Sport sponsorship is basically the support that an organization offers to a sports event, a league, or a particular athlete. There are various ways in which a company or organization can be engaged in sport sponsorship. Most companies may offer sponsorship in the form of sporting equipment such as uniforms, but usually money is offered in exchange for the organization’s name to be displayed on the uniform, in the stadiums, and even on the sports equipment. Sport sponsorship has grown to be a big business these days, and many companies have come to embrace it as a powerful advertising strategy. There are several reasons why this is so.
Benefits of Sport Sponsorship
Firstly, sport sponsorship provides the company with a chance to be recognized. Whether it’s Samsung Electronics signing a multi-million dollar contract with top football player Didier Drogba or Heineken Beer becoming a major sponsor of the EUFA Champions League, sport sponsorship provides these companies with recognition. Heineken Beer will obviously immensely benefit from years of Champions League publicity and their logo will be displayed at multiple Champions League events. Samsun Electronics not only gains recognition every time Drogba steps in the soccer/football pitch, but it offered a boon for African soccer as African players made headlines receiving the amount of money only top European players previously received.
Another benefit that organizations may enjoy because of sport sponsorship in various sporting events is that an athlete or player, or sports club may decide to relinquish a trophy so that it is prominently displayed at the sponsor’s premises forever linking the organization to that club, player, or athlete. A sport sponsorship may also be offered to charity course, enabling the company offering money or product an opportunity to get at least part of the gift offer as a tax deduction. In other instances, a company may offer a sponsorship just for pride or prestige, like when a friend or relative wants to give support.
A company also enjoys promotional opportunities after and even before a sports event, local as well as international coverage, and the chance to entertain prospective customers and existing clients by inviting them to sponsored events as VIPs.