Essay Ideas - Effects of Sponsorship
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As sport becomes an increasingly popular entertainment medium for TV and radio broadcasters, sponsorship becomes an even more popular way for large corporations to market themselves; it is a very effective way of associating their brand or identity with the values represented by a particular sport. Perhaps for golf the tradition still exists that golf is associated with people in the A, B, C1, C2 socio-economic groups.
In terms of sponsoring professional golf, Mastercard has increased its interest hugely. In asking whether golf benefits the corporation or the consumer more, the answer is definitively for the corporation. Those proposing that golf is for everyone obviously have the budgets that will allow them to play the game, because its expense prohibits many of them from taking part. In turn this may lead to their clientele being elitist either in terms of finance or ability. There are however schemes developing which encourage younger players in to the game at a low cost within schools and UK Sports College School Sports Partnerships. However, the barrier still exists for many when it comes to joining a club to take on the next stage of development.
It is said that only the highest calibre of companies are selected for serving as sponsors, or as ‘corporate partners,’ and include the likes of IBM Corp. Coca-Cola, Buick, and, Nike. Most of those pay for a percentage of the tournament and so are only mentioned during TV commercials.
Mastercard expects to invest $40 Million in golf sponsorship over the next few years. It is attracted by the global nature of the sport and the number of participants and followers. It is for the purpose of getting the corporate name in front of the fans. However, there is no doubt that sponsorship is occasionally used as a flimsy disguise to circumvent the laws of Television advertising. Cigarette advertising, for instance is illegal on television in the UK, but tobacco companies are not prohibited from sponsoring sporting occasions, and their name and logos are splashed across the TV screens hour after hour. Including golf, which is a particularly telegenic sport, has events sponsored by companies such as Dunhill, Benson & Hedges and Johnnie Walker.
The benefits to the sponsor are as follows:
- Increased product awareness
- Improved corporate image
- Product positioning
- Enhance an advertising campaign
- Client entertainment
- Tax deductions
- Whilst in return the sport in question can expect
- Wealth / Prize Money
- Raised profile
- Problems of Sponsorship with the performer (Tiger Woods)
- Commercial pressure
The international marketing group (IMG) looks after performers, managing taxes, and investments, to negotiating performers fees, leaving the client only to play the game. IMG had grown up in golf where professionals had been accepted for generations. They were the catalysts for enormous financial growth for players.
Tiger Woods has become one of the richest men in sport. However with all this wealth and power, it is the sponsors who can control what he wears and the rules he must follow in order to stay out of trouble. Tiger is under immense commercial pressures to succeed and keep the image of the sponsors in tact