Sport isn’t just about the game these days. Sports teams get sponsorships from massive corporations like Samsung, Carlsberg, and so on. Red Bull is especially pro-active in the sports world and spends more on it than anyone else.
There are plenty of reasons why these corporations are interested in sponsoring sports clubs. The benefits for both the corporation and the sports club in question make the relationship more than worthwhile for all involved.
The sponsors for these sports clubs vary in business goals. Sponsors are working with beverages, airlines, electronics, real estate, you name it, and someone does it. Here are some of the more common football club sponsors as an example:
- Arsenal – Emirates
- Blackburn Rovers – Crown Paints
- Bolton Wanderers – Reebok
- Chelsea – Samsung
- Fulham – LG Electronics
- Liverpool – Carlsberg
- Manchester City – Thomas Cook
- Manchester United – American International Group
- Newcastle Ltd – Northern Rock
- Stoke City – Britannia
- Tottenham Hotspur – Mansion
- Wigan Athletic – JJB Sports Ltd
Now that you have an idea of what I’m talking about, let’s get into the reasons why corporations sponsor sports clubs:
Brand awareness means the knowledge of your brand among your target audience. (Those who are likely to purchase your product) Sports-wise, there are people from all around the world who are interested in watching and supporting their favourite team.
Sponsoring one of these teams allows that corporation to get their name out to more potential customers. Most of these corporations are already well-known but jogging the average person’s memory leads to more sales.
You may not notice on a conscious level, but sponsors throw up advertisements about new products and deals all the time. During a match where Red Bull is the sponsor, you’ll see an ad about the newest deals they have with one of their businesses. (That’s right, Red Bull doesn’t just sell energy drinks)
Here is where the true power lies. More than half the world watches sports on TV or in person at some point. Getting your advert out during a game will bring in local customers and international customers alike. You can literally create a localized and worldwide and at the same time.
Patriotism isn’t quite the same, but you understand the reference, I’m sure. Those who are dead-set on a particular team will do anything to support them. If a corporation sponsors their team, there’s a high chance that they will also support the corporation.
The power of a dedicated fan-base should never be ignored. Fans make or break businesses. If you can’t sway your target audience to your side and have them love you, then your business won’t last long.
You’d be surprised how important the social aspect of business can be. Without a strong connection to your customers or fan base, you can’t improve the company’s reputation.
In essence, the main purpose of corporations sponsoring sports clubs is to gain reputation and further sales. Money, as always is the chief focus of a company. So long as the company takes the interests of their customers into consideration, like sports, they will succeed.