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DISADVANTAGES OF SPONSORSHIP

DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

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Page 1: DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

DISADVANTAGES OF SPONSORSHIP

Page 2: DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

DISADVANTAGES FOR THE SPONSOR

• POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of money they have given. There are many ways a company can publicise itself, and doing it through sports sponsorship is fairly risky. If a team or event is a massive success and attracts media attention, then the sponsor has had good value. If the team or even was a failure with little or no media coverage, then the sponsor will have had poor value for money.

• BAD IMAGE - During the time a sponsor is under contract with a sport, the image of the sport may suffer and thus damage the image of the sponsor. (Canon Electronics who sponsored the Football League for 1984-86 were rumoured to have pulled out of their sponsorship because of the very bad image of football caused by the Bradford and Brussels disasters).

• ONLY 1 WINNER - It is important to the sponsor to be associated with a team or individual that is successful. Sponsors associated with teams who are failures will not get the right kind of publicity. (E.g. if team is relegated from the Premiership this is not the right kind of publicity, but if a team is champion this is a different matter).

Page 3: DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

DISADVANTAGES FOR THE PERFORMER

- Sometimes only short term deals are agreed so performer gets used to extra money.

- Can feel used and demotivated if the sponsor expects too much.

- Can lead to a lack of focus on actual task if a lot of time is spent completing sponsorship tasks.

- Can force players to play when they are not fit, e.g. Ronaldo in 1998 WC Final

Page 4: DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

DISADVANTAGES FOR SPORT• DEPENDENCE ON SPONSOR - Many sports become too dependent on

sponsorship. when National League Basketball was televised by Channel 4, the sport was inundated with sponsors and a lot of money, but when Channel 4 pulled out so did most of the sponsors and almost caused a collapse in the League.

• MAJOR-MINOR GAP - The difference between the heavily sponsored major sports (Football, Cricket, Motor Racing, etc.) and the minor sports who attract little or no sponsorship, has grown enormously in the last two or three decades. this over-emphasis on a few big sports is bad for sport generally.

• NO CONSULTATION - When there is an agreement between a large sporting body and a sponsor, the sports players may have to wear or use their equipment whether they, as individuals, approve of the sponsor of not. There is often no consultation of the people who have to wear the sponsor's name.

• RULE CHANGES - Sponsors may ask for changes to rules or kits to make them more exciting and marketable.

Page 5: DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

DISADVANTAGES FOR TEAM

- If the sponsor pulls out at short notice can leave the club in serious financial trouble.

- Sponsor may demand input in some major decisions regarding the club.

Page 6: DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

DISADVANTAGES FOR EVENT

• Sponsor may request changes in rules, equipment, start times etc.

• These are not always suited to the performers.

Page 7: DISADVANTAGES OF SPONSORSHIP. DISADVANTAGES FOR THE SPONSOR POOR VALUE - The sponsor may feel they have not received enough publicity for the amount of

UNACCEPTABLE TYPES OF SPONSORSHIP

• Some types of sponsorship are not considered acceptable, these are usually alcohol and tobacco sponsorships.

• In some countries and in some sports this type of sponsorship is banned.