Sponsorship

The aim of this lesson is to learn what sponsorship is and how it can be good for both sport and sponsors, but also what the down sides are (Equivalent to UK GCSE Physical Education)

Sponsorship is where a company pay money to a team or individual in return for good publicity. Depending on the sport and team or athlete involved, the sponsorship can run into millions of pounds, but only for the best competitors in the most popular sports!

The more a team or athlete are in the public eye, the more companies are willing to pay to have their brand plastered all over them. This causes the cost of the sponsorship deal to go up. Companies will sponsor all different aspects of a sports team, event or individual, including:

Stadiums and grounds - New stands or grounds will often be named after the sponsor who has put money towards the development
Clothing - Teams usually get a shirt sponsor and often individual players will get deals for footwear
Equipment - Companies will often sponsor a players equipment, usually one of the companies who manufacture the equipment
Accommodation and Transport - Companies often offer free transport and accommodation to big teams so people see them using their company
Competitions - Companies often sponsor an actual competition or league so then their name and logo goes on all of the products and information regarding the competition. Sometimes its even named after the company (e.g. the Barclays Premier League)

Sponsorship is good for sports because it provides money for athletes to train and compete full-time, it pays for competitions and promotes the development of new athletes

Sponsors get a lot out of this deal too:

Free Advertising - If you see the best players using a product, you might want to use it too
Image - Every company wants to be associated with winners
Scholarships - Some universities and colleges offer places to students who excel at a sport for either lower grades, or less in tuition fees so that the institution develop a good sporting reputation
Tax and Hospitality - Sponsorship money isn't usually taxed. They are also given free tickets in good positions, often with food and drinks included, which they can use to impress possible clients and employees
Charities - Sponsors often give money to charity events. This may be because they are nice and believe in the cause. It may also be to help their image!

Sponsorship does have some negative issues too:

Companies don't want to sponsor teams and athletes who aren't successful and so some struggle to get financial help this way.
Sponsorship deals are fragile. An injury, loss of form or some bad publicity can mean the contract is terminated
Advertising some products in sport is not advisable. Advertising of cigarettes by tobacco companies has now been phased out in Formula One

Resources:

Learn More About: