Sports and sponsorship
Sport and sponsorship have their origins in the gladiatorial arenas and the Circus Maximus of Ancient Greece and Rome. Since the early 20th century, sports and sponsorship have undergone rapid transformations via a revival in mass-spectator events, the rise of professional sports players and the advent of television and social media channels.
How the evolution of technology has affected the motives and methods for sponsorship
In 1902, Slazenger became the first brand to sponsor the Wimbledon tennis championship, as its official ball partner. By the end of the decade, sports brands were sponsoring athletes as well, for example, the partnership between the American baseball legend "The Flying Dutchman" – Honus Wagner – and baseball bat producer Louisville Slugger. This trend would continue, culminating in the iconic partnership between Adolf (Adi) Dassler – founder of Adidas – and US sprinter Jesse Owens during the 1936 Berlin Olympics. Owens' four gold medals saw a nascent Adidas establish its credibility via effective product placement at the world's largest sporting event.
The 1950s brought televised sports, giving brands the opportunity for global visibility through brand placement at sports venues and branded sports apparel. An example is Coca Cola's debut sponsorship of the FIFA World Cup in 1958. Fast forward and with the birth of the internet and the rise of social media, brand spend on sport sponsorship has grown and diversified in the last two decades.
Growth in sports sponsorship spend since the decade that brought us social media
2007
$37.9bn USD
2018
$65.8bn USD
2027
$89.6bn USD*
*Estimated: Statista
Regional breakdown of companies’ spend in sport sponsorship
Source: Deloitte, Sponsoring sports in today's digital age, 2020
What's in a brand
At the heart of sport sponsorship are sport brands, such as Adidas or Nike, which have built up their relationship with players and the industry over decades.
Most valuable sports business brands worldwide in 2019
(in million US dollars)
Source: Statista. A business brand value is the estimated enterprise value the business would sell for in an arms-length transaction, less the enterprise value of a typical industry peer of equal size would sell for.
Beyond sports brands and media outlets, the sponsorship market has attracted an increasing number of sponsors, from financial services, automobile, airline, alcohol and luxury goods brands. The impact of sports sponsorship on the earnings of top athletes has in turn monetised the industry. For certain athletes, sponsorship now far exceeds the money earned through prize money and salaries as illustrated below.
Highest paid athletes by earnings from salary and endorsements worldwide in 2020/21
(in million US dollars)
Social media and streaming
As a result of the advent of streaming sporting content via on-demand platforms, such as Amazon Prime or Netflix (see our Thematic Insights on Streaming Wars), coupled with the rise of social media and smartphones, brands can increasingly generate visibility outside stadiums and official match times. An example of this is Lionel Messi's partnership with crisp brand Lays/Walkers, where deep-fake AI technology was used to create a personalised messaging campaign for the brand in 10 languages.
Improved data analytics from digital communication channels also makes it easier to calculate the success of sponsorship campaigns for businesses in terms of revenues generated or new customer enquiries.
Sport's social media heavyweights
Ranked by total value of their posts to brands
Biggest games in town
Ranked by value of social media to sponsoring brands
The power of personality
Finally, the power of individual sports stars to market brands via sponsorship explains why it has become such a lucrative revenue stream for players – often far outstripping more conventional prize money or sports salaries. This influence of sports stars vs brands is highlighted by comparing the top 10 Instagram accounts for both categories. The power clearly lies with the athletes.
