More money has been generated and spent than ever before by sporting teams and organisations. But, for this to be the case, these respective teams and organisations must be bringing in revenue to allow for expenditure. One of the ways they do this is via sponsorships, which come with some significant benefits.
One of the first and primary benefits of sponsorship in sports, as mentioned above, is to offset spending. Look at football and, more specifically, the English Premier League.
The big spenders, the likes of Manchester City and Manchester United, cannot spend whatever they like without repercussions. There are profit and sustainability rules to abide by. And the way to free up spending power is to have lucrative sponsorship deals in place to offset what is being committed in terms of transfer fees, wages and bonuses.
The relationship between the parties involved in sports sponsorship is always mutual, with all sides benefitting in some way, shape or form. A prime example of this is to look at the exposure that can be gleaned. If a sports team wanted to become known in a specific area of the world, such as Asia, they could strike up a commercial relationship with a company or brand from the continent to get their name out there.
But, let’s not forget that this works both ways. A business that may want some serious exposure may target one of the top five football leagues, because they will know that the games are televised. It immediately opens up the door to the kind of exposure that can see a brand reach millions in seconds. So, it’s easy to see why so many companies are keen to work with sporting outfits and organisations, and this has been the case for some time.
And, talking of exposure, which is undoubtedly the buzzword in this article, what about social media? You could suggest that sports, brands and social media, all go hand in hand. Platforms such as Facebook, Twitter and Instagram are the go-to if you want to stay up to date with the latest in the sporting world.
And the same applies if you want to know about brands. When there are sponsorship agreements between the pair, again, we see that mutually beneficial exposure come to the fore, with the eyes of hundreds, thousands and potentially millions watching on.
The final benefit of sports sponsorships worth mentioning is that they allow the companies doing the sponsoring to target a specific audience. So, for example, if they’re a sports betting operator, it makes sense for them to have access to an audience connected with the services they provide.
You could make the same suggestions about gaming platforms with sports-related titles or brands that retail sportswear and fitness equipment. The plus points of a sports sponsorship agreement, for everyone involved, are plentiful. And they’re certainly the way to go for brands in the sector.