Tag: sports sponsorship


China, The Sleeping Giant 12th January, 2017

China, a country already with the world’s second largest economy, made a bold statement in 2015. President Xi Jinping announced a goal to create a domestic sports economy worth $850 billion by 2025, a plan that also involves winning the football World Cup by 2050.

This has commenced rapidly, with Chinese Super League clubs paying stars like Oscar and Carlos Tevez at a premium, £60 million and £71.6 million respectively. The effect is simple – bigger names bring more spectators, more commercial interest and greater global reach. As teams gain more exposure around the world due to the leagues increased profile, they become an even more attractive property to brands. This heightened market activity has a knock-on effect to sponsorship fees throughout the rest of the world, as these large rights holders are able to command higher fees, smaller clubs can ride the coat-tails and leverage more expensive properties to their own benefit.

Outside of their home league, Chinese brands have become progressively active as sporting event sponsors and investors, lured by the potential profits of associating their brands with a sport, team or athlete to access a new market. Chinese brands are shown in each of the major European leagues – AIA at Tottenham, 138.com at Watford and Rastar Group gracing the jersey of RCD Espanyol, to name a few.

The biggest example is Hisense, who became the first ever Chinese sponsor of the Euros when aligning with the 2016 competition. Although the official sponsorship fee has not been disclosed, Hisense is said to have invested a sum of 370 million yuan (roughly £43 million).

It is not just football that China is attracted to, but also rugby and basketball. The levels of investment being seen will lead to an effect that can be likened to sponsorship inflation, as activity from within China develops rights holders into even larger properties. Global sports sponsorship investment levels have continuously grown year on year by 4-5% since the late 2000’s and with the sports industry estimated to be worth $73.5 billion by 2019, not surprisingly the bulk of that money will come from China.

Contrastingly, Western brands now have a way to penetrate the largely untapped Chinese market. With significant increases in awareness and media value, gaining a foothold in China would be a lot of brands’ number one goal, however there hasn’t been a platform big enough to promote themselves effectively, until now. The huge audience means Western brands now have a solid foundation to build exposure and revenue in this massive economy, just like the Chinese brands are doing in European sporting markets.

The next few years are going to be a very interesting period for sports sponsorship in China. An already global sport like football is becoming accessible to far more people, allowing rights holders to generate more money for their assets. While some may say that the money in sports is already at a ridiculous level without China’s new-found interest, it is another way of increasing globalisation by providing a platform for China to integrate with the West and vice versa.


The Engagement – Virtual Reality and Sponsorship 1st December, 2016

Virtual reality has now become a reality in the way we consume and play sports. It has come a long way since Nintendo’s foray into it, albeit briefly, during the 90’s with the release of their Virtual Boy console. Despite the name, there is one thing that Virtual Boy was not, and that’s virtual reality. The system was conceived during a period of fascination with VR and although being a failure, it could be said that Nintendo were the pioneers of VR… credit where credit is due.

The ATP Tour Finals staged at The O2 in London 2 weeks ago is the sport’s biggest indication yet that they are taking necessary steps to prepare themselves for the future, with tennis fans given an introduction to the future of sports spectating. Virtual reality pods stood alongside a multifaceted broadcast operation and taken note of the mass of cameras including, the Spidercam and ultra-slow motion cameras capable of capturing the flex and movement of each muscle. Inside the pods, fans were able to use the newly-launched PlayStation VR and its tracking camera and handheld controller to give fans a deeper look inside tennis and reinventing the sport spectating experience.

Sponsors jump on this technology as they can provide fans with never before seen experiences, such as becoming their favourite athlete with POV or taking them into the middle of the action from the comfort of their own home While it is early days, we expect to see sponsored messaging tailored specifically to the individual wearing the headset, allowing for much more targeted marketing that current networks cannot achieve broadcasting to the masses.

The use of VR has seen brands open up a whole new channel of engagement. In 2014 Jaguar partnered with IBM to develop a VR experience allowing consumers to choose the model, make, colour and features of their favourite Jaguar. Consumers were even able to hope inside the car to check out interior features with a 360-degree view, and to make real-time changes all through the use of a headset. Jaguar have had such success with the use of VR, that they built on their technology with Andy Murray as part of the #FeelWimbledon Campaign, providing a Centre Court experience to feel the atmosphere while hitting the winning shot as Andy Murray.

The biggest asset VR has is its story telling power, taking users on a journey to breathe life into the brand is one of the main components of a content marketing approach and encourages the target market to develop a personal connection with a brand. The opportunities are endless for platforms to provide an immersive experience for users to gain a life-like experience, Moto GP could use this approach providing fans the thrill of riding a race spec bike in excess of 300 Kilometres per hour around Silverstone. It is this type of experience that engages someone on a deeper level, something that product distribution or branding simply can’t tap into.

While it is impossible to predict the future and whether VR will play a vital role in our daily lives, one thing can be said for sure, brands will continue to deliver unique and innovative experiences to engage with consumers and connect with them in ways never seen before.


Snozone appoints Slingshot Sponsorship to reinvent its commercial strategy 12th June, 2015

Snozone, the indoor Snowsports destination and unique training ground for skiing and snowboarding has announced the appointment of Slingshot Sponsorship as its commercial partner to recruit fresh, like-minded brand partners across events, sponsorship and hospitality.

Slingshot Sponsorship will work with Snozone to evolve their commercial strategy reflecting Snozone’s brand values and vision.

Elena Kale, Snozone’s Group Commercial manager said:

‘We are delighted to have Slingshot on board as our commercial partner. We’re convinced Slingshot will add to the continued success of growing our brand and taking us into new markets, inspiring a whole new audience for whom Snowsports can be their sport of choice.

We’re open 364 day a year and we believe Snowsports should be accessible to everyone regardless of their ability- all year round– and not just seen as a seasonal activity. We are firmly committed to position Snowsports as truly a sport for all.’

Jackie Fast, MD at Slingshot Sponsorship, said:

“Snozone is an exciting property in the market and illustrates how more organisations are utilising sponsorship to not only increase their bottom line, but also how partnerships can be facilitated across a business to amplify other core business activities.  We can’t wait to start developing these types of partnerships across the business.”


GB Taekwondo appoints Slingshot Sponsorship to develop sponsorship strategy and sales for their Road to Rio Olympics 11th July, 2013

GB Taekwondo, one of the biggest sporting stars to come out of London 2012, has appointed sponsorship specialist marketing agency Slingshot Sponsorship to develop strategy and sales across their commercial properties in the lead up to the Rio Olympics.  The initial activity will allow corporate sponsors to grow with the sport both nationally as well as abroad.

GB Taekwondo’s enormous success of gaining two medals from only four athletes at the London Olympics has presented a huge return for Team GB and an incredible opportunity for brands to align with.  The 2000 year old martial art has over 60 million participants worldwide with over 100,000 in the UK alone.  Slingshot Sponsorship will be working with GB Taekwondo to identify and uncover their assets in order to connect with this diverse sporting audience – contributing to a stronger engagement with brands during the growth of the sport in the lead up to Rio Olympics.

Steve Flynn, Operations Director at GB Taekwondo said:

We are really pleased to be working with Slingshot Sponsorship who are helping us showcase the sponsorship opportunities within our sport. Their expertise will allow us to maximise our commercial potential and amplify our activity – both with the sponsors we are currently are working with as well as identifying new commercial partners that will help us achieve our objectives in the lead up to Rio.

Jackie Fast, MD at Slingshot Sponsorship said:

We are thrilled that GB Taekwondo have chosen us as their sponsorship agency.  Sitting at such a vital turning point coming out of London 2012, we cannot wait to start helping them develop and grow their commercial potential – creating relationships that will help them realise their Rio Olympic goals.

Michael Jordan: The Original Brand Ambassador! 25th February, 2013

On February 17th 2013 Michael Jordan, one of sport’s great personalities, turned 50. Not only is ‘Mike’ a sports legend but also the face of arguably the most successful brand endorsement deal of all time. Due to the recent headlines involving sports stars such as Oscar Pistorius and Lance Armstrong the value of brand ambassadors is being questioned more than ever (see Mark Mylam’s blog). Michael Jordan’s sponsorship deal with Nike however, proves what kind of positive impact such an agreement can have for both the brand and the celebrity. Let’s recap this incomparable success story:

“The 1984 Olympics was Michael Jordan’s coming out party” describes his agent David Falk. Up until this point Michael Jordan had not even played a single game in the NBA and yet at the time top three major basketball shoe brands Adidas, Converse and Nike were after him. Before his NBA career even started Jordan already knew who he wanted to partner with – Adidas. The German sports brand and Converse were the leading shoe suppliers for the NBA stars in the mid and late 80’s. Michael Jordan himself had never worn any Nike basketball shoes before and was convinced by the quality of Adidas’ products but the first brand that Michael Jordan met with was Converse. During this pitch Jordan mentioned his worries about the endorsement deals that Converse already had in place with superstars like Magic Johnson or Larry Bird and asked: “With all these stars, where do I fit into the conversation?” John O’Neil, the president of Converse, took that question and replied: “We’ll treat you like all our other superstars.” This is obviously not the answer that the upcoming star wanted to hear and the $100,000 per year that Converse offered him could not change his mind either.

The next invitation that Michael Jordan received was from Nike, however he was not interested in what they had to tell him and declined this invitation at first. In the end it was Jordan’s mother who convinced him to at least listen to what Nike had to offer so he took the plane and the rest, as they say, is history. Nike  decided to spend all of its marketing budget on Jordan and offered him a five-year deal worth $500,000 annually plus royalties; five times as much as any other NBA superstar was receiving at the time. It wasn’t only the sound of the money that made Nike suddenly attractive to Jordan: Nike offered Jordan his own signature shoe line. This is the kind of special treatment that Converse didn’t offer Michael and as a result they were out of the running.

However Adidas was still in the race – Jordan’s “favourite shoe”. If Adidas could have matched what Nike put on the table then Michael would have teamed up with the German brand. However Adidas missed out on this opportunity and this mistake became known as one of the worst business decisions in the last 50 years. “They didn’t feel it was worth it,” said Jordan. “Which in hindsight is perfect for me, because it made my decision much easier. And I ended up with Nike, and it became a great relationship.”

The Jordan brand was born (with the jumpman logo appearing in 1987). Since 1984 Nike’s subsidiary coproduced 27 basketball shoes with Michael Jordan. Last year, the U.S. Jordan Brand sneaker business alone had $1.25 billion in wholesale revenue. Although Michael Jordan himself isn’t playing anymore there are still active NBA players (Carmelo Anthony, Blake Griffin, Chris Paul etc.) acting as Air Jordan ambassadors and supporting the brand’s huge success within the basketball industry. Whereas in the mid and late 80’s Converse and adidas were dominating the U.S. basketball shoe market, 30 years later it is the Jordan brand that is controlling 58% of it, followed by its parent company Nike (34%), adidas (5.5%), Reebok (1.6%) and Under Armour (0.6%).

Michael Jordan himself is still earning more than $80 million per year through corporate sponsorship deals and the majority of this income is related to his partnership with Nike. The current details of this deal are a well kept secret but royalties now generate more than $60 million annually for MJ, according to a Forbes article.

You can buy yourself a lot of nice Birthday presents with that amount of money – Congratulations Michael! But also, congratulations Nike!

Should Alcohol Sponsorship be Banned? 26th November, 2012

The level of irresponsible drinking amongst young people in the UK is an area of constant concern for many with statistics reporting 945,000 hospital admissions a year related to alcohol abuse or injury. Following the ban of tobacco sponsorship in 2005 arose the debate as to whether alcohol sponsorship should follow suit and whether partnerships between alcohol brands and sports events influence young people to drink in excess.

At the Think!Sponsorship Conference on Wednesday 14th November leading sponsorship professionals and representatives from alcohol brands considered the increasingly important topic of whether the alcohol sponsorship ban should be bought into place within the UK. With alcohol sponsorship banned in France, this prompted me to consider whether the UK will be next to follow suit and what impact this could have for the sponsorship industry.

The Argument

There is little doubt that sporting events have a strong association with alcohol. Sports such as rugby and football in particular lead people to view alcohol consumption in a negative light with fans often rowdy and drunk. Alcohol sponsorship could be said to reinforce the association of alcohol with events that are often considered family days out whilst watching sport for many comes hand in hand with enjoying a drink. With this connection already firmly in place it is argued that alcohol sponsorship only encourages young people to view alcohol brands and excessive consumption of their products in a positive light.

However, the opposing argument is that the problem with binge drinking amongst young people in particular at sporting events is as a result of cheap drinks deals and the traditional macho sporting culture rather than the presence of alcohol sponsorship. Furthermore, alcohol sponsors place a strong emphasis on drinking responsibly. The European Sponsorship Association has put numerous guidelines in place to introduce a notion of best practise with alcohol brands, for example, rights holders are advised to only allow sponsorship from alcohol brands if the audience are assumed to be older than the legal alcohol purchase age.

How Would the Alcohol Ban Affect Sponsorship in the Future?

It is estimated that £800 million a year is spent by alcohol brands on sponsorship, if this money was no longer channelled towards sponsorship what would this mean for the sponsorship industry as a whole? Sponsorship agencies could lose key clients and rights-holders would lose a vast amount of revenue and the ability to hold events to the scale and quality they currently are at.

However, through dynamic and creative thinking this could also be an opportunity for new brands to get involved with sport sponsorship.

Whatever the future holds for alcohol brands, I believe the sponsorship industry will have no problem continuing to thrive as seen previously when we encountered the ban of tobacco sponsorship.  If anything it will only force sponsorship professionals to continue to drive innovation forward.