Sponsorship and Advertising (Leaving Cert Physical Education): Revision Notes

Sponsorship and Advertising in Physical Activity and Sport

The Golden Triangle

The "golden triangle" represents the relationship between sport, media, and business. It shows how these three elements are interconnected, relying on one another to thrive. Sport depends on media coverage to attract spectators, which in turn draws sponsorship and business opportunities.

Commercialisation: In this context, sports move from being purely about participation and athletic performance to becoming a commercial product. This shift allows sports to be marketed and monetized, often through sponsorship deals and advertising. Without media attention, businesses would be less likely to invest in sport due to reduced visibility and engagement from the public.

Sponsorship: This occurs when a business pays to have its name, brand, or logo associated with a team or individual. Sponsorship brings mutual benefits: the business gains exposure and positive associations with the sport, while the performer receives funding that can be used to improve training and performance.

Sponsorship Opportunities for Businesses:

• Increased revenue through brand exposure.
• Promotion of their brand and positive associations with sport.
• Helping athletes or teams improve performance through funding. Examples:
• Many stadiums and arenas are named after corporate sponsors in exchange for financial gain. For instance, Netwatch Cullen Park is an example of a GAA stadium that changed its name as part of a sponsorship deal.

Positive and Negative Impacts of Media for Spectators

Positive Impacts	Negative Impacts
Performers/Performances: More money in sports leads to better training facilities, coaching, and performance support.	Loss of Traditions: Some spectators may be resistant to change when rules or formats are altered.
Better Stadiums: Improved media coverage increases revenue, allowing for better facilities like seating, screens, and sound systems.	Minority Sports Ignored: These often receive less coverage as media focuses on mainstream sports.
Analysis & Education: Spectators gain deeper insights into games with expert commentary and in-depth knowledge.	Advert Overload: More frequent breaks for advertising can disrupt the flow of the game.
Exciting Formats: Media introduces exciting formats like aggregate scores or changing rules for more engaging content.	Corporate Influence: The prioritisation of sponsors can change the schedule, leading to inconvenient match times.
Improved Spectator Experiences: Personal devices allow spectators to access instant replays and highlights, enhancing viewing experiences.	Start Times to Suit Sponsors/TV: Match start times may be adjusted to fit television schedules, inconveniencing fans.

Sponsorship and Advertising in Physical Activity and Sport

1. Sponsorship
2. Endorsement
3. Merchandising

Merchandising

Merchandising involves selling products related to sports, such as jerseys, equipment, and accessories. This helps generate additional revenue for sports organisations.

Example:

• Adidas sells branded merchandise for the FIFA World Cup, increasing revenue through global sales.

Types of Sponsorships

1. Individuals
2. Teams and Clubs
3. Sports
4. Events
5. In-Kind

Individuals

Sponsorship deals with individual athletes often involve logos on clothing and training equipment, providing financial support and increasing the sponsor's visibility.

Example:

• Roger Federer and UNIQLO have a sponsorship deal that includes branded training gear and clothing.

Teams and Clubs

Sponsorships for teams and clubs include displaying banners, using company names for teams, and covering travel costs.

Example:

• Real Madrid and Emirates have a sponsorship agreement that includes branding on team kits and stadium advertisements.

Sports

Sports sponsorships involve naming tournaments, competitions, and leagues after specific brands, often covering the costs of organising the events.

Example:

• The Heineken Champions Cup is named after its sponsor, covering many organisational costs.

Events

Event sponsorships allow the use of the sponsor's logos on products, free products for participants, and funding for the event.

Example:

• McDonald's sponsors the Olympic Games, providing funds and free products to athletes.

In-Kind

In-kind sponsorships involve providing goods or services instead of cash, benefiting both the sponsor and the recipient by reducing costs and increasing visibility.

Example:

• Clayton Hotels sponsors Munster Rugby by providing accommodation and facilities.

Impact of Sponsorship

Sponsorship is when a business pays to have its brand associated with a sports event, team, or individual performer.

Sponsorship can offer benefits like:

• Increased revenue.
• Enhanced promotion and visibility.
• Positive brand association.

Examples:

• Naming rights, such as Netwatch Cullen Park, which was renamed after the GAA accepted a sponsorship deal with Netwatch.
• Shane Lowry, a well-known golfer, has several sponsors that promote his name and the sport.

Impact on Sport	Impact on Performer
Increased financial rewards	Ability to focus on training
Promotion of sports and athletes	Reduces stress of financial burden
Enhanced opportunities for media exposure	Can elevate the athlete's personal status
Draws more fans to the sport	Improves access to training and medical support

Social Media and Sponsorship

Key Points:

• Social media platforms allow athletes and brands to reach a vast audience, making it a key area for sponsorship and endorsements. Athletes like Cristiano Ronaldo use platforms such as Instagram to promote brands, leveraging their massive following to increase sponsorship value.
• Social media has become an essential tool for athletes and teams to connect with fans, promote events, and advertise products. Elite athletes use social media platforms to promote themselves and their sponsors. This adds another dimension to the traditional athlete-business relationship.
  • Example: Cristiano Ronaldo is a prominent social media influencer who helps his sponsors reach a wide audience.

Advantages and Disadvantages of Sponsorship

Advantages	Disadvantages
Increased funding and promotion.	Sponsorship may promote ideas contradictory to sport values.
Financial support for athletes, allowing them to focus on performance.	Sponsorship could be withdrawn at any time.
Increased visibility and participation in sport.	Competition for sponsorship could exclude minority sports.

Advantages for Sport

Sponsorship provides essential funding for gear, travel, accommodation, and competition fees. This financial support allows athletes to focus on their training and performance without the stress of securing additional income.

Example:

• Teams and clubs may receive funding for coaching and development programmes, talent identification, and event hosting.

Disadvantages for Sport

Reliance on sponsorship can lead to ethical concerns, especially if the sponsor's image conflicts with the sport's values. Sponsorship can also be withdrawn, leaving sports organisations in financial difficulty.

Example:

• An athlete sponsored by a tobacco company may face backlash due to the health risks associated with tobacco.

Advantages for Sponsors

Sponsorship enhances brand visibility and credibility, leading to increased sales. Associating with sports can improve a company's image and reach new demographics.

Example:

• A company sponsoring a popular sports team can improve its public perception and attract more customers.

Disadvantages for Sponsors

Sponsorship is an uncertain investment, with risks of negative publicity if the sponsored entity is involved in a scandal. The sponsor's reputation can be affected by the actions of the athletes or teams they support.

Example:

• Lance Armstrong's doping scandal negatively impacted his sponsors, leading to financial and reputational damage.

Sponsorship of National Governing Bodies (NGBs)

Positive Effects

Sponsorship provides essential funding for NGBs, helping to develop sports at both grassroots and elite levels. Partnerships with companies can promote positive health and well-being messages.

Example:

• Sport Ireland uses sponsorship funds to support NGBs, enhancing their programmes and initiatives.

Negative Effects

Sponsorship can lead to ethical dilemmas, especially if the sponsor's values conflict with those of the NGB. There is also a risk of reduced financial support if the partnership faces public scrutiny.

Example:

• The Irish Heart Foundation criticised partnerships with junk food brands, leading to a review of sponsorship policies.

Endorsements in Sport

Key Points:

• Endorsements involve athletes promoting a product or brand in return for financial incentives. High-profile athletes like Rory McIlroy have lucrative endorsement deals that increase brand visibility and link the athlete's success with the product's image.
• Social media influencers, such as athletes, use their platforms to promote products to their audience, making them key figures in advertising campaigns.
• Athletes should ensure the products they endorse align with their values and promote a healthy lifestyle. Endorsements can be both positive and negative, as seen with controversies like Lance Armstrong or Ronaldo's Coca-Cola incident.

Impact of Endorsements

Positive Impact	Negative Impact
Increased athlete visibility	Ethical concerns if the product is harmful
Financial stability for athletes	Athletes' image tied to product controversies
Promotion of healthy lifestyle	Potential loss of authenticity

Builds Credibility

Endorsements create a connection between consumers and the athlete, enhancing the perceived value of the endorsed product.

Example:

• Consumers trust products endorsed by their favourite athletes, believing in their quality and effectiveness.

Opens Up New Markets

Partnering with popular athletes can help brands reach new demographics, increasing their market share.

Example:

• Nike's partnership with Michael Jordan expanded its reach to basketball enthusiasts worldwide.

Helps the Product Stand Out

Endorsements improve product visibility, making it a preferred choice among consumers.

Example:

• Products endorsed by athletes are prominently displayed in stores, attracting more buyers.

Creates a Brand Trigger

Endorsements link products with the athlete's success, creating a strong brand association.

Example:

• A consumer might choose a sports drink endorsed by a successful athlete, believing it will enhance their performance.

Negative Impact of Endorsements

1. Celebrity Image Can Change Rapidly
2. Expensive
3. Too Many Endorsements
4. Lack of Online Presence

Celebrity Image Can Change Rapidly

Athletes' reputations can be affected by personal scandals, negatively impacting the endorsed product's image.

Example:

• Wayne Rooney's endorsement deal with Coca-Cola was affected by negative publicity.

Expensive

Endorsement deals can be costly, with high-profile athletes demanding significant fees.

Example:

• Steph Curry's endorsement deals cost Under Armour millions annually.

Too Many Endorsements

Multiple endorsements by the same athlete can dilute the impact of each endorsement.

Example:

• NBA legend Shaquille O'Neal endorsed over 50 products, reducing the effectiveness of each endorsement.

Lack of Online Presence

Without a strong online presence, endorsements may not effectively reach the target audience.

Example:

• Traditional TV ads are less effective than social media campaigns in engaging younger consumers.

Merchandising in Sport

Key Points:

• Merchandising involves selling products associated with a sport or team. Popular sports merchandise includes jerseys, caps, and other branded gear that fans buy to show support.
• In Ireland, the GAA has strong links to O'Neill's for the production of official team gear. Example:
• Adidas sells branded merchandise for the FIFA World Cup, increasing revenue through global sales.

Impact of Merchandising

Impact on Sport	Impact on Fans
Increased revenue from sales	Fans feel closer to their team through ownership of branded merchandise
Branding opportunities for clubs	Higher prices due to brand association
Enhances fan loyalty	Risk of commercialising the sport too much

Advantages

Merchandising generates revenue, supports salaries, maintains facilities, and funds training and events. Effective visual merchandising positively affects retail sales.

Example:

• Sales of branded jerseys and equipment provide significant income for sports teams.

Disadvantages

Merchandising can be costly, with expenses for design and production impacting profitability.

Example:

• High costs of producing branded football jerseys may deter fans from purchasing, leading to financial losses.

Impact of Commercialisation on Sport and Performers

• Commercialisation is the process of managing or marketing sports for profit. This shift from participation to profit means that sport is marketed much like a business.
• Media and business are highly dependent on each other. Media coverage increases visibility, which can boost participation and spectatorship. In turn, businesses get more opportunities to market products.
• This cycle often leads to kit deals, where brands like Under Armour supply kits to teams or events, such as the Irish Paralympic team.

Key Points:

• Commercialisation of sports has led to increased financial benefits but also shifts the focus from sport to revenue generation.
• Athletes may face additional pressure from sponsors and media exposure but gain more financial stability and training opportunities.

Impact of Commercialisation on Sport and Performers

Impact on Sport	Impact on Performers
Improved financial rewards	Ability to focus on training
Additional investment in sports	Greater access to equipment and medical care
Increased spectator interest	Scheduling of events may affect athlete preparation

Sports-Related Advertising

Mixed Messages

Sports advertising can send mixed messages, especially when promoting unhealthy products.

Example:

• Advertisements for sugary drinks during sports events can contradict the promotion of healthy lifestyles.

Food

Food advertisements often promote unhealthy products, contributing to poor dietary habits and health issues.

Example:

• Ads for fast food during sports events encourage unhealthy eating habits among viewers.

Alcohol

Alcohol advertising in sports can promote excessive drinking, conflicting with the health benefits of physical activity.

Example:

• Alcohol sponsorship of sports events has been linked to increased alcohol consumption and related health issues.

Positive Messaging

Advertising can promote positive messages, encouraging healthy lifestyles and social responsibility.

Example:

• Campaigns promoting active living and balanced diets align with the values of sports and physical activity.

Selecting Commercial Sponsorship

Guidelines

1. Research suitable companies to approach, ensuring alignment with the sport's values and goals.
2. Gather information on potential sponsors to evaluate their fit with the sport or activity.
3. Determine what the sponsor expects in return, such as money, travel costs, equipment, or uniforms.
4. Be realistic in choosing sponsors, considering both national and international options.
5. Design an appropriate proposal, highlighting the benefits and exposure opportunities for the sponsor. Example:

• Ireland reduced unhealthy food sponsorship at primary schools, promoting healthy eating habits among children.