Research published this month by IFM Sports Marketing Surveys confirms that despite a downturn in the global economy towards the end of last year, there was a net increase in new sponsorship deals signed off by brand owners from 1,446 reported deals in 2008 compared with 1,689 new sponsorship deals signed off in 2009.

As the authors of the research point out, sponsorship is a lagging indicator not a lead indicator of the world economy as many sponsorship deals are 3 years+ and therefore these brand partnerships tend to weather any downturn that falls within that period. The response of brand owners caught by the credit crunch of 2009 wasn’t to rip up existing sponsorship deals but to spend less in activating them.

That said, there were nearly 400 new deals in the $150,000-$499,000 range, although there was a noticeable decrease in $10m plus sponsorship deals, recording a drop of around 20% from 254 new deals in 2008 to 203 deals in 2009.

The overwhelming number of new sponsorship deals continued to be in sports – around 89% - where these ranged from 1 – 10 years in length, with the most money going to support investment in the Olympic Games, football and venue sponsorship.

The Top Ten sectors in global sponsorship are:

1. Clothing (sports)
2. Cars/automotive
3. Telecoms
4. Financial services – banking
5. Airlines
6. Beverages – Beer
7. Financial services – insurance
8. Clothing – leisure
9. Beverages -soft drinks
10. Consumer electronics

Source: IFM Sports Marketing Surveys

In terms of future growth of the global sponsorship market, it’s likely that mega deals will be entered into by brand owners in emerging economies such as India where the GDP is expected to top 6.9% this year.

Closer to home, it’s important that sports rights holders focus on how they can deliver value in terms of a Return on Objectives (ROO) and a Return on Investment (ROI) in these straightened times.

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