Forms of Sponsorship:
Financial support: Sponsors provide funding to cover the daily living and training costs of athletes, and in return, athletes promote the brand by wearing branded gear during competitions and interviews, and may appear in advertisements.
In-kind support: Sponsors provide clothing, footwear, and equipment free of charge (Nike and Wilson supply Roger Federer with top-tier gear).
Facility sponsorship: Sponsors fund or partially fund facilities, such as the example of Emirates sponsoring Arsenal’s stadium in exchange for brand exposure.
Advantages for Sponsors:
Improvement of public image: Being linked to successful athletes or teams enhances the public image of the sponsor.
Advertising and increased sales: Displaying the brand helps increase sales through advertising.
Tax relief: Sponsorship money is generally tax-free, allowing sponsors to reduce their tax burden.
Advantages for Performers
Full-time training and competition: Sponsorship allows athletes to train and compete full-time without the need for other jobs to support themselves.
Access to top-quality equipment: Athletes receive the best clothing and equipment through sponsors.
Wealth and recognition: Athletes can become extremely wealthy, something that may not have been possible before the era of sponsorship.
Advantages for Sport :
Improvement of coaching and facilities: Sponsorship money can improve coaching standards and sports facilities, raising overall performance levels.
Increase in participation: Funding may also be directed toward community programs and promotional events, potentially increasing participation in the sport.
Development of minority sports: While major sports receive the majority of funding, some sponsorship deals can benefit lesser-known sports.
Advantages for Audience :
Improvement of spectator facilities: Sponsorship money can be used to enhance spectator facilities, offering a better experience.
Increased media coverage: Major sponsors help raise the profile of a sport, leading to increased media coverage and allowing more people to follow the action from home.
Disadvantages for Sponsors :
Negative association: If athletes use performance-enhancing drugs or behave poorly, it can negatively affect the sponsor’s image, damaging their brand and sales.
Financial risk: Sponsors might face financial difficulties or withdrawal of support if an athlete's or event's image is damaged. Sponsors may also go bankrupt, affecting their ability to continue funding.
Disadvantages for Performers:
Withdrawal of support: If an athlete's image is damaged, the sponsor may withdraw support, creating financial problems for the athlete.
Extra duties: Athletes may be required to participate in advertisements or other promotional activities, which can interfere with their training schedules.
Disadvantages for Sport:
Changes to rules or format: Pressure from sponsors can lead to changes in the sport's rules or format (the introduction of video referees in rugby), which can disrupt the flow of the game.
Difficulty for minority sports: Sponsors typically prefer high-profile sports like football, which makes it harder for minority sports to find sponsorship opportunities.
Disadvantages for Audience :
Cost of televised sport: Sponsorship deals with media companies can result in a shift from free to pay-per-view coverage, increasing costs for the audience.
Inconvenient scheduling: Sponsors may influence the timing of games for prime-time exposure, which could be inconvenient for spectators.