2_dr Elendu - Sports

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WINNING CORPORATE SPONSORSHIP OF COMPETITIVE SPORTS IN

NIGERIA: DETERMINANTS, PROBLEMS AND PROSPECTS

IFEANYICHUKWU CHRISTIAN ELENDU (Ph.D.)Contact: +2348037433601

+2348070749710

E-mail: [email protected]

&

GBENEGBARA AMOS DEEMUA (M.Ed.)

DEPARTMENT OF HUMAN KINETICS AND HEALTHEDUCATION, UNIVERSITY OF PORT HARCOURT, PORT HARCOURT,

RIVERS STATE, NIGERIA.

Abstract

The sports development of any nation including Nigeria depends substantially on the

status of facilities, equipment, motivation of athletes, sports personnel, sports

preparations, among others. These require huge amount of financial resources. Since

Nigerian government allocation for sports is inadequate considering the economic

recession and demands from other sectors of the economy, the need for sports organizers

to scout for where and how to get both financial and material assistance for sports

development outside government arises. One of the means of getting the necessary

resources and assistance for sports development is through winning sports sponsorship

deals from sponsors, especially corporate firms. This paper discusses some factors like

size and composition of the anticipated spectators, type of sport or event, security,

athletes personality, level of competition, sport setting, and personality of sports

organizers as they influence corporate firms in signing sponsorship deals with sports

organizers or bodies. Some of the problems of sports sponsorship such as conflict on who

and event to sponsor, demands and expectations of sponsors, conflict over sponsorship

deals, lack of continuity, lack of evaluation, ambush marketing, setting deceitful

objectives, and lack of accountability were discussed. Possible prospects were

highlighted.

Keywords: Sponsorship, Competitive sports, Sports organizers/bodies, Corporate firms.

African Journal of Education and Developmental Studies . Vol. 6., No. 1, September, 2009

http://www.ajeds.com


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Introduction

One of the greatest concerns to every sports organizer or body is how and from who to

secure financial and material assistance. Nigeria government has for a long time

remained the sole sponsor of competitive sports in Nigeria (Abone, 2003). Onuchukwu

(2003) defined competitive sports as those physical activities which individual or teams

indulge in with the sole aim of winning the other individual or teams for the purpose of

emerging victorious and becoming the overall champion. He further emphasized that in

competitive sports, the participants are individuals or partners or teams who represent

formally organized pressure groups and whose aim is to achieve their set objectives and

ultimate goal by out-winning their opponent or opponents.

Apart from the government, sports organizers scout to secure sponsorship for their

sporting events. Sponsorship, according to Pope (1998) refers to the provision of

resources (eg. money, people, equipment) by an organization (sponsor) directly to an

individual, authority or body (sponsee) to enable the later to pursue some activity in

return for benefits contemplated in terms of the sponsors promotion strategy, and which

can be expressed in terms of corporate marketing or media objectives. From the above

definition, the following can be deduced:

1. Sponsorship is a symbiotic business relationship.2. Sponsorship involves at least two parties that have interest and need for each other.3. Sponsorship is a marketing and promotional strategy.4. Sponsorship is goal-oriented.5. Sponsorship involves an agreement or deal between parties.6. Sponsorship occurs between unrelated organizations or parties in terms of products

and services.

7. Sponsorship requires checks and balances.8. Sponsorship is being sought for.

Sponsorship is a financial or material assistance to an individual or organization

with expectations of benefits from the assistance rendered. International Olympic

Committee (1999) noted that finding a sponsor is not an easy task. Armstrong (1988), and

Pope and Voges (1997) noted that it often takes time to build recognition with an event.

WINNING CORPORATE SPONSORSHIP OF COMPETITIVE SPORTS IN NIGERIA: DETERMINANTS, PROBLEMS AND PROSPECTS



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This is why sports organizers are faced with the problems of who are the potential

sponsors; how to meet the potential sponsor(s); when to meet the potential sponsor(s);

where to meet the potential sponsor(s), and what to present to the potential sponsor(s).

There is no doubt that sports organizers seek for sports sponsorship. Pope (1998)

defined sports sponsorship as the provision of resources (eg. money, people, equipment)

by an organization (the sponsor) directly to a sponsee (eg. sports personality, sporting

authority or sport body or code), to enable the sponsee to pursue some activity (eg.

participation by the individual or event management by the authority or sport body or

code) in return for rights contemplated in terms of sponsors marketing communication

strategy. Sports sponsorship refers to the financial or material assistance sought and

granted to a sports organizer (sponsee) towards promoting sporting event, athletes, sports

body or code, sports facilities, equipment and supplies, and sports personnel by an

individual or organization (sponsor) in expectation of some rights and benefits.

Sports, especially competitive sports require huge amount of money for its

organization especially in the sphere of purchase and maintenance of sports facilities and

equipment. Abone (2003) noted that it has become extremely difficult for government to

provide adequate funds for sports in the face of global economic recession. Since a sports

organizer or administrator cannot afford the required huge amount of money for sports,

there is need for sponsors to come to aid. Corporate bodies have been involved in

sponsoring sports in Nigeria.

The growth and significance of corporate sponsorship over the last 20 years is

well chronicled (Busser, Benson & Feinstein, 2001). Howard and Crompton (1995)

posited that corporations attempt to attract customers to a particular product or service by

sponsoring an event that matches the demographic characteristics of a particular type of

customer. Sport sponsorship is one of the fastest growing areas of marketing (Speed &Thompson, 2000; Lough & Irwin, 2001). Edeme (1995) pointed out that corporate bodies

remain a driving force in the advancement of the frontiers of sports by offering players,

officials, organizers, and spectators the opportunity to savour their goodwill. Ibikunle

(1994) observed that business organizations like Coca-cola, Nigerian Breweries,

Guinness, Mobil etc have contributed to the improvement of sports preparations in major




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competitions. Other corporate bodies and business institutions like Globacom and MTN

communications; Central Bank of Nigeria; Shell; banks; Nestle Milo etc have

participated in sponsorship of competitive sports in Nigeria.

Concept of Sponsorship

Individuals have different but related conceptualizations of sponsorship. Hart

(1988) viewed sponsorship as a means of promotion that is a deliberate financial support

given to an event to achieve brand awareness, enhance corporate image, increase

goodwill, and raise employee morale. Pound (1989) conceptualized sponsorship as a

technique that seeks to create a linkage between the sponsor (and its products or services)

and the event or organization, which is being sponsored. Sponsorship, according to

Ikhioya (2001), is an aid or assistance given to another person or organization to achieve

an objective or goal while at the same time projecting or promoting the product of the

aided person or organization and the organization or person itself. He further emphasized

that sponsorship could be in cash or kind (product), or a combination of both.

Sponsorship is a calculated effort to assist and be assisted. The sponsor gives the sponsee

assistance in anticipation to be assisted in terms of benefits and some rights.

Aims and Objectives of Sponsorship

Sponsors attempt to realize multiple objectives through a type of sponsorship

(Arthur, Scott, Woods & Booker, 1998). The sponsors aims are often purely commercial

and profit-maximization (Gratton & Taylor, 1985). Sandler and Shani (1993), and Pope

(1997) categorized the sponsorship objectives for businesses as broad corporate

objectives (image based, marketing objectives, brand promotion, increased sales) and

media objectives (cost effectiveness, reaching target markets). In the same vein, Turco

(1994) pointed out that the primary objective of corporations engaging in sponsorship is

to increase public and target market awareness of the company and its products or

services.

According to Howard and Crompton (1995), a sponsorship is sought to maintain

four benefits for a corporation, including awareness improvement, image enhancement,

relationship building through hospitality, and increased sales. Kuzma, Shanklin and




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McCally (1993) in their study found that awareness and image enhancement were the two

most valued sponsor objectives. Expanding consumer awareness of a corporation and its

product or services remains foundational objectives of sponsorship (Busser, Benson &

Feinstein, 2001). Gladden, Milne and Sutton (1998) stated that sponsors seek to increase

consumer awareness of their product or services through sponsorship communications or

product demonstration. It could be seen that no sponsor embarks on sponsorship deal on

charitable basis, without a vision. The sponsor has aim, specific objectives and targets to

accomplish without adverse effect on the organization.

Concept of Sports Sponsorship

Wilmshurst (1993) defined sport sponsorship as a financial or material assistance

by an organization for some independent activity such as sport not usually related to the

organizations normal business but support from which the organization would hope to

benefit. Sport sponsorship, according to Dibb, Simkin, Pride, and Ferrell (1994) is the

financial or material support of an event, activity, person, organization or product by an

unrelated organization or donor in return for prominent exposure of the sponsors

generosity, products or brands. In the same vein, Jobber (1995) is of the opinion that

sports sponsorship takes place when a payment is given in return for some business,

consideration or benefit. Shimp (1997) regarded sports sponsorship as the practice of

promoting the interest of an organization and its brands by associating the organization

with a specific activity or event such as tennis tournament.

Sponsorships can take many forms. The level at which companies choose to

sponsor events, such as sporting events, may range from simple and low involvement to

an elaborate and expensive level of involvement. Signage at a single sporting event,

tickets printed with a company logo, or logos on team athletic uniforms are but a few

examples of the sponsorship opportunities available to corporations who wish to spread

the message about their company or product. Print-based messages can include the use of

a company name, logo, slogan, product name, or a combination of these on signage, t-

shirts and promotional merchandise that may be displayed at events (Slattery & Pitts,

2002). Sponsors have the opportunity to purchase a wide variety of sponsorship types.




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Sponsorship types range from stadium naming rights, to event entertainment, to product

demonstrations at an event.

Characteristics of Sports Sponsorship

The characteristics of sports sponsorship, according to Simkins (1980) include;

the sponsor makes a contribution in cash or in kind to the sport; the sponsored activity is

not part of the main commercial operations of the company, and the sponsor expects a

return in terms of publicity, which does not reflect adversely on the sponsor. Gratton and

Taylor (1985) noted the name of the sponsor will appear boldly and this is emphasized by

media coverage of the occasion.

Why Firms Sponsor Sports Competitions

Sponsorship can be seen as a profit-maximizing behaviour of a firm. The primary

motive for firms to sponsor sports is to increase sales. Simkins (1980) enumerated five

reasons for firms sponsorship of sports competition as publicity; building the corporate

image; public relations and contact with the local community; entertainment and trade

relations, and marketing and promotion. Authorities (Copeland, 1991; Copeland, Frisby

& McCarville, 1996; Komoroski & Biemond, 1996; McCook, Turco & Riley, 1997;

Brown, 2000) have identified public awareness of the company; alter public perception;

identify the company with certain market segments; establish an image of goodwill or

give back to the people; generate media benefits; achieve sales objectives or returns on

financial investments; establish exclusivity over competition; product positioning; gain

tie-ins with current advertising campaigns; raise employee morale, and gain hospitality

opportunities.

Many businesses decide to sponsor sport in order to demonstrate good citizenship;

demonstrate interest in the community; generate visibility for products and services, and

generate favourable media interest and publicity (Ensor, 1987). Turco (1994) also pointed

out that through increased visibility of the company and its products or services through

sports sponsorship, most businesses anticipate, and many expect increased product or

service consumption. Strength, competitiveness, and the will to win are part of both sport

and the competitive business environment. Hence, the aim of corporate sponsorship of

sports include increased sales and profit-maximization in products sold, promotion and




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projection of image, advertisement of the products, establishing mutual relationship with

the consumers of their products, establishing presence and public recognition.

By associating with elite sportsmen and women, the aim is to create an elite

image for the company. For instance, associating Nigerian elite player, Kanu Nwankwo

with Peak milk, the message is that if one wants to be a professional footballer, he or she

should be taking Peak milk. These elite athletes are models to children and some parents

who may want their children to be professional athletes. This may invariably increase the

consumption of the products, which the athlete is associated with.

Determinants of Favourable Sports Sponsorship Deal

Speed and Thompson (2000) stated that sponsor-event fit; perceived sincerity of

the sponsor; perceived ubiquity of the sponsor; liking of the event; perceived status of the

event; personal interest in the event, and attitude towards the sponsor are key factors

generating a favourable response from sponsorship. Other factors influence every

potential sponsor in signing sponsorship deal with a sports organizer or body. They

include:

Size and composition of the anticipated spectators.

Sports and sponsorship are money-making ventures for both the sponsor and

sponsee. The sponsor would want to have an idea of the composition of the spectators in

terms of number, and personalities, which the sports organizer is anticipating. For

instance, potential sponsors mostly appreciate a sporting event, which is likely to attract

large crowd with high socio-economic, political background and from international

communities. With this practice, the potential sponsors create unnecessary stress for the

sports organizers should their expectations in relation to spectators does not come to

reality.

Type of sport or event.

Some sports, especially team sports like football is regarded as a crowd-puller. In

Nigeria, this could be seen in the number of spectators who turn out to watch football

competitions than any other sports. This gives football an advantage of attracting

competing sponsors of the event.

Security.




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Hostile environment scares people, as everybody is conscious of safeguarding his

or her life and properties. Most sponsors would want to have security assurance of their

lives and products during the event. For any sports competition to be organized in a life-

threatening community, it will be difficult for any sponsor to sign a sponsorship deal with

the sports organizers.

Athletes personality.

Sports events that feature elite athletes are more likely to attract crowd. The

sponsor will see it as an opportunity of getting closer to the target market and potential

consumer of its products. For instance, any sports competition that will feature prominent

footballers like Kanu Nwankwo, Jay Jay Okocha, Mikel Obi, etc is an opportunity for

people who may want to have contact with them. For amateur sports competition, number

of spectators is usually small, thereby making potential sponsors not to be interested.

Level of competition.

Sports competitions have been going on at the local, state, national, and

international levels. The international competition is the most crowd pulling, with

spectators of different social, economic, and political status. Very few sponsors are

interested at sponsoring sports competitions at the local government level. This does not

encourage the development of sports as talented and young athletes are identified at the

grass-root sports competitions.

Sports setting.

Sports competitions organized at the cities attract more sponsors than the ones

organized in rural areas. This is as result of crowd that will be attracted. The crowd is

likely to have people with high economic status than in rural areas. This means that sports

organizers in the rural areas may not have sponsors for their sports programmes. Others

factors include; personality of the sports organizers, time, policy of the corporation, etc.

Personality of sports organizers.

People of high integrity and experienced in sports marketing as sports organizers

attract potential sponsors. Udoh (2002) pointed out that a sports manager must be trained

and experienced in sports marketing so as to be able to attract sponsorship for his various

sports programmes. He further emphasized that a sports manager is expected to be




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persuasive as well as be able to highlight some benefits that could accrue to the sponsor.

Corporate bodies may find it difficult to sign sponsorship deals with sports organizers

who are untrained and inexperienced in sports marketing.

Problems Facing Sports Sponsorship

Conflict on who and event to sponsor.

According to Gratton and Taylor (1985), one of the most serious problems is that

the sponsor, in order to gain maximum publicity, is normally only interested in the top,

most prestigious events and the elite performers, and the superstars. He further stated that

conflict arises between the willingness of companies to sponsor elite sportsmen, and the

rules of international sports federations on the amateur status of competitors. Martin

(1994) noted that finding which sport will most enhance the image of the corporation (or

product) is a significant concern to potential sponsors.

Demands and expectations of sponsors.

The top competitors are often subjected to a too crowded schedule in order to

satisfy the demands of the sponsors (Gratton & Taylor, 1985). This over-indulgence often

makes sportsmen and women to burn-out easily during competition. The performance of

sportsmen may be negatively affected by these sponsors high expectations. The sponsors

expect athletes to always create world records in their sports. This high sponsors demand

forces the athletes beyond their physiological limits and possibly to resort to some

unethical practices such as use of performance enhancing drugs.

Conflict over sponsorship deals.

Conflicts arise between the governing body of a sport and the competitors because

of sponsorship deals. Sponsorship of individual competitors often lead to a situation

where the governing body receives no income from the sponsorship deals. The governing

body has responsibility for the sport right down to grassroots levels and may feel that it

has the right to a share in the sponsorship money received from use of its competitions.

Such conflicts are often exacerbated by specialist agencies that arrange sponsorship deals

between competitors and companies. These agencies sometimes cut across the

responsibilities of the governing bodies by staging their events, but essentially by putting

themselves between the sport and the individual competitor (Gratton & Taylor, 1985).




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Lack of continuity.

Another problem facing sports sponsorship is the lack of continuity. This is seen

in most sponsored activities. Some sponsors often withdraw from the sport with very

little notice. Some corporate firms fail to pay their contract fees as at when due leading to

the termination of their contract. This volatility in income can cause serious problems for

a governing body of sport (Gratton & Taylor, 1985). In the same vein, Copeland, Frisby

and McCarville (1996) posited that discontinuation poses implication for the evaluation

of sponsorships.

Lack of evaluation.

Javalgi, Traylor, Gross and Lampman (1994) noted that individuals who are

responsible for sponsorship may be reluctant to examine its effects because of possible

career risk, especially as the amount of money devoted to sponsorship increases.

Association of Marketers (1997) indicated that sponsors are unable to measure the cross

impact between their sponsorships and the marketing communication variables such as

direct marketing, sales promotion, sales (personnel selling), and public relations.

Sponsors do not have the means or access to measurement tools that can measure such

cross-impact.

Ambush marketing.

Ambush marketing is extremely destructive. McKelvey (2000) viewed ambush

marketing as a strategy employed by firms to associate themselves with an event without

the need to secure official sponsorship rights. According to Sandler and Shani (1989),

ambush marketing is a planned effort of an organization to associate itself directly with

an event in order to gain at least some of the recognition and benefits that are associated

with being an official sponsor. Mullin, Hardy and Sutton (2000) described ambush

marketing as an example of why sponsorship do not always work. Also, McAuley and

Sutton (1999) emphasized that ambush marketing creates confusion in the consumers

mind which may deny the legitimate sponsor recognition for its investment. They further

maintained that ambush marketing has a devaluating effect on corporate sponsorship.

Setting deceitful objectives.




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Association of Marketers (1997) noted that the local sponsorship managers seem

to set objectives that tend to focus on media coverage and awareness that do not really

reflect a real return on investment. This makes it difficult to know the effect of

sponsorship on their business activities.

Lack of accountability.

Every sponsorship money must be accounted for. Some sponsors may need a

report at the end of the event on how the money was used. Corrupt sports organizers find

it difficult to secure sponsorship deal from corporate firms for their inability to give

accurate account of expenditures of the sponsored event. This may make it difficult for

the corporate bodies to continue sponsoring the sporting event. Misappropriation of

sponsorship money by sports organizers may discourage sponsors from sustaining their

sponsorship deal of an event.

Prospects

To arrest the problems of sports sponsorship, the following have been suggested:

1. Sponsors should sponsor sports events or athletes notwithstanding their status, thatis, whether they are amateurs or superstars.

2. Athletes should not be over-tasked by their sponsors so as to avoid athletes burn-outs, and the temptation of using performance enhancing drugs.

3. The sponsorship deals should be shared between the sports governing body and thecompetitor, with the competitors having greater share of the sponsorship deal.

4. Firms should not withdraw from their sponsored sports event or athlete withoutproper and advance knowledge of the sponsee (s).

5. People with reputable personality and integrity should be appointed as sportsorganizers to secure sponsorship deals for the purpose of accountability.

6. There should be proper monitoring and evaluation of the sponsored sports eventsand programmes.

7. Contractual rights must be fully covered by the governing body of the sports.8. There should be monitoring team to avoid ambush marketers from associating

themselves with the sponsored sports




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2_dr Elendu - Sports