4.2 Sponsorship What are the advantages and disadvantages of sponsorship? What are the ethical implications of sponsorships?

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Presentation transcript:

4.2 Sponsorship What are the advantages and disadvantages of sponsorship? What are the ethical implications of sponsorships?

Name their sponsor? Nike Grays Puma Adidas and Head Umbro Woodworm

Name the club? Aston Villa Liverpool Stoke Spurs Wigan Palace

Sponsorship Companies invest in sport for many reasons… Sponsor’s name and product is given publicity An association with a successful performer reflects favourably Sponsor is seen as supporting the community or country Sponsorship reduces the amount of tax paid by a company All leading to an increase in sales and potentially new products being able to be introduced

What affects a companies decision to become a sponsor? Success of the team or individual Popularity of the sport Media coverage given to the sport Participation levels in the sport Suitability of the sport for the product

Advantages of sponsorship Sport is expensive to run Extra money allows a more professional approach Sport is promoted through extra publicity Sponsorship helps to create atmosphere at events Sports will be more organised Better management techniques and business advice Improved facilities Benefit both the performer and spectator England Hockey

Disadvantages of sponsorship Sport becomes associated with a product, this may be undesirable Sponsors can gain control over organisation of sport Sponsors can gain control over timing and location of events Financial interdependence between media and large sporting events Sport relies on funding Withdrawal of funding would be disastrous How many sponsors of the Football league cup can you name? 1982–1986 Milk Cup 1986–1990 Littlewoods Challenge Cup 1990–1992 Rumbelows Cup 1992–1998 Coca-Cola Cup 1998–2003 Worthington Cup 2003–2012 Carling Cup 2012–2016 Capital One Cup

Ethical Implications of sponsorship Positive Negative Promotes individual teams Allows performer to train longer Development of new competitions Development of better facilities and equipment Attracts highest class performers Generates media interest Covers expenses of sport Attention on high profile individuals or teams only Product association is an intrusion into sport Sponsors can gain too much control over sport Sponsors may influence choice of performers Sponsors can give a bad image Sponsors will control timings to ensure peak audiences

Institue of Sports sponsorship (ISS) Established in 1985 Non profit making group who link with Sport England Aims to… Bring sports and sponsors together Ensure companies receive fair return for their investment Try to preserve traditional nature of sport Run the Sportsmatch scheme with the government