Sponsorship

Professor Simon Chadwick

Posted: May 13, 2018

A SHORT GUIDE TO FOLLOWING – SPONSORSHIP

WHAT IT IS

Sponsorship is: “A business relationship between a provider of funds, resources or services and an individual event or organisation which offers in return some rights and association that may be used for commercial advantage.” (Sleight, 1989)

WHY IT IS IMPORTANT

Sponsorship is a major source of revenue for FIFA, with the likes of Vivo sometimes paying up to US$500 million for the right to be associated with the tournament. This summer, sponsorship is set to be a hot topic for two reasons: 1) the influx of new Asian sponsors; 2) caution among sponsors in the light of political issues surrounding Russia.

WHAT TO LOOK OUT FOR

There’s a great deal that one should be aware of: pitch-side signage, television advertising, placement of logos, sales promotions, online activity, Asian sponsors (e.g. Wanda, Qatar Airways), North American sponsors (e.g. McDonalds, Coca-Cola), Russian sponsors (e.g. Gazprom, Alfa Bank). Which sponsors stand-out, which most effectively engage consumers, and which ultimately win the World Cup’s commercial spoils all make for an intriguing prospect. Whilst FIFA’s corruption woes appears to have somewhat subsided, issues remain for the organisation, which may continue to have an impact upon sponsors. Understanding how FIFA’s newly incumbent sponsors respond to issues around FIFA and the tournament may reveal different responses to those of existing North American and Western sponsors.

SOME QUESTIONS TO ASK

What will be the profile, presence and influence of FIFA’s new Asian sponsors?

How will existing sponsors manage their sponsorship programmes in the light of political concerns?

Which sponsorships will be the most successful in engaging fans and consumers?

SOMETHING TO READ

 As Sponsors Shy Away, FIFA Faces World Cup Shortfall’ https://www.nytimes.com/2017/11/28/sports/soccer/world-cup-sponsors-russia-2018.html

‘Can China’s companies World Cup winners?’ https://www.policyforum.net/can-chinas-companies-world-cup-winners/ 

‘Fifa milking Chinese companies for sponsorship shows World Cup dream is a question of when not if’ http://www.scmp.com/sport/china/article/2126821/fifa-milking-chinese-companies-sponsorship-shows-world-cup-dream

‘Should brands steer clear of the World Cup?’ https://www.campaignlive.co.uk/article/brands-steer-clear-world-cup/1452103

SOMETHING TO WATCH

‘Team USA’s Failed World Cup Bid a Blow to Fox, Sponsors’ https://www.youtube.com/watch?v=NIp0bWNHqXE

‘Vivo Becomes Official Sponsor of the 2018 and 2022 FIFA World Cup’ https://www.youtube.com/watch?v=uFC0IFltiOk

 

About Professor Simon Chadwick

Simon is Professor of Sports Enterprise at Salford University in Manchester (UK), where he is also a Co-Director of the Centre for Sports Business. He is also a Founding Co-Director of the China Soccer Observatory and a Senior Fellow of the China Policy Institute at the University of Nottingham (UK). He has worked in football across the world, for various organisations including companies, federations, and governments. He tweets via @Prof_Chadwick