Latest News

Back to Latest News back

 

International sport federations generate $2 billion in sponsorship

International sport federations generate $2 billion in sponsorship
December 18, 2012

International sports federations receive more than $2 billion per year in sponsorship according to the latest research from Sponsorship Today.

The monthly report series analysed more than 400 deals from 52 international sports federations and found that the average deal value amounted to $4.6 million.

Report author, Simon Rines, points out that there is significant market polarity stating "the report shows that UEFA, FIFA and the IOC account for half of all federation sponsorship income.

"Similarly, soccer federations such as UEFA, FIFA, AFC (Asia), Conmebol (South America) and CAF (Africa) also account for 50% of global federation sponsorship income. There are other significant rights holders, notably in motorsport, tennis, athletics and cricket but there also a lot of sports that don't have mass media coverage and struggle to attract major brands.

"In many cases the smaller federations are doing in-kind deals or being backed by sports specific sponsors such as suppliers of gym equipment and sports flooring. These rights holders need to look at the models developed by their bigger counterparts and structure their rights in such a way that the sponsors really help to develop the sports. Apart from cash, this could be through image and the ability of major brands to run communication programs."

Elsewhere the report questions the long-term viability of the International Olympic Committee's Olympic Partner (TOP) program.

Rines explains "the TOP program has been fantastic for the sponsorship industry and everyone should recognise that it paved the way for a more professional approach across sport.

"However, we now have a situation where some domestic Olympic sponsors are paying more for their rights than those with global sponsorship status. For the Rio 2016 Games, there are national deals amounting to around $300 million, whereas most TOP sponsors pay $100 million over four years, which gives them global rights for Winter and Summer Games. It's difficult to see this model continuing this is no criticism of the IOC, it is effectively a victim of its own success."

In terms of industry sponsorship, financial services is the biggest investor with $360 million committed annually to international federations. The automotive sector comes second, followed by sportswear, telecommunications and alcohol.

The highest spending company is adidas, with an estimated annual investment of $106m, approximately four times more than its rival Nike. Coca-Cola, Visa and McDonalds make up the remaining top five slots.

The report warns of the dangers of complacency among major rights holders as sponsors are paying record amounts for prime rights.

Rines adds "the fact that annual rights to major properties are now well in excess of $20 million means that sponsors really are looking for value.

"They are looking for good sporting content and social media opportunities and if they feel that they can achieve this through personal endorsements or other links to sport, then they might consider cutting back on major federation deals. The big rights holders therefore need to develop their social media strategies to allow sponsors to dovetail into their communications programs. Federations really have to be proactive in understanding the changes in the media landscape and offering opportunities to sponsors."

For more information go to www.imrpublications.com/overview.aspx?sid=37&rid=2

Image: Multiple Olympic Gold Medal and World Champion sprinter Usain Bolt is sponsored by PUMA.

27th November 2012 - BCCI DOUBLES VALUE OF INDIAN PREMIER LEAGUE SPONSORSHIP WITH PEPSI DEAL 

4th November 2011 - EMIRATES EXECUTIVES’ FIFA REVELATIONS ‘THE BIGGEST SPONSORSHIP STORY OF THE YEAR’

3rd November 2011 - EMIRATES EXECUTIVE QUESTIONS FIFA SPONSORSHIP

9th September 2011 - COMPANIES THAT SPONSOR OUTPERFORM THOSE THAT DON’T

6th November 2010 - INFLATED CROWD FIGURES SHORT-CHANGE SPONSORS

17th May 2010 - ARABIAN GULF APPROACH TO SPORT SPONSORSHIP ‘NEEDS TO CHANGE’


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.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Yellowbox Lockers

Yellowbox is an Australian technology company that has developed smart locker technology operated through an app with a focus on experience for users and facility managers. Found at Beaches, Aquatic…

read more

Aquatics / Attractions / Entertainment / Retail / Security

 
 
 

PAYSMART

Headquartered in Brisbane with an Australia-wide network of satellite offices, PaySmart is one of Australia’s largest and longest-standing direct debit billing companies. In 1996 we began…

read more

Access / Billing / Fitness / Technology

 
 

BODY BIKE AUSTRALIA

BODY BIKE® International is a leading manufacturer of indoor bikes with a 20-year track record of creating the best indoor bikes. Stay connected with Body Bike Australia…

read more

Fitness / Recreation / Sport / Technology / Wellness

 
 

WATERPLAY Solutions Corp

Whether your goal is increasing your centre's revenues or creating an engaging environment, why not add play to your project? If you're looking for stylish aquatic play features, kid-tested…

read more

Aquatics / Attractions / Play / Recreation / Waterparks

 
 

iDwala Pty Ltd

iDwala is the Community Sports Surface Specialist offering the highest quality designs and technical expertise to Councils, Schools and Sporting Clubs looking to create sporting…

read more

Consultants / Design / Recreation / Sport / Surfaces

 
 

Perfect Gym

Perfect Gym Solutions is a software as a service (SaaS) solution purpose-built to service the fitness industry, with over 1000 clients servicing over 2 million gym members across 40 countries making…

read more

Access / Fitness / Marketing / Recreation / Technology

 
 

MYRTHA POOLS

Founded in 1961, Myrtha Pools® quickly became Italy’s première swimming pool company, and has since grown into one of the world's leading swimming pool construction…

read more

Aquatics / Design / Play / Waterparks / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business