Sports Sponsorship Market Report

• Publication date: June 2011

Executive Summary This Key Note Market Report examines the UK sports sponsorship market in the context of sports marketing. The sponsorship of sport can be defined as the funding of any sporting activity by a commercial organisation as part of its communication programme, such as public relations (PR), advertising, marketing, etc. The market is usually segmented in one of two ways, namely according to the type of sport sponsored,...

Executive Summary

This Key Note Market Report examines the UK sports sponsorship market in the context of sports marketing. The sponsorship of sport can be defined as the funding of any sporting activity by a commercial organisation as part of its communication programme, such as public relations (PR), advertising, marketing, etc.
The market is usually segmented in one of two ways, namely according to the type of sport sponsored, or according to the industry sector that the sponsoring company falls into. Football and Formula 1 racing — together — account for more than half of all sports sponsorship spending in a market otherwise fragmented across dozens of sports, each offering sponsorship opportunities for leagues, cups, teams, individuals or even stadium sponsorships.
The market attracts sponsoring companies from most industry sectors, although financial services and alcoholic drinks brands are traditionally the biggest contributors to sports sponsorship (e.g. the Barclays Premier League in football, and the Heineken Cup and Guinness Championship in rugby). The global financial crisis of 2008, which triggered the current malaise in the UK economy, forced banks, building societies and insurance companies to review their sponsorship spending. As a result, a number of banks halted some of their major sports sponsorship activities. Examples include RBS ending its sponsorship contract of the Williams Formula 1 racing team and Nationwide ending its 11-year sponsorship of the England football team.
Key Note expects the UK sports sponsorship market to grow robustly over the 3 years leading up to 2014, benefitting predominantly from two major sporting events: the Olympic Games (London 2012) and the Commonwealth Games (Glasgow 2014). There is, however, a risk that these events could temporarily divert funds from the more regularly sponsored sports such as football and Formula 1. Overall, Key Note forecasts that the UK sports sponsorship market will grow to a value of £1.92bn by 2015, up from £1.59bn at the time of writing.

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Table of Contents

Foreword
Executive Summary
Market Definition
REPORT COVERAGE
MARKET SECTORS
Sports
Sponsorship
MARKET TRENDS
Sports Sponsorship Remains Strong Despite Economic Downturn
Major Sporting Events Boost Sports Sponsorship Market
Social Media and the Internet
ECONOMIC TRENDS
Population
Gross Domestic Product
Inflation
Unemployment
Household Disposable Income
MARKET POSITION
The UK
Overseas
Market Size
THE TOTAL MARKET
BY MARKET SECTOR
By Sport
By Sponsors
Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
European Sponsorship Association
Competitor Analysis
THE MARKETPLACE
SPONSORS BY INDUSTRY SECTOR
Governing Bodies, Association and the Government
Sponsorship Consultant and Agencies
OUTSIDE SUPPLIERS
The Media
Market Research Companies
MARKETING ACTIVITY
Main Media Advertising Expenditure
Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Buying Behaviour
INTRODUCTION
INTERESTS IN MAJOR TEAM SPORTS
Current Issues
THE ECONOMY
BANKS SLASH SPORT SPONSORSHIP SPENDING
THE THREAT OF BAD PUBLICITY
CHARITY CALLS FOR ALCOHOL SPONSORSHIP BAN
The Global Market
INTRODUCTION
THE US
REST OF THE WORLD
Forecasts
INTRODUCTION
General Economic Forecasts
FORECASTS-
MARKET GROWTH
FUTURE TRENDS
London and Glasgow
Online Sports Marketing on the Increase
New Popularity for Certain Sports
Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Key Note Sources
Key Note Ltd
Key Note Research
The Key Note Range of Reports