ‘educational messaging’ regarding the potential pitfalls ofgambling. In addition, the Gambling Commission will investigate whether freebets and bonus offers are ‘marketed in a fair and open way’ by the industry.

The measures were announced after Labour peer Baroness Jones ofWhitchurch put forth an amendment during a reading of the DCMS’s Billdemanding a review of current rules governing online and offline advertisingby gambling brands, which focused in particular on whether there aresufficient controls to protect children from exposure to such advertisementsbefore 9pm. The debate surrounding gambling advertisements has mountedin recent years following the influx of online gambling brands onto themarketplace, as well as the increasing level of exposure being given to suchbrands due to their sponsorship ties with popular sport. The growing level ofbroadcast exposure that such sports have been given has also added to therising concern over gambling advertising exposure in recent years as well.



Speaking during the Commons debate, Baroness Jones stated:

“viewers of televised sporting events are bombarded withbetting advert[isements] in the commercial breaks, with allkinds of tempting, and often misleading, offers for correctlypredicting the run of play and the outcome. They capitalise onviewers’ excitement and emotion in the moment.”

Pressure has also been put on the Government to launch an investigation intogambling advertising in the UK, after figures published by Ofcom in November2013 found that the number of gambling advertisements aired annually hadincreased six-fold to just under 1.4 million since deregulation of the industryin 2007. However, critics have pointed out that it was Labour in the first placethat introduced the 2005 Gambling Act, which effectively opened the doorsfor the advertising of sports betting, online casinos and poker in the UK. Somemeasures have already been introduced to curb advertising by gamblingbrands, such as the Gambling (Licensing and Advertising) Bill, which wasbrought in during 2013 and requires all gambling brands to hold a UKoperating licence from the Gambling Commission in order to advertise in theUK. However, gambling operators could face more stringent restrictionsdepending on the new review’s outcome, the results of which are due to bepublished in the autumn.

ECONOMIC

DCMS Budgets Cut But Elite Sports Protected in 2015/2016Spending 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 itsupports, including Sport England and UK Sport. The new Spending Roundrevealed that the DCMS’s overall budget would be reduced by 7% during2015/2016, in line with the Government’s wider austerity measures and its aimsof reducing the UK’s budget deficit, which has resulted in widespread publicsector spending cuts since the recession of 2008/2009. A further breakdown ofthe DCMS’s Spending Review revealed that, while funding for grassroots sportswould be reduced by 5%, spending on elite sports has been protected, in linewith the Government’s promise towards a lasting Olympics sporting legacy.



Following the publication of the DCMS’s budget review for 2015/2016, UKSport — which is responsible for allocating public funds from both the NationalLottery and the Exchequer into high-performance sport — revealed that itwould be increasing its funding to 18 Olympic and Paralympic sports in orderto boost the nation’s performance in preparation for Rio 2016 and beyond.Altogether, UK Sport is expected to provide funding to 36 Olympic andParalympic sports to enhance and protect medal potential for the Rio 2016 andTokyo 2020 Games. However, the sporting body also revealed that seven sportshad their funding withdrawn to be re-invested into other programmes, afterfailing to demonstrate realistic medal potential following poor performancesat the 2012 Olympics. These sports included basketball, synchronisedswimming, water polo, weightlifting, visually-impaired football, goalball andwheelchair fencing. Although, following representations to the UK SportBoard in March 2014, weightlifting has since been reinstated to the World ClassProgramme.

According to UK’s Sports Annual Investment Review, which was published inFebruary 2014 and sets out its funding plans for the year ahead, the sportsorganisation is expected to strategically invest around £350m of NationalLottery and Exchequer funds into athletes in preparation for Rio 2016, withrowing attaining the greatest funding award at £32.6m, followed by cyclingwith £30.6m and athletics with £26.8m. The high value of funding awardsallocated to all three of these sports follows on from the strong performanceof British athletes across these categories during London 2012, and the highnumber of medal wins that they attracted and are likely to continue to attractin future Olympic competitions. Sports funding in the UK has also beenbolstered by its recent hosting of the Grand Départ of the Tour de France,which the Government pledged an additional investment of £10m to, as wellas an increase in the proportion of National Lottery ‘good causes’ fundinggoing towards sports, which rose from 16.7% to 20% between 2010 and 2012.

SOCIAL

Fans Revolt as Slew of Payday Loan Sponsors Enter Market

Recent months have seen criticism mount over the rising use of payday loansfirms such as Wonga.com as sponsors across sport (in particular football) withinthe UK. The entry of payday loan lenders into the sponsorship marketplacecomes following the phenomenal success of such companies since the start ofthe 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 loansfirms 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 growingcriticism, with many such firms blamed for putting cash-strapped householdsat even greater risk of financial collapse and bankruptcy. Nonetheless, thecontinued growth of such firms has resulted in increased exposure for paydaylenders, with many continuing to step up their advertising activities in thewake of their financial success.



Increased investment by payday lenders has seen several such firms investsignificant amounts in sports sponsorship as part of their wider marketingstrategies in the UK. Indeed a number of leading football clubs in the UK,including Hearts, Newcastle and Blackpool, have signed up major newsponsorship deals with payday loan lenders, such as Wonga.com. However, thegrowing level of criticism attracted by such deals from fans and lobbyists hasseen a number of proposed sponsorship agreements with payday lenders fallthrough. In June 2013, for example, Bolton Wanderers revealed that it haddropped plans to be sponsored by payday loan firm QuickQuid, followingprotests from the club’s fans; while Hearts recently announced that it hadditched Wonga as its sponsor in a bid to distance the club from the ‘unethical’connotations surrounding payday loans, after the sponsorship deal came upfor renewal following its original inception in 2011.

Wonga’s deal with football club Newcastle United has also come under intensepressure in recent months, following calls from Labour MPs. Despite this, thepayday loans firm has continued to underline its commitment to the club. It isnot the first time the company’s sponsorship deal with the Premiership footballside has hit the headlines, with the firm attracting negative press in 2013 afterit was revealed that Newcastle United player Papiss Cisse had refused to wearthe Wonga-sponsored team shirt after the deal was first announced. Sincethen, the partnership between the football club and the payday lender hasremained strong, with Newcastle United continuing to stand by its sponsordespite allegations earlier this year that the company had threatenedcustomers with legal action using letters from a non-existent law firm. Inanother blow to payday loan sponsorship, it was announced in early 2014 thatthe Glasgow Commonwealth Games had banned sponsorships from suchcompanies after the Scottish Government revealed that it would not supportany proposal for a payday loan company to become a Games sponsor.

The sponsorship of sport by payday lenders is expected to continue to be metby resistance and criticism, with a number of advertising campaigns alreadybeing banned by the ASA in recent months following complaints from CitizensAdvice. In addition, the launch of a review into the payday loan market by theFinancial Conduct Authority (FCA) in 2014 is also expected to put addedpressure on such companies, with the industry watchdog already in the processof drawing up tougher regulations for the high-cost short-term loans marketin the UK, which could lead to around a quarter of payday lenders pulling outof the market altogether if the legislation is passed.



World Cup Sponsors Call for Inquiry into Qatar CorruptionAllegations

Allegations levelled at the Fédération Internationale de Football Association(FIFA) surrounding corruption over Qatar’s winning bid for the World Cup in2022 have continued to draw criticism and outrage across the footballcommunity in recent months, following fresh claims by The Sunday Times thatformer top Qatari football official, Mohamed Bin Hammam, used a slush fundof $5m to drum up support for the nation’s hosting of the tournament in 2022.According to the claims, Bin Hammam had made payments of up to $200,000into accounts controlled by the presidents of 30 African football associations,and hosted hospitality events in Africa in which he handed out further funds,in order to obtain backing for Qatar’s World Cup bid. He is also alleged to havepaid $1.6m into bank accounts controlled by former FIFA Vice President (VP)Jack Warner, $450,000 of which was paid to Warner before the World Cup votewas undertaken. Both FIFA and the Federal Bureau of Investigation (FBI) havelaunched investigations into the corruption claims since the publication ofevidence by The Sunday Times; a number of sponsors, including Visa, Hyundai/Kia, adidas and Sony have expressed concern over the claims and demandedthat FIFA take the corruption allegations seriously. In a statement released byadidas, which has a long-running partnership with the World Cup running until2030, the sportswear brand underlined that:

“The negative tenor of the public debate around FIFA at themoment is neither good for football nor for FIFA and itspartners.”

Meanwhile, another top-tier sponsor of the football competition, Coca-Cola,added that ‘anything that detracts from the mission and ideals of the FIFAWorld Cup is a concern to us’, while a statement released by Visa stated thatit expected FIFA would ‘take appropriate actions’ to respond to the currentinvestigation and its recommendations. Collectively, FIFA’s sponsors contributearound $1.5bn (£900m) over a 4-year World Cup cycle, highlighting the levelof commercial power that such brands have over the football governing bodyand its decisions relating to the corruption claims.

The Qatar World Cup corruption scandal follows on from a troubled build upto the 2014 competition in Brazil, which drew public criticism after it wasrevealed that $11bn had been spent on hosting the event, despite this markinga period of underinvestment in public services in the country. Meanwhile,further controversy has hit Qatar over its employment of cheap labour at thenew football stadiums currently being built in the country in the run up to2022; with recent rumours circulating that FIFA has been considering plans tomake a country’s human rights record a factor in awarding future events. Theawarding of the 2022 World Cup bid to Qatar has continued to draw criticismsince it was first announced back in 2010, with many people citing the country’slack of football history as an issue, and voicing concerns over the health ofplayers who will be forced to play in the desert nation’s stifling summer heat.



FIFA’s current investigation into the corruption claims surrounding Qatar’swinning bid for the tournament, which is being undertaken by committeemember Michael Garcia, was originally due to be published in summer 2014;however, it was revealed in July that the report would be delayed for severalweeks. The investigation, which examines corruption claims over both the 2018— won by Russia — and the 2022 World Cup bids is instead expected to bepublished in September. Following the publication of the report, JudgeJoachim Eckert, the judge for the adjudicatory chamber of the EthicsCommittee, will decide on possible sanctions against any of the nine biddingnations that competed for the two tournaments should they be found to haveallowed corruption. However, it is not yet known whether Garcia hasconsidered the recent findings published by The Sunday Times relating toMohamed Bin Hammam, despite Qatari bid officials denying any wrongdoing.Nonetheless, it is likely that anyone found guilty of corruption could facesubsequent criminal prosecution. If corruption allegations were found to betrue it could mean that the bid process for the 2018 and 2022 tournaments isre-run, although FIFA President Sepp Blatter has stressed that only his rulingboard, and not Judge Eckart, has the power to overturn the World Cup bids.

Women in Sports Still Underrepresented

British sport has continued to remain a male dominated industry, particularlyin relation to sponsorship funding, with just 0.4% of total commercialinvestment going towards women in sport since 2011, according to theWomen’s Sport and Fitness Foundation (WSFF); while just 7% of sports mediacoverage is devoted to women’s sport. However, further data compiled byWSFF show that over 60% of sports fan would like to see more women’s sporton television in the future. While recent years have seen the emergence ofwomen in some sports, such as snooker, cricket and rowing, for example,scandals such as the leak of private emails sent by Football Association (FA)Chief Executive (CE) Richard Scudamore containing sexist content, as well asmale snooker player Steve Davis’ recent comments that he expects women willnever compete in the final stages of the World Snooker Championship, havecontinued to set back the progress of women in sports in the UK in recent years.

A lack of representation at board level, as well as minimal sponsorship fundingin comparison to professional men’s sports, has also been to blame for the slowpace of growth observed in women’s sports. Recent years have seen a turningof the tide in some sports categories: Investec, for example, announced that ithad signed a record-breaking 5-year sponsorship deal with the England andGreat Britain women’s field hockey teams back in 2011; while, more recently,England’s women’s cricket team revealed that it had signed its first standalonesponsorship agreement, in a deal with Kia set to last around 2 years. Othermajor sponsorship agreements signed by female athletes have included the FAWomen’s Super League’s 5-year sponsorship deal with Continental, which isestimated to be worth approximately £450,000; and the Netball Superleague’ssponsorship by Zeo, estimated to be worth approximately £390,000. However,the value of these deals is still far below those signed by professional maleathletes and sports clubs. Chelsea Football Club (FC), for example, signed a dealworth a total of £280m with adidas in June 2013; while golfer Rory McIlroy isreported to have agreed a sponsorship deal with Nike in January 2013estimated to be worth around £150m in total.



Some changes have, however, already been undertaken to level the playingfield between women’s and men’s sports. Tennis tournament Wimbledon, forexample, began awarding women the same amount of prize money as men in2007; with tennis continuing to represent one of the most significantmainstream sports where women and men both attract lucrative sponsorshipdeals and equal television coverage. Meanwhile, the Tour de Franceannounced that a new cycling event, Le Course, would be introduced for thefirst time during 2014, which will see elite women cyclists race the Paris circuitof the men’s Tour de France route. The prize money for Le Course will also beequivalent to that for a stage winner of the Tour de France. Nonetheless,women’s sport has a long way to go before it is seen as equal to that playedby men; although an increase in sports participation by women over the pastdecade should help to yield more professional female sports stars in the future,with the number of women participating in sport and physical activityestimated to have increased by more than 1 million since 2005, according toNational 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 fromIDC revealing that wearable device shipments will reach 19 million worldwideby the end of 2014, and will grow to 111.9 million by 2018. Several technologyfirms, such as Samsung, Nike, Fitbit, Jawbone and Google, have continued todevelop wearable technology, while Apple is currently thought to be workingon a smartwatch rumoured to be called the iWatch which could launch as earlyas this year. The majority of wearables currently on the market offer a moremobile experience for customers, with unique selling points (USPs) focusing onintegration with other devices and the provision of big data in real-time directto users. In this way, such devices have shown particularly strong growthamong sports fanatics due to their ability to measure and monitor performanceduring sport, e.g. heart rate, pace, distance travelled, etc.



Wearable technology is also purported to be having a significant impact onthe professional sports market, with several global sportswear brands such asadidas, Nike and Reebok already investing heavily in wearable devicesdesigned specifically to monitor performance during professional sport events.The National Football League (NFL) in the US, for example, alreadyincorporates wearable technology into virtually every piece of equipment usedby professional athletes in order to monitor their performance and safety;while Major League Baseball (MLB) has been testing smart compression shirtsthat have been wired to measure arm movement and technique to determinea pitcher’s effectiveness. Australian technology start-up Catapult has alreadymade significant headway into the professional sports market with its rangeof wearable monitoring solutions, such as the OptimEye system which worksby fitting a small ‘bug’ sensor unit in a player’s shirt, which then tracks theathletes place in three-dimensional (3D) space, allowing users to pinpoint eachplayer’s exact direct for each acceleration or step. Catapult has continued toobserve significant growth in recent years, with the company now holdingcontracts with around 250 Australian and European professional footballorganisations, as well as several national rowing programmes and rugby clubs,including the British and Irish Lions.

The growth in wearable technology within the professional sports marketreflects the rising interest in sports science and big data by top-level sportsorganisations, many of which are increasingly using such information to trackperformance, amend tactics and monitor player safety. Increased usage ofwearable technology in professional sports is also expected to provide a meansfor deeper fan engagement, for example by providing fans with real-timestatistics, as well as capturing on-field player viewpoints through video. Suchtrends could have serious implications for sponsors, creating new rights andassets that can be leveraged as part of wider sponsorship campaigns.

The growing utilisation of virtual reality (VR) technology by sponsors reflectsthe development of this trend in the sports sponsorship arena, with a numberof sponsors already using such technology to create innovative, immersive andengaging experiences for sports fans. England Rugby sponsor O2, for example,recently launched a new 360-degree VR sporting experience which allows fansto virtually train with the England Rugby team using the Oculus Rift gamingheadset. Likewise, technology group IBM leveraged its sponsorship of tennistournament the Australian Open to launch a new real-time VR game, whichallowed fans to virtually return serves from players using the Oculus Riftheadset. IBM also used the tennis competition to launch new application (app)SlamTracker, which collected all data from the tournament, allowing faninsight into what a player needs to do to beat an opponent using predictiveanalytics technology. With the wearables and VR market set to take off overthe next few years, it is likely that sponsors will increasingly be looking to suchtechnology to help activate their brands during sponsorship campaigns; withsuch platforms providing scope for increasingly sophisticated, innovative andimmersive brand experiences.



In-Stadia Connectivity to Drive Mobile Interactions

Recent years have seen stadiums and venues invest heavily in the developmentof more connected facilities (for example, through the installation ofin-stadium Wi-Fi, cashless payment facilities, social media boards and improvedbig-screen technology) in order to better accommodate the growing mobileaudience. In this way, venues are further facilitating the growing trendtowards ‘second screening’, that is the provision of additional content to sportsfans, such as alternative match perspectives, in-play betting, video replays,statistics and real-time performance information, directly to mobile devices.The interactions of sports fans on social media networks through mobile hasalso helped to drive key investment in in-stadium connectivity, with fansincreasingly utilising social media platforms to connect with each other, shareinformation and interact with sponsors.

During 2013, Liverpool FC, along with Manchester City, became the first twoPremier League clubs to begin roll-outs of in-stadium Wi-Fi connectivity in theUK; with Scottish team Celtic FC also announcing a similar roll-out at its homestadium Parkhead during the same year. More recently, it was announced thatWembley, in partnership with mobile telecommunications firm EverythingEverywhere (EE) had signed a new 6-year deal to develop the venue as ‘themost connected in the world’. The multi-million-pound deal is expected todeliver enhanced fourth-generation (4G) network coverage across thestadium, as well as superfast Wi-Fi and an integrated mobile payments system.The deal between EE and Wembley is similar to the partnership between RealMadrid and Cisco Systems, which was first signed in 2011 with a view tocreating one of the most ‘interactive stadiums’ in Europe. Following on fromthe deal, Real Madrid’s home stadium— the Santiago Bernabéu Stadium —became the first venue in Europe to install a high-density Wi-Fi network ableto support heavy traffic, as well as the installation of high-definition (HD)displays throughout the stadium, which can be used to display player statistics,action replays and referee rulings; as well as exclusive content to thoseattending live matches.

Other sports venues have also begun to roll-out more connected facilities atstadiums. London-based cricket ground Lords, for example, announced thelaunch of new in-stadium Wi-Fi facility The Cloud, which it began work on backin 2012. The Cloud was installed across all hospitality areas in the grounds andhas since been followed by further Wi-Fi roll-outs to match stands, allowingfans to access the Internet from their seats. Meanwhile, during 2013, ChesterRacecourse announced plans to roll-out free Wi-Fi across the venue, followinga partnership deal with O2, with the service set to be free for all mobile orbroadband customers, irrespective of their mobile provider.

For sports sponsors, the growth of the connected stadium could offer a numberof marketing opportunities; for example, by providing a route to engage withconsumers in real-time regarding live events, and presenting furtheropportunities for in-stadium marketing and sponsorship activities; ultimatelyallowing sponsors to engage with consumers on a much deeper levelthroughout live matches.



ENVIRONMENTAL

Corporate Social Responsibility Becoming a Focal Point inSponsorship

Nowadays, an increasing number of companies have begun aligning theirsponsorship activities with their corporate social responsibility (CSR) strategies,in order to effectively promote their positive social and environmentalcontributions. The social value of brands has become increasingly important tocorporations and has been driven by a need to build more personalrelationships with customers through active engagement. Supporting socialand environmental issues, and promoting activities undertaken to help achieveCSR aims related to such issues, therefore provides a route through whichbrands can engage with consumers on topics of shared interest. In this way,customer relationships are able to go beyond price point and product, andtowards a relationship based more on shared ethics and social responsibility.

Football, in particular, has become a powerful brand for change, with around250,000 community visits undertaken by footballers in the UK relating to socialand environmental issues, such as anti-racism projects for example. Byundertaking such projects, sports organisations and individuals are able to usetheir positive public image to draw attention to issues of significant socialimportance; with sponsors in turn benefitting from the positive PR that thesetypes of social strategies offer. The emergence of organisations specialising inthe social aspect of sport such as Beyond Sport reflects the move towards amore CSR-centric approach within the sport sponsorship market. Theorganisation, which counts several high-profile brands including Barclays, TimeMagazine, Unicef, PwC and United Airlines among its client base, is primarilyengaged in facilitating relationships between sports projects and businessbackers. The company backs around seven community projects around theglobe each year, and estimates such packages to be worth approximately$200,000 each (including in-kind services). Indeed, since being founded in 2009by founder Nick Keller, Beyond Sport has helped to provide over £4m worthof support to projects across the globe. According to a statement by Kellerpublished by the BBC in 2011, the growth of the company reflects the shifttowards more sustainable and socially-motivated sponsorship models by bigbusiness:

“I think this model of sponsorship, with a social element, will bethe model of sport sponsorship over the next 20 years... I don’tthink we will see many blue-chip brands take up sponsorship in[the] future without a social element... Sport and sport fordevelopment offers a [CSR] vehicle that allows brands to marketthemselves in different ways.”



For businesses that have aligned their commercial partnerships with socialprojects, there is an opportunity to benefit from increased profile, networkingopportunities, and improved business expertise. One example has been currentOlympics sponsor Procter & Gamble (P&G), which has continued to use itsmarket-leading position and commercial tie-ins to promote environmental andsocial messages. One of its main brands, Ariel, for example, ran a campaigncalled Cool Clean to try and get customers to wash their clothes at 30 degreesin order to save energy. Such campaigns have proved successful, with around30% 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 theUK have once again surfaced in recent months, after a leaked report revealedthat the UK’s Labour Party was backing plans to ban alcohol sponsorship in thefuture if it takes office following the 2015 General Election. Health activistsand legislators have also stepped into the debate, with a number of powerfulorganisations, such as the British Medical Association (BMA) and the House ofCommons Health Select Committee, throwing their weight behind a potentialban. Similar bans are already in place in several other European countries, suchas France, which bans the placement of alcohol advertising on television, incinemas, and in sponsorship campaigns at sporting events. On top of this, 2015is expected to see the European Commission launch a new ‘Alcohol Strategy’encompassing the entire EU, which could also be used to implement stricterregulations surrounding alcohol sponsorship of sports, in line with the WorldHealth Organization’s (WHO’s) recommendations outlined in its ‘GlobalStrategy to Reduce the Harmful Effects of Alcohol’.

The argument in support of a ban on alcohol sponsorship comes after Ofcomfigures revealed the increasing level of exposure that children now have toalcohol advertising, with an average of 3.2 alcohol advertisements witnessedby children per week in 2011, compared with 2.7 per week in 2007. If such aban is eventually implemented it could have a negative impact on severalpopular professional sports, such as Formula 1 (F1) motor racing, horseracing,rugby and football, which all rely heavily on generating income throughcommercial partnerships with drinks brands. F1, in particular, has been subjectto increased criticism from anti-alcohol charities and road safety lobbies in amove not unlike the ban against tobacco sponsorship which hit the sportduring 2005, with several high-profile F1 teams currently engaging in majorsponsorship deals with global drinks brands. Martini, for example, recentlyre-joined F1 as a title sponsor for Williams, while McLaren is backed by whiskeymanufacturer Johnnie Walker in a deal thought to be worth around £15m ayear. Meanwhile, Force India signed a deal with vodka brand Smirnoff in early2014, with the commercial partnership encompassing branding on all teamcars.



The ban on tobacco sponsorship back in 2005 is thought to have cost F1 teamsmillions of pounds in revenue, with the sport now thought to be bracing itselffor a similar situation following the mounting criticism over alcoholsponsorship. However, it is hoped that the introduction of a new code aimedat regulating all new alcohol sponsorship agreements in the UK earlier in theyear 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 drinksbrands risk by breaching the code and through the financial cost of having torenegotiate a sponsorship agreement or having to withdraw it completely. Thecode represents the first of its kind for UK-wide alcohol sponsorship andintroduces a new and binding commitment for all drinks companies to promoteresponsible drinking through their sponsorship agreements. Several leadingsports, arts and venues organisations have already endorsed the code includingAEG, British Horseracing, the England and Wales Cricket Board (ECB), the FA,the Premier League and all UK rugby bodies; with several leading drinks brandsalready signing up to the code such as AB InBev, Pernod Ricard and Diageo.



8. Further Sources

Associations

Advertising Standards Authorityhttp://www.asa.org.uk British Cyclinghttp://www.britishcycling.org.uk European Sponsorship Associationhttp://www.sponsorship.org Gambling Commissionhttp://www.gamblingcommission.gov.uk International Rugby Boardhttp://www.irb.com

Internet Advertising Bureauhttp://www.iabuk.net Remote Gambling Associationhttp://www.rga.eu.com Rugby Football Leaguehttp://www.therfl.co.uk Women’s Sport and FitnessFoundationhttp://www.wsff.org.uk

Publications

Campaignhttp://www.campaignlive.co.uk • The Economic Impact of BritishRacing 2013Deloittehttp://www.deloitte.com Forbeshttp://www.forbes.com • Golf Digest 50 Money ListGolf Digesthttp://www.golfdigest.com The Guardianhttp://www.theguardian.com

• Know the Fan: Global Sports MediaConsumption, June 2014Kantar Mediahttp://www.kantarmedia.co.uk Marketing Weekhttp://www.marketingweek.co.uk The Sunday Timeshttp://www.thesundaytimes.co.uk Find!Sponsorshiphttp://www.findsponsorship.co.uk

Sports Sponsorship Further Sources


General Sources

Kantar Mediahttp://www.kantarmedia.com

Nielsenhttp://www.nielsen.com

Government Publications

Department of Culture, Media andSporthttps://www.gov.uk/government/organisations/department-for-culture-media-sport• Spending Review 2014/2015 HM Treasuryhttps://www.gov.uk/government/organisations/hm-treasury• Forecasts for the UK Economy: acomparison of independent forecasts,May 2014

National Statisticshttp://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 andNorthern Ireland, Mid-2001 toMid-2010 Revised, December 2013• United Kingdom Economic AccountsQ4 2013

Other Sources

Accenturehttp://www.accenture.com BBChttp://www.bbc.co.uk BThttp://www.bt.com Deloittehttp://www.deloitte.com IDChttp://www.idc.com

IEGhttp://www.sponsorship.com Millward Brownhttp://www.millwardbrown.com Ofcomhttp://www.ofcom.org.uk Office of Fair Tradinghttps://www.gov.uk/government/organisations/office-of-fair-trading Skyhttp://www.sky.com



Snack Mediahttp://www.snack-media.com Sponsorship Todayhttp://imrpublications.com

UK Sporthttp://www.uksport.gov.uk



Key Note Research

Key Note is a leading supplier of market information, publishing an extensive range ofconsumer, industrial, business-to-business and services titles. With over 30 years’ experience,Key Note represents clear, concise, quality market information.

For all reports, Key Note undertakes various types of research:

Online searching is carried out by product code or free search method, and covers the periodfrom the last edition of the report to the current day.

Trade sources, such as trade associations, trade journals and specific company contacts, areinvaluable to the Key Note research process.

Secondary data are provided by Kantar Media (TGI) and Nielsen for consumer/demographicinformation and advertising expenditure, respectively. In addition, various official publicationspublished by National Statistics, etc. are used for essential background data and market trends.

Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone.This provides qualitative data (‘industry comment’) to enhance the statistics in reports;questionnaires may also be used.

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Key Note estimates are derived from statistical analysis and trade research carried out byexperienced research analysts. Up-to-date figures are inserted where possible, although therewill be some instances where a realistic estimate cannot be made or external sources requestthat we do not update their figures.

Key Note Editorial, 2014

Sports Sponsorship Key Note Research


The Key Note Range of Reports

Key Note publishes over 180 titles each year, across both the Key Note and Market Assessmentproduct ranges. The total range covers consumer, lifestyle, financial services and industrialsectors.

Title Edition Published

Key Note Current Reports

AABC1 Consumer 8 2014

Access Control 14 2014

Accountancy 17 2014

Activity Holidays 6 2014

Advertising Agencies 6 2014

Airlines 24 2014

Airports 17 2014

All-Inclusive Holidays 2 2012

Alternative Healthcare 8 2013

Arts & Media Sponsorship 5 2014

Automatic Vending 27 2014

Automotive Services 9 2014

Autoparts 20 2012

B

B2B Marketing 3 2014

Baby Products 7 2013

Baths & Sanitaryware 16 2013

Betting & Gaming 26 2013

Biscuits & Cakes 21 2014

Book Publishing 22 2012

Book Retailing on the Internet 6 2014

Bookselling 18 2012

Bread & Bakery Products 29 2014

Breakfast Cereals 18 2014

Breweries & the Beer Market 31 2014

Bricks & Tiles 18 2013

Bridalwear 6 2013

Builders’ Merchants 18 2013

Building Contracting 12 2013

Building Materials 15 2013

Bus & Coach Operators 12 2014

Business Postal Services 3 2013

Business Press 16 2014

Business Travel 8 2014


C

C2DE Consumer 8 2014

Canned Foods 20 2014

Car Dealers 2 2014

Care Homes 3 2014

Carpets & Floorcoverings 18 2014

Catering Equipment 15 2012

Catering Market 21 2009

Charity Funding 5 2013

Chemical Industry 16 2014

Childcare 7 2012

Children’s Publishing 4 2012

Childrenswear 10 2013

Chilled Foods 18 2014

China & Earthenware 30 2014

Cigarettes & Tobacco 27 2013

Closed-Circuit Television 15 2014

Clothing & Footwear Industry 13 2010

Clothing Manufacturing 18 2014

Clothing Retailing 10 2013

Coffee & Sandwich Shops 8 2013

Commercial Dynamics inFinancial Services 4 2010

Commercial Insurance for SmallBusinesses 5 2014

Commercial Vehicles 17 2014

Computer Hardware 11 2013

Computer Services 11 2014

Computer Software 9 2013

Condiments & Sauces 5 2008

Confectionery 32 2014

Construction Industry 11 2009

Consumer Credit & Debt 7 2012

Consumer Magazines 19 2014

Contact Centres 9 2013

Contraception 7 2014

Contract Catering & FoodserviceManagement 22 2013

Contract Cleaning 23 2013

Cooking & Eating Habits 7 2012

Cooking Sauces & FoodSeasonings 6 2013

Sports Sponsorship The Key Note Range of Reports



Corporate Hospitality 8 2014

Corporate & PromotionalGiftware 5 2013

Cosmetic Surgery 11 2014

Cosmetics & Fragrances 26 2013

Courier & Express Services 18 2013

Cruise Market 3 2012

Customer Magazines 6 2014

Customer RelationshipManagement 5 2013

Customer Services in FinancialOrganisations 5 2010

D

Debt Services (Commercial &Consumer) 8 2014

Defence Equipment 12 2014

Diet Foods 5 2013

Digital Broadcasting 7 2014

Digital Communications 2 2012

Direct Insurance 6 2010

Direct Marketing 21 2014

Direct Mortgages 9 2013

Discount Retailing 10 2014

Disposable Paper Products 14 2013

Distribution Industry 10 2009

DIY & Home ImprovementsIndustry 11 2009

Domestic Heating 15 2013

Drinks Market 19 2009

E

E-Commerce: The InternetGrocery Market 8 2014

E-Commerce: The InternetLeisure & Entertainment Market 5 2008

Electrical Contracting 11 2014

Electrical Wholesale 6 2013

Electricity Industry 9 2013

Electronic Banking 4 2008

Energy Industry 8 2010

Equipment for the Disabled 7 2014

E-Recruitment 4 2012

Estate Agents 18 2011

Estate Agents & Services 6 2012

Ethnic Foods 18 2013

European Long-Term Insurance 4 2008

European Renewable Energy 2 2008

European Short Breaks 2 2008

European Telecommunications 3 2010

European Tourist Attractions 3 2010


European Trends in FoodShopping 4 2009

Exhibitions & Conferences 14 2014

F

Fast-Food & Home-DeliveryOutlets 27 2013

Film Market 2 2009

Financial Services Marketing toBCs 1 2009

Financial Services Marketing toDEs 2009

Financial Services Marketing toStart-Up Businesses & the Self-Employed 3 2010

Financial Services Marketing tothe Affluent 1 2009

Financial Services Organisationson the Internet 5 2013

Fire Protection Equipment 10 2013

Fish & Fish Products 15 2012

Fitted Kitchens 12 2013

Food Industry 20 2010

Football Clubs & Finance 6 2014

Footwear 18 2013

Forecourt Retailing 9 2012

Franchising 13 2012

Freight Forwarding 18 2011

Frozen Foods 27 2014

Fruit & Vegetables 24 2014

Fruit Juices, Energy & JuiceDrinks 16 2014

Functional Foods 6 2010

Further & Higher Education 9 2014

G

Garden Equipment 15 2013

Gas Industry 8 2014

General Insurance 13 2010

Giftware 20 2011

Glassware 17 2013

Green & Ethical Consumer 6 2013

Greetings Cards 28 2014

Grey Consumer 6 2013

H

Hand Luggage & Leather Goods 17 2013

Health Clubs & Leisure Centres 13 2014

Healthy Eating 6 2008

Holiday Purchasing Patterns 7 2014

Home Entertainment 4 2012

Home Entertainment(Audiovisual) 1 2013




Home Entertainment(Computing & Gaming) 1 2013

Home Furnishings 22 2014

Home Insurance 1 2014

Home Shopping 16 2014

Horticultural Retailing 18 2013

Hot Beverages 8 2014

Hotels 27 2013

Housebuilding 21 2013

Household Appliances (BrownGoods) 13 2013

Household Appliances (WhiteGoods) 19 2013

Household Detergents &Cleaners 18 2014

Household Furniture 21 2014

I

Ice Creams & Frozen Desserts 17 2014

Independent Financial Advisers 5 2013

Insurance Companies 12 2009

Insurance Industry 10 2009

Insurance Market 13 2012

Insurance Prospects 2 2008

Internet & Telephone Banking 2 2013

Internet Advertising 8 2013

IT Recruitment 7 2014

IT Security 12 2014

IT Training 15 2014

J

Jewellery & Watches 28 2014

K

Kitchenware 9 2013

L

Laboratory Equipment 12 2014

Legal Services to Consumers 1 2013

Leisure in the Home 3 2010

Leisure Outside the Home 3 2010

Lifestyle Magazines 6 2013

Lingerie 12 2014

Local Government Services 3 2010

Low-Fat & Reduced-Sugar Foods 5 2008

M

Marketing in the Digital Age 4 2012

Meat & Meat Products 24 2014

Medical Equipment 20 2014

Medical & Health Insurance 4 2012

Medical Insurance 1 2014

Men & Women’s Buying Habits 6 2012

Men’s Toiletries & Fragrances 7 2013


Metal Recycling 8 2014

Milk & Dairy Products 27 2013

Mobile Marketing 2 2014

Mobile Phones 10 2014

Motor Finance 5 2013

Motor Industry 12 2008

Motor Insurance (Consumer) 1 2014

Music Industry 3 2014

N

Natural Products 3 2012

Newspapers 20 2014

Non-Food Sales in Supermarkets 6 2013

Non-Metal Recycling 5 2014

Nutraceuticals 3 2008

O

Office Equipment Industry 9 2010

Office Furniture 23 2013

Offshore Oil & Gas Industry 7 2013

Ophthalmic Goods & Services 19 2013

Opticians & Optical Goods 5 2010

Organic Food & Drink 8 2012

OTC Pharmaceuticals 17 2014

Over-50s Consumer 1 2009

Own Brands 16 2014

P

Packaging (Food & Drink) 6 2010

Packaging (Glass) 13 2008

Packaging (Metals & Aerosols) 14 2014

Packaging (Paper & Board) 17 2014

Packaging (Plastics) 17 2014

Pensions 7 2013

Personal Banking 2 2012

Personal Lines Insurance 5 2012

Personal Loans 4 2008

Pet Insurance 1 2014

Pet Market 6 2014

Pharmaceuticals Industry 6 2008

Planning for Retirement 1 2008

Plus-Size Fashion 3 2009

Poultry 6 2014

Power Tools 7 2013

Premium Lagers, Beers & Ciders 12 2014

Printing 18 2014

Private Healthcare 23 2014

Protective Clothing & Equipment 9 2014

Public Houses 29 2013

Public Relations Industry 4 2012

Publishing Industry 13 2010




R

Rail Travel 8 2011

Ready Meals 14 2013

Recruitment Agencies(Permanent) 13 2014

Recruitment Agencies(Temporary & Contract) 13 2014

Renewable Energy 6 2013

Restaurants 27 2013

Retail Pharmacies 19 2014

Road Haulage 23 2012

Rural Economy 2 2009

S

Sauces & Spreads 13 2012

Savings & Investments 7 2013

Security Industry 13 2010

Shopfitting 16 2014

Shopping Centres 4 2013

Singles Market 5 2012

Slimming Market 5 2013

Small Businesses & Banks 2 2010

Small Domestic ElectricalAppliances 14 2013

Snack Foods 22 2013

Social Media Marketing 3 2014

Soft Drinks (Carbonated &Concentrated) 20 2013

Soup Market 5 2013

Spirits & Liqueurs 3 2014

Sports Clothing & Footwear 16 2014

Sports Equipment 18 2013

Sports Market 13 2010

Sports Sponsorship 10 2014

Stationery (Personal & Office) 27 2013

Supermarket Own Labels 5 2013

Supermarket Services 4 2013

Sweet & Salty Snacks 16 2010

T

Take-Home Trade 18 2011

Teenage & Pre-Teen Magazines 6 2013

Timber & Joinery 21 2013

Toiletries 26 2014

Tourist Attractions 6 2013

Toys & Games 27 2014

Training 22 2014

Travel Insurance 1 2014

Travel & Tourism Market 17 2010

Travel Agents & Overseas TourOperators 26 2014

Trends in Food Shopping 5 2008


Trends in Leisure Activities 6 2014

Tyre Industry 7 2014

U

UK Internet Market 1 2009

Utilities 5 2013

V

Vegetarian Foods 7 2012

Vehicle Breakdown Services 8 2014

Vehicle Security 11 2014

Video Gaming 3 2014

Vitamins, Minerals &Supplements 8 2013

W

Wallcoverings & Ceramic Tiles 20 2014

Waste Management 13 2014

Water Industry 8 2013

Windows & Doors 22 2013

Wine 24 2014

Women's Plus-Size Fashion 5 2013

Working Women 5 2009

Y

Youth Fashionwear 5 2014

Key Note Archive Reports

A

Aerospace 12 2003

Agrochemicals & Fertilisers 3 2002

Air Freight 2 2005

Air Transport Logistics 1 2003

Animal Feedstuffs 11 2001

Audio Visual Retailing 1 2000

B

Baby Foods 3 2006

Baths & Showers 1 2000

Bearings 2 2007

Beds, Bedrooms & UpholsteredFurniture 2 2000

Bottled Water 2 2001

C

Cable & Satellite TV 10 2004

Call Centres 6 2006

Cash & Carry Outlets 16 2001

Cinemas & Theatres 9 2001

Clothing Retailers 1 2000

Commercial Radio 8 2004

Consumer Borrowing in Europe 1 2004

Consumer Internet Usage 4 2000

Contracted-Out Services 3 2007

Convenience Retailing 12 2002




Cross-Border Shopping 1 2000

Customer Loyalty in the FinancialServices 1 2000

D

Dark Spirits & Liqueurs 3 2004

Defence Industry 7 2003

Design Consultancies 3 2000

Digital TV 2 2003

DINKY Market 3 2007

Document Imaging Systems 1 2007

Domestic Telecommunications 4 2006

Dry Cleaning & Laundry Services 5 2005

E

Electronic ComponentDistribution 12 2002

Electronic ComponentManufacturing 11 2002

Electronic Games 4 2003

Equipment Leasing 12 2003

E-Shopping 1 2002

European Electricity Industry 3 2007

European Gas Industry 3 2007

European Oil & Gas Industry 2 2007

European Water Industry 3 2007

Extended Financial Families 1 2005

F

Factoring & Invoice Discounting 2 2003

Finance Houses 11 2000

Financial Services Marketing toABC1s 1 2000

Financial Services Marketing toABs 4 2006

Financial Services Marketing toC1C2DEs 1 2004

Financial Services Marketing toOver-60s 1 2004

Financial Services Marketing tothe Retired & Elderly 3 2007

Free-To-Air TV 8 2004


G

Generation Y 1 2007

Global Positioning Systems 1 2002

Global Waste Management 2 2070

H

Health Foods 22 2003

Healthcare Market 10 2005

Heating, Ventilating & AirConditioning 9 2002

I

In-Car Entertainment 1 2000

Individual Savings Accounts 2 2005

Industrial Fasteners 8 2001

Industrial Pumps 5 2000

Industrial Valves 8 2001

Internet Service Providers 2 2005

Internet Usage in Business 8 2005

Issues & Challenges in the UK LifeAssurance Market 2 2002

Issues in Higher EducationFunding 2 2006

L

Leisure & Recreation Market 15 2005

Lighting Equipment 14 2002

M

Management Consultants 10 2003

Marketing to Children 4-11 3 2003

Mechanical Handling 9 2001

Millenium Youth 2 2002

Mobile Telecommunications 2 2007

N

New Media Marketing 3 2002

O

Off-Trade Spirits 3 2004

Organic Baby & Toddler Care 1 2007

Over-40s Consumer 2 2005

P

Paper & Board Manufacturers 14 2002

Passenger Travel in the UK 5 2007

Pay TV 2 2004

Pension Extenders 1 2002

Photocopiers & Fax Machines 14 2005

Plant Hire 13 2007

Plastic Cards in Europe 2 2005

Plastics Processing 10 2003

Pre-School Childcare 1 2001

Private-Sector Opportunities inEducation 2 2001




Process Plant Industry 1 2000

Public Transport 1 2001

R

Rail Transport Logistics 1 2003

Railway Industry 2 2006

Recycling & the Environment 1 2000

Retail Credit 2 2000

Retail Development 1 2001

Road Transport Logistics 1 2003

S

Saving Trends in Eurozone 2 2002

Short Break Holidays 4 2001

Short Breaks 2 2004

Small Office Home OfficeConsumer 1 2001

Small Office Home OfficeProducts 1 2001

Sponsorship 2 2000

Supermarkets & Superstores 20 2003

T

Teenage Magazines 3 2007

Telecommunications 21 2007

Teleworking 2 2003

The Computer Market 11 2004

The Film Industry 4 2002


The Fish Industry 1 2001

The Legal Services Market 1 2005

The Luggage Market 1 2000

The Newspaper Industry 3 2005

Tweenagers 1 2001

V

Video & DVD Retail & Hire 8 2005

Videoconferencing 4 2007

W

Water Transport Logistics 1 2003

White Goods 2 2000

White Spirits 1 2005

Women Over 45 3 2007


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No part of this publication may be reproduced, copied, stored in an electronic retrieval system or transmittedsave with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act

1988.

Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames,TW11 8EE. Telephone: 0845-504 0452

Stringent efforts have been made by Key Note to ensure accuracy. However, due principally to the fact thatdata cannot always be verified, it is possible that some errors or omissions may occur; Key Note cannot acceptresponsibility for such errors or omissions. Details supplied by Key Note should only be used as an aid, to assist

the making of business decisions, not as the sole basis for taking such decisions.

Under the new Privacy and Electronic Communications Regulations 2004, it is unlawful for a business to makean unsolicited sales & marketing call to a corporate subscriber if it is either registered with CTPS or has

requested NOT to receive such calls.

Key Note Ltd holds and regularly updates (every 28 days) its data in accordance with the regulations andensures that its data are compliant, as of the date created. It is the responsibility of the caller to ensure that

these data are up to date; Key Note Ltd does not hold itself liable for any subsequent legalities.

If you have any queries regarding the CTPS legislation you may find the following website useful:www.ico.gov.uk



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