Sponsorship to be fastest-growing sector as global sports market recovers: PwC
In the face of tough opposition from the 2008–2009 economic downturn, the global sports market is now seeing a robust recovery, according to a PricewaterhouseCoopers LLP (PwC) report (Back on Track – the Outlook for the global sports market).
The report estimates that global sports spending will rise from US$114bn in 2009 to US$133bn in 2013, representing a compound annual growth rate of 3.8 per cent over the four years - boosted particularly by the FIFA World Cup and the Olympics.
Growth is predicted across all territories from the larger and more mature markets of North America (3.6 per cent), and Europe, Middle East and Africa (4.1 per cent), to the smaller markets of Asia Pacific (3.9 per cent), and Latin America (4.3 per cent) over the four years.
Insulate
Julie Clark, UK head of sport, PricewaterhouseCoopers LLP, said:
"Stripping out the effects of major one-off events, an underlying trend of steadily rising spending is emerging. Long term contracts will to some degree insulate media rights from the downturn, and as a result media is the only category where spending for ongoing events increased in 2009. However, weak conditions in the advertising market have been limiting renewal increases since then".
Total gate revenues will expand from US$43.2bn in 2009 to US$49bn in 2013 and remain the largest component of the market. However income from gate revenues varies greatly from country to country often reflecting factors such as local economy and peoples’ disposable income. Attending live sports is an integral part of certain cultures but in the emerging market tickets are less often affordable.
Ms Clark explained: "Recessionary conditions have driven some innovations: in the US, for example, a number of sports teams are using dynamic ticket pricing, similar to the yield management models used by airlines and hotels".
Priorities
Sponsorship will be the fastest-growing component ($29.4 billion in 2009 to $35.2 billion in 2013) and despite the economic downturn the largest sports brands with global reach and pulling-power have continued to attract the massive sponsorship deals.
But the mid-level brands or smaller sports brands targeting a local market, have been hit badly and, unsurprisingly, some of those businesses (such as banks) that were actively investing in sponsorship deals during 2009 shifted their spending priorities elsewhere.
Another industry investing increasing amounts in sponsorship is online sports betting where football shirt sponsorships is a key focus.
Broadcast media rights revenues will experience growth from US$23.1bn in 2009 to US$26.7bn four years later. However, the one overarching challenge for all players in the media rights market is how to protect and monetise rights in a multi-platform world of pervasive (and often freely-available) digital content, an issue both the music and film industries have grappled with.
Ms Clark concluded: "Sport companies, businesses and the way the marketplace operates confirm that it is now a truly global industry where technology has contributed to the globalisation of both the industry and specific sports.
"However, great sports have deep and enduring local roots which in turn help to shape their global commercial potential and reach. To win in the 21st century sports environment it's vital to think globally and act locally."
At the same time Mr. Williams lifted the lid on new research which shows that the 45 x 45-minute nightly highlights programme has a greater reach than an entire year's worth of output on the main Sky Sports channels. Last year's Cricket on Five, which culminated in England's Ashes victory, reached 28.5% of all individuals, a total of 16.2 million UK viewers. By contrast, Sky Sports 1, 2, 3 and 4 combined had an annual reach of 26% across the whole of 2009, according to Five.
The new Cricket on Five sponsorship credits will debut on 22nd June, to coincide with the first match in the NatWest Series of One Day Internationals between England, Australia and Bangladesh. They were created for NatWest by M&C Saatchi.
The deal, brokered between Rachael Wheeler, Five's Sponsorship Controller, and Simon Broderick at Mediacom Holdings Limited, will see sponsorship accreditation including opening and closing titles, 10 second bumpers and a logo featured on all on-air promotions for the cricket highlight programmes.
Highlights
Five's catch-up TV service, Demand Five, and FiveFWD, a male-skewing cars and gadgets portal, will carry display inventory as well as pre-roll and mid-roll credits.
Five's summer of cricket continues until the end of September, with Geoffrey Boycott, Simon Hughes and presenter Mark Nicholas joining Michael Vaughan in the commentary box. The nightly highlights programme features the best from each day’s play in the nPower Tests against Pakistan and Bangladesh, the NatWest Series ODIs and a series of Twenty20 internationals featuring England, Pakistan and Australia.
Cricket on Five is a Sunset+Vine Production for Channel 5 Broadcasting Ltd.
Rileys Chief Executive Maurice Kelly said:" Rileys are proud to become the official main sponsor of such a great tournament.
"We're committed to investing in darts at grass roots and the professional level. The Rileys Darts Zones UK Open sponsorship gives us the perfect opportunity to do both".
PDC Chairman Barry Hearn put the new deal into context: "We're delighted that Rileys are to sponsor the Rileys Darts Zones UK Open.
"They have already become a valued partner of the PDC. Their successful staging of the Amateur Qualifiers for the UK Open in their Rileys Darts Zones shows what a great innovation they are for grass roots darts players.
Memorable
"We look forward to working with them at the Rileys Darts Zones UK Open for what will be a memorable tournament".
The Rileys Darts Zones UK Open is affectionately known as the 'FA Cup of Darts'. The free draw format puts thirty-two Rileys qualifiers and ten BDO County qualifiers up against the top ninety-six PDC professionals, with play being held on eight stages simultaneously at the Reebok Stadium.
The Rileys qualifiers came through nationwide heats played in Darts Zones at Rileys clubs.
Business Environment is the leading owner and provider of flexible serviced offices in Southern England. It owns and operates up to 1,000,000 square feet of property and caters for small to large companies who require competitive and flexible office accommodation.
Working with the Wildlife Trust of India, funds raised by the Elephant Parade will be used to buy and manage vital wildlife habitat across Asia, giving Asian elephants, and the species and people that share the land, a safer and more sustainable future. Elephant Family will also invest funds in community education projects across Asia, highlighting the commercial, cultural and ecological significance of Asian elephants, to instigate a positive shift in local attitudes towards elephants.
Sotheby’s will auction the elephants at an event on 30th June, which aims to raise more than £1 million, benefiting more than fifteen UK conservation charities working in Asia.
BT is a long term supporter of the BPA and was the association's first commercial partner when it was founded in 1989. BT is the Official Communications Services Partner to the London 2012 Olympic and Paralympic Games. BT is also title sponsor of the BT Paralympic World Cup, the largest annual international multi-sport competition in elite disability sport. The event is taking place in Manchester from 25th-31st May, 2010, and features BT Ambassadors Oscar Pistorius and Liz Johnson.
Suzi Williams, BT Group Marketing Director, said: "We are already two years into our journey with our friends at ParalympicsGB, and are working to ensure they are the most connected Paralympic team in the world. It's a partnership that is going from strength to strength already. That's why BT is very proud today to be increasing our commitment and becoming a partner of ParalympicsGB all the way to Rio in 2016. We are all firmly focused on making the London 2012 Paralympic Games the best they can be, and seeing the GB team make Britain proud".
Phil Lane, chief executive of the British Paralympic Association, said: "BT had the vision to support us twenty years ago, when Paralympic sport was still in its infancy. We're delighted that they now have the vision to support us past 2012, showing that they see the value in our partnership beyond the attraction of a home Games. With their support, both financial and technical, we will be able to ensure that British athletes are best prepared for London, Sochi and Rio.”
Seb Coe, Chair of the London Organising Committee of the Olympic Games and Paralympic Games said: "I am delighted that BT is extending its commitment to Paralympic sport here in the UK – they are providing a great legacy for the Paralympic movement.
"We want to inspire young people to choose sport and learn about the Paralympic values. BT will help us insure that this inspiration doesn’t stop in 2012 but continues long after".
The new partnerships will include advertising and deliver access to key assets such as merchandise and club experiences, says the company. These will be used to support CCGB's focus on building its online engagement in a series of initiatives that will help fans communicate digitally with their clubs and the wider football league communities, adding value to their experience. Further details will be announced at start of the 2010/11 season.
Sanjay Guha, Coca-Cola Great Britain and Ireland President commented: "The Football League and Scottish Premier League provide a fantastic platform for us to really connect with communities across GB. We're very excited to be making these new commitments that will allow us to strengthen our relationships with fans who are passionate about their clubs across the country".
Football League Commercial Director, Stewart Thomson, was equally upbeat: "During six years as our title sponsor, Coca-Cola have made an exceptional contribution to our competition. We are delighted that they have committed to continuing that successful relationship by becoming an Official Partner of The Football League".
Neil Doncaster, Chief Executive, SPL added: "I am delighted that the SPL will be working with such an iconic brand. We look forward to developing this partnership over the next three years to promote the SPL up and down the country".
Coca-Cola Great Britain continues to invest in the game at all levels and is one of football's biggest supporters on both a domestic and international level. Current sponsorships include Wayne Rooney, the FIFA World CupTM and the UEFA European Championships.
In a first for O2, an augmented reality app has been created for the campaign. The iPhone app will play special animations bringing a virtual Gorillaz world to life when customers take a photo of an augmented reality codes which will be printed on various media throughout the campaign. The application also gives customers access to a Gorillaz newsfeed, tour tickets and tracks via iTunes. The application will be updated with new content throughout the campaign including a GPS tracking map that will enable users to track Murdoc across the globe.
Other aspects of the campaign include media partnerships with NME, Xfm and The Sun. Digital marketing activities will see home page takeovers of Yahoo and Spotify and special ads will be embedded into Shazam's iPhone app.
"This arrangement goes far beyond standard activity between brand and artist", said Sally Cowdry, UK Marketing Director at O2. "It’s a pioneering collaboration through which we will innovatively demonstrate the benefits of our Priority tickets and promote the UK tour. We look forward to working with more artists in this way".
Animation
Chris Morrison of CMO Management International Ltd, said: "O2 and Gorillaz have worked together as much as a coalition as collaboration. Ideas and agendas were merged into a common action utilising the unique creative geniuses of Gorillaz and the cutting edge marketing of O2, from which both parties benefit immensely".
The Gorillaz tour begins at Birmingham's NIA on Friday 10th, before hitting Newcastle on the 11th and Manchester on the 12th, culminating in two shows at The O2 on the 14th and 15th September. With songs from all three albums (Gorillaz, Demon Days and Plastic Beach), the arena tour will include video animation, artwork and film as designed by Jamie Hewlett.
The campaign was developed by VCCP, Drum, pd3 and Indie Mobile, with media buying by Zenith Optimedia, online creative by Agency Republic and below the line communications by AIS.
The creative, written and produced by The Outfit, aims to make the sponsoring brand the logo star with a 'clever thinking' link to the show".
Countdown, which broadcasts daily on Channel 4, is a show in which two contestants engage in a battle of wits, competing against the clock in games of lexical dexterity and numerical agility. It is the longest running daytime quiz show and was honoured in July 2004 with a House of Commons reception in recognition of the series' contribution to promoting literacy and numeracy.
Vitabiotics is the UK’s second largest supplier of supplements to UK retail, including Boots, Superdrug, Tesco and Holland & Barrett. Today’s announcement also builds on the recent launch of a range of new products within the Vitabiotics portfolio, including Ultra-D3, Menopace Night and Osteocare Joint.
All of Vitabiotics’ formulations are based on solid scientific research, supported by thousands of peer-reviewed research papers, proven in clinical trials and manufactured under pharmaceutical quality control.
“Garmin's sponsorship of a top flight football club has taught us to really focus on adding value to many aspects of a professional sporting club, and we look forward to supporting Saracens team, community and business links over next season and beyond".
Garmin's product ranges cover automotive in-car sat navs, mobile smart phones with integrated navigation, marine communications and navigation, aviation navigation products and sports and recreation products covering a variety of sectors from fitness watches and cycling computers to outdoor OS mapping handhelds and dog tracking devices.
To celebrate the sponsorship of Saracens, Garmin will be giving fifty Saracens and Garmin fans the chance to win a pair of tickets to the first game of next season. Further details will be announced in July 2010.
* source: Canalys
LOCOG Chair Sebastian Coe commented: "We are thrilled that Eurostar has come onboard as a London 2012 partner. They are an iconic brand with a strong emphasis on quality and I know they will ensure that everyone coming to London 2012 by rail, either as a competitor or spectator, has the best travel experience possible from the moment they start their journey".
Nicolas Petrovic, Chief Executive of Eurostar, said: "We are proud to be partners with London 2012 and believe we will play a critical role in bringing people from all over Europe. As the high speed rail link between the UK and the continent we will be bringing over a million people to and from the UK during the Games and will help make London 2012 the most sustainable Games possible.
"The Tri-City-Athlon which will take place in Paris, Brussels and London will be a record-breaking way of demonstrating the proximity of the continental capitals we serve and reinforcing the closeness of the UK to Europe. It will be a great challenge for the participants and will be a key milestone in the run-up to 2012".
"Obviously, this time last year, we were all excited by the arrival of Canterbury but the well documented issues faced in the current economic climate means they are scaling down their football operation.
"As such, we were forced to seek an alternative and we are delighted that we’ve managed to attract yet another world-renowned brand synonymous with quality and expertise.
"We are very impressed with the quality of playing and training kit from Puma and we are very pleased to have secured a four year deal with such a major player in the football market".
Quality
Genesis, who are PUMA’s Licensee for Pro Teamsports for the UK and Ireland were equally pleased to add Motherwell to their portfolio.
Russell Thomas, Head of Sports Sponsorship with GenesisSports.co.uk, said: "We're delighted to announce the deal with Motherwell Football Club. We've been working hard behind the scenes with PUMA and the Club to produce a great quality Kit and Trainingwear range that supporters can be proud of".
Roger Harrison, Head of Marketing with PUMA added: "We are looking forward to be embarking upon a new Technical Kit partnership with Motherwell FC. This will give PUMA great exposure throughout Scotland and with great kit and good service we will be an excellent partner for the club".
Limited branding is permitted on the field of play at the Paralympic Games and Sainsbury's will be one of two Partners to have a presence on athletes' bibs, as well as in and around key venues at Games-time.
Sainsbury's will also be working with LOCOG's education team to develop opportunities related to its successful Active Kids programme as part of LOCOG's Education scheme, 'Get Set'.
LOCOG Chairman Sebastian Coe commented: "The support for the Paralympic Games in the UK is incredible and I'm thrilled that we are now in a position to confirm our first stand-alone Paralympics sponsor. Sainsbury's will become a valued partner of the Paralympic Movement and will help us to promote the Games to the sport loving public of the UK. We take great pleasure in welcoming them to the London 2012 Paralympic family".
Exclusive
Justin King, Sainsbury's CEO said: "We are delighted to be the official sponsor of the 2012 London Paralympic Games. The vision on which the Paralympic Movement was founded complements Sainsbury's commitment to promote a healthy, fitter lifestyle across all ages and abilities. Together with our customers and colleagues, we look forward to supporting a successful 2012 Paralympic Games".
Sir Philip Craven, President of the International Paralympic Committee (IPC) said: "The IPC is proud to see Sainsbury's as the first Paralympic Games-only sponsor for London 2012. With such a well-known company becoming an exclusive partner, this will set new promotional opportunities for the Paralympic Games and the Movement, leaving a powerful legacy in communities across the UK".
LOCOG's agreement with Sainsbury's covers the London 2012 Paralympic Games only.
Photograph: from left to right - Vivien Mills, a member of the Great Britain Paralympic Fencing Team, Justin King, CEO Sainsbury's, Lord Coe, Chairman of the London Organising Committee of the Olympic Games (LOCOG) and Paralympian fencer, Michael Parson make the annoncement at Sainsbury's Superstore in Walthamstow. Photo credit: Robin Mayes.
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