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Sponsorship 2. Learning Objectives Learn further benefits to the sponsors. Consider the types of sponsorship that sponsors provide. Consider some aspects of sponsorship that might not be acceptable. Look at the advantages and disadvantages of sponsorship. The Influence of Sponsorship.

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sponsorship 2

Sponsorship 2

Learning Objectives

Learn further benefits to the sponsors.

Consider the types of sponsorship that sponsors provide.

Consider some aspects of sponsorship that might not be acceptable.

Look at the advantages and disadvantages of sponsorship.

the influence of sponsorship
The Influence of Sponsorship
  • It is important to remember that sponsors only get involved in sport to have an influence - usually to promote their product.
  • They will get involved in different ways and may have negative effects as well as positive ones.
benefits to the sponsor
Benefits to the sponsor
  • Advertising - can be cheaper through sport than using billboards & tv.
  • Tax relief – Sponsors can claim tax back, saving them money
  • Image – can be good if the right product / person being sponsored
  • Research & development – trying new equipment on performers
benefits for the sponsor
Benefits for the sponsor.
  • Goodwill – Some sponsors may just be keen to be involved even though they may not benefit from it
  • Improved sales – The most beneficial to any sponsor and the main aim.
negatives for the sponsor
Negatives for the sponsor
  • There are not many disadvantages otherwise it would not be so popular!
  • However the performer must be seen to have a good positive image as it may have a negative effect on their product if they misbehave or cheat (even in their private lives – think of Tiger Woods and John Terry who both lost sponsors)
types of sponsorship
Types of Sponsorship
  • Clothing – Some can be basic i.e. tracksuits and shirts, however some sports such as fencing which has very specific clothing and can be quite expensive.
  • Equipment required to take part: rackets, boots, clubs etc. Ranges from rackets to golf balls to treadmills.
  • Transport & travel – air, car, drivers etc.
types of sponsorship7
Types of Sponsorship
  • Money – to help with living costs – e.g. lottery
  • Entry fees to competitions and expenses – such as hotel bills etc
  • Food – they need to live!!
  • Training expenses – either facilities or personal trainers or specialist training equipment.
  • Accessories – Many performers will be paid to wear watches, sunglasses etc as an advertising opportunity.
unacceptable sponsorship
Unacceptable Sponsorship
  • This is mainly associated tobacco and now alcohol is under scrutiny – both because it does not show a healthy image.
  • Sponsorship from tobacco companies could be seen to encourage smoking, particularly amongst young people.
  • It could glamorize the image of smoking.
  • The government has strict guidelines prohibiting direct advertising of tobacco products.
  • 1997 – tobacco sponsorship banned from sport.
  • Nov 1997 – Labour govt allow sponsorship of Formula 1, but are giving the sport 10 years to phase out the deals from tobacco.
  • Other sports were given 3 years i.e. snooker.
At the moment alcohol is mainly frowned upon in activities involving younger people as it is seen to glamorise drinking.
  • However at the moment it is still permitted for older sportspeople or teams e.g. The Carling Cup
advantages to the sport person
Advantages to the Sport/person
  • Young sportspeople can concentrate on their sport without many of the financial worries.
  • Sports can be promoted and encouraged so that participation levels increase.
  • The image of the sport can be improved with a good link up to a company which has a good image.
  • More money is provided for the sport to pay for administration, facilities, coaching, training and improving standards.
advantages to the sport person12
Advantages to the Sport/person
  • Bigger and better events can be staged and organised.
  • Award schemes can be paid for and advertised.
  • New and minority sports can be encouraged and financed.
  • Competitions and leagues can be run, and prizes may be provided.
  • Sponsors can get many benefits.
disadvantages to the sport person
Disadvantages to the Sport/person
  • The sport can lose its own identity and be dictated to by the sponsors. This can happen in the following ways:
  • Rules can be changed at the sponsors’ request. This is particularly so in the case of what it is appropriate to wear and sometimes the length of time the event is to last.
  • The timing of events is often dictated by sponsors, particularly when the sport is being televised.
  • Less successful sports and performers do not receive any sponsorship.
disadvantage to the sport person
Disadvantage to the Sport/person
  • A bad product image can damage a sport.
  • If the sponsor has to withdraw, the sport or performer may not be able to carry on.
  • The sport may become over-commercialised reducing the fun aspect of taking part.
key terms
  • GOODWILL – a good relationship and popularity.
  • TAX RELIEF – the payment of less tax.
  • MINORITY SPORTS – lesser known sports with lower participation rates.
examiners tips
  • You might well be examined on the types of sponsorship and the advantages and disadvantages.
  • You might be asked for examples, particularly of unacceptable forms of sponsorship