Purple patch for sports sponsorship in the UK - Key Note market report

Sponsorship of sports is enjoying a purple patch in the UK, a trend that contrasts with a far more negative period earlier in the decade, according to Sports Sponsorship, a new market report from market intelligence providers Key Note. The report examines the impact of current and future trends in the market for the sponsorship of sport. The full benefits of London's historic winning of the 2012 Olympics have yet to feed through into the market, and the UK market will also benefit from Glasgow's hosting of the 2014 Commonwealth Games, say Key Note. The organisers of London 2012 are hoping to earn £625m from sponsors - to cover a third of the cost of hosting the Olympics. Olympic sponsors, or 'Partner' agreements, will temporarily move the focus of the market away from the regularly targeted sports. The major sources of Olympics sponsorships will be familiar industry sectors, such as banking, energy and sports goods - Lloyds TSB and EDF Energy were the first 'Tier One Partners' announced for London 2012, along with adidas, the sportswear Partner, which will supply kit to the majority of athletes as well as officials. Grass-roots sponsorship of sport at a local level is growing in importance, according to Key Note, with Government approval stemming from its ambition to improve the fitness of the population. A notable example has been the Barclays Spaces for Sports campaign, which has created more than one hundred community sites for sport and awarded 2,200 'coaching packs', providing sports access to more than 280,000 people. Other organisations, including McDonalds, are increasing their investment in grass-roots sponsorship. Exclusive consumer research* included in the report reveals that 77.3% and 76.3% of adults identified adidas and Nike, respectively, as being brands which they associated with sports sponsorship. However, 18.7% of respondents identified Nescafé and 25.8% of respondents identified British Airways, as being associated with sponsorship - both of which are not currently recognised as major sports sponsors. The precarious balance of risks and rewards in sport sponsorship was vividly illustrated in the closing months of 2007, say the researchers. England's rugby team battled through to a World Cup final but in football, all five British Isles teams failed to qualify for Euro 2008. Drug abuse continued to haunt the world of athletics, while on a more positive note, Formula One received exceptional interest thanks to the successes of Lewis Hamilton. The key element in market growth to 2012 will obviously be the London Olympics. However, due to the exceptional nature of the Games, Key Note has excluded their impact from their forecast figures. Even without the Olympics factor, Key Note expect the market to grow by more than 5% a year, with the number of deals predicted to stagnate in 2011 and fall in 2012. ------------------------- * Key Note commissioned consumer research conducted by NEMS Market Research into recognition of sponsoring brands, involving a survey of 1,003 adults. Respondents were presented with a list of major consumer brands and asked which they associated with sports sponsorship. In order to introduce a control element, Key Note included several heavily advertised brands, which have either not been involved in sports sponsorship or have only participated in the market at a minor level. Key Note's Sports Sponsorship Market Report defines sports sponsorship to include the sponsoring of broadcast events as well as live events and organisations.   The Sports Sponsorship Market Report 2007 is available to purchase from Key Note on 020-8481 8750, by e-mail at sales@keynote.co.uk or at www.keynote.co.uk, priced £440.   E&OE