Wearing uniforms and using equipment are a vital part of many sports. From helping athletes to perform at their very best, or teams to identify themselves, they make it easy for the audience to identify what team they’re on.
It doesn’t matter whether you’re a keen sports fan, or hold a sports journalism degree - it’s easy to notice that many modern sporting kits are adorned with the logos of sponsors and supporters. From insurance companies to pet food, companies across all industries are looking to promote their brand - but for many, understanding why can often mean the difference between recognising a logo, and understanding why it’s on a jersey.
Let’s delve into the duality of sports sponsorships and advertising - and how obtaining naming rights or advertising space can often be mutually beneficial for both players and sponsors.
What is Sports Sponsorship?
So, what is a sports sponsorship?
It’s important to recognize that in today’s ever evolving world, businesses that run sporting companies often look for ways to subsidise their operating costs.
On the other side of the fence, brands often face challenges when creating and making memorable campaigns. For many brands, the costs of running a large-scale advertising campaign can be substantial - and many types of sports sponsorship offer a cost-effective way of promoting a brand.
The concept of a sponsor has existed since ancient times - in fact, elements of sports sponsorship can be observed as far back as the Greek and Roman Empires. One of the little-known examples of early sports sponsorship was the creation of the Leonidaion, an ancient athletes' village, sponsored and built by Leonidas of Naxos.
In modern times, sports sponsorship can occur in many different ways. One example is becoming a sponsor on a club’s jersey, such as the prominent sponsor displayed on the front of many Major League Soccer jerseys.
For some, sports sponsorship comes in the form of sponsoring an individual athlete - for example, the lucrative sponsorships for superstar Lionel Messi, who has had many deals with major brands like PepsiCo and adidas.
Sponsorships: More Than Ads
Sports sponsorships are about more than simply getting a brand on a jersey, though. They provide businesses with a way to conduct corporate outreach, allowing them to showcase their values and put their best foot forward as a brand.
For example, sports such as football provide an invaluable way for companies to promote a brand - whether it be through a logo on a jersey, a banner at a press conference, or using sporting talent in advertising to promote a product or service.
For example, sporting apparel company adidas sponsors Little League Baseball. As their Official Uniform, Footwear, and Coaches Apparel Supplier, adidas’s investment allows Little League to help reduce costs for member leagues while showcasing adidas’ apparel to a receptive audience.
From Shoe Sponsor to Billionaire
Sports sponsorship can be expensive - in today’s world, many companies are vying for the right to be the face of a brand. However, in some industries, identifying the next big thing can often provide substantial rewards for a company.
The classic, and arguably most well-known example of this, is legendary NBA player Michael Jordan and the shoe brand synonymous with his name - the Air Jordan. In 1984, NBA rookie Michael Jordan was approached by a number of shoe companies, each looking for the right to produce a shoe that helped promote their brand, while also supporting Jordan financially through his rookie year and beyond.
In October 1984, apparel brand Nike secured a five-year, multi-million dollar deal that saw Jordan wear a unique brand of basketball shoes, throughout his career and beyond. In the decades since Michael Jordan’s professional basketball career, the partnership has proven to be incredibly lucrative - drawing billions in sales for Nike, while also providing a valuable income stream to support the Jordan family’s entrepreneurial and sporting interests.
The Risks of Sports Sponsorships
Sports sponsorships may seem simple, but they can be inherently risky for both sponsors and the players and teams they support. Misalignment of a brand can not only draw criticism, but it can sometimes damage the reputation of a respected organisation.
A classic example is the more than four-decade-long sponsorship of the International Olympic Committee by the global takeaway giant McDonald’s. Worth more than $250 million per year, the sponsorship commenced in 1976 and was designed to both support a major sporting event and garner exposure for McDonald's products worldwide.
The challenge? Community sentiment on McDonald’s had changed drastically over the decades. Films such as the late Morgan Spurlock’s documentary, Super Size Me, raised awareness of emerging health conditions such as obesity, and highlighted the disconnect between the Olympics, and the products McDonald’s serves. In 2017, McDonald’s made the decision to end the sponsorship - ending a four-decade relationship between the two companies.
Sports Sponsorships: The Future
No matter whether you love them, or hate them, sports sponsorships provide a unique opportunity for brands to promote their companies, while also making a contribution that benefits sports and athletes that would otherwise struggle to earn an income.
As marketing continues to evolve, sports sponsorships will continue to evolve as well. Where the 1900s saw brands embrace sports and events, the 2000s have seen new opportunities in areas like video games, and the rise of player sponsorship.
While it remains to be seen whether we'll ever see sports sponsorship deals as lucrative as the Air Jordan ever again, one thing is certain - the future of sports sponsorships is brighter than ever.
