SPORTENG specialises in the Planning, Design and Construction inspection of Fields of Play for all sports. Blending engineering with the specialist knowledge gained from working closely with sport…read more
Global sports sponsorship market predicted to fall by 37% this year
Global sports sponsorship rights fees are set to fall by more than US$17 billion (37% year-on-year) according to projections from data-driven sports marketing specialist Two Circles.
The fall, entirely attributed to the Coronavirus pandemic include a 45% decrease in spending by financial services companies, which, nonetheless, are expected to spend US$6.9 billion this year.
According to Two Circles, financial services was the biggest investor in sports sponsorship in 2019 with US$12.6 billion, equivalent to more than a quarter of the total.
A 55% year-on-year decline, from US$5.9 billion to US$2.7 billion (£2.2 billion/€2.5 billion) is expected in the automotive industry, the second-biggest spender in 2019.
Commenting on its findings, Two Circles advised "the COVID-19 pandemic has seen most new sponsorship agreements put on hold, and many existing agreements will be ended as a result of companies implementing major cost-cutting measures or going out of business.
"Sponsors will also be given 'makegood' sponsorship collateral and cash rebates due to the postponement and cancellation of live sport, significantly reducing their financial outlay in 2020."
The report comes just days after the International Olympic Committee (IOC) acknowledged that some of its sponsors might pay agreed sums later than originally anticipated, as a consequence of the postponement of the Tokyo 2020 Olympic Games forced by global pandemic.
A total of 14 multinational corporations have signed up for the latest edition of the IOC’s flagship The Olympic Partner (TOP) worldwide sponsorship program, covering the Pyeongchang 2018-Tokyo 2020 Olympic cycle.
The program is expected to generate more than US$2 billion for the IOC.
Among Olympic sponsors, accommodation website Airbnb is cutting 25% of its workforce, while Japanese carmaker Toyota last week forecast a collapse in operating income for its current financial year running to March 2021.
By contrast, Procter & Gamble, the giant United States-based household products company that is another TOP sponsor, disclosed last month it was experiencing a jump in sales of cleaning products.
Commenting on the current state of sports sponsorship, Two Circles Chief Executive, Gareth Balch stated "live sport halted globally since March, the value that sports properties have been able to deliver brand partners has been limited, with cost-cutting in sectors that invest heavily in sponsorship also presenting a significant challenge in signing new deals.
"Though every corner of sport is hurting, we remain certain that sport’s economy will thrive in the long term, and when the impending recession bottoms out, all sectors will rely on the best marketing platforms available to grow their businesses."
Image: The AFL's 2019 sponsorship deal with Toyota was the largest in Australian sport.
21st April 2020 - Arts and sport set to be impacted by Virgin Australia’s administration
11th March 2020 - NRL’s Bulldogs lose $2 million sponsorship following player scandal
18th February 2020 - ExerciseNZ questions fast food and sugary drinks sponsorship of sporting teams
4th February 2020 - AIG to end All Blacks sponsorship deal
28th January 2020 - Vodafone New Zealand sponsors esports events across Australasia
14th January 2020 - Formula One secures first ever gambling sponsor
3rd December 2019 - Cricket Australia refuses gambling sponsor for Big Bash League
15th March 2019 - Toyota’s AFL partnership becomes Australia’s largest sponsorship deal
27th November 2018 - Australian sponsorship platform SponServe acquired by Kore Software
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
Swimplex Aquatics are a world-class company dedicated to the commercial pool, waterslide industry. We are Australian market leaders servicing all states Australia wide. Swimplex provide a full…read more
About Priava's Technology - Priava is a cloud-based and centralised venue and event management system aimed at venues of all sizes. With its familiar and easy-to-use web interface, the…read more
Clubware’s online gym software is not your run of the mill management system. It has been carefully designed to incorporate all the elements that a fitness club would need. How did we do that?…read more
Over the past 10 years Debitsuccess has been providing expert billing services to businesses across Australia. Debitsuccess is now the largest full service direct debit provider in Australasia,…read more
SeatGeek is a search engine and mobile-focused ticket marketplace that allows fans to buy and sell tickets for live events. As of August 2018, SeatGeek has exited the Australian, New…read more
Centaman has been a market leader in Enterprise Software Solutions for the leisure and recreation industry and both profit and not-for-profit attractions since 1991. It offers a wide range of software…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!