Principal Consultant Simon Weatherill has spent the last 20 years developing the world renowned Melbourne Sports Hub, as former Chief Executive Officer of the State Sports Centres Trust…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.
iEDM integrate Design, Engineering and Delivery Management services to convert existing spaces into exciting new entertainment venues. Our team consists of highly qualified professionals with diverse…read more
APT (Advanced Polymer Technology) is the leading global manufacturer of polyurethane-based materials, acrylic coatings and synthetic turf products for sporting and recreational applications. From…read more
The Jump Pad is a safe, flat inflatable made in a variety of sizes which can be used indoor or outdoor. From 3mx3m up to a whopping 9mx21m. Markets include Indoor and outdoor playgrounds, schools,…read more
As of 2018, TicketServ operates as SeatGeek Asia Pacific Pty Limited, part of international ticketing platform SeatGeek. Click here to contact SeatGeek Asia Pacific via their entry in…read more
As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd. 19th July 2018 - ENTA AUSTRALASIA REBRANDS AS VIVATICKET 17th October 2016…read more
The P.A. People is a specialist contractor in the areas of Sound Reinforcement, Performance Lighting, Audio Visual Systems, Video and Communications. Over the past 40 years we have developed a…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!