Anda di halaman 1dari 112

Market Report 2014

Tenth Edition September 2014


Edited by Robert Hucker
ISBN 978-1-78304-203-6

Sports Sponsorship

Sports Sponsorship

Foreword

In todays competitive business environment, knowledge and understanding of your


marketplace is essential. With over 30 years experience producing highly respected
off-the-shelf publications, Key Note has built a reputation as the number one source
of UK market information. Below are just a few of the comments our business partners
and clients have made on Key Notes range of reports.
The test of any marketing strategy and plan lies in the quality of information used, upon which
marketing judgments and decisions are based. Quality is the key word here. The Key Note
reports are an excellent source of such quality information, covering a wide variety of product
sectors.
The Chartered Institute of Marketing
I regard Key Note as the number one provider of UK market research. The way Key Note
content is packaged and presented is appealing and easy to understand and therefore a must
for my taught course students. Its products are complemented by remarkably high levels of
customer service.
University of Cambridge, Judge Business School
Key Note is one of the most dynamic and intuitive products the department subscribes to. It
has also remained one of the most-used services for a number of years. The combination of
market reports, linked to real company data, within one product, is particularly useful. The
constant investment and desire to improve the service sets it aside from a number of other
organisations and I look forward to working with them for many years to come.
Jack Mears, Knowledge and Information Partner, Department for Business,
Innovation and Skills
Key Note is the Swiss Army knife of report platforms, incorporating both consumer and B2B
research (not to mention Companies House data). It therefore has a comprehensive line-up of
titles, all of which are frequently updated. I like the fact that the analysis within the reports is
based on hard data, through a combination of in-house and external sources. As a result, using
Key Note is a great way to keep up-to-speed on a variety of markets, sectors, products and
brands and its a great tool to have on hand for new business and strategy development.
Jim Clark, Head of Insight, IPA

Key Note Ltd 2014

Sports Sponsorship

Contents

Contents
Introduction & Definition

REPORT COVERAGE....................................................................................................................1
MARKET SECTORS.......................................................................................................................2
Type of Sport..................................................................................................................................2
Type of Sponsor..............................................................................................................................3

1. Executive Summary

2. Whats KEY in the Market?

KEY DRIVERS.................................................................................................................................6
MARKET TRENDS.........................................................................................................................7
The Social Side of Sports Sponsorship.......................................................................................7
The Arrival of the Second Screen and Multi-Channel Sponsorship.....................................8
Table 2.1: Types of Content Accessed by UK Sports Fans
on Second Screens (% of respondents), 2014..........................................................................9
Emerging Sports Diversify Sponsorship Portfolios................................................................10

ECONOMIC TRENDS..................................................................................................................12
Table 2.2: UK Economic Trends (000, m, %, million and ), 2009-2013..........................12

CURRENT ISSUES........................................................................................................................14
Sports Rights in the UK to Rise to 16bn in 2014..................................................................14

HOW ROBUST IS THE MARKET?...........................................................................................16

3. Market Size, Segmentation & Forecasts

17

MARKET SIZE AND SEGMENTATION...................................................................................17


The Total Market.........................................................................................................................17
Table 3.1: The Total UK Sports Sponsorship Market
by Value and Number of Reported Major New Deals
(m and number), 2008-2012....................................................................................................18
Figure 3.1: The Total UK Sports Sponsorship Market by Value (m), 2008-2012............19
Figure 3.2: The Total UK Sports Sponsorship Market
by Number of Major New Deals, 2008-2012...........................................................................19

MARKET SECTORS.....................................................................................................................20
Type of Sport................................................................................................................................20
Table 3.2: Most Popular Sports in the UK by Value
of Reported Major New Deals (000), 2008-2012.................................................................21

Key Note Ltd 2014

Sports Sponsorship

Contents

Table 3.3: Most Popular Sports in the UK by Number


of Sponsorship Deals, 2008-2012..............................................................................................22
Football..........................................................................................................................................23
2014 Commonwealth Games.....................................................................................................27
Motorsports...................................................................................................................................30
Team Sports (excluding football)..............................................................................................31
Individual Sports...........................................................................................................................35
Athletics.........................................................................................................................................37
Horseracing...................................................................................................................................39
Type of Sponsor............................................................................................................................40
Table 3.4: Origins of Sports Sponsorship in the UK by Industry Sector
(number of deals), 2008-2012....................................................................................................40
Gambling/Lottery Providers.......................................................................................................41
Automotive...................................................................................................................................42
Sports Goods.................................................................................................................................43
Financial Services..........................................................................................................................44
Drinks Brands................................................................................................................................45
Technology....................................................................................................................................47
Utilities...........................................................................................................................................48

MARKET POSITION....................................................................................................................48
The UK............................................................................................................................................48
International Perspective............................................................................................................49
Table 3.5: Global Sponsorship Spending by Region ($bn), 2011-2013..............................50
Figure 3.3: Share of Global Sponsorship Spending by Region (%), 2013.........................50

FORECASTS..................................................................................................................................51
Future Trends................................................................................................................................51
The Economy.................................................................................................................................51
Table 3.6: Economic Forecasts (000, % and million), 2014-2018........................................52
String of Scheduled Sporting Events to Boost Sponsorship................................................52
The Power of Big Data................................................................................................................53
Digital Spend to Cannibalise Sponsorship Market................................................................55
Forecast Total Market.................................................................................................................55
Table 3.7: The Forecast Total UK Sports Sponsorship Market
by Value of Major New Deals (m), 2013-2017......................................................................56
Figure 3.4: The Forecast Total UK Sports Sponsorship Market
by Value of Major New Deals (m), 2013-2017......................................................................56
Market Growth.............................................................................................................................57
Figure 3.5: Growth in the UK Sports Sponsorship Market
by Value of Major New Deals (m), 2008-2017......................................................................57

Key Note Ltd 2014

Sports Sponsorship

4. Competitor Analysis

Contents

58

THE MARKETPLACE..................................................................................................................58
LEADING SPONSORSHIP CONSULTANTS AND AGENCIES............................................59
Table 4.1: Leading Sponsorship Agencies by Fee Income
(m and %), 2010 and 2011.......................................................................................................59
CSM Sports & Entertainment LLC..............................................................................................60
M&C Saatchi Sport & Entertainment.......................................................................................62
MEC Access....................................................................................................................................63
GMR (formerly Experience Worldwide)..................................................................................64
Havas Sports & Entertainment..................................................................................................65

OTHER COMPANIES..................................................................................................................67
brandRapport...............................................................................................................................67
Fuse Sports and Entertainment.................................................................................................68
Generate Sponsorship.................................................................................................................68
Right Formula...............................................................................................................................68
Synergy Sponsorship....................................................................................................................69

MARKETING ACTIVITY.............................................................................................................69
Table 4.2: Main Media Advertising Expenditure on Sponsored Sports Events
and Clubs (000), Year Ending December 2013.....................................................................70

KEY TRADE ASSOCIATIONS....................................................................................................72


EXHIBITIONS/TRADE SHOWS.................................................................................................72

5. Buying Behaviour

73

INTRODUCTION..........................................................................................................................73
INTEREST IN MAJOR TEAM SPORTS....................................................................................73
Table 5.1: Interest in Popular Team Sports by Sex, Age,
Social Grade and Region (% of adults), 2013.........................................................................73
Table 5.2: Interest in Team Sports by Type of Activity (% of adults), 2013.....................75

INTEREST IN MAJOR INDIVIDUAL SPORTS........................................................................76


Table 5.3: Interest in Popular Individual Sports by Sex, Age, Social Grade and Region
(% of adults), 2013......................................................................................................................77
Table 5.4: Interest in Individual Sports by Type of Activity (% of adults), 2013.............79

6. Strengths, Weaknesses, Opportunities and Threats

80

STRENGTHS..................................................................................................................................80
WEAKNESSES..............................................................................................................................80
OPPORTUNITIES.........................................................................................................................81
THREATS.......................................................................................................................................82

Key Note Ltd 2014

Sports Sponsorship

Contents

7. PESTEL

83

POLITICAL ....................................................................................................................................83
Select Parliamentary Committee Warns Olympics Legacy Has Not Been Upheld...........83
Sajid Javid Announced as New Culture Secretary.................................................................84
Review on Gambling Advertising Announced.......................................................................85

ECONOMIC .................................................................................................................................86
DCMS Budgets Cut But Elite Sports Protected in 2015/2016 Spending Round...............86

SOCIAL .........................................................................................................................................87
Fans Revolt as Slew of Payday Loan Sponsors Enter Market..............................................87
World Cup Sponsors Call for Inquiry into Qatar Corruption Allegations.........................89
Women in Sports Still Underrepresented...............................................................................90

TECHNOLOGICAL ......................................................................................................................91
Wearables and Virtual Reality: Game Changers....................................................................91
In-Stadia Connectivity to Drive Mobile Interactions.............................................................93

ENVIRONMENTAL ....................................................................................................................94
Corporate Social Responsibility Becoming a Focal Point in Sponsorship..........................94

LEGISLATIVE ...............................................................................................................................95
Calls Mount for Alcohol Sponsorship Ban in the UK............................................................95

8. Further Sources

97

Associations.................................................................................................................................97
Publications.................................................................................................................................97
General Sources.........................................................................................................................98
Government Publications ......................................................................................................98
Other Sources.............................................................................................................................98

Key Note Research

100

The Key Note Range of Reports

101

Key Note Ltd 2014

Sports Sponsorship

Introduction & Definition

Introduction & Definition


REPORT COVERAGE
This Key Note Market Report examines the sports sponsorship market in the
UK. Sports sponsorship can be defined as a mutually beneficial transactional
relationship between a sports organisation and a commercial partner, in which
the former benefits financially and the latter from the communications
opportunities that such partnerships offer, in terms of advertising and
marketing. According to industry experts IEG, sponsorship therefore refers to
the cash and/or in-kind fee paid to a property (i.e. a sports, arts or
entertainment organisation) in return for access to the exploitable commercial
potential associated with that property. Although sponsorship deals can boost
brand awareness by positively aligning commercial brands alongside
inspirational sports organisations or personalities, sports sponsorship deals do
not tend to focus on specific product advertising.
Title sponsorship is generally the most expensive and sought after type of
sports sponsorship available. This form of sponsorship refers to deals where the
name of the sponsor or commercial brand is positioned directly and exclusively
alongside that of a sports competition, team or individual. Title sponsorship is
often the most prestigious class of sports sponsorship and therefore tends to
attract the most lucrative deals. Barclays, for example, has continued to remain
the football Premier Leagues title sponsor since 2012, while Rugby Union is
headed by the Heineken Cup and English Test cricket is sponsored by South
African investment bank Investec in a 10-year deal encompassing title rights.
Title sponsorships have also been extended in recent years to include the
corporate sponsorships of sports stadiums, and in particular football stadiums;
for example, Manchester City Football Clubs (FCs) deal with Etihad Airways
which saw its home stadium reamed the Etihad Stadium and Arsenal FCs
agreement with Emirates Airlines, with the clubs stadium now known simply
as the Emirates. Similar deals have seen Derby FC rename its home ground the
iPro Stadium, while Bolton Wanderers FC now play at the Macron Stadium and
Wigan FC at the DW Stadium following a deal with DW Sports Fitness.
The potential benefits of sponsorship agreements for commercial
organisations are vast, with such deals providing brands with access to a vast
live audience and, in some cases, coverage overseas. Sponsorship deals can also
boost the public image of a brand by aligning it to the successes and positive
attributes of the sponsored organisation or personality. In addition,
sponsorship opportunities allow brands to engage with consumers across
several channels, encompassing on-site sales offices, merchandise, television/
broadcast deals and/or title sponsorships.

Key Note Ltd 2014

Sports Sponsorship

Introduction & Definition

Personal endorsement constitutes another form of sports sponsorship and


refers to the sponsorship of an individual sports star or personality by a
particular brand, named product or service. These types of sponsorship deal
often encompass appearances by the sports personality on television
advertisements and other forms of advertising (e.g. billboards, direct mail, etc.)
undertaken by the commercial partner. Often personal endorsement deals
within sports are undertaken by sportswear brands and energy drinks, which
are already aligned with the sports industry to some extent.
Sports sponsorship can also include the sponsorship of live broadcast sports
events, as well as other events, e.g. exhibitions and conferences. The English
Premier League, for example, which as mentioned has been sponsored by
Barclays since 2012 and also represents the worlds richest soccer league,
currently generates $9.4bn (approximately 5.7bn) in television deals, $5.7bn
(3.46bn) of which is accounted for domestically and the rest by overseas
channels; with broadcast deals continuing to represent the largest source of
revenue in England. It should be noted that sponsorship of broadcasted events
falls under the auspices of both Key Notes Sports Sponsorship and Arts &
Media Sponsorship Market Reports.

MARKET SECTORS
The sports sponsorship market can be subdivided according to the type of sport
involved or by the type of industry that invests in sponsorship deals of this kind.
Both types of sector breakdown have been further categorised below:

Type of Sport
The market can be segmented according to type of sport being sponsored.
However, it should be noted that these sectors can also include income
generated by multi-event tournaments, such as the Olympics and
Commonwealth Games. The main types of sports that attract sponsorship deals
include the following:
Football including domestic tournaments such as the English Premier
League and the Football Association (FA) Cup; and overseas events including
the Fdration Internationale de Football Association (FIFA) World Cup; the
Union of European Football Associations (UEFA) Champions League; the
UEFA Europa League; and the UEFA European Football Championship.
Motorsports including the Federation Internationale de lAutomobile (FIA)
Formula 1 (F1) World Championship; as well as other motor racing
competitions such as rally, stock car, superbikes and speedway events.
Team sports (excluding football) can include rugby, for example Rugby
Union and Rugby League; and cricket, including County Cricket. Both sports
also host their own World Cups and other international tournaments.
Individual sports sponsorship deals undertaken within this sector mainly
encompass personal endorsements featuring an individual sports personality
that participates in sports such as tennis or golf.

Key Note Ltd 2014

Sports Sponsorship

Introduction & Definition

Athletics this sector encompasses multi-event games, such as the Olympics,


Paralympics and Commonwealth Games, but can also include marathons and
fun-runs.
Horseracing also includes other equestrian activities, such as sponsorship
of racing events, jockeys, racing courses and, sometimes, venues.

Type of Sponsor
Although sponsors can include businesses from a broad range of industries, the
following list provides details of the primary vertical sectors involved in sports
sponsorship to a high degree in the UK:
Gambling/lottery providers includes online gambling companies such as
Sky Bet, Bet 365 and Red32, as well as high-street betting shop chains such
as William Hill, Ladbrokes and Paddy Power; and lottery providers (both
national and regional).
Automotive this sector is heavily dominated by major automotive brands,
such as Ford, which is one of official sponsors of the 2014 Commonwealth
Games; and Hyundai/Kia Motors, one of the official partners of the FIFA
World Cup 2014. Other significant automotive sponsors include Vauxhall,
which sponsors all four national teams in Great Britain as well as their
football associations, and Liverpool FC; Nissan, which recently signed a deal
to sponsor City Football Group, which includes Manchester City FC; and
General Motors Chevrolet, the current sponsor of Manchester United FC.
Financial services includes banking organisations and other financial
services firms. Visa is one of the leading financial sponsors, with the credit
card firm sponsoring several global sporting events, including the World Cup
and the Olympic Games. Other major sponsors in the UK market include
Barclays, which represents the official sponsor of the English Premier League;
as well as Investec, Royal Bank of Scotland (RBS), Standard Life, HSBC,
Santander, Natwest and Aviva, among many others.
Sports goods includes sportswear brands, namely Nike, Umbro and adidas.
Nike sponsors several high-performing sports stars, including Tiger Woods,
Rafael Nadal and Rory McIlroy, and became an official Olympics sponsor in
2013. adidas was an official partner of the FIFA World Cup 2014 and the 2012
Olympics, and sponsors the English cricket team as well as several football
clubs based in the UK.
Drinks brands Coca-Cola heavily dominates sports sponsorship within this
sector, with the soft drinks manufacturer continuing to remain a long-term
official partner of the Olympic Games and FIFA World Cup. Other drink
brands that have a strong presence within sports sponsorship include Pepsi,
Carling, Heineken, Robinsons, Guinness, Lucozade, John Smiths and Red Bull.

Key Note Ltd 2014

Sports Sponsorship

Introduction & Definition

Technology includes IT, telecommunications and mobile network


companies and brands. Leading consumer technology firm Sony is currently
an official partner of FIFA, while its PlayStation (PS) brand sponsors the UEFA
Champions League and UEFA Super Cup. Other major global technology
sponsors include Samsung and Panasonic, both of which represent official
sponsors of the Olympics; as well as Acer, BT and Everything Everywhere (EE).
Utilities including energy and fuel firms. Energy company SSE and oil firm
BP are among the top-level sponsors associated with the 2014
Commonwealth Games; while industrial oil firm Castrol became an official
sponsor of the FIFA World Cup for 2014. Other utilities companies with strong
ties to sports sponsorship include EDF Energy, Scottish Power and British Gas.

Key Note Ltd 2014

Sports Sponsorship

Executive Summary

1. Executive Summary
The UK sports sponsorship market has continued to decline in the years
following the London 2012 Olympics, with a noticeable drop in both the value
and volume of deals being signed since 2009, when market value peaked. Since
then, the market has observed year-on-year double-digit declines, although
much of this is due to the skewed results produced by the Olympics. Investment
in sports sponsorship has also continued to be impacted by the after-effects of
the recession, which has led to squeezed marketing budgets and reduced
business optimism in the years following the economic downturn, which hit
developed markets in 2008/2009. Increased competition from digital
marketing formats has also had a negative impact on investment in sports
sponsorship, with many businesses opting to funnel money away from
large-scale sponsorship deals and towards cheaper, and often more
measurable, marketing initiatives involving digital, mobile and social media
channels.
Despite the contractions observed across the sports sponsorship market in the
UK in recent years, the global market has continued to witness a long-term
upwards trend, with figures compiled by IEG revealing the total value of global
sponsorship rights to have topped $53bn in 2013, having grown by 20.7% since
2009. This suggests that the fluctuations that have hit the UK market in recent
years are not likely to be suggestive of a longer-term decline; particularly given
that the UK economy once again showed signs of recovery in 2013, with even
stronger growth predicted for 2014. The UKs hosting of several upcoming
sporting events is also likely to drive future growth. In 2014, alone, for example,
the country will play host nation to the Giro dItalia the second-largest
cycling race in the world as well as the Grand Dpart of the Tour de France,
the Commonwealth Games and the Ryder Cup. The emergence of several
non-traditional sports sectors, such as cycling, rowing and para-sports,
following the success of Team GB athletes at the London 2012 Olympic and
Paralympic Games are also likely to boost growth in the market going
forwards.
The development of a more sophisticated and mature approach to sports
sponsorship should also help to strengthen the position of the sector within
the wider marketing mix in the future, with new sponsorship deals secured
often offering a wide range of new asset rights and opportunities for brand
activation than was previously provided. Indeed, many current sponsor deals
now encompass a range of marketing activity across a variety of channels, from
tablet and mobile to television, online and social media. This trend is expected
to continue to develop going forwards, with sports sponsorship partnerships
likely to become increasingly integrated with wider multi-channel marketing
strategies.
These factors combined should help to secure more stable growth across the
sports sponsorship market in the future, with Key Note predicting market
growth to pick up once again from 2014 onwards, in line with the
strengthening UK economy. Overall, Key Note expects the market to achieve
growth of 14.8% over the 5-year forecast period to 2018.

Key Note Ltd 2014

Sports Sponsorship

Whats KEY in the Market?

2. Whats KEY in the Market?


KEY DRIVERS
The sports sponsorship market has continued to evolve and diversify in recent
years, with several factors serving to drive growth in specific areas of the
market, as detailed below:
Digital and social media has emerged as a major channel for sports sponsors
in recent years. Nearly a quarter of the worlds population are now thought
to use social media, with sponsors increasingly keen to leverage the
expansive reach and potential benefits of this particular medium. Sponsors
have therefore begun to utilise their commercial partnerships to engage fans
via social media channels; for example, by delivering relevant, interesting
and engaging content to fans of both the brand and the sport in real time.
Sponsorship portfolios have continued to become increasingly diverse in
recent years, with a greater number of brands moving into non-traditional
areas and emergent sectors, such as cycling, athletics and para-sports.
The migration of consumers onto mobile devices such as smartphones and
tablets has intrinsically changed the way people are now consuming media,
resulting in a noticeable shift away from live television viewing. As a result,
it has become increasingly necessary for sponsors engaging in broadcast
deals to extend coverage to a wide range of communications channels, many
of which also offer a higher level of engagement and interactivity than
traditional channels such as television and radio.
The mobile revolution has also resulted in sponsors developing creative and
engaging content purely designed for mobile platforms, such as branded
applications (apps) which tie into the sponsored sport or event. In this way,
brands are able to reach out to consumers by providing exclusive content on
the sport involved, thus connecting with consumers on a more personal level
regarding a subject that they are passionate about. In this way, popular
mobile platforms can be leveraged to provide improved customer relations,
brand engagement and increased brand loyalty.
Sports sponsorship has moved beyond simple traditional sponsored activities,
such as in-stadium advertisements and kit insignias, towards more active
commercial partnerships, which allow brands to engage with fans, members
and participants in a number of different ways from promotions, hospitality,
competitions and the use of social media, thus resulting in much closer
partnerships between brands and their sponsored parties.
Shifts in geo-political power and economic growth have seen the emergence
of developing countries, such as Brazil, Russia and Qatar, as host nations to
leading international sports events like the Olympics and the Fdration
Internationale de Football Association (FIFA) World Cup in recent years, with
this trend expected to continue well into the future.

Key Note Ltd 2014

Sports Sponsorship

Whats KEY in the Market?

MARKET TRENDS
The Social Side of Sports Sponsorship
The rising popularity of social networks in the UK and across the world has seen
brand marketers and sponsors increasingly turn to such channels in order to
leverage social media to connect with fans, followers and participants on a
much more personal level regarding sponsored sports. In this way, marketers
are able to solidify and strengthen relationships with consumers by sharing in
the passion and emotional attachments that they have for their favourite sport,
team or athlete through highly engaging social media platforms, which
facilitate and encourage two-way conversations between brands and
consumers. Not only this, but social media can also allow brands to engage
with target audiences directly and in real time, necessitating a more agile
approach to marketing activities.
Indeed, social media seems tailor-made for the incessant chatter and virtual
camaraderie engaged in by sports fans; with sports stars and teams attracting
vast swathes of followers on social networks. Barcelona Football Club (FC), for
example, now has over 60 million followers on social media, while Real Madrid
has around 49.8 million and Manchester United has 34.5 million. The 2012
Olympics has also significantly boosted social media as a platform for brand
engagement and customer interactions, with several well-known athletes from
the Games, such as Mo Farah, Jessica Ennis and Tom Daly, all having Twitter
followings of over 1 million as a result. The successful integration of social
media alongside the Olympics has paved the way for other international
sporting competitions to experiment with the platform.
The 2014 FIFA World Cup, for example, generated an enormous amount of
social media activity, with the competition overtaking the Superbowl to
become the most talked-about sporting event on Facebook. According to
Snack Media, approximately 72.4% of fans discussed the football tournament
on social networks while watching the games on television; the finale
generated 618,725 tweets per minute on micro-blogging site Twitter. The
heightened level of activity on social media has meant that such platforms have
become increasingly attractive to sponsors, with several official World Cup
sponsors increasing their following on social networks as a result of
promotional activities across such platforms during the tournament. adidas,
for example, became the most talked-about brand related to the 2014 World
Cup, following strong social media participation and its All or Nothing
campaign, with the brands social media followers increasing by 5.8 million
across all platforms as a result. The sportswear brand also benefitted from the
launch of its @brazuca Twitter account which was designed to represent the
official match ball of the 2014 World Cup which finished the tournament
with nearly 3.5 million followers.

Key Note Ltd 2014

Sports Sponsorship

Whats KEY in the Market?

Similarly, official tournament partner Coca-Cola saw its following on Facebook


increase to 85 million as a result of activity on the social network during the
tournament, as did several other top level sponsors including Sony, Visa,
McDonalds and Budweiser. Sony, in particular, took participation in social one
step further through the launch of its own social network, One Stadium Live,
which was dedicated solely to social media chatter surrounding the World Cup.
The social network, aimed to unite fans passion for football by curating social
media activity from several social networks including Facebook, Twitter and
Google+ from across the world into the most popular, relevant and recent
football topics under one domain. The site also provided live, in-depth
performance statistics for each team and player, with the platform acting as a
second-screen experience during live games, delivering real-time, filtered
streams of fan chatter from around the globe.

The Arrival of the Second Screen and Multi-Channel Sponsorship


The rapid migration of consumers onto mobile platforms has intrinsically
changed the way in which media is being consumed, with the proliferation of
highly sophisticated mobile devices, such as smartphones and tablets, helping
to facilitate the consumption of television programming and live broadcast
events in real time across the world. According to data compiled by Kantar
Medias Target Group Index (TGI), nearly six-in-ten (59.3%) UK adults are
thought to own a smartphone, while around a third (32.6%) have a tablet
computer.
The sharp uptake of mobile devices has undoubtedly had an effect on how live
events (including sporting events) are being broadcast and viewed by fans
a trend which has resulted in the emergence of the so-called second screen.
Indeed, according to research undertaken by PERFORM Kantar Media and
SportBusiness Group in 2014, 43% of sports fans now use a second screen, such
as a smartphone or tablet, when watching sport on television, with around
one-in-four (39%) doing so via a mobile device up from 33% in 2013. The
research undertaken by Kantar Media also analysed the type of content UK
sports fans accessed using their second screen, with the most popular found to
be live text commentary of other matches, which over half (56%) of
respondents revealed that they had accessed. Meanwhile, nearly a quarter
(24%) were found to have accessed non-sports-related content, while 22%
watched live sports, 16% placed a bet, and 13% accessed social networks
regarding sports content.

Key Note Ltd 2014

Sports Sponsorship

Whats KEY in the Market?

Table 2.1: Types of Content Accessed by UK Sports Fans


on Second Screens (% of respondents), 2014

Follow live text commentary of other matches

56

Use for non-sports-related content

24

Watch live sports

22

Place a bet

16

Social network around sports content

13

Source: Know The Fan - The Global Sports Media Consumption Report 2014 from
PERFORM, Kantar Media and SportBusiness Group

The diversification of media consumption across a range of devices has meant


that it has become increasingly necessary for sponsors to embark on strategies
that ensure coverage across a multitude of channels in order to reach as a wide
an audience as possible. Although the rise of digital media could represent a
threat at a superficial level, with brands tending to divert funds away from
core sponsorship and towards digital activities, it can also give rise to several
new opportunities for sponsors, particularly in terms of brand activation, by
creating new rights and assets which can be leveraged as part of a wider
sponsorship campaign. The advanced technological capabilities of
second-screen devices, such as tablets and smartphones for example, offer a
high level of interactivity, thus allowing brands to engage with consumers in
a more creative and engaging way. Not only this, but by using such platforms,
brands can integrate their online promotions with social media, and in doing
so target real-time marketing at fans, thus strengthening the relationship
between event, brand and consumer.
The launch of a number of event-companion apps in recent years reflects the
continued development of the second screen as an integral part of broadcast
viewing, with several large-scale events, such as the 2012 Olympic Games and
the Commonwealth Games launching their own apps over the past few years,
which contain exclusive player and tournament information, as well as
up-to-date leader boards, event schedules and social media buzz. Leading
sports channel, Sky Sports, has also entered the second-screen playing field in
recent years, following the launch of its own app for iPad, which contains a
new Formula 1 (F1) companion experience and allows Sky customers to view
sporting events broadcast on the channel from a range of perspectives using
their tablet device in real time.

Key Note Ltd 2014

Sports Sponsorship

Whats KEY in the Market?

The rising popularity of companion apps has been leveraged to some extent
by a select few sponsors; however, it remains an area of the market that has
yet to reach its full potential. Nonetheless, interest in sponsored companion
apps has continued to observe growth in recent years. The Royal Bank of
Scotland (RBS), for example, launched its first sponsored app back in 2012 to
celebrate the RBS 6 Nations rugby tournament. The app challenged fans to
predict the result of games, take part in opinion polls and answer rugby quiz
questions devised by RBS 6 Nations. The aim of the app was to capitalise on
the growth in duel screening and to leverage social media, through Facebook
Connect, to allow fans to interact with one another during live events,
regardless of their location. The app has continued to be used for the rugby
tournament since its success in 2012, and now offers several enhanced
capabilities designed to improve audience participation and interaction.
According to a report published by app developer Accenture in 2013, the app
was downloaded by over 325,000 people throughout the 2012 competition
and now represents the UKs leading sports app. Similar sponsored companion
apps have been launched by brands following RBSs success, with Betfair
launching a Euro 2012 companion app which allowed users to bet on games
in real time; Premier League sponsor Barclays also has an official football app,
which provides details of fixtures, results, and teams, as well as integration with
Twitter.

Emerging Sports Diversify Sponsorship Portfolios


According to an article published by The Guardian in June 2014, the highest
grossing sports for sponsorship investment currently include F1, major US
leagues such as the National Football League (NFL), and the Olympics.
However, the rising popularity of emerging sports such as cycling, extreme
sports, and skiing and snowboarding has seen sponsors shift expenditure to
newer, non-traditional areas of sport. As a result, sports sponsorship portfolios
have become increasingly diverse in recent years.
The success of the British cycling team during 2012 at the Tour de France and
the Olympics represents just one example of an emerging area within the
sports sponsorship market, reflected by the lucrative sponsorship deals that the
British cycling team have attracted recently, with Sky continuing to sponsor the
team since 2008 following the signing of a $10m sponsorship deal; the
broadcaster renewed its commercial partnership in 2012 for a further 4 years.
The success of British cycling has been further driven by the UKs hosting of
several international events focusing on the sport, including the Giro dItalia
the worlds second-largest cycling event in Northern Ireland and the
Grand Dpart of the Tour de France in Yorkshire, both of which were held
during 2014. In addition, increased participation in cycling, as well as a growing
fan base, has served to make cycling a hugely interesting prospect for sponsors,
with sporting organisation British Cycling revealing in 2013 that its
membership has surpassed 75,000 after soaring by 50% since Bradley Wiggins
win at the Tour de France.

Key Note Ltd 2014

10

Sports Sponsorship

Whats KEY in the Market?

Several other emerging sports have also attracted the attention of sponsors in
recent years, following increased popularity and successes at international
competitions. These have included skiing and snowboarding, with UK Sport set
to triple its investment in the sport to 31m between 2014 and 2018, up from
the 14.2m that was invested in the lead up to the Winter Olympics in Sochi,
Russia, during 2014. The rise in investment reflects the strong performances of
British athletes at World Cup and Olympic level, with British Ski and Snowboard
(BSS) athletes finishing with six top-ten results during the recent Winter
Olympics. Cricket represents another sport to have seen strong growth in
sponsorship funding in recent years, with sponsorship of the sport increasing
by 14% year-on-year since 2006 to top over 250m in 2014. This growth has
predominantly been driven by the increased commercialisation of the sport;
the introduction of a shorter Twenty20 format; and the growing popularity of
the Indian Premier League.
Triathlon formats have also seen a surge in popularity in recent years, driven
by increased interest in events such as Ironman, which has seen its annual
revenue increase sevenfold over the past year, after soaring to $150m. This
comes following increased investment by backer Unit Providence Equity
Partners, which purchased the World Triathlon Corporation back in 2008, and
has since continued to expand the reach of Ironman by entering new markets,
adding new races to the event and growing its selection of popular branded
merchandise, with its Timex watch, for example, now representing the
best-selling sports watch in the world. The rising popularity of the race, which
encompasses a 2.4-mile swim, a 112-mile cycle race and a marathon spanning
26.2 miles, is reflected by a sharp growth in participants, with around 200,000
athletes set to cross the finish line in 2014, up from just 60,000 5 years ago.
Commercial organisations have been increasingly keen to take advantage of
the increasing popularity of the race, with Ironman counting several leading
brands, including Mercedes-Benz, Subaru, Powerbar, Timex, BMW and Foster
Grant, among its sponsors for events held across the world.
The diversification of sponsorship portfolios is a trend that is expected to
continue well into the future, with other key emergent sports, such as extreme
sports, ultimate fighting, martial arts and rally car racing, also expected to see
strong interest from sponsors in coming years. In this way, sponsors are
expected to spread their reach even further by tapping into new audiences
across the world. Diversifying sponsorship portfolios may also help to temper
any potential losses; for example, if a sponsored team or sports star exits a
competition earlier than expected.

Key Note Ltd 2014

11

Sports Sponsorship

Whats KEY in the Market?

ECONOMIC TRENDS
The UK economy continued to show signs of economic recovery during 2013,
during which gross domestic product (GDP) rose by 1.7% (in terms of annual
chain-linked GDP), after narrowly avoiding a double-dip recession during 2012
when GDP growth fell to just 0.3%. Inflation has also continued to stabilise
over the past year, with rates standing at around 3% in 2013 after falling
slightly by 0.2 percentage points. Meanwhile, unemployment saw its largest
decline since the recession, after the number of claimants fell sharply by 10.7%
during 2013. Despite these positive indicators, consumers have continued to
remain cautious in terms of expenditure, with household disposable incomes
per capita growing by just 1.1% during 2013, compared to a growth rate of
2.8% in the previous year; household budgets have remained tight in the face
of continued hikes in the price of energy, food and fuel.
The strengthening economy is already thought to be having a positive effect
on business confidence, with both operational and marketing departments
showing renewed optimism following a recovery in GDP growth over the past
year. This in turn is likely to lead to more flexible marketing budgets, many of
which were cut drastically in the wake of the recession as businesses attempted
to save costs. As such, the outlook for sponsorship funding across sports is
promising, with brands increasingly looking to leverage commercial
partnerships in order to secure future growth as the economy continues to
strengthen.

Table 2.2: UK Economic Trends (000, m, %, million and ),


2009-2013
2009

2010

2011

2012

2013

Female

31,728

31,954

32,188

32,390

32,556

Male

30,532

30,805

31,097

31,315

31,532

62,260

62,759

63,285

63,705

64,087

0.8

0.8

0.7

0.6

Resident Population
Estimates (000),
Mid-Years

Total population
% change
year-on-year

Table continues...

Key Note Ltd 2014

12

Sports Sponsorship

Whats KEY in the Market?

Table 2.2: UK Economic Trends (000, m, %, million and ),


2009-2013
...table continued
2009

2010

2011

2012

2013

1,417,359

1,485,615

1,536,937

1,558,415

1,613,391

4.8

3.5

1.4

3.5

1,461,361

1,485,616

1,502,216

1,506,388

1,531,428

1.7

1.1

0.3

1.7

-0.5

4.6

5.2

3.2

3.0

5.1

0.6

-2.0

-0.2

1.53

1.50

1.53

1.59

1.42

-2.0

2.0

3.9

-10.7

Gross Domestic
Product (m)
Current prices
% change
year-on-year
Annual chain-linked
GDP
% change
year-on-year
Rate of Inflation (%)
Inflation
Percentage point
change
year-on-year
Actual Number of
Unemployed Persons
in the UK (million)
Actual number of
claimants
% change
year-on-year

Table continues...

Key Note Ltd 2014

13

Sports Sponsorship

Whats KEY in the Market?

Table 2.2: UK Economic Trends (000, m, %, million and ),


2009-2013
...table continued
2009

2010

2011

2012

2013

15,443

16,058

16,371

16,830

17,022

4.0

1.9

2.8

1.1

Household Disposable
Income Per Capita ()
Household
disposable income
% change
year-on-year

does not sum due to rounding at source


GDP gross domestic product
Note: inflation is at retail price index (RPI); inflation data shown are annual average
changes; claimant count measures the number of people claiming Jobseekers Allowance.

Source: Population Estimates for UK, England and Wales, Scotland and Northern
Ireland, Mid-2001 to Mid-2010 Revised, December 2013/National Population
Projections, 2012-based projections/United Kingdom Economic Accounts Q4
2013, published March 2014/Consumer Price Inflation, April 2014/Labour Market
Statistics, May 2014, National Statistics website Crown copyright material is
reproduced with the permission of the Controller of HMSO (and the Queens
Printer for Scotland)

CURRENT ISSUES
Sports Rights in the UK to Rise to 16bn in 2014
According to a recent report published by Deloitte in January 2014, the value
of premium sports broadcast rights worldwide is expected to increase by a
substantial 14% in 2014 to reach 16bn. This increase in rights is expected to
be driven by new agreements among top-tier European domestic football
leagues and major North American sports leagues. In the UK, the English
Premier League has continued to negotiate increasingly high-value deals with
broadcasters, with Sky continuing to lead the market in terms of sports
broadcast rights despite increased competition from other competitors, such
as ITV Digital, Setanta and ESPN, in recent years. However, recent months have
seen telecommunications firm BT expand its presence in the sports broadcast
arena, with the company launching a number of new UK sports channels in a
direct challenge to the 2-decades-long dominance of Sky over sports television.

Key Note Ltd 2014

14

Sports Sponsorship

Whats KEY in the Market?

BT has spent a rumoured 738m over the past 3 years for rights to 38 live
Premier League matches each season, while Sky has paid 2.3bn for 116
matches each season. BT has also bought up rights to Premiership Rugby, as
well as a host of other sports such as Moto GP and Nascar, and has also taken
over ESPNs UK sports channels. Towards the end of 2013, BT announced that
it had secured the exclusive UK live rights for both the Champions League and
the Europa League for 3 years from 2015, following a huge bid rumoured to
worth almost 900m, further driving competition against competitor Sky.
BTs expansion into UK sport marks a concerted effort by the company to
transform its image from telecommunications firm to top-level sports
broadcaster. However, its acquisition of rights to both the Champions League
and Europa League mean an end to live European club football on free-to-view
channels such as BBC and ITV, although BTs commitment to free matches over
satellite, cable and broadband is likely to counter criticism from some fans.
According to BT, around 2 million people had subscribed to its televisions sports
channels since the launch of the BT Sport package in August 2013; while Sky
revealed that the start of the 2013/2014 football season had resulted in record
viewing numbers, with the tournament attracting an average audience of 1.55
million, compared with 1.29 million during the 2012/2013 season. However,
while Sky is likely to remain the leading sports broadcaster in the UK, it is likely
to meet with increased competition from BT Sport, as the latter continues to
seek new broadcast rights opportunities, particularly in sports other than
football, such as golf and cricket both of which have significant followings
in the UK. In May 2014, for example, BT Sport revealed that it had secured
rights for live television coverage of the Caribbean Premier League T20 cricket
tournament in a deal spanning 2 years. Sky is likely to face further competition
from BT when the International Cricket Council (ICC) auctions off the broadcast
rights to its World Twenty20, 50-over World Cup and Champions Trophy
competitions later this year, with BT already making it clear that it will be
entering the auction. Sky Sports currently has the rights to broadcast all live
international cricket fixtures played by England at home, as well as all fixtures
in India, the West Indies, Australia, New Zealand and South Africa. BT is also
expected to bid for broadcast rights for the US Professional Golfers Association
(PGA) golfing tour, which is also up for tender during 2014, despite Sky
currently owning the rights to broadcast the tournament until 2017.
BT has also strengthened its position within the sports sponsorship market
through a number of new partnership deals in recent years, with the
telecommunications company becoming the new sponsor of the Glasgow
Warriors and Edinburgh rugby teams in July 2013, which will see both clubs
sport BTs logo on their club shirts. The multi-million-pound deal effectively
bypasses Sky Sports ban on screening rival broadcasters advertising and logos
an issue which BT has contested with media regulator Ofcom in the past.
Recent months have seen BT further expand its sports sponsorship portfolio,
following the acquisition of naming rights for Scottish Rugby venue
Murrayfields; as well as a new deal with Wales four rugby regions, which will
see BT Sport become the title sponsor of the Arms Park the home venue of
the Cardiff Blues and take on shirt sponsorship for the other three Welsh
regional rugby teams.

Key Note Ltd 2014

15

Sports Sponsorship

Whats KEY in the Market?

HOW ROBUST IS THE MARKET?


The UK sports sponsorship market has continued to fluctuate in recent years
due to its vulnerability during periods of economic downturn. Like other
sectors of the advertising industry, the market has struggled to achieve stable
growth in recent years, with marketing budgets continuing to be squeezed in
the wake of the 2008/2009 recession. While the UKs hosting of the Olympic
and Paralympic Games during 2012 helped to secure growth in the years
preceding the tournament, it also served to skew market value, with a
noticeable decline apparent in the years following the event. Nonetheless,
British athletes successes in several sports during the Games and at other
international events has led to a diversification of sponsorship portfolios, as
brands seek to capitalise on the rising popularity of emergent sports, such as
cycling, skiing and snowboarding, and triathlon racing, to name but a few.
Despite the fluctuations in market value over the past few years, the UK
sponsorship landscape remains robust, with the country benefitting
significantly from the popularity of mainstream sports, such as football, rugby
and cricket, all of which have established leagues, a vast following and are well
known on the international stage. As such, these sports have continued to
attract lucrative sponsorship deals, with marketers continuing to put a high
value on such deals and reap the benefits of the wide reach and positive
associations that commercial partnerships with sports teams and personalities
provide. The UKs sports sponsorship market has also been boosted by its
election as host nation for several upcoming international sporting events,
including the Commonwealth Games, the Ryder Cup, the Giro dItalia and the
Grand Dpart of the Tour de France in 2014; as well as the Rugby World Cup
in 2015.

Key Note Ltd 2014

16

Sports Sponsorship

Market Size, Segmentation & Forecasts

3. Market Size, Segmentation & Forecasts


MARKET SIZE AND SEGMENTATION
Although the sports sponsorship market observed sharp growth in the years
running up to Londons hosting of the 2012 Olympic and Paralympic Games,
recent years have seen a drop off in terms of value and the volume of deals
being signed in the UK. It can therefore be assumed that the UKs hosting of
the Games has skewed results slightly in recent years, with the international
event widely considered to attract historically large sponsorship deals every
time it is held.
While the UK market has continued to benefit from the after-glow of the
Games, with several non-traditional sports such as cycling, athletics and rowing
emerging as key areas of growth following British athletes success at the
Olympics, new sponsorship deals attracted by such sports have not been large
enough to offset the tail-off in new business that has been observed in recent
years. Nonetheless, the continued popularity of Premier League football in
England the most watched football league in the world has meant that
this particular sector has continued to attract highly lucrative sponsorship deals
in recent years, and remains an enticing prospect for brands seeking new
sponsorship opportunities.
Furthermore, despite its decline in recent years, sports sponsorship remains the
most lucrative area of the overall sponsorship market in the UK, with the
market benefitting from strong global coverage and commercial investment
of several sports, such as football, golf, rugby, Formula One (F1) racing and
cricket. In addition, the UKs hosting of several upcoming international
sporting events, such as the Giro dItalia in Northern Ireland, the Grand Dpart
of the Tour de France in Yorkshire, the Commonwealth Games in Glasgow and
the Ryder Cup in Gleneagles, has once again helped to position the country
centre stage on the global platform following its widely lauded success as host
nation for the 2012 Olympics.

The Total Market


In order to assess the size of the sports sponsorship market in the UK, Key Note
commissioned specialist market analysts Find!Sponsorship to estimate the
performance of the market between 2008 and 2012. According to the data
compiled by Find!Sponsorship, the total UK sponsorship market has declined
in value since 2009 and in volume since 2010, following peaks of 946m and
414 deals during those years, respectively. However, while the total value of
the market fell by 41% between 2008 and 2012 to stand at 398.7m, the total
number of deals signed has actually increased over the same period, rising by
121.9% since 2008 to reach 335 in 2012.

Key Note Ltd 2014

17

Sports Sponsorship

Market Size, Segmentation & Forecasts

As stated previously, this could be down to a rise in the number of smaller


sponsorship deals being signed in the UK in the lead up and following the 2012
Olympic and Paralympic Games, with a number of new non-traditional sports,
such as cycling, rowing, para-sports and athletics, seeing a surge in popularity
and a rise in participation following the successes of British athletes in these
particular areas during the competition.
Despite these sports growing in popularity in the UK, they remain relatively
small areas of the wider sponsorship marketplace, and therefore any increase
in terms of volume of deals being signed within these areas has not been
enough to offset the wider decline in market value that has hit the UK since
2009. While this decline could be down to wider economic pressures and
squeezed marketing budgets, it is more likely to reflect the abnormally high
level of large sponsorship deals being signed in the UK in the run up to the
London 2012 Olympic and Paralympic Games. Indeed, data compiled by IEG
suggest that the global sponsorship market actually increased by 17.7%
between 2008 and 2012 to reach $51.8bn, suggesting an overall upwards trend
in the market in more general terms.

Table 3.1: The Total UK Sports Sponsorship Market


by Value and Number of Reported Major New Deals
(m and number), 2008-2012

Value (m)
% change year-on-year
Number of deals
% change year-on-year

2008

2009

2010

2011

2012

675.9

946.0

850.7

539.8

398.7

40.0

-10.1

-36.5

-26.1

151

322

414

340

335

113.2

28.6

-17.9

-1.5

Note: caution should be used in interpreting these figures as Find!Sponsorship monitors


a cross section of deals reported online and in the press each year, while some deals and
renewals go unreported, which may result in estimates being lower than actual market
figures; as a result any conclusions based on such figures should be considered Key Notes
own.

Source: Find!Sponsorship

Key Note Ltd 2014

18

Sports Sponsorship

Market Size, Segmentation & Forecasts

Figure 3.1 illustrates the value of the market between 2008 and 2012,
highlighting the significant increases occurring in 2009 and 2010.

Figure 3.1: The Total UK Sports Sponsorship Market


by Value (m), 2008-2012
1,100
1,000
900
800
700
600
500
400
300
200
100
0
2008

2009

2010

2011

2012

Source: Find!Sponsorship/Key Note

Figure 3.2 illustrates the peak in the number of major new deals in the sports
sponsorship market in the UK that occurred in 2010.

Figure 3.2: The Total UK Sports Sponsorship Market


by Number of Major New Deals, 2008-2012
425
400
375
350
325
300
275
250
225
200
175
150
2008

2009

2010

2011

2012

Source: Find!Sponsorship/Key Note

Key Note Ltd 2014

19

Sports Sponsorship

Market Size, Segmentation & Forecasts

MARKET SECTORS
For the purposes of this report, the sports sponsorship market has been
sub-categorised according to type of sport and type of sponsor; it has also been
assessed in terms of value (i.e. the value of sponsorship deals) and in terms of
volume (i.e. the number of sponsorship deals reported).

Type of Sport
Football continued to remain the most lucrative sport over the review period
in terms of sponsorship, with this category observing year-on-year increases
since 2009. In 2012 alone, sponsorship deals secured by football organisations
increased by 59.3% to stand at 234.1m, with this sector benefitting from the
vast global coverage and popularity of the English Premier League. The growth
in football sponsorship in terms of value is also likely to have been boosted by
an increase in activity during the run up to the 2014 Fdration Internationale
de Football Association (FIFA) World Cup, with the English Football Association
(FA) signing a number of lucrative deals with brands such as Samsung and Nike
in the years preceding the global event.
2012 also saw Rugby Union overtake the Olympics to become the second-most
lucrative area of the sports sponsorship market during 2012 after seeing
growth of 41.2%, with the total value of Rugby Union sponsorship deals struck
standing at 39.9m that year. At the same time, sponsorship deals secured off
the back of the 2012 Olympics continued to fluctuate during the 5-year review
period, with large increases observed in 2009 and 2011, but a decline of 76.2%
reported in 2012, suggesting a tapering off of interest among supporters
surrounding the event and Olympics athletes.
Elsewhere, healthy growth was observed across a number of sports during 2012
including tennis (728.1%), cycling (831.6%), multi-sports (319.9% [including
the 2014 Commonwealth Games]), golf (79.8%), sailing/yachting (235.8%), and
equestrian sports (537%). These high levels of growth are most likely to be a
result of heightened interest from sponsors in the run-up to the Olympics, as
well as the continued success of several individual British athletes, such as
tennis stars Andy Murray and Laura Robson, as well as golfer Rory McIlroy and
athletes Mo Farah and Jessica Ennis.

Key Note Ltd 2014

20

Sports Sponsorship

Market Size, Segmentation & Forecasts

Table 3.2: Most Popular Sports in the UK by Value


of Reported Major New Deals (000), 2008-2012
2008

2009

2010

2011

2012

Football

18,868

2,985

50,782

146,918

234,050

Rugby Union

17,569

5,006

17,388

28,267

39,900

Olympics

93,850

230,224

20,409

87,132

20,750

Tennis

n.a.

n.a.

10,107

2,234

18,500

Cycling

n.a.

203

7,878

1,009

9,400

Multi-sports

n.a.

n.a.

n.a.

2,143

9,000

Golf

9,440

3,090

4,920

4,894

8,800

Sailing/yachting

7,492

n.a.

n.a.

2,472

8,300

Cricket

4,058

1,768

16,278

27,765

7,500

Rugby League

6,203

2,620

5,405

7,122

7,400

n.a.

n.a.

n.a.

832

5,300

5,569

5,773

7,995

n.a.

5,000

n.a.

n.a.

n.a.

2,143

4,600

1,971

876

n.a.

1,904

3,300

n.a.

n.a.

n.a.

2,345

2,300

Equestrian Sports
Formula 1
Motorsports
Motorcycle racing
Darts
n.a.. not available

includes sponsorship deals signed for the Commonwealth Games 2014


motorsports other than F1
Note: caution should be used in interpreting these figures as Find!Sponsorship monitors
a cross section of deals reported online and in the press each year, while some deals and
renewals go unreported, which may result in estimates being lower than actual market
figures; as a result any conclusions based on such figures should be considered Key Notes
own.

Source: Find!Sponsorship

Football was by far the most popular sport to attract sponsorship deals in terms
of volume throughout the 5-year review period, with the number of football
sponsorship deals signed more than tripling between 2008 and 2012 to stand
at 113. Once again, this is most likely to be down to the global popularity of
the English Premier League, as well as the vast number of teams that the league
and other under-leagues comprise. The advent of the World Cup in South
Africa in 2010, as well as the Union of European Football Clubs (EUFAs) Euro
2012 competition hosted by Poland and the Ukraine, is also likely to have
helped boost player and team sponsorships in the run up to these events.

Key Note Ltd 2014

21

Sports Sponsorship

Market Size, Segmentation & Forecasts

Despite the Olympics attracting the third-largest expenditure from sponsors


during 2012, only seven major deals were registered for the year down from
a peak of 19 in 2009. However, this suggests that, while the number of deals
signed for the event were limited, each deal was highly lucrative, with many
Olympics sponsorship partnerships worth millions of pounds. Elsewhere, Rugby
Union and Rugby League attracted relatively high numbers of sponsorship
deals during 2012, at 41 and 22, respectively. However, Rugby Union saw a
slight drop in the volume of deals being signed during the year, while Rugby
League appears to have gone from strength-to-strength since 2009, suggesting
that this sport has increased in terms of popularity and broadcast audience in
recent years.

Table 3.3: Most Popular Sports in the UK by Number


of Sponsorship Deals, 2008-2012
2008

2009

2010

2011

2012

Football

36

85

108

100

113

Rugby Union

28

30

40

51

41

Rugby League

15

17

20

22

Cricket

14

20

26

20

17

Cycling

11

n.a.

17

13

14

11

16

15

Tennis

11

n.a.

13

Athletics

12

12

Horseracing

13

12

16

11

n.a.

10

n.a.

Olympics

19

12

17

Motorsports

n.a.

Sailing/yachting

n.a.

n.a.

n.a.

n.a.

10

n.a.

Golf

Multi-sports

Ice hockey
Motorcycle racing
n.a.. not available

includes sponsorship deals signed for the Commonwealth Games 2014


motorsports other than F1
Note: caution should be used in interpreting these figures as Find!Sponsorship monitors
a cross section of deals reported online and in the press each year, while some deals and
renewals go unreported, which may result in estimates being lower than actual market
figures; as a result any conclusions based on such figures should be considered Key Notes
own.

Source: Find!Sponsorship

Key Note Ltd 2014

22

Sports Sponsorship

Market Size, Segmentation & Forecasts

Football
Football has continued to dominate the sports sponsorship market, with the
English Premier League remaining one of the most valuable and most watched
sports leagues in the world. Altogether, the Premier League is now broadcast
in around 212 territories across the globe, with the television audience of
Premier League matches reaching 4.7 billion. The vast reach of the Premier
League is therefore highly attractive to commercial organisations and brands,
with sponsorship deals signed by leading football clubs, football players and
tournaments providing high brand visibility, global reach and added value to
sponsors, i.e. in the form of match tickets and naming rights on certain
merchandise. As such, football sponsorship in the UK has continued to attract
record-breaking sponsorship deals in recent years. The sector also benefits from
several popular national and international events, including the FA Cup, the
UEFA Champions League, the UEFA Europe League, the FIFA World Cup and
the UEFA European Championship; all of which have continued to garner
high-profile sponsorship deals.
Football sponsorship can encompass the sponsorship of national leagues and
other tournaments, and may include team shirt sponsorship, stadium title
sponsorships (e.g. Arsenals Emirates Stadium, Manchester Citys Etihad
Stadium and Derbys iPro Stadium), individual player sponsorship deals, and
the sponsorship of television coverage. The English Premier League, in
particular, has continued to see strong growth in the value of sponsorship deals
signed by its major football clubs. Manchester United Football Club (FC) long
upheld as the most popular football club in the world with an estimated 354
million followers worldwide has continued to attract record-breaking
sponsorship deals as a result of its huge global reach. In July 2014, for example,
the club revealed that it signed a new sponsorship deal with adidas worth
750m, which will see the sportswear brand sponsor the teams kit over the
next 10 years. adidas replaces Nike as the clubs kit sponsor, with the new deal
worth a record-breaking 75m a season to the football team just 40m less
than the Glazer family paid to acquire the club back in 2005, reflecting the
increasingly high value now attained by football sponsorship in the UK.

Key Note Ltd 2014

23

Sports Sponsorship

Market Size, Segmentation & Forecasts

Aside from team sponsorship deals, the major current sponsorship deals
ongoing within the football sector include the following:
Barclays has been the official sponsor of the English Premier League since
2001, with the banks current 40m-a-year sponsorship deal set to run until
the 2015/2016 season. Barclays commercial partnership with the football
league has seen it retain its position as title sponsor of the seasonal
tournament. Sponsorship activities undertaken by the bank during the most
recent 2013/2014 season have included a new integrated campaign entitled
Thank You, which was rolled out in August 2013 ahead of the start of the
Premier League and was designed to showcase the dedication of fans from
across England. An international version of the campaign was also launched
by Barclays to target the hundreds of millions of fans that watch the Premier
League from territories overseas. The campaign was further supported by
additional promotional activity, including experiential, social and public
relations (PR) stunts, as well as ticket competitions. Despite the vast reach
that the banks sponsorship of the Premier League provides, recent news
reports have suggested that Barclays was considering exiting its current
sponsorship deal in 2015/2016 when the current contract comes to an end.
The reports come after it was rumoured that senior figures at the bank had
accused the deal of being zero value; the tournament continues to demand
greater amounts for commercial agreements and Barclays current
sponsorship agreement is estimated to be 50% higher than that negotiated
for the previous contract term. Further to this, it has been reported that the
bank has to pay additional activation costs for sponsorship activities carried
out on social media and television. Despite these reports, Barclays has
continued to maintain that it is committed to its current sponsorship deal
with the Premier League and that the bank continues to remain focused on
delivering value from the commercial partnership.
The UEFA Champions League has also continued to attract lucrative
sponsorship deals with top-level brands in recent years, with the tournament
thought to represent the most-watched annual sporting event in the world,
attracting global average audiences of around 165 million. During 2014, the
tournament announced that car manufacturer Nissan had been signed up as
its new official sponsor, replacing Ford which exited its 22-year partnership
with the annual event in 2013/2014. The new deal signed by Nissan will run
for 4 years and is rumoured to be worth over 45m a season. Other current
sponsors of the tournament include Mastercard, Unicredit, Heineken,
Gazprom and Sony. It is thought that the sponsorship deal was undertaken
by Nissan to raise the profile of the brand across Europe, where it has
revealed conditions have remained sluggish. The commercial partnership
will provide the car manufacturer with extensive rights and branding
opportunities around Champions League matches, including the final,
pre-match training sessions, and other media and hospitality benefits.

Key Note Ltd 2014

24

Sports Sponsorship

Market Size, Segmentation & Forecasts

The English FA runs an official Partner Programme, which is currently running


for the years between 2010 and 2014, and includes the recent FIFA World
Cup in Brazil which was held in 2014. The three major areas covered by the
FAs Partner Programme include the England team, the FA Cup and the
development of the game in the UK. The England teams lead partner is
currently Vauxhall, with supporting partners comprising Umbro and Mars;
and official suppliers including Carlsberg, Lucozade, Nivea and Marks
&Spencer (M&S). The FA Cup, meanwhile, is currently sponsored by beer
brand Budweiser. However, it was announced in February 2014 that
Budweiser had decided against renewing its commercial partnership
agreement with the tournament, with the FA now thought to be seeking a
replacement for the 2014/2015 competition. Nike is currently the official
sponsor of the England kit, with the sportswear brand replacing Umbro in
2013 following a 50-year relationship with the national team. The new deal
between the FA and Nike was rumoured to be worth over 20m a year and
will run until 31st July 2018. It will see Nike supply kits for Englands mens
and womens football teams at every level, as well as provide sponsorship
and equipment to the FAs national centre at St Georges Park. The
sponsorship landscape in Scottish football has changed significantly in recent
years following the merger between the Scottish Premier League (SPL) and
the Scottish Football League (SFL) to create a new league system, the Scottish
Professional Football League (SPFL) from 2013/2014; this was undertaken in
order to attract title sponsorship to Scottish league football. Since the launch
of the SPFL, the league has entered into a new sponsorship agreement with
soft drink brand Irn-Bru, but has yet to attract a title sponsor to the league
and the Scottish League Cup. The Scottish Football Association (SFA),
meanwhile, has continued to attract sponsors for the national team, with
current commercial partners comprising Vauxhall, adidas, Carling and
Thomson Sport. Meanwhile, in Wales, the Welsh Premier League is currently
sponsored by Corbett Sports, which signed a 4-year deal with the tournament
back in 2010. Like the football associations in Scotland and England, the
Football Association of Wales (FAW) and the Irish Football Association (Irish
FA) count Vauxhall as their main commercial partner, although they still have
partnership agreements with several local businesses as well.
The FIFA World Cup has continued to draw increasingly large audience viewing
figures in recent years, with the 2014 tournament estimated to have increased
its global television audience above the 3.2 billion reach of the 2010 FIFA World
Cup South Africa. The group stages of the Brazilian tournament was estimated
to have reached record numbers of viewers across the world, with
breakthrough viewing figures reported in the US and growth in audiences
watching the tournament in Europe, Asia and the rest of the Americas. The
global coverage of the football competition, as well as its continued popularity
among viewers and fans, has continued to attract interest from a large number
of high-profile global brands seeking to capitalise on the tournaments global
reach and its positive public image through sponsorship agreements.

Key Note Ltd 2014

25

Sports Sponsorship

Market Size, Segmentation & Forecasts

Following the 2006 World Cup, FIFA unveiled a new commercial strategy, which
comprised a three-tier sponsorship structure similar to that used in the
Olympics. The primary tier consists of FIFA Partners, the second tier FIFA World
Cup Sponsors and the third tier National Supporters for each FIFA event.
Sponsors of FIFA World Cup are also provided with rights to the FIFA
Confederations Cup, with the main rights allowing for the use of selected
marketing assets and media exposure, as well as ticketing and hospitality offers
for events. The sponsors of the 2014 World Cup, which was hosted in Brazil
during the months of June and July, are listed below according to tier:
FIFA Partners:
adidas
Coca-cola
Hyundai/Kia Motors
Emirates
Sony
Visa.
FIFA World Cup Sponsors:
Budweiser
Castrol
Continental
Johnson & Johnson
McDonalds
Moy Park
oi
Yingli.
National Supporters:
ApexBrasil
Centauro
Garoto
Ita
Liberty Seguros
WiseUp.

Key Note Ltd 2014

26

Sports Sponsorship

Market Size, Segmentation & Forecasts

Following the completion of the 2014 World Cup, which was won by Germany,
a study undertaken by Millward Brown revealed that Coca-Cola topped the list
of brands most recognised as a sponsor of the tournament, with 81% of
consumers in the UK associating it with the World Cup. The research also
revealed that although non-sponsor brands such as Nike and MasterCard
scored highly before the event, after the tournament they were outscored by
official sponsors such as Visa and adidas. The research also showed that
respondents were less positive about FIFA and the World Cup organisers,
following rumours of corruption and dishonesty surrounding Qatars
tournament bid win with the country set to host the competition during
2022 and the expense of the tournament using Brazilian public funds.
The next large international football tournament to be held will by the UEFA
Euro 2016 tournament, which is due to be hosted by France. Viewing and
attendance figures for the tournament are likely to surpass those achieved by
the 2012 competition, which was hosted by Ukraine and Poland, and attracted
a television audience of 299 million for the final, as well as an overall match
attendance of 1.3 million. So far, official sponsors of the UEFA Euro 2016
tournament have included adidas, Carlsberg, Coca-Cola, Continental, Hyundai/
Kia Motors, McDonalds and the State Oil Company of the Azerbaijan Republic
(SOCAR).

2014 Commonwealth Games


Altogether, the 2014 Commonwealth Games, which were hosted in Glasgow
during July and August, attracted sponsorship agreements with 49 different
brands and companies. The competition represented the largest multi-event
sporting competition to be held in Scotland and saw the convergence of 71
nations and territories to compete across 17 sports categories. According to
event organisers, the citys hosting of the Games had already generated 180m
in contracts with local businesses even before the event began, with the
competition estimated to have provided a net economic benefit of 26m to
Glasgow and of 81m to the host nation Scotland.
In terms of viewership, around 1.2 million tickets were sold for the event in
total, making Glasgow 2014 Scotlands most successful sporting event to date,
which was also estimated to have a global audience reach of between 1.5
billion and 2billion equating to around 20% of the worlds population.
Broadcast figures for the competition are thought to have been bolstered by
the competitions new broadcast contract, which was secured before the event
and allowed the Games to be aired in all 71 of the competing nations and
territories. The 2014 event was also made available to broadcast audiences
outside of the Commonwealth, including those in the US and the Peoples
Republic of China (PRC).

Key Note Ltd 2014

27

Sports Sponsorship

Market Size, Segmentation & Forecasts

Despite the vast global coverage of the events, some critics have argued that,
unlike the Olympics, the Commonwealth Games has remained more of a local
activation platform for sponsors, with the majority of online mentions for the
2014 event 667,000 in total based in the UK, according to social media
monitoring firm Brandwatch, with Glasgow and London securing the biggest
shares with 18% and 17%, respectively. As a result, a number of sponsors, such
as Virgin Media and SSE, opted to focus on localised promotional activity across
Glasgow as part of their sponsorship programmes, rather than embark on
further-reaching campaigns.
Altogether, the 2014 Commonwealth Games in Glasgow is thought to have
exceeded the 24m sponsorship revenue target set by event organisers in 2007,
despite the tournament attracting fewer sponsors than previous Games hosted
in Melbourne and Manchester. Glasgows sponsorship inventory was sold in
three tiers Partners, Sponsors and Providers mirroring the structure
utilised for the London 2012 Olympic Games sponsorship programme. Two of
the top-tier Glasgow 2014 brands Emirates and SEE already had existing
naming rights with venues used during the Games. Emirates, for example,
signed a 4.5m, 10-year naming rights agreement for the title sponsorship of
the Emirates Arena, a multi-sports facility which includes the new Chris Hoy
Velodrome; while, in 2011, energy firm SSE agreed a 15m, 10-year deal to
rename the Scottish Exhibition and Conference Centre (SECC) the SSE Hydro,
which hosted the gymnastics and netball events during the 2014 event.
Meanwhile, Virgin Media signed a deal worth an estimated 3m for its tier-one
sponsorship of the Games, with the company representing the Official Mobile
Provider during the event. Virgins sponsorship agreement also extended to
additional branding, ticketing and hospitality inventory at Glasgows
Hampden Park, which hosted the athletics events.
The list below provides further details of the tiered sponsorship structure and
current signed sponsors of the Glasgow 2014 Commonwealth Games:
Official Commonwealth Games Partners:
Longines
SSE
Virgin Media
BP
Emirates
Ford.
Official Commonwealth Games Supporters:
Harper Macleaod LLP
Search
EY
Atos

Key Note Ltd 2014

28

Sports Sponsorship

Market Size, Segmentation & Forecasts

Dell
Toshiba
Barr Soft Drinks
NVT Group
Cisco
Selex ES
aggreko
ScotRail
First.
Official Commonwealth Games Providers:
Ramler RGS Global Solutions
Trespass
Riedel
Ticketmaster
Sports Technology
Icon
Boston Networks
Gymnova
DB Schenker
Malcolm Construction
Arena Group
GL Events/Field & Lawn
John Lewis
Rapiscan Systems
Yonex
Heineken
TechnoGym
The Famous Grouse
Mondo
Leith Group

Key Note Ltd 2014

29

Sports Sponsorship

Market Size, Segmentation & Forecasts

Arnold Clark
Kelloggs
Toshiba
Bauer Media Group
Speedo
Genius
Gatorade.

Motorsports
Motorsports covers a wide range of sports that involve the use of motorised
vehicles, usually for a racing competition. The main types of motorsport that
attract commercial sponsorship include F1, the motorcycle competition
MotoGP, as well as rallying, superbike competitions and motorcycle speedway.
Motorsport sponsorship deals usually involve livery displays, where the name
of the sponsor and its brand logo are displayed across the vehicle body.
F1 generally attracts the most lucrative sponsorship deals, with the racing
competition continuing to represent the worlds most watched sports series,
attracting television audiences of around 450 million during 2013. F1s existing
partners include logistics firm DHL, investment bank UBS, Mumm Champagne,
watch manufacturer Rolex and communications firm Tata. These commercial
partnerships allow sponsors to use the F1 logo in advertising campaigns and
often include trackside advertising packages. There are also a whole host of
team sponsorship opportunities. The Ferrari F1 Team, for example, which is
valued at $1.15bn, is currently thought to be the richest F1 team, generating
around $384m from its races, sponsorships and merchandising altogether (as
of 2013).
Major sponsors of the Ferrari F1 Team currently include UPS, Marlboro,
Santander and Shell. McLaren, which is based in Woking, is estimated to be the
second-richest F1 team, with the group worth around $800m altogether.
However, it was revealed in 2014 that the F1 team had lost its long-time
sponsor Hugo Boss to Mercedes GP. The news comes following Vodafones
departure as a title sponsor of the brand in 2013. Since then, the F1 team has
been unable to secure a new title sponsor, although rumours have recently
circulated that McLaren is close to announcing a new title sponsor this is
now unlikely to occur until the beginning of the 2015 season. Another brand
that has significant sponsorship ties with F1 is Red Bull, which has been involved
with the sport for nearly 20 years; emerging sponsors have included Martini
and Esquire, both of which signed sponsorship deals with the Williams F1 team
during 2014.

Key Note Ltd 2014

30

Sports Sponsorship

Market Size, Segmentation & Forecasts

Reports surfacing in April 2014 suggested that US-based sandwich chain


Subway was considering a new groundbreaking sponsorship deal with F1, as
it attempts to expand into Europe the region where the sport attracts the
highest viewership. If the partnership were to go ahead it could see Subway
installing concessions at each of the 19 Grands Prix, which consistently attract
around 1.5 million spectators every year. An article published by Forbes in early
2014 estimated that a sponsorship deal with two teams, or a team and a race,
could bring Subways annual F1 bill to around $35m.
MotoGP, the motorcycle road racing World Championship governed by the
Fdration Internationale de Motocyclisme (FIM), also generates a significant
proportion of its revenue through sponsorship deals. Official sponsors of the
competition include Swiss watchmaker Tissot, insurance firm Generali, beer
brand Singha, tyre manufacturer Bridgestone, and BMW. MotoGP also offers
several title sponsorship opportunities to brands across the 15 Grand Prix
tournaments, with these types of commercial partnerships often offering the
highest level of exposure to brands. New title sponsorship deals recently
announced by MotoGP have included a commercial partnership with Iveco New
Daily for the 2014 edition of the Assen MotoGP in the Netherlands; and with
MovistarTV for the World Championship in Spain. Sponsorship deals are also
often secured with MotoGP teams, with oil giant Repsol recently announcing
that it had extended its sponsorship deal with the factory Honda team until
the end of the 2017 season, continuing a partnership that first began in 1995.
Historically, tobacco brands have represented significant sponsors within
motorsports; however, a ban on tobacco advertising and sponsorship has
meant that several leading tobacco firms, including John Player Special (JPS),
Marlboro and Benson & Hedges (B&H), have left the sport. Despite the ban,
tobacco manufacturer Philip Morris International (PMI) has continued to
partner the Ferrari team, even though car liveries are no longer allowed to
sport tobacco brands. Instead, the tobacco firm uses the partnership as an
entertainment platform for corporate hospitality and business-to-business
(B2B) meetings. Indeed, in 2011, Marlboro (owned by PMI) revealed that it had
extended its sponsorship deal with Ferrari for a further 4 years, despite the
bans in place regarding tobacco advertising within the sport and the name no
longer appearing as part of Ferraris title.

Team Sports (excluding football)


Rugby Union and Rugby League
Although rugby sponsorship is not quite as lucrative as football sponsorship,
audience attendance and television viewing figures for the sport have
continued to grow in recent years. In addition, the sports popularity among
the more wealthy middle classes has meant that it has continued to remain an
attractive prospect for sponsors seeking to target this particular
socio-economic group. Sponsors for the sport often include drinks brands such
as Heineken and Guinness; as well as financial firms such as the Royal Bank of
Scotland (RBS), the current sponsor of the 6 Nations Rugby Union tournament.

Key Note Ltd 2014

31

Sports Sponsorship

Market Size, Segmentation & Forecasts

Two main types of rugby dominate the sport Rugby Union and Rugby
League which follow different codes of play. Each type of rugby involves
various national and international competitions. Rugby Union is generally
considered to be the most popular and attracts the most lucrative sponsorship
deals as a result. The English, Welsh, Irish and Scottish rugby teams are all
ranked within the top ten for Rugby Union, while England is currently ranked
fourth in the world for Rugby League, with Wales in sixth position. The strong
performance of British rugby teams in world rankings has helped to drive
sponsorship deals across the sport in recent years.
The Rugby Football Union (RFU), which oversees and regulates the English
Rugby Union team, has continued to attract sponsorship deals from leading
brands, with the rugby premiership currently counting Avia, O2, QBE, SSE,
Lucozade Sport and Maximuscle among its official partners. The upcoming
Rugby World Cup (RWC), which is due to be held in England and Wales in 2015,
has also generated increased interest in the sport from sponsors in recent years,
with the event set to benefit from increased broadcast coverage, which will
cover 200 territories including emerging areas of interest such as Pakistan,
Iceland and Greenland. Organisers have also launched what they claim is the
biggest-ever hospitality programme for sporting events in the UK, including
the Olympic Games and F1; revenues for the tournament are already up by
146% compared with previous World Cups. According to Brett Gosper, Chief
Executive Officer (CEO) of the International Rugby Board (IRB), the RWCs
sponsorship programme has already seen record returns for organisers, with
the top tier level of the programme being filled in record time by several
high-profile brands including Heineken, Land Rover, Societe Generale, DHL,
Emirates airline and Mastercard. In total, approximately 45m worth of World
Cup sponsorship contracts are expected to be awarded during 2014 in the run
up to the beginning of the tournament in September 2015.
Scottish Rugby Union has also seen increased interest from sponsors in recent
years, with the rugby association signing a number of lucrative multi-million
pound deals, including a 4-year kit sponsorship deal with sportswear brand
Macron in 2013 and a record-breaking 20m deal with BT, secured in 2014,
which saw the telecommunications firm become title sponsor of Scotlands
home ground Murrayfield. The 2014 deal also saw BT become official sponsors
of Scotland 7s, Scotlands Club League and cup competitions, and Scottish
Rugbys four new academies, and will run for 4 years. Meanwhile, the Welsh
Rugby Union recently announced a new multi-million pound sponsorship deal
with BT Sport the largest in the countrys history covering all four regional
Rugby Union teams. The deal will see the broadcaster acquire the naming
rights for Arms Park home of the Cardiff Blues in a deal set to run for
3 years, and become shirt sponsors for the three remaining regional Welsh
teams. BTs expansion into rugby sponsorship comes after it was announced
that the telecommunications firm had taken over broadcasting rights for Aviva
Premiership Rugby from 2014 onwards; and would be sharing coverage of the
new European Rugby Champions Cup with rival Sky Sports.

Key Note Ltd 2014

32

Sports Sponsorship

Market Size, Segmentation & Forecasts

The introduction of new European Rugby Union tournament, the European


Rugby Champions Cup, which will be launched for the first time in 2014/2015,
marks a new era in European Rugby Union; the competition is set to replace
the Heineken Cup, which was formerly organised by the European Rugby Cup
(ERC), as the top-tier competition for clubs whose countries compete in the 6
Nations Championship. It is hoped that the introduction of the newly
structured European rugby cup will provide clubs with greater financial
control, and could even double the 44m revenue generated from last years
Heineken Cup; with one member of the new executive body the European
Professional Club Rugby (EPCR) claiming that the competition has the potential
to be worth 100m-a-season in 5 years time, the vast majority of which will be
generated by blue-chip sponsors and broadcast deals. In July 2014, it was
announced that Heineken long-term title sponsors of the previous European
rugby competition had signed up to become headline sponsors of the new
European tournament in a deal worth around 4m a year. Heineken represents
the first major brand to commit to the new tournament, although the EPCR
are hopeful that new sponsorship deals with four major companies, including
insurance firm Allianz and carrier Turkish Airlines, will soon be signed.
Rugby League, although generally not considered to have as big a following
as Rugby Union, has nonetheless continued to retain a high audience,
particularly in the north of England. According to Rugby Football League (RFL)
CEO Nigel Wood, speaking at the sports annual general meeting in 2014, the
sport has also continued to gain a following, with a huge increase in the
number of people watching the sport reported during 2013. The sport has also
benefitted from healthy growth in participation numbers, as well as a rise in
the number of commercial partnerships being brokered within Rugby League
following the success of the 2013 Rugby League World Cup, which took place
in England, Wales, France and the Republic of Ireland, and included the
addition of two new teams from the US and Italy for the first time. As a result,
the sport has attracted significant commercial investment from several new
sponsors, with energy firm First Utility signing up as title sponsors for Rugby
League tournament the Super League, which is estimated to be watched by
almost 2 million people each year, in a deal set to run for 3 years. Other
commercial organisations to have signed up to new sponsorship deals
associated with Rugby League in recent years have included Kingstone Press,
Isuzu, Brut, Tetley, Irn Bru, Foxy Bingo, Elonex, ISC and Rhino. Altogether,
Rugby League is estimated to have a total viewership of around 39 million
during 2013, encompassing live participation and television audience figures
up by 40% on the previous year.

Key Note Ltd 2014

33

Sports Sponsorship

Market Size, Segmentation & Forecasts

Changes to the structure of Rugby League in the UK, which are due to be
implemented in 2015, are also expected to boost commercial investment in the
sport. According to the RFL, the top three leagues in Britain will change
drastically, with the Super League and the Championship set to feature 12
teams each. League One, meanwhile, will feature 14 teams, which will consist
of the five teams relegated from the Championship during the current season
as well as the eight remaining Championship One teams, and Coventry Bears.
The re-structure of Rugby League will also encompass changes to match
fixtures and the Challenge Cup, as well as the introduction of a League One
Cup Competition. The re-structure was undertaken following concerns that
annual trading deficits recorded year-on-year for some Rugby League clubs
were not sustainable and falling Championship attendances needed to be
addressed. It is also hoped that the changes made to Rugby League will help
to encourage sponsors, broadcasters and other investors from the commercial
sector.

Cricket
Cricket is another sport to have seen growth in sponsorship funding in recent
years, with a new report published by Sponsorship Today in 2013 revealing that
global cricket sponsorship is now worth around $400m. The research also
revealed that India accounted for $165m of total global spend, while
international events generated $68m, England $66m and Australia $57m. The
growth in cricket sponsorship has been attributed to the introduction of the
Twenty20 format, as well as the rising popularity of the Indian Premier League
(IPL). Similar to rugby, cricket has come to represent an increasingly attractive
prospect to sponsors due to its largely middle class audience. At the time of
writing, the English and Wales Cricket Board (ECB) had a range of commercial
partnerships, including three broadcast deals (Sky Sports, Channel 5 and BBC
Sport); a team sponsor (Waitrose); four competition sponsors (Investec,
NatWest, Royal London and LVE); ten commercial partners (Yorkshire Tea, FTI
Consulting, Jaguar, Marstons Pedigree, The Times/The Sunday Times,
Stowford Press, Hardys, Specsavers, Etihad Airways, and Kia); six sponsorship
supplier deals (adidas, Veuve Clicquot, Go Goodwins, SportsDirect.com, TM
Lewin, and Harrogate Spring Water); and two grassroots and recreational
sponsors (NatWest and Royal London).
As of 30th June 2014, England was ranked fifth in the world by the
International Cricket Council (ICC) for the ICC Test Championship and the ICC
One Day International Championship. As of 6th July 2014, however, following
a poor performance at the Twenty20 Championship, England had fallen to
eighth in the world rankings. Despite this, the ECB has continued to attract
major sponsorship deals in recent years, with NatWest renewing its contract
with the Board in August 2013 for a further 4 years. The new deal will see
NatWest become the title sponsor of the Twenty20 cricket tournament at
international, county and recreational level from 2014 onwards; it marks the
first time a single-format sponsorship of the game has been offered to one
organisation. The same year saw the ECB sign a new commercial agreement
with Yorkshire Tea, which saw the tea brand become the Official Brew of
England Cricket. The deal with Yorkshire Tea is expected to run until October
2015, and will form an integral part of the brands marketing activity, including
television advertising, social media and on-pack promotions.

Key Note Ltd 2014

34

Sports Sponsorship

Market Size, Segmentation & Forecasts

The success and rising popularity of Englands female cricket team has also
served to drive sponsorship within the sport in recent years, with the English
team winning the World Cup three times in the past. England and Wales are
also set to host the next World Test Championship and the Womens World
Cup in 2017, as well as the Mens Cricket World Cup during 2019; this should
help to boost interest in English cricket and also boost the profile of womens
cricket across the globe. Increased participation by women in the sport and
their global successes have helped to encourage sponsorship in recent years,
with the England womens team signing their first standalone sponsorship
agreement in 2014 with Kia Motors, in a historic deal worth a rumoured
six-figure sum. The deal, which will run for 2 years, will see car manufacturer
Kia become the sole title sponsor of Englands home Test matches. The
sponsorship deal follows the announcement in February 2014 that England
female cricket players would be offered new central contracts for the first time.
This will see those on top-tier contracts earning up to 50,000, thus allowing
them to become full-time professionals for the first time in the history of
womens cricket.
County cricket also attracts investment from commercial sponsorships,
although to a much lesser extent than national cricket. The Pro-40 League, for
example, which is played among county cricket teams in England and Wales,
recently signed a new title sponsorship deal with Yorkshire Bank to become
the Yorkshire Bank 40. Yorkshire Bank replaces previous title sponsor
Clydesdale Bank. Several county cricket clubs have also continued to attract
sponsorship deals, although generally these are undertaken with businesses
local to the club. In April 2014, for example, Derbyshire County Cricket Club
revealed that it had signed a new sponsorship deal with telecommunications
firm A1 Comms; while, more recently, in June 2014, Durham County Cricket
Club revealed that it had extended its limited-overs shirt sponsorship deal with
The Port of Tyne to 2016.

Individual Sports
Tennis
Similar to golf, tennis sponsorship generally tends to focus on personal
endorsements or commercial agreements with tournaments, such as the
Association of Tennis Professionals (ATP) World Tour, the Wimbledon
Championships, and the Opens in the US, Australia and France. Although
Wimbledon is widely touted as the pinnacle tournament of the sport
worldwide, sponsors of the event are subject to several restrictions, such as no
sponsor hoardings and perimeter advertising within the grounds of
Wimbledon itself. Nonetheless, Wimbledon has continued to remain
exceptionally attractive to brands, and sponsors are allowed to utilise their
association with the event across their own marketing campaigns. The event
is well known for its long history with several premium-end brands, including
Slazenger, Rolex and IBM.

Key Note Ltd 2014

35

Sports Sponsorship

Market Size, Segmentation & Forecasts

According to Forbes, Swiss tennis professional Roger Federer, who has a total
of 17 grand slam wins the highest number of singles tournaments won by
a male tennis player has continued to remain the highest-earning
professional tennis athlete in the world, with total earnings of around $71.5m
(as of 2013). The tennis star currently has ten major sponsorship deals, including
with brands such as Rolex, Nike, Wilson, Mercedes Benz, Gillette, Lindt, Credit
Suisse and Moet & Chandon, among others. Interestingly, female tennis star
Maria Sharapova is the second-highest paid player in the sport, which is rare
in its high participation and popularity across both genders. According to
Forbes, Sharapova currently enjoys annual earnings of approximately $29m, of
which around 80% is accounted for by endorsement deals. The female star was
recently named the brand ambassador of Porsche during 2013, in a deal which
will run for 3 years; it also participates in commercial deals with Nike, Tag Heuer
and Samsung. British-born star Andy Murray has also continued to attract
lucrative sponsorship deals in recent years, with the tennis star continuing to
perform well following his Grand Slam win at Wimbledon during 2013, as well
as his Olympic Gold Medal win during 2012. Although his current world
ranking has slipped to tenth position, the tennis star revealed that he had
signed a new 3-year sponsorship deal with Standard Life in 2014, which will
see the brand logo appear on his playing arm for all tournaments. The deal
maintains Murray as one of the most marketable tennis stars, with the player
currently participating in several other major commercial partnerships with
high-profile brands such as adidas and Swiss watch manufacturer Rado.

Golf
Golf sponsorship generally involves personal endorsement deals with
professional golfers, such as Adam Scott, Rory McIlroy, Tiger Woods and Henrik
Stenson. Recent years have seen Northern Irish star Rory McIlroy continue to
perform at the top of the game, with the golfer now ranked top in the world.
McIlroys success on the global platform, which saw him named Professional
Golfers Assocation (PGA) player of the year, European Tour golfer of the year
and winner of both PGA and European tour money lists, has seen him join the
ranks of the highest paid athletes in recent years, with the golfing star signing
a major 10-year sponsorship deal with Nike in early 2013 reportedly rumoured
to be worth around $20m per year. Other corporate sponsors of McIlroy include
Spanish bank Santander, Swiss watchmaker Omega, and Bose, a US-based
audio equipment firm. Despite this, iconic golfing stars such as Tiger Woods
and Phil Mickelson have continued to remain the top-paid golfers in the world,
according to the latest figures produced by Golf Digest for its annual Golf
Digest 50 Money List. Although Woods was at the centre of a media storm in
2009 following revelations of the stars personal life an event which saw him
lose five sponsors altogether he has continued to remain one of the most
marketable names in sports, generating total earnings of $83.1m in 2013,
through tournament winnings and sponsorship deals.

Key Note Ltd 2014

36

Sports Sponsorship

Market Size, Segmentation & Forecasts

Golfing tournaments such as the Ryder Cup, the Masters Tournament and the
PGA Tour, as well as the US Open, are generally considered the most prestigious
golfing tournaments in the world, with these events often attracting highly
lucrative sponsorship deals, in part due to the affluent fan following that the
sport tends to attract. The 2014 Ryder Cup, which is due to be held in
Gleneagles in Scotland, has already attracted several high-profile sponsorship
deals, with the tournament benefitting from the introduction of a new
sponsorship buying rights platform in 2011 which allows sponsors to acquire
rights for the event in both Europe and the US. So far, the Ryder Cups official
partners include Rolex, BMW, Johnnie Walker, Ernst & Young (E&Y) and
Standard Life Investments. Although terms of the deals have not been made
publicly available, industry sources have suggested that such deals were being
offered at seven figures annually. According to the Ryder Cup Team Europe,
the 2014 tournament in Scotland will have a potential television audience of
500 million people across 183 countries; in addition, sponsors will be given
significant on-course marketing opportunities, providing further on-camera
exposure.

Athletics
Although Londons hosting of the 2012 Olympic and Paralympic Games has
helped to boost the profile and earnings of several British sports stars,
including gold medal winners Mo Farah and Jessica Ennis, the Chairman of
British Athletics has recently admitted that the governing body expects overall
sponsorship income to drop off in the run-up to the Rio Olympics in 2016. This
follows the announcement by former UK Athletics (UKA) sponsor Aviva that it
would conclude its commercial partnership with the sports organisation at the
end of 2012. Nonetheless, since then, British athletics has secured several
high-profile sponsorship deals, with BT extending its title sponsorship of the
Great CityGames tournament in early 2014, while Sainsburys has continued to
remain the title sponsor of British Athletics Summer Series after signing a
4-year deal with the sports body back in September 2012 which covered the
2014 Winter Olympics in Sochi and the Rio 2016 Olympic Games. The
partnership with Sainsburys also includes long-term support for the British
Athletics Paralympic programme, and follows the retailers successful
sponsorship of the 2012 Paralympic Games.
While the Games has helped to drive the earnings of several British sports stars,
such as Jessica Ennis and Mo Farah both of which won gold at the
tournament athletics stars still generate relatively small sponsorship deals
when compared with professional athletes in other sports, such as tennis and
golf. Indeed, according to Forbes, the only athletics star to feature in its
rundown of the top 50 highest-paid sports stars during 2013 was Jamaican
sprinter Usain Bolt, who is currently valued at around $24.2m, with the star
runner participating in sponsorship deals with several well-known global
brands including Samsung, Comcast, Virgin Media, Nissan, Hubolt watch,
Gatorade and Visa. In comparison, Mo Farah is estimated to be worth around
$5m, with the star athletes sponsorship deals currently encompassing Virgin
Media, Quorn, Lucozade and Nike.

Key Note Ltd 2014

37

Sports Sponsorship

Market Size, Segmentation & Forecasts

The UKs hosting of the Commonwealth Games in 2014, as well as Londons


hosting of the International Association of Athletics Federations (IAAF) World
Championship in Athletics and the International Paralympic Committee (IPC)
Athletics World Championships during 2017, should also help to attract
sponsors to athletics in the coming years. The vast appeal of the World Athletics
Championships, which is considered to be one of the largest sporting events in
the world and is broadcast to over 200 countries with a global audience of 95
million during peak times, is also expected to help generate interest from
sponsors. Toyota is currently one of the largest sponsors of the IAAF World
Championships, with the car manufacturer signing up a new deal with the
tournament organisers in 2012 that will see it extend its partnership with the
event until 2017. As an official partner, Toyotas logo will appear on the
womens athletes bibs, and will see the company provide official vehicles
during the event, including the marathon lead timing car and approximately
200 vehicles for athlete transportation. Londons hosting of the tournament
has already received significant backing from the global sponsorship
community, with a survey carried out by IFM Sports Marketing in 2011
identifying London as the sporting destination most likely to provide the
highest return and media profile for sponsors, due to its established media
platforms and venue infrastructure, as well as the capital citys diverse
population.
The 2014 Commonwealth Games, the opening of which was staged in Glasgow
towards the end of July 2014, is already having a positive effect on sponsors,
with drinks manufacturer AG Barr already optimistic in its outlook following
the appearance of fizzy drink Irn-Bru in the opening ceremony of the event.
The company revealed that it expects its half-yearly revenues to rise by 5.6%
to around 135m in 2014 following the sponsorship deal, which will see it
outperform the market and major rival Britvic. Meanwhile, official sponsors
SSE and Ford have both launched high-profile marketing campaigns designed
to tie in with the tournament. Energy firm SSE, for example, launched a social
media campaign focusing on the Games using the hashtag #GoGlasgow, which
asks fans to post hashtagged tweets to propel their competing country to the
top of a social leaderboard. The company has also set up an experiential hub
at the sponsors village in Glasgow, which is integrated with the campaign
online. Meanwhile, rival sponsor Ford launched a new marketing campaign in
line with the Games, encompassing social, print and outdoor activity, focusing
on its environmentally friendly range of cars. The campaign features eight
athletes from the Scotland, England, Wales and Northern Ireland teams; and
uses the tagline keeping the games moving, a concept which has been
bolstered by the car manufacturers provision of a fleet of 1,120 cars it is
supplying to the event organisers. Ford has revealed that the event will
represent an opportunity to drive brand awareness across the home nations,
as it seeks to boost the profitability of its European business by 2015.
Altogether, it is estimated that the Glasgow Games will deliver commercial
revenues of up to 100m, a figure that is likely to be driven by the broadcast
of the tournament to all 71 competing nations for the first time, with the event
expected to reach 1.5 billion viewers in total as a result.

Key Note Ltd 2014

38

Sports Sponsorship

Market Size, Segmentation & Forecasts

Horseracing
Horseracing has continued to attract lucrative sponsorship deals, and has a
particularly strong commercial relationship with betting and gambling groups,
due to its popularity as a gambling sport. The sport has continued to attract
large audiences with a recent report from Deloitte entitled The Economic
Impact of British Racing 2013 revealing that total attendance at fixtures held
during the last year stood at 5.6 million altogether. However, while horseracing
in the UK generally attracts more lucrative sponsorship deals than markets
overseas, the sport still generates relatively little revenue from sponsorship
deals compared to other popular professional sports in the domestic market.
Horseracing sponsorship deals at events often involve a physical presence at
events (i.e. in the form of a retail outlet), as well as signage within the grounds
and around the track. Jockeys and horse owners/trainers also rely heavily on
investment from sponsors in the lead up to races, with sponsorship activity of
this type often including brand exposure on a jockeys clothing. According to
Deloitte, jockey sponsorship deals totalled 450,000 in 2012 across more than
180 individuals, equating to less than 3,000 per agreement and often
involving payment in kind. Individual races and annual events, such as The
Grand National, the Epsom Derby, the Cheltenham Festival and Royal Ascot,
also attract lucrative sponsorship deals.
The Grand National, for example, which consistently attracts large live
audiences of around 150,000 and high television viewing figures with the
most recent 2014 race estimated to have reached a peak broadcast audience
of 8.5 million people announced that it had signed a new title sponsorship
deal with Crabbies as part of a multi-million sponsorship package. The new
commercial partnership has seen the event renamed as the Crabbies Grand
National and will run for 3 years until 2016. As part of the deal, Crabbies will
now have the naming rights for the three races held over the Grand National
meet, including the Crabbies Fox Hunters Chase, the Crabbies Topham Chase
and the Crabbies Grand National. Elsewhere, financial firm Investec
announced in 2012 that it had extended its sponsorship deal with The Derby
for a further 10 years to 2021. The extension sees the Investec Derby reinstated
as the richest race in the UK, with a prize fund of 1.3m. More recently, in 2014,
it was revealed that the Queen has given her consent to allow sponsorship
deals to take place for Royal Ascot. Previously, sponsorship was banned from
the event; however, under the new agreed terms, the racing event is expected
to attract millions in corporate sponsorship revenues. Following the
announcement, it was revealed in January 2014 that private investment firm
Qipco had signed up as the first official sponsor of Royal Ascot. The Cheltenham
Festival, which boasts an average attendance of around 50,000 over the 4-day
period, also partners with a number of high-profile corporate sponsors,
including JCB, Ryanair, Jewson, Albert Bartlett, Paddy Power, Ladbrokes, OLBG,
Neptune Investment Management, RSA, The Irish Times and News
International.

Key Note Ltd 2014

39

Sports Sponsorship

Market Size, Segmentation & Forecasts

Type of Sponsor
Table 3.4 displays the number of sponsorship deals signed in the UK by industry
sector source. According to the figures, which have been compiled by Find!
Sponsorship, the gambling/lottery sector overtook the car/automotive industry
to become the largest source of sports sponsorship during 2012, reflecting the
wider growth that gambling and, in particular, online gambling
companies have enjoyed in the UK in recent years following the deregulation
of the industry back in 2005. Sports clothing firms reported the joint
second-highest number of sports sponsorship deals in 2012 at 26, followed by
other financial services with 21 and insurance companies with 18. Both sectors
of the financial industry continue to see an increase in the number of deals
that they have signed in recent years, reflecting the more positive economic
outlook in the UK following the recession, which hit financial and banking
institutions particularly hard during 2008/2009.

Table 3.4: Origins of Sports Sponsorship in the UK by Industry


Sector (number of deals), 2008-2012
2008

2009

2010

2011

2012

Gambling/lottery

n.a.

25

25

29

35

Cars/automative

n.a.

10

22

30

26

15

35

29

19

26

10

17

27

21

11

n.a.

12

13

18

14

15

16

25

18

13

Information technology

12

Construction

11

Personal care

11

Financial services
banking

11

Clothing sports
Financial services other
Financial services
insurance
Watches/timing
Drinks beer

Table continues...

Key Note Ltd 2014

40

Sports Sponsorship

Market Size, Segmentation & Forecasts

Table 3.4: Origins of Sports Sponsorship in the UK by Industry


Sector (number of deals), 2008-2012
...table continued
2008

2009

2010

2011

2012

Agency/consultancy

14

14

13

Airlines

14

11

Couriers/freight

12

Energy

16

n.a. not available


Note: caution should be used in interpreting these figures as Find!Sponsorship monitors
a cross section of deals reported online and in the press each year, while some deals and
renewals go unreported, which may result in estimates being lower than actual market
figures; as a result any conclusions based on such figures should be considered Key Notes
own.

Source: Find!Sponsorship

Gambling/Lottery Providers
Leading high-street bookmakers, such as Ladbrokes, Paddy Power and William
Hill, have also continued to invest heavily in their sports sponsorship portfolios
in recent years, with these companies often having strong links with football
and horseracing in particular. In this way, such firms are able to leverage the
vast audiences that such sports attract and directly target marketing messages
to a relevant customer base. Paddy Power, for instance, is currently the title
sponsor of the Grand National, following its negotiation of a 5-year deal with
the racing tournament in 2013. In addition, the betting firm also sponsors
Farnborough FC and Manchester City FC. Ladbrokes, meanwhile, is the current
sponsor of horseracing festival St Legers, which has grown rapidly since its
inception in 2010, while William Hill agreed a new 2-year extension of its
current sponsorship deal with the Scottish FA, and recently took over from rival
Ladbrokes as the title sponsor of darts tournament, the World Darts
Championship, which is held in London.

Key Note Ltd 2014

41

Sports Sponsorship

Market Size, Segmentation & Forecasts

Recent years have also seen a surge in sports sponsorship expenditure by online
gambling firms, which have represented one of the fastest-growing areas of
the sports sponsorship market over the past few years, following the rising
popularity of online gambling in the UK. Online gaming and betting firm bwin,
for example, has continued to remain a long-term sponsor of Real Madrid FC,
with the company becoming the football clubs official digital partner in a new
multi-year deal following the completion of the betting firms highly successful
6-year shirt sponsorship which concluded at the end of 2012/2013. bwin is also
in the middle of a 3-year sponsorship deal with Manchester United FC, which
has seen it become the clubs official online gaming and betting partner; and
is a sponsor of German football league team FC Bayern Munich. In addition to
its football sponsorship portfolio, bwin is also an official sponsor of MotoGP,
the premier category of the Motorcycle World Championships, and has acted
as a commercial partner to the International Basketball Federation (FIBA) since
2006.
Several other online gambling firms have also expanded their sports
sponsorship portfolios in recent years, with football representing a particularly
lucrative area of interest to such businesses. bet365, for example, is currently
the official kit sponsor of Stoke FC, while online casino firm 32Red currently
sponsors Scottish football club Glasgow Rangers, as well as Newport County
and Blackthorn, and has previously had ties with Aston Villa and Swansea.
Meanwhile, rival online gambling firm Betfred announced that it had signed
a major 3-year sponsorship deal with Premier League side Tottenham Hotspur
in 2012 to become the football clubs Official UK Betting Partner. As part of
the deal, the online gambling company has exclusive UK branding rights across
Tottenhams online, digital, mobile and social media platforms.

Automotive
Automotive manufacturers have continued to invest significant funds into
sponsorship opportunities across major sports and sporting events, such as the
Olympics. Football, in particular, has remained a popular area of investment
for automotive sponsors, with several Premier League football clubs signing
up commercial partners as official automotive sponsors in recent years.
Liverpool FC, for example, announced in January 2014 that it had replaced
former sponsor General Motors (GM), which owns the Chevrolet brand, with
rival car firm Vauxhall Motors, in a deal which will run until the 2015/2016
season. The announcement comes following GMs decision to stop selling the
Chevrolet brand in Europe. Vauxhall, meanwhile, has continued to expand its
commercial portfolio of football sponsorships in recent years, with the car
manufacturer already participating in deals with national teams across the UK,
including England, Northern Ireland, Scotland and Wales.

Key Note Ltd 2014

42

Sports Sponsorship

Market Size, Segmentation & Forecasts

Nissan represents another brand that has grown its sports sponsorship
portfolio in recent years, with the car firm signing up as Tier One partner for
the Rio 2016 Olympics and Paralympics. The sponsorship deal will see Nissan
provide 4,500 vehicles to transport athletes, officials and journalists during the
Games. The move is expected to bolster the position of the car brand in the
emergent Latin American market, with Nissan aiming to increase its market
share in Brazil from 3.3% to 5% by 2016; it also follows a number of new
factory openings by the brand in the region, including sites in Parana and Rio
de Janeiro. During 2014, Nissan announced that it had signed up to yet another
lucrative sponsorship deal, this time as an official sponsor of the UEFA
Champions League in Europe. The deal replaces Fords multi-million-pound
contract with the tournament, and is expected to run for 4 years. According to
an article published by Marketing Week at the time the deal was announced,
the automotive firm is expected to leverage its association with the football
tournament to support its switch to a less regionally-driven more global-centric
structure, thus giving it a more consistent voice across its markets. Trade
sources have also suggested that the move by Nissan could be related to its
attempts to offset stagnating demand in Europe and establish a more
cost-effective brand awareness strategy after the company saw a marginal 1%
increase in global sales for the 9 months ending 2013, blaming sluggish
conditions in Europe.
Other significant automotive sports sponsors include BMW, which currently has
deals with the RFU, PGA Tour and the European Tour golf series and tennis
competition the Sony Ericsson Open; and South Korean carmaker Hyundai-Kia,
which has continued to extend its partnership with FIFA as an official World
Cup sponsor up until 2022 and recently became the first commercial
organisation to enter into a standalone sponsorship deal with the English
womens cricket team.

Sports Goods
Sportswear and equipment manufacturers have had a long history of
sponsoring sports stars, teams and clubs. Nike and adidas dominate the market,
with adidas recently representing a top-level commercial partner during the
most recent FIFA World Cup tournament in Brazil and the 2012 Olympics; Nike
sponsors several leading sports personalities, as well as sports clubs and teams
from across the world.

Key Note Ltd 2014

43

Sports Sponsorship

Market Size, Segmentation & Forecasts

According to an article published by Marketing Week, adidas outperformed


other sponsors during the most recent World Cup tournament, with the
sportswear brand supplying kits to both finalists of the competition
Germany and Argentina and benefitting from its sponsorship deal with
Golden Ball winner Argentinas Lionel Messi, as well as Golden Boot winner
James Rodriguez and Golden Glove winner Germanys Manuel Neuer.
Following its commercial success at the tournament, adidas revealed that it is
set to achieve 2bn in football sales during 2014, and is expected to sell over
8 million official jerseys 1.5 million more than was sold during the previous
World Cup. adidas commercial partnership with the World Cup has also helped
to drive brand awareness and exposure for the sportswear company, with the
brand running a new campaign under the tagline all in or nothing during the
tournament, which featured several football stars including Lionel Messi, Luis
Suarez and Dani Alves, and was rumoured to have cost around 50m in total.
adidas also sponsors the English and South African cricket teams; as well as
several Premier League football teams including Chelsea, Manchester United
(from 2015/2016), Sunderland, West Bromwich Albion, and West Ham; the
British and Irish Lions Rugby Union team; and tennis stars Jo-Wilfried Tsonga,
Laura Robson, Andy Murray and Novak Djokovic.
Although Nike was not an official sponsor of the most recent FIFA World Cup
tournament, the sportswear brand is a leading supplier of football jerseys and
sponsored ten teams during the international competition. Much of Nikes
recent advertising activity has focused on the World Cup, with the brand
launching a new campaign entitled Risk Everything, which featured several
leading football stars including Cristiano Ronaldo, Wayne Rooney and Neymar
Jr. Since the campaign was launched in April 2014 in the run-up to the World
Cup, it has widely been touted as a success, with the campaign generating over
6 billion impressions overall across 35 countries covering television, cinema,
digital/mobile, gaming, print and outdoor. Altogether, the video campaign is
thought to have amassed a staggering 372 million views combined, as well as
65,000 uses of the hashtag #riskeverything on social media. Indeed, the
sportswear brand has already credited the social media aspect of the campaign
in driving a 13% increase in revenue for its latest fiscal quarter, with sales of
the Nike brand rising to $7bn for the 3 months ending 31st May 2014.

Financial Services
Banks and financial institutions interest in sports sponsorship has continued
to grow in recent years, driven in part by the gentrification of sport, with
stadiums benefitting from increased investment in infrastructure, ticket prices
continuing to rise and corporate hospitality packages becoming increasingly
popular. Sponsoring sport has also helped banks and other financial companies
to repair some of the damage that was done to their public image following
recent controversies, such as high bonus payouts during the recession, the
payment protection insurance (PPI) debacle and the LIBOR rate-fixing scandal.

Key Note Ltd 2014

44

Sports Sponsorship

Market Size, Segmentation & Forecasts

Barclays has continued to remain at the forefront of sports sponsorship in the


UK, with the bank acting as the title sponsor of the Premier League since 2001.
The company is also a title sponsor of tennis tournament The Barclays ATP
World Tour Finals, which is held annually at the O2 Arena in London and
continues to attract live audiences of around a quarter of a million. In addition,
Barclays sponsors a golfing event called The Barclays, which is held at the end
of season Fed-Ex Cup on the PGA Tour in the US and has an ongoing commercial
partnership with golfing world number-two Phil Mickelson. Several other
financial organisations have continued to invest heavily in sports sponsorship
including Aviva, which sponsors Premiership Rugby, Norwich City FC and the
Lansdowne Road Stadium in the Republic of Ireland (now known as the Aviva
Stadium); and Spanish bank Santander, which has commercial partnerships
with several sporting stars including Jessica Ennis and Rory McIlroy and has
continued to sponsor the Scuderia Ferrari and McLaren Mercedes team drivers.
Santander is also the title sponsor of the 2014 F1 Santander British Grand Prix
and the Grand Prix in Germany, and also has a relevant branding presence at
the Spanish, Italian and Brazilian races. Standard Chartered Bank represents
another financial organisation to have increased its sports sponsorship
portfolio in recent years, with the bank extending its shirt sponsorship deal
with Premier League football team Liverpool FC, which began in 2010, until
the 2015/2016 season. In addition, Standard Chartered sponsors 15 races and
marathons held across four continents.

Drinks Brands
Alcoholic Drinks
Several leading alcoholic drinks brands are heavily involved in sports
sponsorship and, in particular, sporting events such as horse racing, football
tournaments and tennis competitions. Beer brand Carling, for example,
undertakes several lucrative commercial partnerships, including sponsorship
deals with the Scottish FA and the Irish FA; Guinness has a long history with
rugby sponsorship, with the alcohol brand currently undertaking commercial
partnerships with rugby tournament Pro12, the Irish Rugby Football Union
(IRFU) and the English RFU.
Meanwhile, Crabbies alcoholic ginger beer recently signed a new 3-year deal
to become the title sponsor of prestigious horseracing competition, the Grand
National, forming part of the international drinks brands ongoing efforts to
raise the profile of its brand through sporting events. The brand, which signed
the deal in 2013, claims the new partnership will provide it access to a potential
audience of 9 million via the events television broadcast deal with Channel
4 and a live crowd of approximately 150,000. The sponsorship also builds on
Crabbies sponsorship of the Scottish Open, which the brand has used to
increase brand awareness of its new line of flavours, including raspberry,
strawberry and lime drinks. The alcohol brand other current sponsorship deals
include tie-ins with Scottish football side Hibernian FC, as well as English
Premiership teams Everton and West Bromwich Albion.

Key Note Ltd 2014

45

Sports Sponsorship

Market Size, Segmentation & Forecasts

Luxury champagne brand Mot & Chandon have also had a long history of
leveraging sporting events to boost brand awareness in the past, with the
brand continuing to strengthen its partnership with relevant sporting events
that offer a more affluent target audience. Current sponsorship deals
undertaken by Mot include official partnerships with the Lawn Tennis
Association (LTA) and the US Open; while top tennis star Roger Federer has
acted as brand ambassador for the champagne drink since 2012.

Soft Drinks
Soft drink brands (including bottled water) are often involved in commercial
partnerships with both cultural and sporting events. Leading global drinks
brands Coca-Cola and Pepsi tend to dominate sports sponsorship within this
particular subsector. Both brands have a long history of sponsorship across
sports and have continued to invest in multi-million-pound sponsorship deals
in recent years.
Coca-Cola, for example, has continued to support several major sporting
events, with its commercial backing of the Olympic Games dating back to 1928.
The fizzy drinks brand also sponsors Special Olympics GB, and recently acted as
an official partner for the Winter Olympics in Sochi and the FIFA World Cup
during 2014. The company has continued to successfully leverage its
partnerships with sporting events and associations to drive brand awareness
and engagement. Indeed, according to a recent article by campaignlive.co.uk,
Coca-Colas credentials as official sponsor of the recent FIFA World Cup
tournament in Brazil helped the brand to increase its following on Facebook
by an extra 2.5 million, with its fanbase on the social media site now topping
85 million altogether. Meanwhile, the companys Twitter followers reached
nearly 26 million, after growing by around 70,000 during the football
tournament.
Pepsi also has a long history in sports sponsorship, with the drinks brand
currently investing in several high-profile commercial partnership deals,
including a title sponsorship with the IPL, an official sponsorship agreement
with the National Football League (NFL) in the US, and a multi-year regional
sponsorship deal with Manchester United FC in Asia-Pacific. In addition, the
company has a long-standing partnership with the US football tournament the
Super Bowl, which is widely touted as the most-watched television event in the
US, with the 2014 event drawing 112.2 million viewers during its finale.
According to Nielsen, PepsiCo currently represents the second-largest sponsor
of the Super Bowl, behind alcoholic drinks manufacturer Anheuser-Busch,
which owns beer brand Budweiser, with Pepsi estimated to have invested
approximately $97m in advertising surrounding the event since 2009. During
the 2014 event, Pepsi sponsored the popular Halftime Show, which attracted
a record audience of 115.3 million.

Key Note Ltd 2014

46

Sports Sponsorship

Market Size, Segmentation & Forecasts

The fizzy drink brand also stepped up its marketing activity in celebration of
the FIFA World Cup 2014 with the release of its first global campaign for soccer
entitled Now is what you make it, which included the launch of a new
television advertisement featuring several star players of the tournament such
as Lionel Messi of Argentina, Robin van Persie of the Netherlands, Jack
Wilshere of England, David Luiz of Brazil, Segio Agero of Argentine and
Sergio Ramos of Spain. Altogether, Pepsi has deals with 19 football stars
around the world, a portfolio it has continued to expand in line with its efforts
to leverage the growing popularity of the sport across several key markets.

Technology
Technology firms have continued to invest in top-level sponsorship deals in
recent years, with partnerships of this kind often centering around event
sponsorship rather than sports team or individual deals. In this way, not only
are technology brands able to leverage such events to promote their product
offerings, but they can also benefit from huge contracts as official event
suppliers. Technology firms such as Atos, Samsung, Cisco, Sony, Panasonic, GE
and Acer are just some of the brands that invest in long-term sponsorship
opportunities. Atos, Panasonic, Samsung and Cisco, for example, have also
signed up in an official capacity as corporate sponsors of the 2016 Olympic
Games in Rio, while the recent 2014 Commonwealth Games in Glasgow drew
interest from several leading technology brands including Atos, Dell, Toshiba,
NVT Group, Cisco, and Selex ES, all of which secured contracts to become
official Commonwealth Games Supporters. Leading firm Microsoft, in
particular, has a long history of investing in extremely high-value sponsorship
deals, with the company signing a landmark deal worth $400m with the NFL
in 2013. The company also sponsors the British & Irish Lions rugby team and
has recently been rumoured to be considering a partnership with Spanish
football club Real Madrid which will see it secure naming rights for the clubs
new stadium.
Telecommunications and mobile phone companies also have a significant
presence in sports sponsorship. Leading consumer electronics firm Samsung,
for example, extended its sponsorship of the Olympic Games in 2007 to
encompass the 2012 London Olympics and Rio 2016. The company also provides
sponsorship support to Premiership football side Chelsea, the Asian Games, the
Asian Football Confederation (AFC), the Confederation of African Football
(CAF), the Asia-Pacific Amateur Championship (AAC) golfing tournament and
the Korean National Football team. UK-based telecommunications firm
Everything Everywhere (EE), meanwhile, recently struck a groundbreaking
sponsorship deal with Wembley Stadium to become the venues first lead
brand sponsor in a 6-year deal said to be worth millions of pounds; rival firm
O2 represents the lead sponsor of the England Rugby Team. Vodafone,
meanwhile, recently exited the sports sponsorship arena after drawing to a
close its investment in McLaren F1, following the introduction of a new social
media-led marketing strategy by the brand in 2013.

Key Note Ltd 2014

47

Sports Sponsorship

Market Size, Segmentation & Forecasts

Utilities
Utilities firms such as BP, Shell, SSE, Castrol and EDF also have a long history
within sports sponsorship, with the high level of capital negotiated by such
companies translating into large multi-million pound corporate partnerships.
Such deals are often undertaken to improve the public image of energy firms
and provide an opportunity for such companies to deliver on their corporate
social responsibility (CSR) objectives.
BP, for example, provides commercial backing to the Olympic USA team, which
has entailed the company contributing around $1m to the development of a
new Olympic training centre for the athletes. The company has also acted as
an official sponsor for both the 2012 Olympic and Paralympic Games in London
and the 2014 Commonwealth Games in Glasgow. The latter is also sponsored
by Scottish power firm SSE, which in addition to its top-tier partnership with
the Games has pledged support for the four largest home nations through its
retail brands, including Team Scotland (Scottish Hydro), Team England
(Southern Electric), Team Wales (SWALEC) and Team Northern Ireland
(Airtricity). EDF, meanwhile, which also sponsored the 2012 Olympics, recently
revealed that it had renewed its corporate partnership with the British
Paralympic Association (BPA) and ParalympicsGB, extending the partnership
that began in 2012 to encompass both the 2014 Sochi Winter Olympics and Rio
2016. The France-based energy firm is also the Principal Partner of the French
Football Federation (FFF) and the French Swimming Federation (FSF).

MARKET POSITION
The UK
According to figures compiled by Find!Sponsorship, the value of the total UK
sports sponsorship market stood at 398.7m in 2012, down by 26.1% from
539.8m in 2011. It should be noted, however, that these figures are estimated
using a cross-section of deals monitored by Find!Sponsorship every year, and
that figures can often fluctuate significantly, particularly if a number of
high-value deals, such as those attracted by the Olympics or football kit deals,
are secured in any one year. As such, the fluctuations that have hit the sports
sponsorship market in recent years are not necessarily suggestive of a
longer-term declining trend, instead it is likely that increased business
surrounding the Olympics has skewed market size in the years preceding
London 2012, as is reflected by the market peak of 946m registered in 2009.
The fluctuations observed in the value of the UK sports sponsorship market
could also be down to unsettled economic conditions in the wake of the
2008/2009 recession; however, a return to economic fortunes in 2013, as well
as stronger forecast growth and renewed business optimism, is expected to see
the market return to a more stable performance going forward. It should also
be noted that data compiled by IEG on the global market for sports sponsorship
show strong growth between 2008 and 2014, suggesting that there is every
reason to believe that this upwards trend could be applied equally to the UK
sponsorship market, if underlying factors were effectively removed from the
equation.

Key Note Ltd 2014

48

Sports Sponsorship

Market Size, Segmentation & Forecasts

International Perspective
According to figures compiled by IEG, global sponsorship revenues are
expected to increase by 4.3% to top $53.3bn during 2013, although growth is
not expected to be as robust as that observed in 2012, when total global
sponsorship spending increased by 5.1%. Although these figures include
revenues generated by other categories within the wider sponsorship market,
such as arts and broadcast media, sports have continued to account for the
largest sector in terms of revenue generation in recent years.
North America currently represents the largest sponsorship market in the
world, generating $19.9m in sponsorship revenues during 2013 and accounting
for over a third (37.3%) of total global expenditure, with the region
benefitting from the commercialisation of several sports specific to the US
market, such as basketball, American football and baseball all of which lack
a large following in markets overseas. In addition, several popular sporting
competitions are held in North America each year including high-profile
golfing tournament, the US Open; the annual championship game of the NFL,
the Super Bowl; and tennis tournament the US Open.
The North American sponsorship market has also continued to outpace other
regional markets in terms of growth, rising by a projected 5.3% in 2013.
However, the Asia-Pacific market has seen sponsorship expenditure increase
significantly in recent years, jumping by 7.1% in 2012 before rising a further
5% during 2013 to reach a value of $12.6bn. This growth has been stimulated
by the continued development and high economic performances achieved
across several Asian markets in recent years, including the PRC, South Korea,
Hong Kong, India, the United Arab Emirates (UAE), Indonesia and the
Philippines, among others; as well as the emergence of a more established
middle class across the region. Elsewhere, Europe the second-largest
sponsorship market in the world saw sponsorship spend increase by 2.8% to
reach a value of $14.5bn in 2013; while Central/South America saw sponsorship
revenues rise by 2.6% to stand at $4bn. However, the latter is expected to see
growth speed up in forthcoming years, with Brazils hosting of both the FIFA
World Cup in 2014 and the Olympic and Paralympic Games during 2016 likely
to help drive commercial investment opportunities across the region.
The proliferation of international sporting events in Brazil reflects a much
wider shift in the way the hosting of major events is now being allocated on
the global stage. This reflects the shift of geo-political and economic power
towards developing regions such as South America and Asia. Russia, for
example, recently played host to the Winter Olympics in 2014 in Sochi; and is
due to host the next FIFA World Cup in 2018; while Middle Eastern nation Qatar
recently won the bid to host the following edition of the event in 2022 and
South Korea was chosen as host nation for the Winter Olympics 2018.
Meanwhile, India has continued to benefit from the rising popularity of its IPL,
with IPL rights holders the Board of Control for Cricket in India (BCCI) recently
selling title sponsorship of the tournament to global drinks brand Pepsi for
$14m.

Key Note Ltd 2014

49

Sports Sponsorship

Market Size, Segmentation & Forecasts

Table 3.5: Global Sponsorship Spending by Region


($bn), 2011-2013
2011

2012

p2013

North America

18.1

18.9

19.9

Europe

13.5

14.1

14.5

Asia/Pacific

11.2

12.0

12.6

Central/South America

3.7

3.9

4.0

All other countries

2.1

2.2

2.3

48.6

51.1

53.3

Total
p projected figures

Note: these figures also encompass sponsorship revenues generated outside of sports,
e.g. arts and media sponsorship revenues.

Source: IEG

Figure 3.3: Share of Global Sponsorship Spending


by Region (%), 2013
All other
countries
4.3%

Central/South
America 7.5%

North
America
37.3%

Asia/Pacific
23.6%

Europe 27.2%

Note: these figures also encompass sponsorship revenues generated outside of sports,
e.g. arts and media sponsorship revenues; figures for 2013 are projected.

Source: IEG/Key Note

Key Note Ltd 2014

50

Sports Sponsorship

Market Size, Segmentation & Forecasts

FORECASTS
Future Trends
The Economy
The UK economy is expected to continue to strengthen over the next few years,
particularly during 2014 with gross domestic product (GDP) growth expected
to sit at 2.8% over the next year, before dropping slightly to 2.5% in 2015, and
remaining at 2.4% thereafter. Inflation, meanwhile, is likely to continue to
stabilise, rising slightly over the 5-year forecast period from 2.8% in 2014 to
3.2% in 2018; while unemployment is forecast to fall by 15.2% over the same
period to stand at 1.06 million.
Continued economic growth and the stabilisation of other economic measures
is likely to help drive business confidence over the next 5 years, which should,
in turn, help to fuel investment in marketing activities, including sponsorship.
During the recession and the years following, slow economic recovery served
to keep marketing budgets tight, with many businesses cutting sponsorship
entirely in order to remain cost-effective; however, with economic prospects
for the UK looking promising, a more positive outlook is likely in terms of
commercial sponsorship. Despite this, brands are still likely to be looking for
value for money across sponsorship opportunities, with sponsorship deals now
often encompassing much more than simple brand stamping or logo
representation, e.g. social media integration, the development of branded
applications (apps), etc.
It should also be noted that, while the strengthened economic climate in the
UK is already helping to drive business optimism, consumers have continued
to take a cautious approach in terms of expenditure, with household budgets
remaining tight in the face of rising fuel and energy prices all of which have
resulted in average wage declines in real terms over the past few years.
Rumours that the UK could be near to raising interest rates could also have a
significant effect on consumer expenditure over the next couple of years if such
a move gets the go ahead; although the Bank of England (BoE) is likely to err
on the side of caution for fear of harming economic recovery.

Key Note Ltd 2014

51

Sports Sponsorship

Market Size, Segmentation & Forecasts

Table 3.6: Economic Forecasts (000, % and million), 2014-2018


2014

2015

2016

2017

2018

64,511

64,938

65,386

65,825

66,266

GDP growth (%)

2.8

2.5

2.4

2.4

2.4

Inflation (%)

2.8

2.9

3.1

3.1

3.2

1.25

1.14

1.07

1.03

1.06

UK resident population
(000)

Unemployment (million)
GDP gross domestic product
at retail price index (RPI)

actual number of claimants; claimant count measures the number of people claiming
Jobseekers Allowance

Source: National Population Projections, 2012-based projections, National


Statistics website/Forecasts for the UK Economy: a comparison of independent
forecasts, May 2014, HM Treasury Crown copyright material is reproduced with
the permission of the Controller of HMSO (and the Queens Printer for Scotland)

String of Scheduled Sporting Events to Boost Sponsorship


Londons hosting of the 2012 Olympics has helped to promote the UK as a
desirable location for major sporting events, with the country already set to
play host once again to a number of upcoming tournaments and competitions
over the next few years. 2014 alone has seen the UK host several cycling
tournaments, including the Grand Dpart of the Tour de France in Yorkshire
and the Giro dItalia the worlds second-largest cycling event in Northern
Ireland, following the continued success of British cycling athletes, such as
Bradley Wiggins and Sir Chris Hoy in recent years; as well as the 2014
Commonwealth Games, which was held in Glasgow in June and July, and
golfing tournament The Ryder Cup, which will be held in Gleneagles in
Scotland during September. Not only have such events helped to boost the
appeal of sports outside mainstream activities, such as football and F1, it has
also helped to improve the countrys supply of event venue infrastructure, for
example, the new SSE Hydro stadium was opened in 2013 in the run up to the
Commonwealth Games and hosted the netball and gymnastics events; while
the Olympic Park, which opened to the public in early 2014, includes several
venues that were used for the 2012 Games including the Copper Box Arena,
the Aquatics Centre, the Lee Valley Velopark, the Olympic Stadium and the Lee
Valley Hockey and Tennis Centre.

Key Note Ltd 2014

52

Sports Sponsorship

Market Size, Segmentation & Forecasts

Another major sporting event due to be hosted by the UK over the next few
years is the 2015 Rugby World Cup, which will be hosted in 11 venues in
England, as well as one in Wales. The event is expected to attract around 2
million fans in stadiums, and will have the widest-ever broadcasting coverage,
with around 200 territories expected to televise the tournament. The event has
already performed well on the sponsorship front, with the Top Tier sponsorship
programme filled in record time by several high-profile brands including
Heineken, Land Rover, Societe Generale, DHL, Emirates, and Mastercard.
Furthermore, an additional 45m in World Cup-related contracts are expected
to be awarded during 2014. England will also play host to the IAAF World
Championships in Athletics and the IPC Athletics World Championships during
2017; as well as the Cricket World Cup in 2019; both of which are likely to boost
spending on sports sponsorship in the UK over the coming years.

The Power of Big Data


In recent years, much has been made about the term big data within the wider
marketing community, with marketers continuing to explore the potentials of
harnessing vast amounts of consumer-generated information in order to
improve campaigns and more efficiently target audiences. The growing
interest in big data across the marketing community has been principally driven
by the growth in digital communications and social media, which has meant
that marketers now have a vast trove of data at their disposal, from tweets,
likes, comments and shares to click-through rates, website traffic, e-mail
communication, geo-location information and social media commentary, all of
which offer key insight into the behaviours and buying power of target
consumers.
However, while big data is increasingly being used within the wider marketing
landscape, sponsorship marketers have yet to fully get to grips with the
increasing amount of data available to them, with the use of integrated digital
and social media activities in sponsorship campaigns still only marginal at
present. Nonetheless, in more mature markets, such as the US, big data is now
being increasingly harnessed by sponsorship marketers to bridge the gap
between sponsorship buyers and sellers. The growth of sponsorship marketing
specialist SponsorPitch.com in the US reflects the rising interest in big data
within the sports sponsorship arena, with the company amassing a data set of
nearly 80,000 sponsorship deals from the worlds top sponsorship spenders
since being established. The company also provides what it claims is the
sponsorship industrys first completely automated recommendation engine,
called Suggested Sponsorships, which analyses a brands past spending history
and that of its business category in order to match it with the most relevant
sponsorship opportunities available.

Key Note Ltd 2014

53

Sports Sponsorship

Market Size, Segmentation & Forecasts

For sports sponsors that have begun to develop integrated digital and social
media campaigns into their commercial partnerships with sports organisations,
the monitoring and analysis of big data has become increasingly important,
with many large sporting events now generating vast amounts of online data.
The monitoring and analysis of such data ultimately improves the efficiency of
marketers and marketing campaigns, by providing insight into real-time
customer interactions with sponsored brands before, during and after the
event in question. In this way, big data allows marketers to improve the
effectiveness of targeted advertising and can help them to more efficiently
assess the return on investment (ROI) that is resultant from such activities.
Moreover, the rise in sports organisations themselves opening up new data
streams regarding team and individual performances is only likely to further
drive the utilisation of big data by potential sponsors. In 2012, for example,
Manchester City FC became the first Premier League team to open up its archive
on player data and statistics to the public, allowing analysts a keen insight into
the performance and value of the team and individual players. While
Manchester City is the first to open up its data archives to the public, it is not
the only Premier League side to store and analyse such data, with specialist
analytics firm Prozone Sports now providing analytics technology to all 20
Premier League clubs. The Prozone technology provides details of ten data
points for each player every second, totalling 1.2 million per match overall, and
compiles information on around 2,000 to 3,000 match events. However, much
of this data is still being stored and analysed by teams in-house, with sports
organisations using it to improve their own performance, scout upcoming
opposition and locate new talent signalling a much more scientific
approach to club management and recruitment. If such data, however, were
to become publicly available, the implications for marketers and sponsors could
be huge, with the success of sports sponsorship partnerships often relying
heavily on team and player performance. Such data could also help sponsors
seeking new opportunities to more efficiently locate the most relevant
potential partners; while also improving the efficiency of determining ROI to
existing sponsors.

Key Note Ltd 2014

54

Sports Sponsorship

Market Size, Segmentation & Forecasts

Digital Spend to Cannibalise Sponsorship Market


Although the sponsorship market is forecast to observe steady growth over the
next few years, the rapid migration of consumers onto digital and, in
particular, mobile platforms (as well as sharp growth in social media
marketing) is expected to dampen enthusiasm for significantly increasing
sponsorship expenditure, according to an article published by IEG in 2014.
Indeed, virtually all spending growth on marketing activities over the coming
years is likely to be driven by mobile channels, with mobile continuing to
outpace other categories within the wider marketing mix. According to figures
compiled by the Internet Advertising Bureau (IAB), the mobile advertising
sector in the UK grew by an estimated 95.1% in 2013, with tablet adspend
observing a 400% increase over the same year. This compares with a reduction
of 9.8% in the sports sponsorship market during 2013, with growth in this
sector likely to continue to be outpaced by mobile adpsend, which Key Note
expects will achieve year-on-year double-digit growth over the next 5 years,
driven by the continued uptake of mobile devices around the world and the
ever-increasing capabilities offered to marketers by such mobile platforms.
Social media represents another area thought to be cannibalising spending in
other areas of the wider marketing mix, such as sponsorship, with the IAB
estimating social media adspend to have grown by 71% during 2013 to reach
588.4m.
However, with mobile marketing campaigns and activities likely to continue
to play an increasingly important part in wider advertising campaigns for
brands going forward; and sports broadcasters continuing to develop content
specifically for mobile channels, sponsors and sponsorship marketers will be
left with no choice but to explore more innovative and creative ways of
reaching out to the ever-growing mobile audience; for example, by integrating
mobile into existing commercial partnerships and sponsorship campaigns.
Indeed, it is no longer enough for sponsors to simply brand stamp logos onto
events, shirts and merchandise; with more modern sponsorship campaigns,
such as those undertaken by Barclays (Premier League) and Sony (FIFA World
Cup) exploiting the popularity of mobile platforms and social media channels
to their benefit; thus improving customer engagement, brand interactions and
brand awareness, resulting in stronger relationships between the brand and
consumer, and between the brand and the sponsored property.

Forecast Total Market


Although Key Note expects the sports sponsorship market in the UK to decline
by a further 9.8% during 2013, the market should pick up once again from
2014 onwards, continuing to stabilise in line with the strengthening UK
economy following the fluctuating performance of the market since the
London 2012 Olympics. Altogether, Key Note predicts the sports sponsorship
market to grow by 14.8% over the 5-year forecast period, with market value
projected to reach 413m by 2017.

Key Note Ltd 2014

55

Sports Sponsorship

Market Size, Segmentation & Forecasts

Renewed business optimism across the UK is also likely to help drive future
growth in the sports sponsorship market, with marketing budgets expected to
become increasingly flexible in light of stronger economic prospects in the UK
and across other developed markets. The UKs hosting of several future
sporting events over the next 5 years, including the 2014 Commonwealth
Games, the Ryder Cup 2014, the RWC during 2015, the IAAF World
Championships in Athletics and the IPC Athletics World Championships in 2017,
should also help to boost investment in sports sponsorship going forward; as
should the emergence of non-traditional sports categories such as cycling,
rowing, para-sports and athletics, all of which have observed a resurgence in
popularity following the successes of British athletes in these sectors at the
2012 Olympics.

Table 3.7: The Forecast Total UK Sports Sponsorship Market


by Value of Major New Deals (m), 2013-2017

Value (m)
% change year-on-year

2013

2014

2015

2016

2017

359.7

372.3

382.3

396.8

413.0

-9.8

3.5

2.7

3.8

4.1

Source: Key Note

Figure 3.4: The Forecast Total UK Sports Sponsorship Market


by Value of Major New Deals (m), 2013-2017
400
350
300
250
200
150
100
50
0
2013

2014

2015

2016

2017

Source: Key Note

Key Note Ltd 2014

56

Sports Sponsorship

Market Size, Segmentation & Forecasts

Market Growth
Since reaching a peak of 946m in 2009, the value of the sports sponsorship
market in the UK has continued to fluctuate, with Londons hosting of the
Olympic and Paralympic Games in 2012 effectively skewing results in recent
years. Investment in the sports sponsorship market has also been significantly
affected by the global financial crises of 2008/2009, with marketing budgets
remaining squeezed in line with a cautious approach to spending across both
the public and private sectors. However, renewed economic growth in the UK
from 2013 onwards should serve to create more flexible marketing budgets,
thus driving expenditure on sports sponsorship going forwards; while the UKs
hosting of several international competitions over the next 5 years is likely to
further bolster market growth. Altogether, however, Key Note estimates the
market to have fallen by 38.9% between 2008 and 2017; a more stable level
of growth is expected to return to the market from 2014 onwards.

Figure 3.5: Growth in the UK Sports Sponsorship Market


by Value of Major New Deals (m), 2008-2017
1,000
900
800
700
600
500
400
300
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Note: caution should be used in interpreting these figures as Source: Find!Sponsorship


monitors a cross section of deals reported online and in the press each year, while some
deals and renewals go unreported, which may result in estimates being lower than
actual market figures; as a result any conclusions based on such figures should be
considered Key Notes own.

Source: Find!Sponsorship/Key Note

Key Note Ltd 2014

57

Sports Sponsorship

Competitor Analysis

4. Competitor Analysis
THE MARKETPLACE
The sports sponsorship market remains highly competitive, with leading brands
continuing to invest huge amounts in commercial partnerships with leading
sports organisations, teams and clubs, and individuals. The market structure
comprises a number of different key stakeholders, including:
rights-holders the sponsored organisation which controls the assets and
rights included in sponsorship agreements; rights-holders can include sports
organisations/associations, sports clubs and teams, and sports personalities/
individuals
sponsors can include any corporate body, from large commercial
organisations and global brands to local businesses ranging across all vertical
industries; often the size and value of the sponsorship deal is dependent on
the size of the sponsor organisation
marketing agencies including specialist in-house departments and
independent agencies that have a specialist focus on sports and
entertainment sponsorship; these organisations play a vital role in brokering
sponsorship agreements, as well as developing sponsorship campaigns and
branding.
The media also plays a vital role in the sports sponsorship market, with
commercial sponsorship agreements often encompassing rights to media
appearances/televised events, encompassing a variety of media channels such
as television, radio, digital media, and newspapers and magazines; as well as
other publications, such as match-day programmes.
This chapter concentrates specifically on the marketing side of the sports
sponsorship industry, with specialist sponsorship marketing agencies playing a
pivotal role in matchmaking sponsors with relevant sports organisations,
clubs or individuals. These agencies act on behalf of rights-holders and sponsors
in order to deliver effective, relevant and creative sponsorship partnerships and
campaigns which are beneficial to both parties. It should be noted, however,
that large corporations often broker their own commercial partnerships using
large, dedicated in-house marketing departments, which are also responsible
for developing and delivering sponsorship campaigns for the brand. However,
due to the difficulties in quantifying and assessing in-house operations, details
of these organisations have not been included within this chapter.

Key Note Ltd 2014

58

Sports Sponsorship

Competitor Analysis

LEADING SPONSORSHIP CONSULTANTS AND AGENCIES


Table 4.1 ranks the leading sponsorship agencies based in the UK by fee income
(as of 2011). The league table, which has been compiled by Marketing
Magazine, includes agencies operating in both sports and entertainment
sponsorship. According to the ranking, Fast Track, which is owned by Chime
Communications agency CSM, continued to lead the market in terms of fee
income, which stood at 11.2m in 2011, although this was down by 13.8% from
13m in the previous year. Essentially Group, which is also owned by Chimes
CSM, was ranked in second place with a fee income of 9.8m; this was followed
by M&C Saatchi Sport & Entertainment in third place, with 6m, and
WPP-owned agency MEC Access in fourth position, with 5.2m.

Table 4.1: Leading Sponsorship Agencies by Fee Income


(m and %), 2010 and 2011

2010

2011

% Change
2010-2011

13.0

11.2

-13.8

Rank

Agency

Fast Track

Essentially Group

9.1

9.8

7.7

M&C Saatchi Sport and


Entertainment

5.3

6.0

13.2

MEC Access

4.6

5.2

13.0

Experience Worldwide

3.6

4.5

25.0

Synergy Sponsorship

3.0

4.1

36.7

WSM Communications

3.1

3.8

22.6

Brand Rapport

3.4

3.4

0.0

Ed Coms

3.1

2.9

-6.5

10

Limelight Sports Group

2.9

2.6

-10.3

11

Capitalize

1.4

1.5

7.1

12

National Schools Partnership

1.1

1.2

9.1

13

Generate Sponsorship

1.1

1.1

0.0

14

The Sports Business

0.7

0.8

14.3

15

Education Connections

0.2

0.2

0.0

Source: Marketing Magazine

Key Note Ltd 2014

59

Sports Sponsorship

Competitor Analysis

CSM Sports & Entertainment LLC


Company Structure
CSM Sports & Entertainment forms part of international communications and
sports marketing group Chime PLC, which operates around 56 companies in 22
markets across the globe, employing over 1,800 people altogether. Sister
agencies run by Chime include insight and engagement firm CIE, public
relations (PR) agency The Good Relations Group, healthcare communications
agency OPEN Health, and advertising and marketing firm the VCCP
Partnership. CSM Sports & Entertainment, which focuses on sports marketing
and is chaired by Lord Sebastian Coe, provides a wide range of services to
brands, governing bodies, and not-for-profit organisations (NPOs) seeking to
engage audiences through sports and entertainment media, including event
feasibility and planning; strategic and commercial consultancy; event creation,
management and delivery; advertising and rights sales; broadcast services;
athlete management and ambassador programmes; sponsorship activation
and rights management; sport, commercial and cultural branding; interactive
live experiences; exhibitions and retail display; overlay, fit-out and showcasing;
digital and social media; content production and distribution; sports and
consumer PR; hospitality services; business unit and employee engagement;
community and grassroots programmes; and merchandise design.
The company operates through ten main brands, each of which focuses on a
specific area of expertise, as follows:
CSM Strategic provides major event strategy and planning services,
including venues and facility planning and communications strategy
solutions. CSM Strategic has a global presence of 800 staff spread across 21
offices in 14 countries.
Essentially Group a leading athlete management agency in Rugby Union,
cricket and football, providing world-class sports marketing and commercial
rights across five major markets including Australia, New Zealand, South
Africa, France and Japan.
Fast Track a global sports and entertainment agency specialising in brand
consultancy and content delivery encompassing PR, media, digital and social
strategies. The company has offices in the UK, Middle East, Hong Kong and
Australia.
Full Access Hospitality specialists in ticketing for hospitality and unique
entertainment services at major sporting events, including cricket, rugby and
tennis.
Golden Goal a leading Brazilian sports marketing and management
agency which specialises in identifying business synergies and adding value
to partnerships between the sports industry and the corporate world.
ICON designs and delivers branding and live event solutions in sport,
commercial and retail environments. ICON has a presence in all five
continents, and operates 14 offices altogether.

Key Note Ltd 2014

60

Sports Sponsorship

Competitor Analysis

iLUKA provides a range of strategic activations services for stakeholders,


including both sponsors and sports organisations, at global events; as well as
bespoke corporate hospitality solutions.
JMI a full-service agency specialising in motorsports marketing solutions,
employing around 120 people worldwide.
People Marketing based in Shanghai, the agency provides services
including strategy and campaign development, and PR to some of the
biggest brands based in the Peoples Republic of China (PRC) and across the
Asia-Pacific region.
Sportseen a specialist sales organisation dedicated to maximising
advertising, sponsorship and other commercial opportunities, with a key
focus on football and rugby, as well as cricket, tennis and athletics.

Corporate Strategy
Over the past year, CSM Sport & Entertainment has continued to concentrate
its efforts on consolidation and strategic development. Although the
companys revenues declined in the wake of the 2012 Olympic and Paralympic
Games, the company has continued to observe strong performance from its
brand consultancy and rights management businesses. The company made a
number of strategic acquisitions to grow and develop its sports marketing
business during 2013, including motorsports sponsorship agency JMI, and
Shanghai-based People Marketing. As a result of these acquisitions, CSM has
expanded its presence to several new international markets including the US,
the PRC, Brazil, Qatar and Abu Dhabi. The acquisition of JMI has also helped
to strengthen the companys presence in motorsports, providing access to new,
annualised income streams which will help to offset the often cyclical nature
of its other events-related businesses, such as ICON and iLUKA both of which
rely heavily on generating business from events held in alternate years, such
as the Olympics, the Winter Olympics, the Commonwealth Games and the
Fdration Internationale de Football Association (FIFA) World Cup. The
acquisition of JMI should therefore help to drive revenues by concentrating on
areas of sport that do not revolve around these major events. JMI generates
revenue through three separate motorsports: Formula 1 (F1), IndyCar and
NASCAR.
Meanwhile, the acquisition of Shanghai-based agency People Marketing is
expected to greatly strengthen the companys presence in one of the most
important emerging markets for sports sponsorship; it will add value to the
companys partnerships with existing clients as well as strengthening its offer
to other international brands seeking to grow their presence in the PRC. In
addition, the acquisition is expected to provide CSM with access to the growing
market of Chinese companies seeking international sponsorship deals to help
grow their global profile.

Key Note Ltd 2014

61

Sports Sponsorship

Competitor Analysis

Financial Results
In the year ending 31st December 2013, CSM Sports & Entertainment
generated total revenues of 116.9m, down by 33.4% from 175.4m in the
previous year. The company also reported a decline in operating income, which
fell by 15.6% between 2012 and 2013 to stand at 55.6m.

M&C Saatchi Sport & Entertainment


Company Structure
Established in 1997, M&C Saatchi Sport & Entertainment forms part of the
international advertising agency network M&C Saatchi, which has 26 offices
based across 18 countries and employs over 1,800 people altogether. The
agency specialises in sponsorship, events, PR and social media for sports and
entertainment, and represents a number of high-profile brands in sponsorship
deals, including O2, Coca-Cola, adidas, Sainsburys and Ballantines Finest.

Corporate Strategy
In recent years, M&C Saatchi has continued to concentrate its efforts on
growing its client portfolio in both the domestic market in the UK and overseas,
with the company opening two new offices in Germany and South Africa
during 2012, as well as offices in New York and Sydney. According to the
companys 2013 Annual Report, the company is expected to continue to grow
throughout 2014, with a continued focus on expansion in Australia and the US,
in particular.
The company has also benefitted from a strong domestic performance in recent
years, with the agency recently appointed by online gambling firm Sky Bet to
activate its sponsorship of the Football League, following a competitive pitch.
The agency has said that it will be creating a campaign that focuses on Sky Bets
re-investment of revenue, which it generated through registered fans, back
into the Football League. The campaign is expected to be launched in time for
the 2014/2015 football season. Furthermore, early 2014 saw M&C Saatchi Sport
& Entertainment launch a new experiential campaign on behalf of England
rugby sponsor O2, using cutting edge virtual reality (VR) software from VR
headset manufacturer Oculus Rift. The new campaign the first of its kind
creates a 360-degree VR sporting experience which allows fans to virtually train
with the England rugby team.

Financial Results
For the year ending 31st December 2013, M&C Saatchi Sport & Entertainment
reported total billings of 9m, down slightly by 5.4% from 9.5m in the
previous year. However, revenue for the company increased by 6.9% over the
same period, with figures rising from 4.5m in 2012 to 4.8m in 2013.

Key Note Ltd 2014

62

Sports Sponsorship

Competitor Analysis

MEC Access
Company Structure
MEC Access is one of the top five media planning and buying agencies in the
UK and offers 65 diversified services beyond its core media planning and
buying services, such as broadcast sponsorship, social media insight, mobile
advertising, search engine optimisation (SEO), and data and analytics. The
company provides sponsorship campaign solutions to several high-profile
client brands including Lloyds TSB, Visa and McCoys. Altogether, the agency
employs around 400 people, with offices based in London and Manchester.
The company forms part of MEC Global a founding partner of media
investment firm Group M which is owned by UK-based global advertising
network WPP. Altogether, WPP employs almost 175,000 people and has 3,000
offices based across 110 countries, with total reported billings of 46.2bn and
reported revenues of 11bn (as at 31st December 2013).

Corporate Strategy
During March 2014, MEC Access announced the launch of its first phase of the
new activation programme for the Marriot London Sevens rugby tournament,
which took place in May 2014, for its client Marriott Hotels International. The
campaign, entitled Brilliant 7s launched on the last day of the RBS 6 Nations,
and primarily targeted Generation X and Y frequent business travellers and
rugby fans, encompassing social media activity. The following month saw the
company broker a new 3-year deal between Volvic and Tough Mudder, a 10to 12-mile obstacle race, including mud run events, which has been designed
by British Special Forces. The deal will see the launch of a new activation
campaign by MEC Access during 2014, worth around 550,000, which will aim
to drive awareness and engagement of Volvics strapline Volcanicity across
the UK. The sponsorship partnership will also see the development of
Volvic-branded obstacles at Tough Mudder events across the UK, with Volvic
also providing drinks to event participants along the course.
During June 2014, MEC announced that it had launched its 2014 Wimbledon
campaign for drinks brand evian, now in its seventh year in partnership with
the All England Lawn Tennis and Croquet Club (AELTC) as the tournaments
Official Water sponsor. The campaign involved social media activity and
showcased youthful-themed branded content featuring brand ambassadors
Maria Sharapova and Rizzle Kicks. The following month saw the agency
negotiate a deal extension between trade tool and hardware supplier Screwfix
and The Football League, which will see the supply firm continue as broadcast
sponsor of Football League matches televised on Sky Sports during the
2014/2015 season. The contract extension will include sponsorship of all live
games within the Championship, League One and League Two, as well as on-air
sponsorship. Screwfix will also become the full sponsor of The Football League
pages on SkySports.com.

Key Note Ltd 2014

63

Sports Sponsorship

Competitor Analysis

According to holding firm WPP, it intends to expand several of its strong


networks, including MEC, in high-growth markets or where market share is
already significant. MEC reported a positive performance during 2013, with
the business continuing to concentrate on its key priorities of growing its
clients businesses, growing its own business and growing its talent base. 2013
also saw the company launch MEC Momentum its new approach to brand
communications a global study which aimed to help understand and
quantify how consumers make purchase decisions and choose the brands they
buy. It also quantified consumer bias by category and brand; the beliefs
customers have and how they influence decisions; and the relative influence
of communication messaging and touchpoints. The same year saw the
company launch Choreograph, a joint venture with sister agency Wunderman,
which joins content, data and media together into a single integrated offer.
Going forward into 2014, the company is expected to focus significant efforts
on its leadership in digital and data; with the goal of driving marketing
solutions encompassing data, insights, technology and content.

Financial Results
According to holding company WPPs Annual Report 2013, its media
investment arm Group M (which includes Mindshare, MEC, MediaCom, Maxus,
Group M Search and Xaxis), together with marketing agency tenthavenue,
generated estimated net new business billings of 3.2bn, up from 2.15bn in
the previous year.

GMR (formerly Experience Worldwide)


Company Structure
Founded in 1997, Experience Worldwide was a global sponsorship, brand
experience and employee engagement agency based in London. The company,
which formed part of the Omnicom Group, was formally merged with GMR
Marketing (part of the Diversified Agency Services [DAS] Network of agencies
within Omnicom Group) in February 2014. The merger was undertaken
following a longstanding and successful partnership between the two
organisations dating back to 2009, and will see Experience Worldwide trading
under the GMR name.
According to a press release published by GMR in February 2014, the merger
will combine the agencies collective expertise in engagement marketing and
sponsorship, as well as a portfolio of international clients across sports,
entertainment, music and lifestyle. As part of the merger, Client Services
Director at Experience Worldwide, James Hunt, will assume the role of
Managing Director (MD) at GMRs London office and will lead the new merged
agencys efforts across the Europe, Middle East and Africa (EMEA) region going
forward. Altogether, GMR has 17 offices in 10 different countries, with
operations based in North America, South America, Europe and Asia-Pacific.
The agency also has a strong track record in sports and media sponsorship, with
recent work encompassing major sponsorship activations at the Sochi 2014
Winter Olympics and for the FIFA World Cup in Brazil.

Key Note Ltd 2014

64

Sports Sponsorship

Competitor Analysis

Corporate Strategy
During the 2014 Sochi Winter Olympics, which were held in February, GMR
worked alongside a roster of eight clients in total, including four top-tier
sponsors Procter & Gamble (P&G), Visa, Samsung and Omega. Overall, GMRs
work during the 2014 Winter Olympics on behalf of these clients saw the
company manage over 7,000 guests; more than 1,200 hotel rooms across 12
hotels; 48 motorcoaches; build four custom websites and enrolment platforms
developed in three different languages; handle 2,500 guest registrations; and
manage over 100 athlete appearances. May of the same year saw the agency
named Sports Event and Experiential Marketing Agency of the Year at the 2014
Sports Business Awards. The award builds on GMRs previous Sports Business
Award wins, including 2011 Sports Consulting Agency of the Year and 2009
Sports Event Marketing Firm of the Year.
During June 2014, GMR worked on the activation programme for SAPs
sponsorship of the German international football team, who later went on to
win the tournament. The programme included corporate hospitality, a
showcase of SAP analytics tools which the German national team used during
the event, and question and answer (Q&A) sessions from several international
football legends.

Financial Results
For the year ending 31st December 2012, GMR Marketing announced a
turnover of 1.1m and a pre-tax profit of 101,000.

Havas Sports & Entertainment


Company Structure
Havas Sports & Entertainment forms part of the Havas Group, the sixth-largest
global advertising, digital and communications services group in the world,
which has a presence in 122 markets through its agencies and contractual
affiliations. The company primarily operates as a brand engagement agency
and provides a range of services, including strategy and creative, insight and
analytics, sponsorships and partnerships, events and experiential, content,
social media, PR, and employee engagement. The companys client roster
includes several high-profile brands and organisations including Barclays, the
Football Association (FA), British Tennis/Lawn Tennis Association (LTA),
Heathrow Express, Chelsea Football Club (FC), EDF Energy, Coca-Cola, adidas,
Kia and Powerade, among others. Altogether Havas Sports & Entertainment
employs around 500 people, with 35 offices in 20 markets.

Key Note Ltd 2014

65

Sports Sponsorship

Competitor Analysis

Corporate Strategy
At the start of 2013, holding company Havas Group announced that the
company would undergo an operational re-structure designed to ensure
streamlined operations and a more simplistic structural approach across the
Havas network. In line with this, the company ended its partnership with media
agency brand MPG, and consolidated its media operations under a new
umbrella unit called Havas Media Group, which is now in charge of two
Paris-based agency brands including Havas Media and Arena Media. Havas
Sports & Entertainment, Cake, Havas Event and Havas Productions were also
grouped together under the Havas Media Group umbrella. Meanwhile, Havas
Creative, which recently replaced the Euro RSCG brand with Havas Worldwide,
was split to create two clear agency brands Havas Worldwide and Arnold.
The restructure was undertaken by Havas to create a more scalable, global
media network, and to provide a more consistent approach across media
platforms and media agencies. In addition, the restructure is aimed to make
the media groups speciality capabilities, such as its global data unit, more
central and accessible to Havas global offices.
Havas Sports & Entertainment has continued to expand its client portfolio over
the past year. Most recently, in June 2014, the company revealed that it had
been appointed as the corporate PR agency of the International Association of
Athletics Federations (IAAF) following project work in 2013. As part of the new
2-year deal with the IAAF, Havas will help the athletics organisation promote
its 2014-2016 strategic plan, which features a range of innovations and social
inclusion initiatives to showcase athletics status as the number-one Olympic
sport. The following month saw the specialist sports marketing agency win a
bid for Barclays as its global lead sponsorship agency, following a competitive
pitch process. The agencys remit will encompass the banks Premier League and
ATP World Tour Finals partnerships, as well as corporate social responsibility
(CSR) led partnerships with Beyond Sport and Barclays Spaces for Sports.

Financial Results
In the year ending 31st December 2013, Havas Sports & Entertainment
generated net revenue of 20.1m, but reported a net profit loss of 2.6m for
the same financial year. This compares to net revenue of 24.1m and a net
profit loss of 2.8m in the previous year.

Key Note Ltd 2014

66

Sports Sponsorship

Competitor Analysis

OTHER COMPANIES
The following provides brief profiles of smaller agencies based in the UK that
specialise in the provision of sports and entertainment sponsorship services and
solutions.

brandRapport
Established in 1982, brandRapport specialises in sponsorship strategy
advertisement activation. In 2007, the company was acquired by Ingenious
Media Active Capital Ltd (IMAC), a Guernsey-based, closed-end investment firm
listed on the Alternative Investment Market (AIM). Brand Rapport provides a
range of sponsorship marketing services, including consultation, activation,
social sponsorship, event marketing, communications and digital services; and
works across sports, arts and culture, music and community platforms. The
company is headquartered in London, with an extended network that
comprises locations in the UK, Hong Kong and Singapore. During 2014,
brandRapport was the subject of a management buyout (MBO), which was
orchestrated by the senior management team at the company. Following the
buyout, the company will undergo a rebranding as it seeks to offer a more
comprehensive service package to clients. The rebrand, which will include the
introduction of a new logo, was instigated by changes in the sponsorship
landscape, with clients increasingly demanding to work with agencies which
offer services beyond solely buying sponsorship properties and which have an
international reach. Following the MBO, MD Andy Kenny revealed that the
company was seeking to partner with an international agency in order to
remain competitive against the larger network agencies.
The company has continued to expand its client portfolio in recent years,
winning new business from property website Primelocation for its commercial
partnership with the Investec Ashes Series, and with online global sportsbook
Marathonbet to manage its principle team sponsorship of Fulham FC in 2013.
More recently, in January 2014, brandRapport revealed that it had been
appointed to manage the communications of the prestigious Concours
Complet International (CCI) four-star eventing competition, LandRover
Burghley Horse Trials. The new deal will see brandRapport oversee the creation
and implementation of a year-round PR campaign to help drive engagement
and awareness for the trials; it will also be responsible for managing the media
operations at the 2014 event, which is due to take place in September. The
event will be added to brandRapports existing client portfolio, which includes
several big name brands such as Jaguar (Team Sky, Cricket and ambassadors),
Allianz (Saracens and Allianz Park), and Prudential (RideLondon), among
others.

Key Note Ltd 2014

67

Sports Sponsorship

Competitor Analysis

Fuse Sports and Entertainment


Fuse is principally engaged in the provision of integrated sponsorship, licensing
and endorsement activities. The company, which forms part of the Omnicom
Media Group, offers a range of client services including sponsorship
consultancy, experiential marketing, content marketing, event and hospitality
solutions, and PR and social marketing, as well as evaluation services. Fuse
currently manages several key sponsorship activation accounts for a number
of high-profile brands, including Vodafone Groups sponsorship of the
McLaren Mercedes F1 team; Carslbergs international sponsorship of football;
Standard Chartered Banks partnership with Liverpool FC; and Sony
PlayStations (PSs) partnership with the Union of European Football
Asociations (UEFA) Champions League. More recent account wins for Fuse have
included Nissan, which appointed the agency to work on its new sponsorship
of the UEFA Champions League and UEFA Super Cup in June 2014. The agency
has been working on the programme with Nissan for 3 years and was involved
in developing the business case and global strategy for Nissan, as well as
leading the tender process and contract negotiations during the sponsorship
bid. Nissans 4-year agreement with UEFA will start from the 2014/2015 season
onwards, and represents the car manufacturers largest ever sponsorship deal;
Nissan replaces former sponsor Ford, following the end of the latters 22-year
partnership with the football organisation.

Generate Sponsorship
Generate was originally founded in 2003 and has since become one of the
leading independent specialist sport and entertainment agencies in the UK.
The company has also continued to expand its presence overseas in recent years
and now has offices in London, Paris, Atlanta, Beijing and Doha. Generate
provides a range of services to both sponsors and rights-holders, including
consultancy, activation, PR, digital, rights sales and event productions; and
works across a range of sectors including sport, entertainment, the arts and
charity. Generates client portfolio has included organisations such as QBE
Insurance, eBay, Timberland and The Co-operative in the past. The company
has also recently secured a number of new activation agreements with several
new clients including retail fund management firm Octopus Investment for its
2014 sponsorship of Twenty20 cricket; and the British Darts Organisation (BDO)
to handle its brand development and strategy over the next 5 years.

Right Formula
Right Formula is a full-service marketing and activation agency dedicated to
the business of F1. It is primarily engaged in working alongside brands linked
to the sport to enhance and drive their sponsorship programmes. The company
manages a diverse portfolio of F1 Partners, which includes brands such as
Santander, Johnnie Walker, British Sky Broadcasting (BSkyB), SAP, Hilton
Worldwide, TAG Heuer, Hugo Boss, ExxonMobil and Aon, among others.

Key Note Ltd 2014

68

Sports Sponsorship

Competitor Analysis

Right Formulas expertise centres around the development and


implementation of tailor-made solutions, which ensure that brands achieve
their sponsorship objectives on local, regional and global levels. Specialist
services provided by the company include content marketing, campaign
development, people agenda (i.e. inspiring and motivating employees),
communication creation, online and social, experiential marketing,
business-to-business (B2B) services, brand awareness, corporate hospitality, PR
and evaluation.

Synergy Sponsorship
Synergy Sponsorship was originally founded in 1984 as a specialist sponsorship
agency, providing consultancy, communications, digital and experiential
marketing services, including corporate hospitality, and brand and sponsorship
integration solutions. It also provides branded content solutions, employee
engagement and sales promotions services. In addition, Synergy has a long
history of providing Olympic Games marketing solutions (including
sponsorship services) and has worked with several global and domestic
sponsors in the past, including Coca-Cola and BMW. Other top brands that have
been represented by the firm in the past have included Betfair, Mini,
Schweppes and Sky.
The past year has seen Synergy win bids for a number of new contracts, with
the firm announcing in July 2013, that it had been appointed by athletics
organisation Sport England to help roll out a 1bn post-Olympic push to inspire
people to get more active. The previous month saw the firm win a new contract
with energy firm SSE, which appointed Synergy as its lead agency for the
management of its sponsorship activity during the 2014 Commonwealth
Games in Glasgow, including strategy and activation services. More recently,
Synergy revealed that it had set up a PR and social shop in Brazil during June
2014 for the FIFA World Cup. The pop-up Ideas Shop opened in Rio de Janeiro
during the tournament, with a PR and social team creating proactive and
reactive content and ideas from brands live from the centre of the World Cup.
The move follows on from Synergys launch of real-time social media service
Synergy Live during 2013, which already works across the agencys client base
and formed a core part of the activities undertaken by the pop-up office during
the World Cup.

MARKETING ACTIVITY
Table 5.2 displays the breakdown of expenditure on advertising invested by
major sports sponsors and sports organisations for the year ending December
2013. However, it should be noted that the figures provided in the table refer
only to the amounts spent on advertising in the main media, and thus does not
include expenditure on wider sponsorship activities, i.e. in-kind funding or
services provided by the sponsor to the sports event or organisation. According
to the data, which has been compiled by Nielsen, nearly 12m was spent on
advertising sports events and sponsorships during 2013 a relatively small
amount given the high value of sponsorship agreements that are signed in the
UK every year.

Key Note Ltd 2014

69

Sports Sponsorship

Competitor Analysis

HSBC reported the highest expenditure on main media advertising for its
sponsorship of the Lions Rugby club for 2013, with the bank spending 3.4m
on media activities surrounding the partnership; this was followed by Russian
energy firm Gazprom, which spent the second-highest amount 1.3m on
main media activities for its sponsorship of the UEFA Champions League
tournament during the same year. In terms of sports advertising, Glasgow 2014
Ltd reported the highest media spend for the year ending December 2013, at
887,000, in promoting the upcoming Games; US football league, the National
Football League (NFL), reported the second-highest expenditure at 300,000
and Premiership club Liverpool FC registered the third-highest at 271,000.

Table 4.2: Main Media Advertising Expenditure on Sponsored


Sports Events and Clubs (000), Year Ending December 2013
Expenditure
(000)
Sports Sponsorship
HSBC Bank PLC Lions Rugby sponsorship

3,443

Gazprom UEFA Champions League

1,348

Capital One Capital One Cup

619

Royal Bank of Scotland 6 Nations

563

Aeroflot Manchester United FC

557

Lloyds Bank PLC National School Sport

307

Standard Live Investment Ryder Cup

269

Qatar Foundation football sponsorship

220

Barclays Bank PLC ATP World Tour Finals

214

Aegon tennis sponsorship

167

Barclays Bank PLC Premiership Football


sponsorship

160

Bank of Scotland Midnight League

155

Royal Bank of Scotland Andy Murray


sponsorship

110

Royal Bank of Scotand Rugby Force

91

Adidas Champions League

90

QBE Insurance Group international rugby


sponsorship

86

Total sports sponsorship

8,399

Table continues...

Key Note Ltd 2014

70

Sports Sponsorship

Competitor Analysis

Table 4.2: Main Media Advertising Expenditure on Sponsored


Sports Events and Clubs (000), Year Ending December 2013
...table continued
Expenditure
(000)
Sports Advertising
Glasgow 2014 Commonwealth Games

887

National Football League

300

Liverpool FC

271

Football Association

227

Royal & Ancient Golf Club Open Championship


Muirfield

216

Manchester City FC

188

BSkyB Sky/British cycling

176

Arsenal FC Emirates Cup

163

Scottish Rugby Union

151

Fulham FC

131

Rugby Football League World Cup

125

ICC Cricket international cricket

124

Welsh Rugby Union

102

Manchester United FC

98

Falkirk FC

93

Wigan Athletic FC

87

Celtic FC

84

Chelsea FC

83

Durham County Cricket Club

82

Total sports advertising


Total

3,588
11,987

UEFA Union of European Football Clubs


FC Football Club
BSkyB British Sky Broadcasting
ICC International Cricket Council

Source: Nielsen

Key Note Ltd 2014

71

Sports Sponsorship

Competitor Analysis

KEY TRADE ASSOCIATIONS


The leading trade association operating within the field of sports sponsorship
is the European Sponsorship Association (ESA).

EXHIBITIONS/TRADE SHOWS
The following provides details of leading trade shows with a focus on the sports
sponsorship market:
Sports Sponsorship Expo next scheduled for 10th December 2014, Palexpo,
Geneva
The UK Coaching Summit previously held on 3rd and 4th June, at Crowne
Plaza, Glasgow.

Key Note Ltd 2014

72

Sports Sponsorship

Buying Behaviour

5. Buying Behaviour
INTRODUCTION
This chapter analyses consumer participation in relation to several sports,
including team sports and individual sports. The research covers the most
heavily sponsored sports in the UK, including team sports such as football,
rugby and cricket; and individual sports, such as tennis, athletics, motor racing
and snooker.

INTEREST IN MAJOR TEAM SPORTS


In 2013, a Target Group Index (TGI) survey was undertaken to examine interest
in major team sports in the UK. The results of the survey, as shown in Table 5.1,
reveal that football was by the far the most popular team sport, with nearly
half (46.3%) of respondents found to have an interest in it; followed by Rugby
Union (21%), cricket (19.9%) and Rugby League (13.5%).
Men were found to have a much higher penetration rate than women across
all team sports assessed by the survey, with penetration among men more than
double that seen among women in all cases. In terms of age, interest in football
was found to be highest among those aged between 25 and 34 years old at
49.7%; however, for all other major teams sports, including cricket, Rugby
League and Rugby Union, penetration increased alongside age, with those
aged 55 and over showing the greatest interest in these sports. By social grade,
response was generally found to be higher among those belonging to more
affluent social grades, and lower among those in poorer grades.
Regionally, those living in the North West showed the highest interest in
football (53.5%) and Rugby League (21%); while those living in the East
Midlands showed the greatest preference towards cricket (23.9%) and those
residing in Wales reported the highest penetration for Rugby Union (39.4%).

Table 5.1: Interest in Popular Team Sports by Sex, Age,


Social Grade and Region (% of adults), 2013

Football

Rugby
Union

Cricket

Rugby
League

46.3

21.0

19.9

13.5

Men

62.6

28.6

30.0

18.5

Women

30.8

13.8

10.3

8.7

All adults
Sex

Table continues...

Key Note Ltd 2014

73

Sports Sponsorship

Buying Behaviour

Table 5.1: Interest in Popular Team Sports by Sex, Age,


Social Grade and Region (% of adults), 2013
...table continued

Football

Rugby
Union

Cricket

Rugby
League

15-19

47.8

13.7

12.3

12.9

20-24

45.9

14.3

11.6

11.7

25-34

49.7

14.1

14.9

9.8

35-44

45.8

20.6

18.1

10.8

45-54

48.5

23.6

21.2

15.4

55-64

44.9

26.9

23.8

15.3

65+

43.0

26.1

27.4

16.5

49.8

34.2

29.1

15.6

47.8

27.0

25.4

12.8

C1

46.3

21.9

20.9

13.8

C2

47.5

19.2

17.5

14.4

44.2

14.2

14.6

12.7

42.1

13.6

13.7

12.1

Scotland

49.1

22.1

9.7

9.2

North West

53.5

17.0

20.8

21.0

North

52.1

17.5

20.4

16.1

Yorkshire and Humberside

46.4

14.8

19.0

20.4

East Midlands

47.2

22.6

23.9

12.5

East Anglia

42.8

18.9

22.8

8.7

South East

42.3

21.6

21.5

11.6

Greater London

48.2

16.3

19.4

8.7

South West

42.1

29.9

23.7

14.2

Wales

42.0

39.4

18.0

17.3

West Midlands

45.2

19.2

18.9

12.0

Age

Social Grade

Region

Source: Target Group Index (TGI) Kantar Media, Quarter 2 (January-December


2013) 2014

Key Note Ltd 2014

74

Sports Sponsorship

Buying Behaviour

Table 5.2 shows the ways in which UK consumers accessed sports by type of
activity, covering live viewing (i.e. at a venue), television, newspapers and
online. The most popular channel through which consumers accessed sport was
television, with football attracting the greatest audience through this channel
at 40.8%; followed by Rugby Union (19.3%), cricket (17%) and Rugby League
(12.1%). Reading about sport through newspapers was generally found to be
the second-most popular way of accessing information on major team sports.
Once again football attracted the highest readership, at 16.3%, followed by
cricket (6.9%), Rugby Union (5.6%) and Rugby League (3%).
Interestingly, accessing information regarding sport online was the third-most
used method, behind traditional newspaper reading, despite the proliferation
of specialist football news-sites and fan-sites, with football attracting the
highest online audience at 13.7%. Meanwhile, cricket reported an online
penetration of 5.3%, followed by Rugby Union (4%) and Rugby League (1.8%).
Watching sport live at a venue was generally found to be the least popular
option for accessing team sports, due in part to the high price that sport event
tickets often have, with match day tickets for some Premier League sides
costing up to 126. Once again, football attracted the greatest live audiences,
with just over one in ten (11.5%) respondents watching the sport at a venue
during 2013. In contrast, Rugby Union and cricket each registered penetrations
of just over 2% for those watching events live at a venue, while Rugby League
reported a penetration of only 1.2%.

Table 5.2: Interest in Team Sports by Type of Activity


(% of adults), 2013
Penetration (% of adults)
Paid to Watch at a Venue
Football

11.5

Rugby Union

2.6

Cricket

2.2

Rugby League

1.2

Watched on Television
Football

40.8

Rugby Union

19.3

Cricket

17.0

Rugby League

12.1

Table continues...

Key Note Ltd 2014

75

Sports Sponsorship

Buying Behaviour

Table 5.2: Interest in Team Sports by Type of Activity


(% of adults), 2013
...table continued
Penetration (% of adults)
Read About in the Papers
Football

16.3

Cricket

6.9

Rugby Union

5.6

Rugby League

3.0

Looked Up on the Internet


Football

13.7

Cricket

5.3

Rugby Union

4.0

Rugby League

1.8

Source: Target Group Index (TGI) Kantar Media, Quarter 2 (January-December


2013) 2014

INTEREST IN MAJOR INDIVIDUAL SPORTS


The TGI survey also examined interest in several individual sports. According
to the results, which are displayed in Table 5.3, tennis was found to be the most
popular individual sport, with a penetration of 20.3%; this was followed by
athletics (18.2%), motor racing (18.1%) and snooker (15.8%). In terms of
gender, some sports such as tennis and athletics showed little difference in
popularity; while others, such as motor racing and snooker, had a much greater
following among men than women, with penetration among men for these
sports more than double that posted for women. Another noticeable trend
was the rise in penetration alongside age, with all individual sports shown in
Table 5.3 attracting much greater interest among older demographics in
comparison to younger respondents.
Similar to the survey results reported for team sports, individual sports showed
a greater following among those belonging to more affluent social grades,
compared to those with lower disposable income. Regionally, both tennis and
snooker were found to be most popular among respondents living in Scotland,
while those residing in Greater London were found to have the greatest
inclination towards athletics and those living in the East Midlands registered
the highest penetration for motor racing.

Key Note Ltd 2014

76

Sports Sponsorship

Buying Behaviour

Table 5.3: Interest in Popular Individual Sports by Sex, Age,


Social Grade and Region (% of adults), 2013

Tennis

Athletics

Motor
Racing

Snooker

20.3

18.2

18.1

15.8

Men

20.8

19.5

25.6

22.3

Women

20.0

17.0

11.0

9.5

15-19

14.1

13.5

7.1

9.0

20-24

16.6

15.9

10.4

9.8

25-34

18.0

14.3

15.3

12.0

35-44

19.7

16.4

18.4

14.1

45-54

21.3

19.5

22.4

15.0

55-64

20.9

22.4

23.5

16.9

65+

25.2

21.6

20.2

24.6

26.8

23.1

21.5

19.4

26.6

22.4

19.5

14.7

C1

21.2

18.7

18.0

15.1

C2

16.1

18.0

20.5

16.8

16.9

12.8

14.5

16.2

15.6

13.8

14.1

15.6

Scotland

26.4

17.2

18.0

19.1

North West

17.2

17.4

16.3

16.2

North

16.7

15.3

16.1

15.7

Yorkshire and Humberside

17.0

17.5

17.7

18.4

East Midlands

20.6

18.1

22.7

18.0

East Anglia

18.3

17.0

20.6

14.9

South East

20.7

18.9

20.5

14.0

All adults
Sex

Age

Social Grade

Region

Table continues...

Key Note Ltd 2014

77

Sports Sponsorship

Buying Behaviour

Table 5.3: Interest in Popular Individual Sports by Sex, Age,


Social Grade and Region (% of adults), 2013
...table continued

Tennis

Athletics

Motor
Racing

Snooker

Greater London

25.0

20.8

12.2

12.8

South West

21.1

20.7

22.2

16.2

Wales

17.5

17.0

15.6

15.4

West Midlands

17.2

16.0

18.2

16.1

Region (cont.)

Source: Target Group Index (TGI) Kantar Media, Quarter 2 (January-December


2013) 2014

Similar to team sports, television was by far the most popular way to watch
individual sports, with tennis found to attract the highest viewership at 19.4%,
followed by athletics and motor racing (both at 17%), and snooker (15%).
Newspapers represented the second-most popular channel through which to
access individual sports. Tennis once again reported the highest penetration in
terms of newspaper audience at 3.9%, followed by athletics (3.6%), motor
racing (3.1%) and snooker (1.7%).
Accessing information regarding individual sports online still reported
relatively low penetrations, with just 3% of people reading up about tennis
online, along with 2.9% of motor racing fans, 2.2% of athletics fans and just
1.2% of snooker followers. However, watching events live at a venue
generated the lowest level of response, with only 1.2% of respondents paying
to watch a match event live; along with 1% of motor racing fans, 0.9% of
athletics followers and only 0.5% of snooker fans.

Key Note Ltd 2014

78

Sports Sponsorship

Buying Behaviour

Table 5.4: Interest in Individual Sports by Type of Activity


(% of adults), 2013
Penetration (% of adults)
Paid to Watch at a Venue
Tennis

1.2

Athletics

0.9

Motor racing

1.0

Snooker

0.5

Watched on Television
Tennis

19.4

Athletics

17.0

Motor racing

17.0

Snooker

15.0

Read About in the Papers


Tennis

3.9

Athletics

3.6

Motor racing

3.1

Snooker

1.7

Looked Up on the Internet


Tennis

3.0

Athletics

2.2

Motor racing

2.9

Snooker

1.2

Source: Target Group Index (TGI) Kantar Media, Quarter 2 (January-December


2013) 2014

Key Note Ltd 2014

79

Sports Sponsorship

Strengths, Weaknesses, Opportunities and Threats

6. Strengths, Weaknesses, Opportunities


and Threats
STRENGTHS
Professional sports in the UK, such as football and rugby, continue to attract
vast and loyal fan bases both domestically and overseas. This in turn has
continued to drive investment in sports sponsorship, with brands attempting
to tap into the consumer potential of this vast potential market.
Each sport offers different characteristics and qualities, such as strength,
power, team spirit, accuracy, physical prowess, etc., which brands can
positively align themselves with in order to appeal to consumers.
Different sports can attract followers from different backgrounds. Tennis,
rugby and golf, for example, often attract a much more affluent audience
than football; thus allowing brands to more effectively target their
marketing messages through their commercial partnerships with such sports.
Global events, such as the Fdration Internationale de Football Association
(FIFA) World Cup, the Olympic Games and the Winter Olympics, continue to
attract record-breaking deals with sponsors, with global brands such as
Coca-Cola, PepsiCo, McDonalds and Visa investing significant funds into
sponsorship partnerships every year.
A diverse range of sports are played in the UK, with British athletes and sports
personalities continuing to do well on a global stage in several different
sports, providing a number of significant sponsorship opportunities for
brands to take advantage of.

WEAKNESSES
Expenditure on sports sponsorship, like the wider marketing mix, is highly
susceptible to fluctuations in the economy, with corporations tending to
squeeze budgets in times of economic crisis in order to save costs.
Sponsors may sometimes be subject to negative press attention or bad
publicity, e.g. cricket match-fixing scandals and Luis Suarezs match ban
following a biting incident at the FIFA World Cup, which can often have
negative implications for sponsors aligned with the sport or relative sports
personality.
Some sports have a very specific demographic following, thus potentially
limiting audience reach for sponsors.
There is a chronic lack of investment in womens sports in the UK, with just
0.4% of the total sponsorship market thought to be generated by
commercial partnerships with professional womens sports and sports
personalities.

Key Note Ltd 2014

80

Sports Sponsorship

Strengths, Weaknesses, Opportunities and Threats

A much greater proportion of sport is now being broadcast solely on


paid-television, with leading sports broadcasters Sky and BT Sport continuing
to acquire vast broadcast rights to popular sporting tournaments. This could
limit television audiences to include only those that have a paid-television
subscription, thus excluding those with free-to-view (FTV) television.
There has been a drop off in sponsorship expenditure since the 2012 Olympics
in the UK, with several sponsors such as Aviva failing to renew major sports
sponsorship deals following the Games, suggesting that the legacy impact
of the Olympics has been minimal.

OPPORTUNITIES
Sports clubs and associations have become increasingly sophisticated in terms
of their approach to marketing, offering brands an ever-growing range of
sponsorship rights, thus widening their reach and appeal among fans.
Para-sports have continued to generate increased interest from both
broadcasters and sponsors following the success of the London 2012
Paralympic Games; a trend that is likely to continue in the future.
Other sports, such as cycling and athletics, have also continued to increase in
terms of participation and general interest following the success of British
athletes in these categories at the 2012 Olympics. The UKs hosting of several
events particular to these sports in recent years, such as the Grand Dpart of
the Tour de France, the Giro dItalia and the Commonwealth Games, has also
helped to drive sponsorship in these emergent areas of the market.
The rise of digital media and the continued migration of consumers onto
mobile platforms has created new rights and assets that can be leveraged by
sponsors as part of their campaign, e.g. through video-on-demand (VoD),
online, applications (apps), etc.
Social media is being used more and more in sponsorship campaigns as a way
to connect with fans regarding shared passions and interests relating to
sport. The vast audience now on social networking platforms also means that
sponsors can use such channels to drive brand awareness and boost their
online presence.
The UKs hosting of a number of upcoming sporting events over the next few
years is expected to help drive sponsorship spending in the UK. Events
scheduled to be held in the country include the Ryder Cup 2014 in Gleneagles,
the Rugby World Cup (RWC) in 2015, the International Association of
Athletics Federations (IAAF) World Championships and the International
Paralympic Committee (IPC) Athletics World Championships in 2017 and the
Cricket World Cup in 2019.

Key Note Ltd 2014

81

Sports Sponsorship

Strengths, Weaknesses, Opportunities and Threats

Emerging economies are continuing to represent significant areas of growth


for sponsors, with sports audiences continuing to grow in developed markets
following the expansion of sports broadcasting across the globe. The shift in
geo-political and economic power to these emergent markets has also meant
that an increasing number of important international sports events are being
hosted in developing countries, with Brazil, Qatar, Russia and Korea all set
to stage global sporting competitions in the near future.

THREATS
Sponsorship programmes involving gambling firms could be under threat
depending on the outcome of a Government review into gambling
advertising rules, which was launched in March 2014.
Alcohol sponsorship is another area under threat following a leaked report
from the Labour Party in early 2014 which revealed that sponsorship
agreements with alcohol brands could be subject to a ban if the Party wins
the next General Election. Alcohol sponsorship has also continued to come
under increased pressure from health lobbies, medical associations and
charities across Europe, many of which have suggested that such partnerships
promote unhealthy attitudes to drinking which is at odds with the positive
attributes of the sports being sponsored.
Although some countries, such as the UK and US, have recovered from the
economic turmoil that hit developed markets in 2008, the Eurozone remains
weak, which could serve to dampen spending on sports sponsorship across
the region in the future.
Some critics have raised concerns that the rising number and value of
sponsorship deals signed by top-level sports organisations and individuals is
leading to the over-commercialisation of sports in developed markets.

Key Note Ltd 2014

82

Sports Sponsorship

PESTEL

7. PESTEL
POLITICAL
Select Parliamentary Committee Warns Olympics Legacy Has Not
Been Upheld
In November 2013, the Select Committee on Olympic and Paralympic Legacy
published a new report assessing the legacy impact of the London 2012 Games,
which aimed to consider the strategic issues for regeneration and sporting
legacy from the Olympic and Paralympic Games, and to make
recommendations. The report found evidence to suggest that the Olympics
Legacy had not been upheld to the best standards, and warned that the
prospect of an effective and robust legacy from the Games was in jeopardy
unless a change in Government approach was made. Although the Games was
highlighted by the Committee as an outstanding success, the report urged
the Government to appoint a minister with overall responsibility for producing
legacy benefits, which it warned are in danger of faltering.
The report found little evidence that the Olympics and Paralympics legacy has
resulted in increased participation in sport in the UK and drew attention to an
uneven distribution of economic benefit following the Games, with London
and the South East found to have benefitted most from the competition, while
other regions have seen little or no financial payoff. The report also criticised
funding body UK Sports for its no compromise policy on sports, which resulted
in funding being cut across several sports following poor performances at the
Olympics. Five sports altogether, including swimming, had their budgets cut
following the Games, with volleyball suffering an 88% reduction in its funding
after all four Team GB teams were eliminated in the Olympic group stages
during 2012. Instead, funding has been directed towards medal-winning sports
only and, while this has improved top-end performance, this approach has
been found to have an inherent bias against team sports and has failed to
help emerging sports, some of which (e.g. handball and volleyball) generated
strong enthusiasm during London 2012.
Despite the reports numerous recommendations and its criticism of UK Sport,
a response published by the Mayor of London and the Government in February
2014 stated that there were no plans to review the sporting organisations no
compromise approach, which it revealed has created greater opportunities,
particularly for winter sports, and has taken Team GB from 26th in the rankings
for the Atlanta 1996 Games to third place in the rankings for London 2012.
Nonetheless, it does appear that in terms of sponsorship the UK has
struggled to attract interest from sponsors since the 2012 Games, with the
Greater London Authority (GLA) continuing to meet with difficulties in its
attempt to raise funds for sports participation projects despite the success of
the competition in London.

Key Note Ltd 2014

83

Sports Sponsorship

PESTEL

As part of the Legacy programme following the Olympics, City Hall has so far
committed 7m into grass-roots projects in the capital over the next 2 years as
part of the Mayors Sports Legacy Programme. To boost that sum, the Mayors
department has approached several domestic sponsors of London 2012, such
as Lloyds TSB, Cadbury, adidas and BT, with requests for funding of between
100,000 and 1m. However, according to sources, the GLA has failed to secure
any backing from such brands as of yet. The lack of sponsorship investment
from Olympics sponsors following the Games has only been compounded by
the announcement by UK Athletics sponsor Aviva following the Olympics that
it would not be renewing its 13-year sponsorship of British athletics. However,
since then, UK Athletics has amended its sponsorship structure to encompass
a group of corporate partners rather than a single over-arching brand. The new
sponsorship structure has already had positive implications for UK Athletics,
with the sports body recently announcing a 4-year contract extension with
Sainsburys, as well as a 7-year kit deal with Nike.

Sajid Javid Announced as New Culture Secretary


In early April 2014, it was announced that Member of Parliament (MP) Maria
Miller had resigned as Culture Secretary following mounting public pressure
and uproar over her reported misuse of expenses. Although Mrs Miller was
originally cleared of allegations that she had used taxpayers money to fund a
home for her parents, she was told to repay 5,800 of the expenses that she
had claimed by the Commons Standards Committee, despite originally being
order to repay a much higher fee of 45,000 by the independent Parliamentary
Commissioner for Standards. The Committee also criticised her attitude
during the investigation, which it was ruled had breached the parliamentary
code of conduct. Furthermore, although Mrs Miller apologised for her actions
in the Commons, she was later criticised for the brevity of her statement. Amid
rising media pressure and public discontent, Mrs Miller finally announced that
she would be handing in her resignation for her role as Culture Secretary on
9th April 2014, in a statement which read:
I hope that I could stay, but it has become clear to me over the
last few days that this has become an enormous distraction, and
its not right that Im detracting from the incredible
achievements of this Government.
Following Millers resignation, it was later announced that Prime Minister (PM)
David Cameron had appointed Sajid Javid, MP for Bromsgrove, as the new
Secretary for the Department of Culture, Media & Sport (DCMS), which works
alongside 44 agencies and public bodies altogether, including sporting
organisations such as Sport England and UK Sport.

Key Note Ltd 2014

84

Sports Sponsorship

PESTEL

Despite the ascension of Javid to the role of Culture Secretary, the move has
attracted criticism from a number of opponents questioning Mr Javids
knowledge of the arts and sport, due primarily to the MPs former background
in the Treasury and, before that, the corporate financial world. Most
poignantly, British childrens literature writer, Michael Rosen, wrote an open
letter in April 2014 which suggested that Javid was unsuitable for the position
due to his lack of background in arts, pointing to the Secretarys previous
employment in banking. Following Rosens letter, another novelist, Blake
Morrison, added further weight to the argument against Javid, with a
statement from the writer reported in an article published by The Guardian on
11th April 2014 stating that:
The record of culture secretaries is dismal. It seems to be a job
they give to people when they cant think of what else to give
them but they want to encourage their career. It doesnt count,
so give them culture. Its all a bit grim.

Review on Gambling Advertising Announced


In March 2014, the Government announced that it had commissioned the
Advertising Standards Authority (ASA) to commence a review into advertising
by gambling firms in the UK, which will investigate whether more can be done
to ensure existing rules are enforced proportionately and consistently. The
review will also task the Committee of Advertising Practice (CAP) to examine
whether existing restrictions are robust enough following the publication of a
report by the Responsible Gambling Trust in late March which investigated the
link between advertising and problem gambling. Elsewhere, trade body the
Remote Gambling Association (RGA) was tasked with reviewing its voluntary
standards code, the Gambling Industry Code for Socially Responsible
Gambling, to examine whether the broadcasting of gambling advertisements
should be restricted to after the 9pm watershed and whether advertising spots
should carry more educational messaging regarding the potential pitfalls of
gambling. In addition, the Gambling Commission will investigate whether free
bets and bonus offers are marketed in a fair and open way by the industry.
The measures were announced after Labour peer Baroness Jones of
Whitchurch put forth an amendment during a reading of the DCMSs Bill
demanding a review of current rules governing online and offline advertising
by gambling brands, which focused in particular on whether there are
sufficient controls to protect children from exposure to such advertisements
before 9pm. The debate surrounding gambling advertisements has mounted
in recent years following the influx of online gambling brands onto the
marketplace, as well as the increasing level of exposure being given to such
brands due to their sponsorship ties with popular sport. The growing level of
broadcast exposure that such sports have been given has also added to the
rising concern over gambling advertising exposure in recent years as well.

Key Note Ltd 2014

85

Sports Sponsorship

PESTEL

Speaking during the Commons debate, Baroness Jones stated:


viewers of televised sporting events are bombarded with
betting advert[isements] in the commercial breaks, with all
kinds of tempting, and often misleading, offers for correctly
predicting the run of play and the outcome. They capitalise on
viewers excitement and emotion in the moment.
Pressure has also been put on the Government to launch an investigation into
gambling advertising in the UK, after figures published by Ofcom in November
2013 found that the number of gambling advertisements aired annually had
increased six-fold to just under 1.4 million since deregulation of the industry
in 2007. However, critics have pointed out that it was Labour in the first place
that introduced the 2005 Gambling Act, which effectively opened the doors
for the advertising of sports betting, online casinos and poker in the UK. Some
measures have already been introduced to curb advertising by gambling
brands, such as the Gambling (Licensing and Advertising) Bill, which was
brought in during 2013 and requires all gambling brands to hold a UK
operating licence from the Gambling Commission in order to advertise in the
UK. However, gambling operators could face more stringent restrictions
depending on the new reviews outcome, the results of which are due to be
published in the autumn.

ECONOMIC
DCMS Budgets Cut But Elite Sports Protected in 2015/2016
Spending Round
In July 2013, the DCMS announced details of its budget plans for 2015/2016,
including the breakdown of expenditure by the organisation bodies that it
supports, including Sport England and UK Sport. The new Spending Round
revealed that the DCMSs overall budget would be reduced by 7% during
2015/2016, in line with the Governments wider austerity measures and its aims
of reducing the UKs budget deficit, which has resulted in widespread public
sector spending cuts since the recession of 2008/2009. A further breakdown of
the DCMSs Spending Review revealed that, while funding for grassroots sports
would be reduced by 5%, spending on elite sports has been protected, in line
with the Governments promise towards a lasting Olympics sporting legacy.

Key Note Ltd 2014

86

Sports Sponsorship

PESTEL

Following the publication of the DCMSs budget review for 2015/2016, UK


Sport which is responsible for allocating public funds from both the National
Lottery and the Exchequer into high-performance sport revealed that it
would be increasing its funding to 18 Olympic and Paralympic sports in order
to boost the nations performance in preparation for Rio 2016 and beyond.
Altogether, UK Sport is expected to provide funding to 36 Olympic and
Paralympic sports to enhance and protect medal potential for the Rio 2016 and
Tokyo 2020 Games. However, the sporting body also revealed that seven sports
had their funding withdrawn to be re-invested into other programmes, after
failing to demonstrate realistic medal potential following poor performances
at the 2012 Olympics. These sports included basketball, synchronised
swimming, water polo, weightlifting, visually-impaired football, goalball and
wheelchair fencing. Although, following representations to the UK Sport
Board in March 2014, weightlifting has since been reinstated to the World Class
Programme.
According to UKs Sports Annual Investment Review, which was published in
February 2014 and sets out its funding plans for the year ahead, the sports
organisation is expected to strategically invest around 350m of National
Lottery and Exchequer funds into athletes in preparation for Rio 2016, with
rowing attaining the greatest funding award at 32.6m, followed by cycling
with 30.6m and athletics with 26.8m. The high value of funding awards
allocated to all three of these sports follows on from the strong performance
of British athletes across these categories during London 2012, and the high
number of medal wins that they attracted and are likely to continue to attract
in future Olympic competitions. Sports funding in the UK has also been
bolstered by its recent hosting of the Grand Dpart of the Tour de France,
which the Government pledged an additional investment of 10m to, as well
as an increase in the proportion of National Lottery good causes funding
going towards sports, which rose from 16.7% to 20% between 2010 and 2012.

SOCIAL
Fans Revolt as Slew of Payday Loan Sponsors Enter Market
Recent months have seen criticism mount over the rising use of payday loans
firms such as Wonga.com as sponsors across sport (in particular football) within
the UK. The entry of payday loan lenders into the sponsorship marketplace
comes following the phenomenal success of such companies since the start of
the recession, with a year-long review published by the Office of Fair Trading
(OFT) in September 2013 revealing that nine of the ten largest payday loans
firms in the UK had seen their turnover double in the last 3 years alone.
However, the prevalence of payday loan lenders has also resulted in growing
criticism, with many such firms blamed for putting cash-strapped households
at even greater risk of financial collapse and bankruptcy. Nonetheless, the
continued growth of such firms has resulted in increased exposure for payday
lenders, with many continuing to step up their advertising activities in the
wake of their financial success.

Key Note Ltd 2014

87

Sports Sponsorship

PESTEL

Increased investment by payday lenders has seen several such firms invest
significant amounts in sports sponsorship as part of their wider marketing
strategies in the UK. Indeed a number of leading football clubs in the UK,
including Hearts, Newcastle and Blackpool, have signed up major new
sponsorship deals with payday loan lenders, such as Wonga.com. However, the
growing level of criticism attracted by such deals from fans and lobbyists has
seen a number of proposed sponsorship agreements with payday lenders fall
through. In June 2013, for example, Bolton Wanderers revealed that it had
dropped plans to be sponsored by payday loan firm QuickQuid, following
protests from the clubs fans; while Hearts recently announced that it had
ditched Wonga as its sponsor in a bid to distance the club from the unethical
connotations surrounding payday loans, after the sponsorship deal came up
for renewal following its original inception in 2011.
Wongas deal with football club Newcastle United has also come under intense
pressure in recent months, following calls from Labour MPs. Despite this, the
payday loans firm has continued to underline its commitment to the club. It is
not the first time the companys sponsorship deal with the Premiership football
side has hit the headlines, with the firm attracting negative press in 2013 after
it was revealed that Newcastle United player Papiss Cisse had refused to wear
the Wonga-sponsored team shirt after the deal was first announced. Since
then, the partnership between the football club and the payday lender has
remained strong, with Newcastle United continuing to stand by its sponsor
despite allegations earlier this year that the company had threatened
customers with legal action using letters from a non-existent law firm. In
another blow to payday loan sponsorship, it was announced in early 2014 that
the Glasgow Commonwealth Games had banned sponsorships from such
companies after the Scottish Government revealed that it would not support
any proposal for a payday loan company to become a Games sponsor.
The sponsorship of sport by payday lenders is expected to continue to be met
by resistance and criticism, with a number of advertising campaigns already
being banned by the ASA in recent months following complaints from Citizens
Advice. In addition, the launch of a review into the payday loan market by the
Financial Conduct Authority (FCA) in 2014 is also expected to put added
pressure on such companies, with the industry watchdog already in the process
of drawing up tougher regulations for the high-cost short-term loans market
in the UK, which could lead to around a quarter of payday lenders pulling out
of the market altogether if the legislation is passed.

Key Note Ltd 2014

88

Sports Sponsorship

PESTEL

World Cup Sponsors Call for Inquiry into Qatar Corruption


Allegations
Allegations levelled at the Fdration Internationale de Football Association
(FIFA) surrounding corruption over Qatars winning bid for the World Cup in
2022 have continued to draw criticism and outrage across the football
community in recent months, following fresh claims by The Sunday Times that
former top Qatari football official, Mohamed Bin Hammam, used a slush fund
of $5m to drum up support for the nations hosting of the tournament in 2022.
According to the claims, Bin Hammam had made payments of up to $200,000
into accounts controlled by the presidents of 30 African football associations,
and hosted hospitality events in Africa in which he handed out further funds,
in order to obtain backing for Qatars World Cup bid. He is also alleged to have
paid $1.6m into bank accounts controlled by former FIFA Vice President (VP)
Jack Warner, $450,000 of which was paid to Warner before the World Cup vote
was undertaken. Both FIFA and the Federal Bureau of Investigation (FBI) have
launched investigations into the corruption claims since the publication of
evidence by The Sunday Times; a number of sponsors, including Visa, Hyundai/
Kia, adidas and Sony have expressed concern over the claims and demanded
that FIFA take the corruption allegations seriously. In a statement released by
adidas, which has a long-running partnership with the World Cup running until
2030, the sportswear brand underlined that:
The negative tenor of the public debate around FIFA at the
moment is neither good for football nor for FIFA and its
partners.
Meanwhile, another top-tier sponsor of the football competition, Coca-Cola,
added that anything that detracts from the mission and ideals of the FIFA
World Cup is a concern to us, while a statement released by Visa stated that
it expected FIFA would take appropriate actions to respond to the current
investigation and its recommendations. Collectively, FIFAs sponsors contribute
around $1.5bn (900m) over a 4-year World Cup cycle, highlighting the level
of commercial power that such brands have over the football governing body
and its decisions relating to the corruption claims.
The Qatar World Cup corruption scandal follows on from a troubled build up
to the 2014 competition in Brazil, which drew public criticism after it was
revealed that $11bn had been spent on hosting the event, despite this marking
a period of underinvestment in public services in the country. Meanwhile,
further controversy has hit Qatar over its employment of cheap labour at the
new football stadiums currently being built in the country in the run up to
2022; with recent rumours circulating that FIFA has been considering plans to
make a countrys human rights record a factor in awarding future events. The
awarding of the 2022 World Cup bid to Qatar has continued to draw criticism
since it was first announced back in 2010, with many people citing the countrys
lack of football history as an issue, and voicing concerns over the health of
players who will be forced to play in the desert nations stifling summer heat.

Key Note Ltd 2014

89

Sports Sponsorship

PESTEL

FIFAs current investigation into the corruption claims surrounding Qatars


winning bid for the tournament, which is being undertaken by committee
member Michael Garcia, was originally due to be published in summer 2014;
however, it was revealed in July that the report would be delayed for several
weeks. The investigation, which examines corruption claims over both the 2018
won by Russia and the 2022 World Cup bids is instead expected to be
published in September. Following the publication of the report, Judge
Joachim Eckert, the judge for the adjudicatory chamber of the Ethics
Committee, will decide on possible sanctions against any of the nine bidding
nations that competed for the two tournaments should they be found to have
allowed corruption. However, it is not yet known whether Garcia has
considered the recent findings published by The Sunday Times relating to
Mohamed Bin Hammam, despite Qatari bid officials denying any wrongdoing.
Nonetheless, it is likely that anyone found guilty of corruption could face
subsequent criminal prosecution. If corruption allegations were found to be
true it could mean that the bid process for the 2018 and 2022 tournaments is
re-run, although FIFA President Sepp Blatter has stressed that only his ruling
board, and not Judge Eckart, has the power to overturn the World Cup bids.

Women in Sports Still Underrepresented


British sport has continued to remain a male dominated industry, particularly
in relation to sponsorship funding, with just 0.4% of total commercial
investment going towards women in sport since 2011, according to the
Womens Sport and Fitness Foundation (WSFF); while just 7% of sports media
coverage is devoted to womens sport. However, further data compiled by
WSFF show that over 60% of sports fan would like to see more womens sport
on television in the future. While recent years have seen the emergence of
women in some sports, such as snooker, cricket and rowing, for example,
scandals such as the leak of private emails sent by Football Association (FA)
Chief Executive (CE) Richard Scudamore containing sexist content, as well as
male snooker player Steve Davis recent comments that he expects women will
never compete in the final stages of the World Snooker Championship, have
continued to set back the progress of women in sports in the UK in recent years.
A lack of representation at board level, as well as minimal sponsorship funding
in comparison to professional mens sports, has also been to blame for the slow
pace of growth observed in womens sports. Recent years have seen a turning
of the tide in some sports categories: Investec, for example, announced that it
had signed a record-breaking 5-year sponsorship deal with the England and
Great Britain womens field hockey teams back in 2011; while, more recently,
Englands womens cricket team revealed that it had signed its first standalone
sponsorship agreement, in a deal with Kia set to last around 2 years. Other
major sponsorship agreements signed by female athletes have included the FA
Womens Super Leagues 5-year sponsorship deal with Continental, which is
estimated to be worth approximately 450,000; and the Netball Superleagues
sponsorship by Zeo, estimated to be worth approximately 390,000. However,
the value of these deals is still far below those signed by professional male
athletes and sports clubs. Chelsea Football Club (FC), for example, signed a deal
worth a total of 280m with adidas in June 2013; while golfer Rory McIlroy is
reported to have agreed a sponsorship deal with Nike in January 2013
estimated to be worth around 150m in total.

Key Note Ltd 2014

90

Sports Sponsorship

PESTEL

Some changes have, however, already been undertaken to level the playing
field between womens and mens sports. Tennis tournament Wimbledon, for
example, began awarding women the same amount of prize money as men in
2007; with tennis continuing to represent one of the most significant
mainstream sports where women and men both attract lucrative sponsorship
deals and equal television coverage. Meanwhile, the Tour de France
announced that a new cycling event, Le Course, would be introduced for the
first time during 2014, which will see elite women cyclists race the Paris circuit
of the mens Tour de France route. The prize money for Le Course will also be
equivalent to that for a stage winner of the Tour de France. Nonetheless,
womens sport has a long way to go before it is seen as equal to that played
by men; although an increase in sports participation by women over the past
decade should help to yield more professional female sports stars in the future,
with the number of women participating in sport and physical activity
estimated to have increased by more than 1 million since 2005, according to
National Statistics estimates.

TECHNOLOGICAL
Wearables and Virtual Reality: Game Changers
The wearable technology market, while still very much in its infancy at present,
is set to observe significant growth over the next few years, with research from
IDC revealing that wearable device shipments will reach 19 million worldwide
by the end of 2014, and will grow to 111.9 million by 2018. Several technology
firms, such as Samsung, Nike, Fitbit, Jawbone and Google, have continued to
develop wearable technology, while Apple is currently thought to be working
on a smartwatch rumoured to be called the iWatch which could launch as early
as this year. The majority of wearables currently on the market offer a more
mobile experience for customers, with unique selling points (USPs) focusing on
integration with other devices and the provision of big data in real-time direct
to users. In this way, such devices have shown particularly strong growth
among sports fanatics due to their ability to measure and monitor performance
during sport, e.g. heart rate, pace, distance travelled, etc.

Key Note Ltd 2014

91

Sports Sponsorship

PESTEL

Wearable technology is also purported to be having a significant impact on


the professional sports market, with several global sportswear brands such as
adidas, Nike and Reebok already investing heavily in wearable devices
designed specifically to monitor performance during professional sport events.
The National Football League (NFL) in the US, for example, already
incorporates wearable technology into virtually every piece of equipment used
by professional athletes in order to monitor their performance and safety;
while Major League Baseball (MLB) has been testing smart compression shirts
that have been wired to measure arm movement and technique to determine
a pitchers effectiveness. Australian technology start-up Catapult has already
made significant headway into the professional sports market with its range
of wearable monitoring solutions, such as the OptimEye system which works
by fitting a small bug sensor unit in a players shirt, which then tracks the
athletes place in three-dimensional (3D) space, allowing users to pinpoint each
players exact direct for each acceleration or step. Catapult has continued to
observe significant growth in recent years, with the company now holding
contracts with around 250 Australian and European professional football
organisations, as well as several national rowing programmes and rugby clubs,
including the British and Irish Lions.
The growth in wearable technology within the professional sports market
reflects the rising interest in sports science and big data by top-level sports
organisations, many of which are increasingly using such information to track
performance, amend tactics and monitor player safety. Increased usage of
wearable technology in professional sports is also expected to provide a means
for deeper fan engagement, for example by providing fans with real-time
statistics, as well as capturing on-field player viewpoints through video. Such
trends could have serious implications for sponsors, creating new rights and
assets that can be leveraged as part of wider sponsorship campaigns.
The growing utilisation of virtual reality (VR) technology by sponsors reflects
the development of this trend in the sports sponsorship arena, with a number
of sponsors already using such technology to create innovative, immersive and
engaging experiences for sports fans. England Rugby sponsor O2, for example,
recently launched a new 360-degree VR sporting experience which allows fans
to virtually train with the England Rugby team using the Oculus Rift gaming
headset. Likewise, technology group IBM leveraged its sponsorship of tennis
tournament the Australian Open to launch a new real-time VR game, which
allowed fans to virtually return serves from players using the Oculus Rift
headset. IBM also used the tennis competition to launch new application (app)
SlamTracker, which collected all data from the tournament, allowing fan
insight into what a player needs to do to beat an opponent using predictive
analytics technology. With the wearables and VR market set to take off over
the next few years, it is likely that sponsors will increasingly be looking to such
technology to help activate their brands during sponsorship campaigns; with
such platforms providing scope for increasingly sophisticated, innovative and
immersive brand experiences.

Key Note Ltd 2014

92

Sports Sponsorship

PESTEL

In-Stadia Connectivity to Drive Mobile Interactions


Recent years have seen stadiums and venues invest heavily in the development
of more connected facilities (for example, through the installation of
in-stadium Wi-Fi, cashless payment facilities, social media boards and improved
big-screen technology) in order to better accommodate the growing mobile
audience. In this way, venues are further facilitating the growing trend
towards second screening, that is the provision of additional content to sports
fans, such as alternative match perspectives, in-play betting, video replays,
statistics and real-time performance information, directly to mobile devices.
The interactions of sports fans on social media networks through mobile has
also helped to drive key investment in in-stadium connectivity, with fans
increasingly utilising social media platforms to connect with each other, share
information and interact with sponsors.
During 2013, Liverpool FC, along with Manchester City, became the first two
Premier League clubs to begin roll-outs of in-stadium Wi-Fi connectivity in the
UK; with Scottish team Celtic FC also announcing a similar roll-out at its home
stadium Parkhead during the same year. More recently, it was announced that
Wembley, in partnership with mobile telecommunications firm Everything
Everywhere (EE) had signed a new 6-year deal to develop the venue as the
most connected in the world. The multi-million-pound deal is expected to
deliver enhanced fourth-generation (4G) network coverage across the
stadium, as well as superfast Wi-Fi and an integrated mobile payments system.
The deal between EE and Wembley is similar to the partnership between Real
Madrid and Cisco Systems, which was first signed in 2011 with a view to
creating one of the most interactive stadiums in Europe. Following on from
the deal, Real Madrids home stadium the Santiago Bernabu Stadium
became the first venue in Europe to install a high-density Wi-Fi network able
to support heavy traffic, as well as the installation of high-definition (HD)
displays throughout the stadium, which can be used to display player statistics,
action replays and referee rulings; as well as exclusive content to those
attending live matches.
Other sports venues have also begun to roll-out more connected facilities at
stadiums. London-based cricket ground Lords, for example, announced the
launch of new in-stadium Wi-Fi facility The Cloud, which it began work on back
in 2012. The Cloud was installed across all hospitality areas in the grounds and
has since been followed by further Wi-Fi roll-outs to match stands, allowing
fans to access the Internet from their seats. Meanwhile, during 2013, Chester
Racecourse announced plans to roll-out free Wi-Fi across the venue, following
a partnership deal with O2, with the service set to be free for all mobile or
broadband customers, irrespective of their mobile provider.
For sports sponsors, the growth of the connected stadium could offer a number
of marketing opportunities; for example, by providing a route to engage with
consumers in real-time regarding live events, and presenting further
opportunities for in-stadium marketing and sponsorship activities; ultimately
allowing sponsors to engage with consumers on a much deeper level
throughout live matches.

Key Note Ltd 2014

93

Sports Sponsorship

PESTEL

ENVIRONMENTAL
Corporate Social Responsibility Becoming a Focal Point in
Sponsorship
Nowadays, an increasing number of companies have begun aligning their
sponsorship activities with their corporate social responsibility (CSR) strategies,
in order to effectively promote their positive social and environmental
contributions. The social value of brands has become increasingly important to
corporations and has been driven by a need to build more personal
relationships with customers through active engagement. Supporting social
and environmental issues, and promoting activities undertaken to help achieve
CSR aims related to such issues, therefore provides a route through which
brands can engage with consumers on topics of shared interest. In this way,
customer relationships are able to go beyond price point and product, and
towards a relationship based more on shared ethics and social responsibility.
Football, in particular, has become a powerful brand for change, with around
250,000 community visits undertaken by footballers in the UK relating to social
and environmental issues, such as anti-racism projects for example. By
undertaking such projects, sports organisations and individuals are able to use
their positive public image to draw attention to issues of significant social
importance; with sponsors in turn benefitting from the positive PR that these
types of social strategies offer. The emergence of organisations specialising in
the social aspect of sport such as Beyond Sport reflects the move towards a
more CSR-centric approach within the sport sponsorship market. The
organisation, which counts several high-profile brands including Barclays, Time
Magazine, Unicef, PwC and United Airlines among its client base, is primarily
engaged in facilitating relationships between sports projects and business
backers. The company backs around seven community projects around the
globe each year, and estimates such packages to be worth approximately
$200,000 each (including in-kind services). Indeed, since being founded in 2009
by founder Nick Keller, Beyond Sport has helped to provide over 4m worth
of support to projects across the globe. According to a statement by Keller
published by the BBC in 2011, the growth of the company reflects the shift
towards more sustainable and socially-motivated sponsorship models by big
business:
I think this model of sponsorship, with a social element, will be
the model of sport sponsorship over the next 20 years... I dont
think we will see many blue-chip brands take up sponsorship in
[the] future without a social element... Sport and sport for
development offers a [CSR] vehicle that allows brands to market
themselves in different ways.

Key Note Ltd 2014

94

Sports Sponsorship

PESTEL

For businesses that have aligned their commercial partnerships with social
projects, there is an opportunity to benefit from increased profile, networking
opportunities, and improved business expertise. One example has been current
Olympics sponsor Procter & Gamble (P&G), which has continued to use its
market-leading position and commercial tie-ins to promote environmental and
social messages. One of its main brands, Ariel, for example, ran a campaign
called Cool Clean to try and get customers to wash their clothes at 30 degrees
in order to save energy. Such campaigns have proved successful, with around
30% of consumers thought to now be washing their clothes at 30 degrees,
compared to just 2% back in 2002.

LEGISLATIVE
Calls Mount for Alcohol Sponsorship Ban in the UK
Arguments for a ban on alcohol sponsorship at music and sports events in the
UK have once again surfaced in recent months, after a leaked report revealed
that the UKs Labour Party was backing plans to ban alcohol sponsorship in the
future if it takes office following the 2015 General Election. Health activists
and legislators have also stepped into the debate, with a number of powerful
organisations, such as the British Medical Association (BMA) and the House of
Commons Health Select Committee, throwing their weight behind a potential
ban. Similar bans are already in place in several other European countries, such
as France, which bans the placement of alcohol advertising on television, in
cinemas, and in sponsorship campaigns at sporting events. On top of this, 2015
is expected to see the European Commission launch a new Alcohol Strategy
encompassing the entire EU, which could also be used to implement stricter
regulations surrounding alcohol sponsorship of sports, in line with the World
Health Organizations (WHOs) recommendations outlined in its Global
Strategy to Reduce the Harmful Effects of Alcohol.
The argument in support of a ban on alcohol sponsorship comes after Ofcom
figures revealed the increasing level of exposure that children now have to
alcohol advertising, with an average of 3.2 alcohol advertisements witnessed
by children per week in 2011, compared with 2.7 per week in 2007. If such a
ban is eventually implemented it could have a negative impact on several
popular professional sports, such as Formula 1 (F1) motor racing, horseracing,
rugby and football, which all rely heavily on generating income through
commercial partnerships with drinks brands. F1, in particular, has been subject
to increased criticism from anti-alcohol charities and road safety lobbies in a
move not unlike the ban against tobacco sponsorship which hit the sport
during 2005, with several high-profile F1 teams currently engaging in major
sponsorship deals with global drinks brands. Martini, for example, recently
re-joined F1 as a title sponsor for Williams, while McLaren is backed by whiskey
manufacturer Johnnie Walker in a deal thought to be worth around 15m a
year. Meanwhile, Force India signed a deal with vodka brand Smirnoff in early
2014, with the commercial partnership encompassing branding on all team
cars.

Key Note Ltd 2014

95

Sports Sponsorship

PESTEL

The ban on tobacco sponsorship back in 2005 is thought to have cost F1 teams
millions of pounds in revenue, with the sport now thought to be bracing itself
for a similar situation following the mounting criticism over alcohol
sponsorship. However, it is hoped that the introduction of a new code aimed
at regulating all new alcohol sponsorship agreements in the UK earlier in the
year may go some way towards quelling arguments in support of a ban.
Alcohol regulator Portman Group, which helped to draw up the new code,
claims that it carries clear sanctions, through the negative publicity that drinks
brands risk by breaching the code and through the financial cost of having to
renegotiate a sponsorship agreement or having to withdraw it completely. The
code represents the first of its kind for UK-wide alcohol sponsorship and
introduces a new and binding commitment for all drinks companies to promote
responsible drinking through their sponsorship agreements. Several leading
sports, arts and venues organisations have already endorsed the code including
AEG, British Horseracing, the England and Wales Cricket Board (ECB), the FA,
the Premier League and all UK rugby bodies; with several leading drinks brands
already signing up to the code such as AB InBev, Pernod Ricard and Diageo.

Key Note Ltd 2014

96

Sports Sponsorship

Further Sources

8. Further Sources
Associations
Advertising Standards Authority
http://www.asa.org.uk

Internet Advertising Bureau


http://www.iabuk.net

British Cycling
http://www.britishcycling.org.uk

Remote Gambling Association


http://www.rga.eu.com

European Sponsorship Association


http://www.sponsorship.org

Rugby Football League


http://www.therfl.co.uk

Gambling Commission
http://
www.gamblingcommission.gov.uk

Womens Sport and Fitness


Foundation
http://www.wsff.org.uk

International Rugby Board


http://www.irb.com

Publications
Campaign
http://www.campaignlive.co.uk
The Economic Impact of British
Racing 2013
Deloitte
http://www.deloitte.com

Know the Fan: Global Sports Media


Consumption, June 2014
Kantar Media
http://www.kantarmedia.co.uk
Marketing Week
http://www.marketingweek.co.uk

Forbes
http://www.forbes.com

The Sunday Times


http://www.thesundaytimes.co.uk

Golf Digest 50 Money List


Golf Digest
http://www.golfdigest.com

Find!Sponsorship
http://www.findsponsorship.co.uk

The Guardian
http://www.theguardian.com

Key Note Ltd 2014

97

Sports Sponsorship

Further Sources

General Sources
Kantar Media
http://www.kantarmedia.com

Nielsen
http://www.nielsen.com

Government Publications
Department of Culture, Media and
Sport
https://www.gov.uk/government/
organisations/department-forculture-media-sport
Spending Review 2014/2015
HM Treasury
https://www.gov.uk/government/
organisations/hm-treasury
Forecasts for the UK Economy: a
comparison of independent forecasts,
May 2014

National Statistics
http://www.statistics.gov.uk
Consumer Price Inflation, April 2014
Labour Market Statistics, May 2014
National Population Projections,
2012-based projections
Population Estimates for UK,
England and Wales, Scotland and
Northern Ireland, Mid-2001 to
Mid-2010 Revised, December 2013
United Kingdom Economic Accounts
Q4 2013

Other Sources
Accenture
http://www.accenture.com
BBC
http://www.bbc.co.uk
BT
http://www.bt.com
Deloitte
http://www.deloitte.com
IDC
http://www.idc.com

IEG
http://www.sponsorship.com
Millward Brown
http://www.millwardbrown.com
Ofcom
http://www.ofcom.org.uk
Office of Fair Trading
https://www.gov.uk/government/
organisations/office-of-fair-trading
Sky
http://www.sky.com

Key Note Ltd 2014

98

Sports Sponsorship

Further Sources

Snack Media
http://www.snack-media.com

UK Sport
http://www.uksport.gov.uk

Sponsorship Today
http://imrpublications.com

Key Note Ltd 2014

99

Sports Sponsorship

Key Note Research

Key Note Research


Key Note is a leading supplier of market information, publishing an extensive range of
consumer, industrial, business-to-business and services titles. With over 30 years experience,
Key Note represents clear, concise, quality market information.
For all reports, Key Note undertakes various types of research:
Online searching is carried out by product code or free search method, and covers the period
from the last edition of the report to the current day.
Trade sources, such as trade associations, trade journals and specific company contacts, are
invaluable to the Key Note research process.
Secondary data are provided by Kantar Media (TGI) and Nielsen for consumer/demographic
information and advertising expenditure, respectively. In addition, various official publications
published by National Statistics, etc. are used for essential background data and market trends.
Interviews are undertaken by Key Note for various reports, either face-to-face or by telephone.
This provides qualitative data (industry comment) to enhance the statistics in reports;
questionnaires may also be used.
Field research is commissioned for various consumer reports and market reviews, and is carried
out by NEMS Market Research.
Key Note estimates are derived from statistical analysis and trade research carried out by
experienced research analysts. Up-to-date figures are inserted where possible, although there
will be some instances where a realistic estimate cannot be made or external sources request
that we do not update their figures.
Key Note Editorial, 2014

Key Note Ltd 2014

100

Sports Sponsorship

The Key Note Range of Reports

The Key Note Range of Reports


Key Note publishes over 180 titles each year, across both the Key Note and Market Assessment
product ranges. The total range covers consumer, lifestyle, financial services and industrial
sectors.
Title

Edition

Published

Title

Key Note Current Reports

C2DE Consumer

ABC1 Consumer

2014

Access Control

14

2014

Accountancy

17

2014

Activity Holidays

2014

Advertising Agencies

2014

Airlines

24

2014

Airports

17

2014

All-Inclusive Holidays

2012

Alternative Healthcare

2013

Arts & Media Sponsorship

2014

Automatic Vending

27

2014

Automotive Services

2014

20

2012

Autoparts
B

B2B Marketing
Baby Products

2014

Edition

Published

2014

20

2014

Car Dealers

2014

Care Homes

2014

Carpets & Floorcoverings

18

2014

Catering Equipment

15

2012

Catering Market

21

2009

Canned Foods

Charity Funding

2013

16

2014

Childcare

2012

Childrens Publishing

2012

Childrenswear

10

2013

Chilled Foods

18

2014

China & Earthenware

30

2014

Cigarettes & Tobacco

27

2013

Closed-Circuit Television

15

2014

Clothing & Footwear Industry

13

2010

Clothing Manufacturing

18

2014

Clothing Retailing

10

2013

Coffee & Sandwich Shops

2013

Commercial Dynamics in
Financial Services

2010

Chemical Industry

2013

Baths & Sanitaryware

16

2013

Betting & Gaming

26

2013

Biscuits & Cakes

21

2014

Book Publishing

22

2012

2014

Bookselling

18

2012

Commercial Insurance for Small


Businesses

2014

Bread & Bakery Products

29

2014

Commercial Vehicles

17

2014

Breakfast Cereals

18

2014

Computer Hardware

11

2013

Breweries & the Beer Market

31

2014

Computer Services

11

2014

Bricks & Tiles

18

2013

Computer Software

2013

Book Retailing on the Internet

Bridalwear

2013

Condiments & Sauces

2008

Builders Merchants

18

2013

Confectionery

32

2014

Building Contracting

12

2013

Construction Industry

11

2009

Building Materials

15

2013

Consumer Credit & Debt

2012

Bus & Coach Operators

12

2014

Consumer Magazines

19

2014

Business Postal Services

2013

Contact Centres

2013

Business Press

16

2014

Contraception

2014

Business Travel

2014

Contract Catering & Foodservice


Management

22

2013

Contract Cleaning

Key Note Ltd 2014

23

2013

Cooking & Eating Habits

2012

Cooking Sauces & Food


Seasonings

2013

101

Sports Sponsorship

Title

Corporate Hospitality
Corporate & Promotional
Giftware

The Key Note Range of Reports

Edition

Published

2014

Title

Edition

Published

European Trends in Food


Shopping

2009

14

2014

2013

Exhibitions & Conferences

Cosmetic Surgery

11

2014

Cosmetics & Fragrances

26

2013

Courier & Express Services

18

2013

Fast-Food & Home-Delivery


Outlets

27

2013

2012

Film Market

2009

2014

Financial Services Marketing to


BCs

2009

Cruise Market
Customer Magazines

Customer Relationship
Management

2013

Customer Services in Financial


Organisations

Financial Services Marketing to


DEs

2010

Financial Services Marketing to


Start-Up Businesses & the SelfEmployed

2010

Financial Services Marketing to


the Affluent

2009

2013

Debt Services (Commercial &


Consumer)

2009

2014

12

2014

Diet Foods

2013

Financial Services Organisations


on the Internet

Digital Broadcasting

2014

Fire Protection Equipment

10

2013

Digital Communications

2012

Fish & Fish Products

15

2012

Direct Insurance

2010

Fitted Kitchens

12

2013

Direct Marketing

21

2014

Food Industry

20

2010

Direct Mortgages

2013

Football Clubs & Finance

2014

Discount Retailing

10

2014

Footwear

Disposable Paper Products

14

2013

Forecourt Retailing

Distribution Industry

10

2009

DIY & Home Improvements


Industry

11

2009

Domestic Heating

15

2013

Drinks Market

19

2009

Defence Equipment

E-Commerce: The Internet


Grocery Market

2014

E-Commerce: The Internet


Leisure & Entertainment Market

2008

11

2014

Electrical Wholesale

2013

Electricity Industry

2013

Electronic Banking

2008

Energy Industry

2010

Equipment for the Disabled

2014

E-Recruitment

2012

Estate Agents

18

2011

2012

18

2013

European Long-Term Insurance

2008

European Renewable Energy

2008

European Short Breaks

2008

European Telecommunications

2010

European Tourist Attractions

2010

Electrical Contracting

Estate Agents & Services


Ethnic Foods

Key Note Ltd 2014

18

2013

2012

Franchising

13

2012

Freight Forwarding

18

2011

Frozen Foods

27

2014

Fruit & Vegetables

24

2014

Fruit Juices, Energy & Juice


Drinks

16

2014

Functional Foods

2010

Further & Higher Education

2014

15

2013

2014

General Insurance

13

2010

Giftware

20

2011

Glassware

17

2013

2013

Greetings Cards

28

2014

Grey Consumer

2013

Hand Luggage & Leather Goods

17

2013

Health Clubs & Leisure Centres

Garden Equipment
Gas Industry

Green & Ethical Consumer

13

2014

Healthy Eating

2008

Holiday Purchasing Patterns

2014

Home Entertainment

2012

Home Entertainment
(Audiovisual)

2013

102

Sports Sponsorship

Title

The Key Note Range of Reports

Edition

Published

2013

Milk & Dairy Products

22

2014

Mobile Marketing

Home Insurance

2014

Mobile Phones

10

2014

Home Shopping

16

2014

Motor Finance

2013

Horticultural Retailing

18

2013

Motor Industry

12

2008

2014

Motor Insurance (Consumer)

2014

Hotels

27

2013

Music Industry

2014

Housebuilding

21

2013

Household Appliances (Brown


Goods)

13

2013

2012

Home Entertainment
(Computing & Gaming)
Home Furnishings

Hot Beverages

Title

Metal Recycling

Edition

Published

2014

27

2013

2014

Natural Products
Newspapers

20

2014

2013

Household Appliances (White


Goods)

19

2013

Non-Food Sales in Supermarkets

Household Detergents &


Cleaners

Non-Metal Recycling

2014

18

2014

Nutraceuticals

2008

Household Furniture

21

2014

2010

17

2014

Office Furniture

2013

Offshore Oil & Gas Industry

Insurance Companies

12

2009

Ophthalmic Goods & Services

Insurance Industry

10

2009

Opticians & Optical Goods

Insurance Market

13

2012

2008

Office Equipment Industry

Ice Creams & Frozen Desserts


Independent Financial Advisers

Insurance Prospects

23

2013

2013

19

2013

2010

Organic Food & Drink

2012

OTC Pharmaceuticals

17

2014

2009

16

2014

2010

Internet & Telephone Banking

2013

Over-50s Consumer

Internet Advertising

2013

Own Brands

IT Recruitment

2014

IT Security

12

2014

Packaging (Food & Drink)

IT Training

15

2014

Packaging (Glass)

13

2008

Packaging (Metals & Aerosols)

14

2014

Packaging (Paper & Board)

17

2014

Packaging (Plastics)

17

2014

Kitchenware

Pensions

2013

Personal Banking

2012

Personal Lines Insurance

2012

Personal Loans

2008

Pet Insurance

2014

Pet Market

2014

Pharmaceuticals Industry

2008

Planning for Retirement

2008

Plus-Size Fashion

2009

Poultry

2014

Power Tools

2013

Premium Lagers, Beers & Ciders

12

2014

Printing

18

2014

Private Healthcare

23

2014

Jewellery & Watches

28
9

2014
2013

Laboratory Equipment

12

2014

Legal Services to Consumers

2013

Leisure in the Home

2010

Leisure Outside the Home

2010

Lifestyle Magazines

2013

12

2014

Local Government Services

2010

Low-Fat & Reduced-Sugar Foods

2008

2012

Meat & Meat Products

24

2014

Medical Equipment

20

2014

Medical & Health Insurance

2012

Medical Insurance

2014

Men & Womens Buying Habits

2012

Mens Toiletries & Fragrances

2013

Lingerie

Marketing in the Digital Age

Key Note Ltd 2014

Protective Clothing & Equipment


Public Houses
Public Relations Industry
Publishing Industry

2014

29

2013

2012

13

2010

103

Sports Sponsorship

Title

The Key Note Range of Reports

Edition

Published

Title

Edition

Published

Trends in Leisure Activities

2014

2014

UK Internet Market

2009

Utilities

2013

Vegetarian Foods

2012

Vehicle Breakdown Services

2014

2011

Tyre Industry

Ready Meals

14

2013

Recruitment Agencies
(Permanent)

13

2014

Recruitment Agencies
(Temporary & Contract)

13

2014

2013

Restaurants

27

2013

Retail Pharmacies

19

2014

Road Haulage

23

2012

Rural Economy

2009

13

2012

2013

Security Industry

13

2010

Shopfitting

16

2014

Shopping Centres

2013

Singles Market

2012

Slimming Market

2013

Small Businesses & Banks

2010

Small Domestic Electrical


Appliances

14

2013

Snack Foods

22

2013

Key Note Archive Reports

2014

20

2013

Soup Market

2013

Spirits & Liqueurs

2014

Sports Clothing & Footwear

16

2014

Sports Equipment

18

2013

Sports Market

13

2010

Sports Sponsorship

10

2014

Stationery (Personal & Office)

27

2013

Supermarket Own Labels

2013

Supermarket Services

2013

Sweet & Salty Snacks

16

2010

18

2011

2013

Timber & Joinery

21

2013

Toiletries

26

2014

2013

Toys & Games

27

2014

Training

22

2014

2014

17

2010

Rail Travel

Renewable Energy

Sauces & Spreads


Savings & Investments

Social Media Marketing


Soft Drinks (Carbonated &
Concentrated)

Take-Home Trade
Teenage & Pre-Teen Magazines

Tourist Attractions

Travel Insurance
Travel & Tourism Market
Travel Agents & Overseas Tour
Operators
Trends in Food Shopping

Key Note Ltd 2014

26

2014

2008

Vehicle Security

11

2014

Video Gaming

2014

Vitamins, Minerals &


Supplements

2013

Wallcoverings & Ceramic Tiles

20

2014

Waste Management

13

2014

2013

Windows & Doors

22

2013

Wine

24

2014

Women's Plus-Size Fashion

2013

Working Women

2009

2014

Water Industry

Y
Youth Fashionwear

Aerospace

12

2003

Agrochemicals & Fertilisers

2002

Air Freight

2005

Air Transport Logistics

2003

Animal Feedstuffs

11

2001

2000

Baby Foods

2006

Baths & Showers

2000

Bearings

2007

Beds, Bedrooms & Upholstered


Furniture

2000

Bottled Water

2001

10

2004

2006

Audio Visual Retailing


B

Cable & Satellite TV


Call Centres
Cash & Carry Outlets

16

2001

Cinemas & Theatres

2001

Clothing Retailers

2000

Commercial Radio

2004

Consumer Borrowing in Europe

2004

Consumer Internet Usage

2000

Contracted-Out Services

2007

12

2002

Convenience Retailing

104

Sports Sponsorship

Title

The Key Note Range of Reports

Edition

Published

Cross-Border Shopping

2000

Customer Loyalty in the Financial


Services

2000

Dark Spirits & Liqueurs

2004

Defence Industry

2003

Design Consultancies

2000

Digital TV

2003

DINKY Market

2007

Document Imaging Systems

2007

Domestic Telecommunications

2006

Dry Cleaning & Laundry Services

2005

Electronic Component
Distribution
Electronic Component
Manufacturing
Electronic Games
Equipment Leasing

12

2002

11

2002

2003

12

2003

E-Shopping

2002

European Electricity Industry

2007

European Gas Industry

2007

European Oil & Gas Industry

2007

European Water Industry

2007

Extended Financial Families

2005

2003

11

2000

Factoring & Invoice Discounting


Finance Houses
Financial Services Marketing to
ABC1s

2000

Financial Services Marketing to


ABs

2006

Financial Services Marketing to


C1C2DEs

2004

Financial Services Marketing to


Over-60s

2004

Title

Edition

Published

Generation Y

2007

Global Positioning Systems

2002

Global Waste Management

2070

Health Foods

22

2003

Healthcare Market

10

2005

2002

In-Car Entertainment

2000

Individual Savings Accounts

2005

Industrial Fasteners

2001

Industrial Pumps

2000

Industrial Valves

2001

Internet Service Providers

2005

Internet Usage in Business

2005

Issues & Challenges in the UK Life


Assurance Market

2002

Issues in Higher Education


Funding

2006

Leisure & Recreation Market

15

2005

Lighting Equipment

14

2002

Heating, Ventilating & Air


Conditioning
I

Management Consultants

10

2003

Marketing to Children 4-11

2003

Mechanical Handling

2001

Millenium Youth

2002

Mobile Telecommunications

2007

2002

Off-Trade Spirits

2004

Organic Baby & Toddler Care

2007

Over-40s Consumer

2005

14

2002

Passenger Travel in the UK

2007

Pay TV

2004

New Media Marketing

Financial Services Marketing to


the Retired & Elderly

2007

Free-To-Air TV

2004

Paper & Board Manufacturers

Pension Extenders

2002

Photocopiers & Fax Machines

14

2005

Plant Hire

13

2007

Plastic Cards in Europe

2005

10

2003

Pre-School Childcare

2001

Private-Sector Opportunities in
Education

2001

Plastics Processing

Key Note Ltd 2014

105

Sports Sponsorship

Title

The Key Note Range of Reports

Edition

Published

Process Plant Industry

2000

Public Transport

2001

Edition

Published

The Fish Industry

2001

The Legal Services Market

2005

The Luggage Market

2000

2003

The Newspaper Industry

2005

2001

Rail Transport Logistics

Title

Railway Industry

2006

Tweenagers

Recycling & the Environment

2000

Retail Credit

2000

Video & DVD Retail & Hire

2005

Retail Development

2001

Videoconferencing

2007

Road Transport Logistics

2003

Water Transport Logistics

2003

Saving Trends in Eurozone

2002

White Goods

2000

Short Break Holidays

2001

White Spirits

2005

Short Breaks

2004

Women Over 45

2007

Small Office Home Office


Consumer

2001

Small Office Home Office


Products

2001

Sponsorship

2000

20

2003

Teenage Magazines

2007

Telecommunications

21

2007

2003

11

2004

2002

Supermarkets & Superstores


T

Teleworking
The Computer Market
The Film Industry

Key Note Ltd 2014


All rights reserved.
No part of this publication may be reproduced, copied, stored in an electronic retrieval system or transmitted
save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act
1988.
Published by Key Note Ltd, 5th Floor, Harlequin House, 7 High Street, Teddington, Richmond Upon Thames,
TW11 8EE. Telephone: 0845-504 0452
Stringent efforts have been made by Key Note to ensure accuracy. However, due principally to the fact that
data cannot always be verified, it is possible that some errors or omissions may occur; Key Note cannot accept
responsibility for such errors or omissions. Details supplied by Key Note should only be used as an aid, to assist
the making of business decisions, not as the sole basis for taking such decisions.
Under the new Privacy and Electronic Communications Regulations 2004, it is unlawful for a business to make
an unsolicited sales & marketing call to a corporate subscriber if it is either registered with CTPS or has
requested NOT to receive such calls.
Key Note Ltd holds and regularly updates (every 28 days) its data in accordance with the regulations and
ensures that its data are compliant, as of the date created. It is the responsibility of the caller to ensure that
these data are up to date; Key Note Ltd does not hold itself liable for any subsequent legalities.
If you have any queries regarding the CTPS legislation you may find the following website useful:
www.ico.gov.uk

Key Note Ltd 2014

106