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Sports Sponsorship - Emerging Trends Set To Thrive in A Post-Pandemic Era

The document discusses the impact of COVID-19 on sports sponsorship, highlighting a predicted 37% reduction in sponsorship rights fees due to the pandemic. It emphasizes the ongoing demand for sports content and the rise of digital engagement, particularly through Esports, as brands seek innovative ways to connect with fans. The document also outlines the need for rights holders to adapt their commercial models and explore new revenue streams in a post-pandemic landscape.

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0% found this document useful (0 votes)
51 views42 pages

Sports Sponsorship - Emerging Trends Set To Thrive in A Post-Pandemic Era

The document discusses the impact of COVID-19 on sports sponsorship, highlighting a predicted 37% reduction in sponsorship rights fees due to the pandemic. It emphasizes the ongoing demand for sports content and the rise of digital engagement, particularly through Esports, as brands seek innovative ways to connect with fans. The document also outlines the need for rights holders to adapt their commercial models and explore new revenue streams in a post-pandemic landscape.

Uploaded by

marketing
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 42

SPORTS SPONSORSHIP

THRIVING
TRENDS FOR
A POST-
PANDEMIC
ERA.
CONTENTS
1 2 3 4
04 INTRODUCTION 08 THE IMPACT OF COVID-19
09 Engaging sports
fans
15 WHAT DOES THIS
MEAN FOR THE
BUSINESS OF SPORTS
21 E MERGING TRENDS IN
SPORTS SPONSORSHIP
22 C
 ontinued
SPONSORSHIP? digitisation
10 The continued rise
of sports
13 EsportsX Shifting
sponsorship
markets
25 T
 alent
engagement
and the rise of
personal brands
28 EsportsX Shifting
markets

5 6 7 8
33 T OP TIPS: RIGHTS
HOLDERS &
SPONSORSHIP SALES
36 A LOOK TO THE
FUTURE
38 CONTACT DETAILS 40 CITATIONS
“THERE IS AN EVER-
PRESENT DEMAND FOR
SPORTING CONTENT
FROM PASSIONATE
AUDIENCES WORLDWIDE”
1
INTRO-
DUCTION
04
INTRODUCTION

With the coronavirus pandemic


resulting in mass-postponement
and cancellation of sports events
worldwide, the sports industry at
large finds itself in unchartered
territory and facing undoubted
financial damage. Never before
has the activity our industry
is centred around come to a
global standstill, leaving billions
of sports fans void of live sporting
entertainment to consume.

47%
OF SPORTING EVENTS
SCHEDULED TO TAKE
PLACE IN 2020 WILL
EITHER BE CANCELLED
OR POSTPONED BEYOND
THE END OF THE YEAR [4]
05
INTRODUCTION

(US)
$17.2BN
THE PREDICTED
FALL IN SPORTS
SPONSORSHIP
SPEND IN 2020 [1]
Whilst sports rights holders are
facing an anticipated 37% reduction
of sponsorship rights fees this year,
US$17.2bn below the US$46.1bn
that was invested in 2019 [1]; one
thing we can rely on amidst waves
of uncertainty and disruption is the
ever-present demand for sporting
content, stemming from the passion
of audiences worldwide.

It is this appetite that continues to drive brands


and rights holders to innovate as a means of
engaging their fans in a meaningful, authentic and
positive way during this period. The rise of digital
content, enhanced brand engagement utilising
player profiles and the reignition of Esports as a
mainstay on the sporting stage have provided a
necessary sense of optimism throughout
the world of sport and sponsorship acquisition.

The sporting world is by no means adopting a


‘hibernation’ approach to dealing with the current
crisis; if anything, there are signs to suggest
that the lasting impact of this pandemic on our
industry may be one of innovative, partner-led
and cause-related engagement.

How rights holders engage with their audiences,


whose behaviour is evolving at a faster rate than
ever, will be key to their growth in the post-
COVID era and we at Mongoose truly believe
that proactive and authentic partnership activity
will ensure rights holders are well positioned to
thrive once sporting activity resumes. We must
touch on the impact that COVID-19 continues to
have across sport and sponsorship, however, it is
with realistic positivity that we can look ahead
towards the emerging trends that are anticipated
to stand the test of time with genuine optimism.

06
2
THE IM-
PACT OF
COVID-19
07
THE IMPACT OF COVID-19

WE MUST ACKNOWLEDGE THAT


THIS IS A SEMINAL MOMENT
FOR THE SPORTING INDUSTRY.
ALMOST EVERY ASPECT OF ACTIVITY
ASSOCIATED WITH SPORT, A CULTURAL
STAPLE ACROSS THE WORLD, HAS BEEN
IMPACTED. THESE IMPLICATIONS HAVE
SEEN A SEISMIC SHIFT IN INVESTMENT
LEVELS IN SPORTS SPONSORSHIP.
BRANDS ARE NO LONGER ABLE TO
ACTIVATE AND ENGAGE AUDIENCES AT
PHYSICAL EVENTS AND THE ABSENCE
OF LIVE SPORT HAS LEFT FANS HUNGRY
FOR CONTENT.
CONSEQUENTLY, WITH RIGHTS HOLDERS
LEFT NEEDING TO IDENTIFY NEW
METHODS OF AUDIENCE ENGAGEMENT,
OPPORTUNITIES HAVE ARISEN FOR
PREVIOUSLY ‘PERIPHERAL’ SPORTS
TO CAPTURE PUBLIC ATTENTION.
08
THE IMPACT OF COVID-19

ENGAGING
SPORTS FANS
In the world of sports sponsorship, our clients’
core activity is to engage fans across the globe.
Current circumstances have undoubtedly left a hole
in the lives of many, with only a handful of fixtures
and competitions returning to action this summer.
In fact, it is predicted that only 53% of scheduled
sporting events will go ahead in 2020 [4].

Eager to fill this void, rights holders have set about the challenge
of keeping fans engaged with great vigour, producing content and
experiences sure to be remembered well beyond the lifespan of
this pandemic.

Football Marathon
Danish club FC Midtjylland have realised their incredible The 2.6 Challenge was launched following the
plans for ‘drive in’ facilities that will allow fans to watch live postponement of London Marathon and cancellation of
matches from their cars on giant screens outside of the thousands of other mass participation events, engaging
stadium, sure to provide a sense of fanfare throughout the the public in ‘at home’ challenges to save the UK’s charities
remainder of the 2019/20 campaign
Olympics
Sailing Team GB and notably our client, British Gymnastics, have
SailGP, alongside its partner Oracle, have launched maintained fan engagement across its digital and social
‘Winning Calls’ - a new series of virtual events providing channels with through the delivery of their “At Home
an insight into how the series’ national teams make Games”, leveraging relationships with British Athletics
strategic decisions during races stars to do so

Darts F1
Fans have been able to enjoy the 2020 Unibet Home Tour The Virtual Grand Prix has perhaps been the shining
– a unique tournament organised by the Professional Darts star in a new wave of ‘traditional sports’ content provided
Corporation for players to play indoors, at their own homes during lockdown
- More than 30 million people tuned into the Virtual
NFL
Grand Prix across F1’s digital channels and television
The NFL superbly executed the 2020 ‘virtual draft’ which
broadcasting [11]
reach over 55 million total viewers [26]. Building on its
success, our client, the Jacksonville Jaguars, went on to - In the UK, F1 broadened their appeal by inviting sports
engage fans in creating highlight reels of their reactions stars from Football, Cricket and Rally to compete
throughout alongside their own drivers in the virtual series
- Not only have viewers been able to watch the broadcast
across all F1 channels (F1.com, YouTube, Twitch, Weibo
and Facebook channels), but the event was also
broadcast live with international broadcast partners
in over 100 countries, including Sky Sports and ESPN

09
THE IMPACT OF COVID-19

THE CONTINUED
RISE OF ESPORTS
The most significant legacy likely to arise from the COVID-19
period will be Esports cementing itself on the mainstage of
sporting competition with a largescale mainstream audience.
Despite boasting a global audience of 453.8 million [12], Esports
has previously been considered the arena of the gaming
elite. Now, without major barriers to entry faced by traditional
sports, Esports has filled the void for many sports fans in this
lockdown period.

To quantify the direct impact, Twitch has increased its viewership by 24% [13] whilst
Steam has recorded its highest ever concurrent audience [14]. In total, search for
gaming content has seen a 1054% increase so far this year, with a top indexing
audience of sports fans [2].

10
THE IMPACT OF COVID-19

There’s undoubtably a huge appetite for Esports content


and many sports have been quick off the mark to
capitalise on this. In April, the Finnish Hockey League
became the first to announce it would unofficially finish
the league virtually with EA’s NHL 20 [15]. Two gamers were
pitted against each other in a match watched by 160,000
viewers, a significant portion of the countries’ population,
and one organisers hope will convert to long term fans.
This has been followed by the MLB, with players from all
30 teams facing off against each other in a MLB The Show
virtual tournament. Likewise, Formula 1 has launched a
new F1 Esports Virtual Grand Prix series [16], featuring a
number of current F1 drivers, to enable fans to watch this
season’s races virtually.

Having said that, Formula 1 are not just another kid on


the block with their own Esports series launching in 2017.
In a similar light, horse-racing has hosted virtual races for
the last few years, notably the Virtual Grand National and
Kentucky Derby, broadcast by ITV and NBC respectively.
However, with the Virtual Grand National drawing a peak
TV audience of 4.8 million viewers this year [17], its arguably
this kind of broadcast exposure which will drive Esports
traction amongst mainstream audiences.

Furthermore, with rights holders and star athletes (players


from Man City and Real Madrid recently went head to
head with a live streamed FIFA 20 challenge game to raise
funds for UNICEF [18]) committing whole heartedly to these
virtual tournaments, and gaming and plugging the gap of
live content, it’s no surprise that top tier broadcasters are
looking to cash in on the opportunity.

Following recent confirmation of Gfinity’s deal that


will see UK pay-TV broadcaster BT Sport partner with
Electronic Arts (EA) to live broadcast a FIFA 20 Esport
series on the network’s main linear channel, their CEO,
John Clarke, has expressed belief that broadcasters finally
have the proof required that Esports is both entertaining

1054%
and attracts a commercially-viable audience. He explains,
“… from a broadcast standpoint you’re going to see more
traditional broadcasters willing to be supportive and that
is a big opportunity for the gaming world.”.

Recognition that younger audiences prefer to engage with


interactive content is by no means new and is certainly
not a behavioural shift that has emerged because of the
global pandemic. This digitally savvy audience is highly
discerning when it comes to the content they consume,
and sports teams and brands will need to invest in
innovative and authentic content if they are to maintain
fan engagement in Esports. That said, such industry- UPLIFT IN CONSUMER
INTEREST FOR SPORTS
wide disruption may have been the necessary trigger for
largescale acknowledgement that Esports truly meets
the demand of new audiences. As has been emphasised
by the nimble activity of rights holders so far, there is
no hiding from the fact that interactive gaming can be GAMES SINCE
utilised to generate global communities that brands
simply have to engage with. 1ST JAN 2020 [2]

11
THE IMPACT OF COVID-19

21 MILLION
THE NEW GLOBAL
AUDIENCE OF
GFINITY, WHO IN
COMPARISON WAS
RECEIVING 20,000
PAGE VIEWS PER
MONTH THIS[19]TIME
LAST YEAR
Without question, Esports will remain a hugely significant sports
property beyond the coronavirus period, even further bolstered by
the resumption of its live tournaments. Communities will continue
to grow, as will the attention and engagement of broadcasters and
brands who no longer perceive potential sponsorship in this field
as a niche opportunity.

12
THE IMPACT OF COVID-19

SHIFTING
MARKETS
Whilst sports rightsholders and
their partners continue to adopt
new methods to maintain active
engagement with their audience,
we cannot escape the huge income
loss that has been incurred since live
sport was halted globally in March.

A number of industry sectors who have, up to now, held a With that in mind, we are paying close attention to
significant market share in sports sponsorship are facing cross-industry performance which is in fact providing
severe budget cuts as a result of the pandemic and genuine reason for optimism as the likes of ecommerce,
consequently global sponsorship rights fees are projected subscription platforms, gaming and streaming, home fitness
to fall 37% from US$46.1bn in 2019 to $28.9bn in 2020 [20]. and Elearning and Esportrs sectors have all experienced
exponential growth in recent months following immediate
Projections suggest that spending within the Financial shifts in consumer behaviour.
Services sector, last year’s biggest investor, will fall 45%
this year to US$6.9bn. Add to this the severe impact felt Ecommerce (Retail)
throughout the Automotive sector, last year’s second Global sales in the ecommerce retail sector were up 209%
largest spender, and a further US$3.2bn is anticipated in April 2020 compared to the same period in 2019 [21]
to be lost across sports sponsorship [1].
Digital Entertainment Subscriptions
Another area hit hard by the pandemic is Travel & Barclaycard has recorded growth of 12.4% among
Tourism which continues to suffer due to the direct subscription entertainment services such as Netflix
impact of widespread bans on international travel. When and Now TV [22]
you consider the scale of last year’s spending; our work
securing the partnership for the lastminute.com London Home Fitness
Eye being just one of many multi-million-pound sponsorship Significant growth in equipment sales as well as subscription
deals, with other significant sponsorships secured in 2019 sales to home workout content has seen the Home Fitness
including Booking.com & UEFA Euro 2020 and Airbnb & sector flourish over the three months
The IOC; it comes as no surprise that investment in this -E.g. Icon Health & Fitness has seen a 600% increase
sector is anticipated to drop by ~ 60% in 2020 [20]. in year-on-year sales [23]
As we acknowledge where the forthcoming gaps in Game Streaming Platforms
investment are most likely to occur, one of the primary Twitch saw a 10% week-on-week rise in viewership
responsibilities of Mongoose, as an agency that is active figures during the early stages of COVID-19 [24]
in sponsorship sales, is to identify potential future revenue
streams for our rights holders. Esports
The entire Esports market is set to
grow by more than US$1bn in 2020 [25]

13
THE IMPACT OF COVID-19

AN INJECTION OF FUNDING ACROSS THE


INDUSTRY IS VITAL AND FINDING WAYS TO
ATTRACT SPONSORSHIP INVESTMENT WILL
BE FUNDAMENTAL WHEN BOUNCING BACK
FROM THE IMPACT OF SUCH SIGNIFICANT
BUDGET-CUTS. AS LIVE SPORT RESUMES,
THE LIMITATIONS PLACED ON THE VALUE
THAT SPORTS PROPERTIES ARE ABLE TO
DELIVER TO PARTNERS WILL LESSEN
AND WITH THAT COMES A NECESSITY
FOR RIGHTS HOLDERS TO IDENTIFY
AUTHENTIC OPPORTUNITIES TO ENGAGE
WITH BRANDS IN THESE EMERGING
SECTORS RIGHT AWAY. SIMILARLY,
FROM A BRAND PERSPECTIVE THE RETURN
TO LIVE SPORT PRESENTS AN OPPORTUNITY
TO ENGAGE AN EXTRAORDINARILY CAPTIVE
AUDIENCE – A POWERFUL PLATFORM
THAT MANY WILL LEVERAGE TO MAINTAIN
THEIR NEWLY FOUND COMPETITIVE
ADVANTAGE, ONCE CONSUMER BEHAVIOUR
BEGINS TO NORMALISE.

14
3
WHAT DOES
THIS MEAN
FOR THE
BUSINESS
OF SPORTS
SPONSORSHIP? 15
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP

One thing that the global pandemic has shed


light upon, particularly within mainstream
sports such as Football, Cricket and Rugby
Union, is the requirement for existing
commercial models to be rethought.

Income generation is undoubtedly over reliant on traditional


broadcast deals and, when looking at how sport sponsorship
agreements are structured, the weighting of rights and assets
is largely non-digital, thus highly dependent on matchday
visibility and hospitality.

16
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP

£1BN
DROP IN REVENUES FOR THE PREMIER
LEAGUE FOOTBALL CLUBS, SHOULD
THE 2019-20 SEASON BE COMPLETED
SMOOTHLY IN THE NEXT TWO MONTHS [6]

£107M 84%
REVENUE LOSS TO BE
INCURRED BY THE RFU IF THE
Q1’S YEAR-ON-YEAR DROP
IN NET PROFIT IN F1, DOWN
AUTUMN INTERNATIONALS FROM $246M IN 2019 [8]
CANNOT BE PLAYED [9]

£100M
REVENUE LOSS TO THE
ECB, EVEN WITH
ENGLAND'S SERIES
AGAINST WEST INDIES,
PAKISTAN AND AUSTRALIA
SET TO GO AHEAD [10]

$12BN
ESTIMATED
LOSS ACROSS
AMERICAN SPORTS
LEAGUES IN 2020 [5]

17
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP

Given the unfortunate scenario of most of


this year’s sports events taking place in
empty stadiums, there is growing concern
amongst rights holders surrounding their
ability to deliver return on investment to
sponsors and commercial partners.

Consequently, many sponsorship agreements have come


under scrutiny as specific rights simply cannot be fulfilled.

In response to this challenge, 48% of sponsors are seeking


alternative sponsorship collateral in place of the physical assets
and live activation opportunities that have been lost [3]. In such
cases, proactivity amongst genuine partners will ensure both
parties are supported throughout such an unfamiliar period.

£37.5BN
EXPECTED BRAND
EXPENDITURE ON SPORTS
SPONSORSHIP IN 2020 [2]

72%
BRANDS LOOKING TO EXTEND
SPORTS SPONSORSHIP
CONTRACTUAL RIGHTS [3]

48%
BRANDS PLANNING TO REQUEST
NEW AND/OR SUBSTITUTE
SPONSORSHIP ASSETS [3]

18
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP

Elsewhere, sponsors are negotiating term-extensions due


to the postponement and cancellation of live sport. As
we look to the future, it is important to recognise that the
intensified broadcast coverage of spectator-less sport is
likely to heighten the associated media values and in turn,
encourage new sponsors to enter the market.

That being said, it is imperative that brands and rights holders continue to
innovate together, reimagining their business and acting nimbly to maintain
traction and engagement amongst their audience across digital channels.

Building on the notion of realistic positivity, many brands have picked up the
mantle and are delivering on innovation when it comes to sponsorship activation.

IMPACTING FAN ATTITUDES FILLING A CONTENT GAP ENHANCING FAN EXPERIENCE


The best partnerships are able to With fans unable or perhaps unwilling Sponsorship is most powerful when
impact the attitudes and emotions of to attend live events once sporting it enhances the fan experience –
a fan base, doing so by adding value activity resumes, brand sponsors the opportunity to do just that,
and/or making a difference have the potential to fill a ‘content not to mention the importance,
void’ in fans’ lives is more relevant than ever in this
- Harry Kane’s sponsorship of his
exact moment
former club Leyton Orient’s 2020/21 -T
 -Mobile are the ‘presenting’
match kit has freed up shirt sponsor of Major League Baseball’s - Yamaha are providing J.League
space for a “Thank You Frontline ‘What-If Derby’, which will see fans soccer clubs with a fan
Heroes” message. Not only was determine the winners in a virtual engagement platform to bring
this a masterstroke for the Harry home run competition between in remote crowd noise for games
Kane ‘brand’ but from the club’s eight all-time players and eight played behind closed doors.
perspective, it led to a 25% increase active stars [32] Following the trial, a stadium
on last year’s total shirt sales in just official was quoted saying
two weeks, attracting orders from “I closed my eyes and it felt
31 different countries [31] like the cheering fans were
right there with me” [33]

19
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP

THIS INNOVATION ASSOCIATED WITH


ENHANCED AUDIENCE ENGAGEMENT
ACTIVITY AS WELL AS THE NEED FOR
BRANDS TO SECURE A SUSTAINED
COMPETITIVE ADVANTAGE IN EMERGING
MARKETS SUGGESTS THAT SPORTS
SPONSORSHIP IS ONLY GOING TO
STRENGTHEN AS A MARKETING
PLATFORM IN THE POST-PANDEMIC ERA.
SPORTS PROPERTIES THAT USE THIS
PERIOD TO INVEST IN AND ENHANCE
THEIR SPONSORSHIP OFFERINGS,
MOVING AWAY FROM ANALOGUE-LED
BRAND EXPOSURE AND TOWARDS
DIGITALLY-DRIVEN, AUTHENTIC FAN
ENGAGEMENT, WILL BE THOSE THAT
CONTINUE TO THRIVE ONCE A NEW
TAKE ON NORMALITY RESUMES.

20
4
EMERGING
TRENDS IN
SPORTS
SPONSORSHIP
21
EMERGING TRENDS IN SPORTS SPONSORSHIP

CONTINUED
DIGITISATION
OF SPORTS
SPONSORSHIP
As live sport resumes, it does so behind closed
doors and as a result, the full suite of sponsorship
rights is no longer available. Therefore, it is vital
that rights holders develop methods to interact
with their fans via digital platforms.
Not only are rights holders with expansive technological capabilities in
a stronger position when it comes to servicing their fans with relevant
content, but their ability to track consumer behaviour and engagement
allows them to benefit from deeper insight data. In the current climate,
with brands understandably placing an even tighter lens on return on
investment, digital tracking capabilities and online interaction will prove
fundamental in providing the necessary evidence that supports any
rationale to include sports sponsorship in future commercial strategies.

From a rights holder perspective, the need to digitise fan engagement


is just as significant. As the world steps out of COVID-19, rights holders
must continue to enhance the fan viewing experience, developing
their offering in line with digital transformations so as to stay relevant
amongst ever-evolving audiences. Quite clear is that digital, mobile,
and social media have become an indispensable part of everyday life
for people all over the world and with the social media community
surpassing 3.8 million users in 2020 [34] this is surely the platform that
rights holders must prioritise.

22
EMERGING TRENDS IN SPORTS SPONSORSHIP

>50% OF THE WORLD’S


POPULATION ESTIMATED
TO BE USING SOCIAL
MEDIA BY MID-2020 [34]

23
EMERGING TRENDS IN SPORTS SPONSORSHIP

On the topic of enhanced audience


engagement, Nilay Eralp of Beko Global
recently described the digital landscape
as “the new playground” for sponsorship
activation; a quote which perfectly
captures the exciting opportunities
that exist across digital platforms.

Active engagement in this space will enable all those


involved in sports sponsorship to target campaigns to
specific audience groups, utilise emerging technologies
such as Artificial Intelligence and Augmented Reality to
engage their fans and ultimately provide more meaningful
and personalised content than ever before.

The importance for rights holders to re-engage their fans


and sponsors alike with their product has never been
greater and it is the digital landscape that makes this
possible in the current climate. Furthermore, looking at
sports sponsorship specifically, the widespread support
from existing and new commercial partners is only going
to accelerate the digitisation of the industry, not least as
it ensures the associated ecommerce and fan journeys
become easier to monitor and monetise.

PUT SIMPLY, DIGITAL


TRANSFORMATION OF
THE SPORTS SPONSORSHIP
BUSINESS IS NO LONGER A
TREND, IT IS A NECESSITY.

24
EMERGING TRENDS IN SPORTS SPONSORSHIP

TALENT ENGAGEMENT
AND THE RISE OF
PERSONAL CAMPAIGNS
Under such unique circumstances,
with global headlines and social
posts dominated by adverse
headlines, this global crisis has
highlighted the critical importance
of interpersonal relationships. As
society continues to grab hold
of all stories that invoke a sense
of ‘togetherness’, talent and
influencer marketing has come into
its own, demonstrating its potential
as a media channel to generate
meaningful impressions.

With that in mind, we must emphasise the


sporting industry’s greatest asset, its talent,
and showcase our ‘stars’ who have a sincere
ability to inspire and motivate fans both
throughout and beyond this period.

A superb example has been set by Everton


F.C. who, along with other Premier League
clubs, have been connecting fans at home with
their idols. A recent call between ‘Brazilian
Evertonian’, Bruno, whose dream journey to
Goodison Park ended in 33 days of lockdown in
the UK, and his club hero, Richarlison, not only
showcased the international reach of sport but
most importantly, delivered an unforgettable
fan experience [27].

25
WHAT DOES THIS MEAN FOR THE BUSINESS OF SPORTS SPONSORSHIP

As brand sponsors of sports properties are


faced with a more receptive audience than
ever, they now have a genuine opportunity to
engage with sports talent in their campaigns
as a means of reconnecting with fans on a
personal level, all the while providing them
with the entertainment they crave.

However, it is essential that brands continue to do so by allowing


these individuals to input into and play a role in the development
of campaigns they are interested in. A true partnership.

Admittedly, it is impossible to look beyond the sheer reach that


talent engagement might secure as personal branding for players
in recent years has led to the growth of social platforms that are
even larger than the teams/clubs they represent.

POWER OF THE PERSONAL BRAND: CRISTIANO RONALDO

3 BILLION
THE EXPECTED NUMBER OF ACTIVE
SOCIAL MEDIA USERS BY THE END OF 2020;
THE LARGEST COMMUNITY IN THE WORLD

220 MILLION
CRISTIANO RONALDO’S INSTAGRAM FOLLOWING;
THE LARGEST INDIVIDUAL FOLLOWING IN THE WORLD

40 MILLION
JUVENTUS FC’S INSTAGRAM FOLLOWING;
THE CLUB THAT CRISTIANO RONALDO PLAYS FOR

26
EMERGING TRENDS IN SPORTS SPONSORSHIP

Many would argue that successful activation in


this area is driven by the combined authenticity
of the brand, the rights holder and its talent.
On what it takes to form impactful partnerships
with athletes and teams, Michael Yormark,
President of Roc Nation, identified “authentic
relationships that speak to the personalities of
your target audience” as the key component. He
went on to highlight Roc Nation’s signing of Siya
Kolisi as the perfect example of effective talent
engagement; as South Africa’s inspirational
first black Test captain (Rugby Union), Kolisi’s
influence is felt far beyond the boundaries of
sport given his ability to bridge his country’s
racial divide. On the role and influence of
sports personalities, Kolisi himself explains
“We represent something much bigger than
we can imagine” [28].

Fundamentally, COVID-19 has seen sports stars become


increasingly active across social channels and in more meaningful
ways. The most significant shift however has been that real
personalities are on show – the human behind the sports star, in
their own environment, not simply doing the things that are asked
of them in a club or brand environment but acting out of personal
choice and passion. The question is, is this authenticity something
that brands will continue to harness, or is it simply circumstance that
has allowed it?

As sporting activity resumes and brand engagement in sponsorship


begins to normalise, access to individual profiles will of course be
limited. Nevertheless, with sponsorship providing access to teams
and therefore the potential to involve multiple players in their
campaigns – commonly referred to as the ‘three player rule’ – brands
must continue to develop relationships with the individuals they work
with, supporting the development of authentic and personal content.

At its core, talent engagement is used as a tool to drive interest


in new and emerging sports, potentially in new markets, however
it is the athletes’ personalities that must be placed at the helm of
sponsorship activation of this type. When looking at how talent
engagement has progressed digitally through the lockdown
period, particularly throughout Esports as well is in a number of
charitable and cause-related campaigns, what we have learnt
is that serving fans with unrivalled access to the talent they
follow, unearthing personalities along the way, can bring about
undeniably positive results.

One thing that we can be sure of is that the trend of engaging


athletes in sponsorship activation can be adapted to benefit
both existing and future sponsorship strategies.

27
EMERGING TRENDS IN SPORTS SPONSORSHIP

PURPOSE-LED
SPONSORSHIP
ACTIVATION
With the widespread impact of coronavirus
being incurred by consumers and organisations
worldwide, we are suddenly experiencing
heightened engagement and appreciation
for purpose-led activity.

Couple this behavioural shift with the demand for brands to


play their part in the recovery effort and it makes complete sense
that we are seeing increased incorporation of CSR elements in
sponsorship strategies, not least because brands’ social posts
referencing their charitable activity have been the best performing
since the outbreak of COVID-19.

From a brand perspective, ‘purpose’ represents the impact a brand


seeks to have on people’s lives and the world they live in. Not only
does a clear purpose hold obvious benefits regarding affinity levels
amongst consumers but Kantar Consulting’s new “Purpose 2020”
research study suggests that “genuinely purpose-led brands stand to
grow at twice the rate” of those without overarching societal goals [29].

28
EMERGING TRENDS IN SPORTS SPONSORSHIP

89%
OF CONSUMERS WOULD
CHOOSE A BRAND WITH
CLEAR PURPOSE OVER
ONE WITHOUT [29]

29
EMERGING TRENDS IN SPORTS SPONSORSHIP

Within sport, both rights holders and


teams have an incredibly powerful
platform to help promote global and/
or community-led initiatives in being
able to leverage their national and
global standing.

This platform, if utilised effectively, also has the


potential to deliver significant economic value as it
is likely to attract brand partners who are looking to
promote their own values. However, what must not
be overlooked is the importance of authenticity –
in order to maximise the authenticity of any cause-
related partnership activity then the values belonging
to the brand and rights holder must marry up.

Right now, there has never been a more poignant


time for brands to utilise sports sponsorship as a
platform to activate their own purpose and there are
plenty of examples, past and present, of effective,
cause-related partnerships to take inspiration from.

- Beko Global do an excellent job of leveraging their


partnerships with FC Barcelona and Fenerbahçe SK
to tackle childhood obesity
- Lucozade Sport’s “Three Lionesses” campaign utilised
a partnership with the England Women’s Football
team to showcase how female athletes have
overcome gender-related prejudices throughout
their careers to reach the international stage
- Simetrica and Harlequins, another Mongoose
client, have partnered to create the “Sport Value
Bank” – an online tool designed to allow sporting
organisations to assess and record the social
impact of their work. This goes hand in hand with
the work of Harlequins Foundation whose aim is
to harness the unique power of sport to create
opportunities for people in local communities
and beyond
- Virgin Money and The London Marathon jointly
created The 2.6 Challenge this year which
encouraged ‘home heroes’ to set about their own
challenges as a means of plugging the fundraising
gap of charities impacted by the postponement
and/or cancellation of participation events

“RIGHT NOW, THERE HAS


NEVER BEEN A MORE
POIGNANT TIME FOR
BRANDS TO UTILISE
SPORTS SPONSORSHIP”
30
EMERGING TRENDS IN SPORTS SPONSORSHIP

Throughout our industry, rights holders and brands The current pandemic has certainly increased the profile
are no doubt highly focused on identifying the most of the humanitarian and community work carried out
effective ways to partner and deliver genuine value by our Armed Forces and as a result has broadened
both commercially and socially. Key to unearthing the minds of many to include sponsorship engagement
authentic opportunities is identifying common causes with the roster of sports under the likes of Army
that both parties actively wish to support, with some Sports Control Board and RAF Sports Federation, both
more relevant than ever. represented by Mongoose.

31
EMERGING TRENDS IN SPORTS SPONSORSHIP

Gender equality remains a prominent


‘mission’ within the world of sport and
one thing we can all hope for is that the
current crisis does not slow the momentum
that engulfed women’s sport in 2019. Last
year’s FIFA Women’s World Cup drew
unprecedented interest with broadcast
and digital viewership both exceeding 1
billion people and VISA making a landmark
commitment to match its activation budget
for the 2018 FIFA (Men’s) World Cup in
the women’s game[30]. Other sports will of
course wish to replicate this phenomenon
and sponsorship support will go a long way
towards supporting this goal.

Elsewhere, environmental sustainability


presents a global purpose that both
rights holders and brands can tackle in
tandem. Given so many sports are played
on living surfaces and so many teams
travel internationally, there is a very clear
relevancy that brands are able to align with.

On ESA’s recent “Sustainability in Sport”


webinar, Julia Palle, Senior Sustainability
Consultant at Formula E, described the
necessity for brands to leverage sport as a
means to “inspire audiences to engage with
this global mission”.

The list goes on.

One thing to carry forward, beyond the


immediate lifespan of the global pandemic,
is what has been perhaps a necessary
reconnection between sport and its
audiences. Brands will continue to utilise
sports sponsorship as a platform to engage
and inspire fans however now, will do so
with a heightened significance placed on
sentiment and purpose.

32
5TOP TIPS:
RIGHTS
HOLDERS &
SPONSORSHIP
SALES 33
TOP TIPS: RIGHTS HOLDERS & SPONSORSHIP SALES

1 6
PLAY THE LONG GAME UTILISE AGENCY EXPERTISE
It’s a case of being practical and level- This will ensure that partnership activity
headed about managing the situation continues to evolve, creativity never
but being incredibly creative about making falters, and fans are kept engaged.
the best of it to fill the void for fans.

2 7
PURPOSE-LED SPONSORSHIP ACTIVATION MAINTAIN A CONSTANT DIALOG
Address the question, how can AND REMAIN FLEXIBLE
sponsorship dollars be put to best What waits on the other side of this
use to make the world a better place pandemic is unknown but one thing
whilst also satisfying the objectives we can be certain of is that the
of the rights holder and sponsor? environment in which our industry
exists will be different.
Be open to extension of agreements
beyond pre agreed term.

3 8
BUILD GENUINELY AUTHENTIC ACCOUNT FOR FLEXIBILITY IN
RELATIONSHIPS THE FORMATION OF SPONSORSHIP
This will pave the way for long-term RIGHTS PACKAGES
partnerships remaining relevant and
impactful.
In a recent Sport Industry Insight poll,
42% of attendees said that a “shared
narrative between sponsors and a team”
is the most important aspect when
forming successful partnerships.

4 9
COMMIT TO THE PARTNERSHIP EMPHASISE THE VALUE OF
A sponsorship is a partnership at the DIGITAL ASSETS INCLUDED IN ANY
heart of the agreement, the sponsor and SPONSORSHIP AGREEMENT
rights holder must work in true unison to
maximise the output and come through
this together.

5 10
CONSIDER THE NEEDS OF YOUR WORK WITH THE RIGHTS HOLDER TO
AUDIENCE FIRST DEVELOP ASSETS THAT UTILISE THE
Whilst brand alignment is essential, TALENT POOL AT THEIR DISPOSAL
shared goals and objectives must
resonate with your audience.

34
TOP TIPS: RIGHTS HOLDERS & SPONSORSHIP SALES

“SINCE THE
EARLY DAYS OF
SPONSORSHIP, IT
HAS ALWAYS
BEEN AND WILL
ALWAYS BE ABOUT
RELATIONSHIPS.
RELATIONSHIPS
NEED WORK FROM
ALL PARTIES,
EVERYONE NEEDS
TO ‘WIN’ AND TO DO
THIS, RELATIONSHIPS
HAVE TO GO BEYOND
BEING PURELY
COMMERCIAL –
SUPPORT OF EACH
OTHER IS CRUCIAL
TO GET THROUGH
THIS TIME.”
CHRIS O’DONOGHUE, CEO – MONGOOSE
SPORTS & ENTERTAINMENT.

35
6
A LOOK
TO THE
FUTURE 36
A LOOK TO THE FUTURE

As we look ahead towards a post-


pandemic era, the return of live
sport and the heightened levels
of anticipation and consumption
that come with it offer great cause
for excitement.

Furthermore, the opportunity for brands to


capitalise and leverage what we expect to
be extreme levels of fan engagement suggest
that we are entering into a revolutionary era
of sporting activity and sponsorship sales.
It is time for brands and rights holders to stand
together and to lead, rather than react, as we
progress towards a digitally led reimagination
of the Sports industry.

37
7
CONTACT
DETAILS 38
CONTACT DETAILS

HARVEY
+44 (0) 7845 327732
[email protected]
mongooseagency.com

TAYLOR
SPONSORSHIP STRATEGY MANAGER

39
8
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TIONS 40
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