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Negative effects of sponsorship in sport

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Negative effects of sponsorship in sport

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Another negative impact is that certain sponsorship deals can make things more expensive for the public for example when Sheffield Wednesday was sponsored by Chansiri all of the season ticket prices went up because of the amount of money the company was putting in making it harder for fans to support their team by attending the game.

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Negative effects of sponsorship in sport

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Negative effects of sponsorship in sport

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A negative effect of sponsorship is that smaller clubs such as Doncaster gain very little media attention. This means that they won't get many sponsors as they won't attract many customers. This means that smaller clubs will find it harder to develop as they won't be to afford better facilities or have the ability to expand their stadium.

Some sponsors give off the wrong messages for example, the champions league is sponsored by Heineken. This may encourage people to drink alcohol which can have negative effects on an individual's health. This is also bad as sport is meant to encourage people to participate in physical activity and stay healthy which is the opposite message to what the sponsor advertisement is giving.

Companies that sponsor individual athletes can have a negative effect on players as they may be tied to contracts for example Ronaldo has a lifetime contract with Nike this means that he can't wear clothing such as adidas, which limits his freedom. It can also negatively impact the sponsor especially if the individual does something wrong as it could give them a bad reputation and their sales can decrease.

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Sponsorship - The provision of funds by a business or individual in return for advertising

Advertising - Used to promote to the public goods and services for sale

Endorsement - The support an individual or group gives to a company or product

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Specific Sponsorship Deal (Nike and Ronaldo)

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Specific Sponsorship Deal (Nike and Ronaldo)

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A example of a specific sporting sponsorship deal is the 1 billion pound partnership between Nike and Cristiano Ronaldo. Ronaldo is one of three to have a lifetime sponsorship deal with Nike along with Michael Jordan and Lebron James. The partnership launched in 2003 when Ronaldo first joined Manchester United and since then he has worn over 60 types of boots/shoes over the last 13 years. Ronaldo has helped to generate over 474 million from promoting Nike clothing on the pitch and through social media such as facebook, instagram and twitter. https://www.forbes.com/sites/kurtbadenhausen/2016/12/02/cristiano-ronaldos-1-billion-nike-deal-is-a-bargain-for-sportswear-giant/#53864ed85a91

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Positive effects of sponsorship in sport

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Positive effects of sponsorship in sport

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Sponsorships can help smaller clubs such as Sheffield United to gain a better income this can help them to buy better facilities, equipment and players which will help the standards of football to become better and also increase the team's abilities. This will help them to move up into the higher leagues where there is more media coverage and bigger sponsors.

A positive effect of companies sponsoring individual athletes is that it allows players to earn an income while having the access to free clothing and equipment. This allows the individual to be able to train and play without any financial worries which will also improve their performance quicker.

Sponsors can help companies to gain profits from items they have sold from advertisements. This then helps them to create new advanced clothing and equipment such as knitted football boots made by adidas. This then helps players to perform to the best of their abilities also improving the standards of football.

Companies sponsoring events such as Heineken sponsoring the champions league help to make the competition bigger also helping to increase the prize money. This makes more teams want to win encouraging them to try harder and increasing the standards of football. This will also make the game more enjoyable for fans.

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Sports and sponsors have a symbiotic relationship and rely on each other in order to be successful. This is because sponsors need to sell their products in order to make profits for their business. However sport needs sponsors for investments as their aim is to develop sports to buy new equipment and facilities. Overtime sports have developed massively due to sponsors as it has allowed football to be played and broadcasted all over the world and also allowed players to make a living from sport. Sponsorships give clubs the opportunity to expand and develop facilities and stadiums which also help to increase the ability of players helping the standards of football to increase. If clubs didn't have the money to do this then the standards of football wouldn't be as good which means the sport wouldn't be as popular decreasing the income for the sponsor. This works same with players, the more popular a player is the more money they will bring in for sponsors.

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Sponsorship is when a business provides funding, resources or services in return for some form of rights or associations with the club, which will be used to help the business commercially. Sponsors want to be involved in sport as it increases their publicity and status as their products will be linked to success and glamour which then leads to an increase of product sales. Higher profile events tend to gain increased amounts of sponsorship as it gains more attention from the media. Sponsors often want their products to be associated with successful sports stars, teams, and events as they want their product to have the same success.

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Commercialisation is where a new product or service is introduced into the general market. Commercialisation is used in sport to produce an income so that it can be made it better by using the money to create better equipment and facilities.