19th October, 2011
International code of sponsorship rules updated
Helen Day, Head of European Policy for the European Sponsorship Association (ESA), has spoken of the importance of the recent updates to the international sponsorship code of ethics.
The code is used around the world as the basis for creating local and national legislation across the industry.
It is a distinct chapter within the International Chamber of Commerce (ICC) Consolidated Code of Advertising and Marketing Communications Practice, a self-regulatory agreement which is designed to build consumer trust through best practise marketing and advertising.
ESA played an integral role during the year long negotiations with the ICC around their updated code, ensuring that the worldwide sponsorship industry's views were well represented in the discussions.
Helen Day, the European Sponsorship Association's Head of European Policy said: "The changes embrace the growing reach of our industry, now incorporating sponsor-owned properties and the sponsorship elements of CR programmes, as well as giving further clarity to the controversial issue of ambush marketing. ESA is proud to have been instrumental in co-ordinating views of the industry across Europe and helping to clarify responsible behaviour within the sector today.".
The major updates are:
"Sponsor-owned properties are now included in the code,
eg when sponsors create and own, for example, a golf tournament, and then present themselves as its sponsor they will now fall within the remit of the code,
"Corporate social responsibility (CR) programmes with a sponsorship element are now included in the code,
eg when a company's CR programme includes sponsor benefits they are now included in the code.
"Responses to ambush marketing should be proportionate and not impact on the general public.
The code has always stated that brands should not pretend to be sponsors when they were not. This change urges property owners and sponsor brands not to over-react to ambush marketing and to bear in mind how their response will affect event audiences.
Full details of the sponsorship code can be found at www.codescentre.com/index.php/icc-code/chapter-b-sponsorship/46-article-b1-principles-governing-sponsorship
29th October, 2010
UK's Premier League is jersey sponsorship leader in Europe: SPORT+MARKT report
Jersey sponsorship across the top European leagues* has never been so lucrative: 470.7 million Euros show that the football jersey market is the top target for sponsors, who invested 18% more in comparison to last year (+75.2 mill. Euros).
This is one of the key findings in the twelfth
edition of the European Jersey Report by global sports marketing consultancy SPORT+MARKT. The Barclays Premier League leads the way in Europe with 128 million euros.
"The Premier League is the standard-bearer for jersey sponsorship in Europe and represents the major platform for international companies wishing to invest in football", underlines Gareth Moore, Director UK SPORT+MARKT. "Fifteen clubs have improved their revenue from improved jersey
sponsorship deals, and three of the five clubs with the most lucrative deals in Europe come from the Premier League".
More than seventy million euros is generated from new sponsors in football, with Manchester United and Liverpool FC's new deals with AON and Standard Chartered respectively the clear leaders in Europe, each worth 23.6 million euros. In addition, FxPro has chosen the Barclays Premier League to make its debut in football sponsorship with two top clubs, whilst Autonomy has agreed to sponsor Tottenham Hotspur FC's shirt for Premier League matches only, with the club having secured an alternative partner, Investec, for cup and European matches.
Gareth Moore commented: "It is plain to see that when a new company chooses to invest significant amounts of money in sport sponsorship, the Premier League is the top destination".
The Premier League has overtaken the Bundesliga in terms of total amount of revenue gained from jersey sponsorship, with an increase of 45 million euros compared to last year. On a European scale, France and Germany have also impressively increased their revenue thanks to the banking and insurance provider sector, along with betting companies: 85 million euros come from the two sectors, with sixty-one sponsorship engagements.
The liberalisation of the French market for betting companies has helped Ligue 1 to grow and overtake Spanish Liga BBVA: BetClic is third amongst newcomers to football sponsorship with twenty million euros paid for Juventus FC, Olympique Lyonnais and Olympique Marseille.
Moore continues: "Betting and gambling have helped to deliver significant revenues for football clubs across Europe in what are challenging economic times and the importance of the sector cannot be overlooked. As a consequence of liberalisation for betting companies on the French market and, potentially in the future, in the German market, next year's sponsorship engagements from the sector may increase even further".
The crisis appears to have been shrugged off by the financial and banking sector, which is leveraging the emotional factor of sport sponsorship more and more as a means of effective communication.
Whilst in the Netherlands revenue is similar to last year, the only league to record a decline is the Italian Serie A TIM, where in spite of the new deal between AC Milan and Emirates, the trend is negative - also because two major clubs in SS Lazio and ACF Fiorentina are currently without jersey sponsors. However, Serie A TIM remains the league with the third highest revenue in Europe.
The Spanish Liga BBVA, despite an overall increase of nine million euros, slips one position in the ranking: apart for the major new deal for Real Madrid CF with bwin, most other Spanish clubs still fail to attract lucrative sponsors.
Potentially, if the club with the greatest European fan base, FC Barcelona, chose to have a sponsor, Liga BBVA could occupy third position in the ranking.
*England, Italy, Spain, France, Germany, Netherlands
26th October, 2010
Follett Stock 'backing' Exeter City in new two year sponsorship deal
Follett Stock and Exeter City Football Club have announced a new two year deal that will see the Exeter- and Truro-based law firm promoted on the back of the team's home and away shirts.
The arrangement begins at this Saturday's home game against Brentford when managing partner Chris Lingard will formally sign off the deal on the pitch in front of the expected 5,500 crowd.
This is the latest in a string of such initiatives as Lingard explained: "In the past we have been pleased to support the Cornish Pirates (with a three year deal) and Truro City FC (with a two year deal).
"Now to underline our long term commitment to Exeter we are delighted to be announcing this shirt deal which will initially last this season and next. The club is doing really well and playing some excellent and enjoyable football".
Exeter City fans will also be able to do their bit because Follett Stock has agreed to extend its Loyalty Card scheme to the Grecians. Under the scheme the litigation-focused law firm will pay over 10% of any money it earns from any work coming from the club's card holders.
Business Manager Fiona Higgins says that could be worth a substantial amount of additional money for the League One side. "From what we make on contentious work, if 100 Exeter fans instruct us on their disputes rather than one of our competitors, the club could benefit from another £100,000 or so on top of the sponsorship already committed", she said.
"This covers all sorts of disputes, whether matrimonial, employment, land, personal injury, or other litigation. Often this is paid by the other side or even an insurer. That's a clear win because we are also very good at what we do".
Exeter City's CEO Norrie Stewart said: "It is really gratifying that such a prestigious legal firm as Follett Stock have entered into this relationship with the Club. It is a ringing endorsement of the fact that sponsorship of Exeter City Football Club is recognised as a superb way of reaching and communicating with clients and customers.
"We, in turn, wholeheartedly endorse the quality of service provided by Follett Stock and commend our fans to make full use of the of the Loyalty Scheme which further benefits the Club."
Photo: From left to right: Rebecca Gurgul, Manager of the Exeter Office of Follett Stock, Paul Tisdale, Fiona Higgins, Business Manager of Follett Stock
22nd October, 2010
Samba snooker! World Snooker leads the way with new tournament in Brazil
World Snooker will be taking the sport to a brand new territory next year with the Brazilian Masters.
uksponsorship.com understands that no Title or other sponsorship partner has yet been appointed for the new tournament.
Announced at a press conference in London yesterday, the new Masters competition will run from September 14th to 17th, 2011, at the Transamerica Expo Centre in São Paulo, Brazil.
It will be an invitation event featuring 12 of the top players in the world rankings plus four wild cards, with prize money of at least $200,000.
World Snooker Chairman Barry Hearn said: "This is a fantastic announcement for snooker as it will be the first ever professional tournament staged in Brazil. It will be an invitation event in year one but depending on its success we do have plans to make it a full world ranking tournament.
"Brazil is a country with a great love of sport and an incredible sporting heritage. Snooker is very popular there and we want to tap into that support. Breaking into South America is a huge step towards our ambition of making snooker a truly global sport. These are exciting times for us, with this the latest in a series of new tournaments.
"We look forward to working with the promoter in Brazil and building foundations there".
Pablo Magalhães, Marketing Director of Publikimagem Projects and Marketing, the promoter of the event, said: "We believe that hosting an official event of World Snooker in Brazil will be the beginning of a new era of professional snooker in our country. We are very optimistic about the success of this first international tournament of professional snooker in South America".
Marcílio Cavalcanti, Chairman of Snooker Brazil Association, added: "The realisation of the Brazil Masters in 2011 is being awaited with great anxiety for more than 20,000 players from Brazil, mainly because we will conduct national qualifying to categorise the two best players for the Brazil Masters. This event will change the concept of professional snooker in our country and in a few years we believe that we will have more Brazilian players in snooker’s world rankings".
Brazil's top player Igor Figueiredo, who reached the final of the World Amateur Championship last year and is now playing his first season on the professional tour, said: "It's very exciting news that there will be a tournament in Brazil. Snooker is already popular in my homeland but there is potential for it to be much bigger. This event will bring snooker to the Brazilian fans and I know they will respond by welcoming the top players and creating a great atmosphere. Hopefully I can be successful on the main tour and provide an example for more Brazilian players to follow me".
The event will be straight knock-out, on one match table. The first two rounds will be best of seven frames, with the semis and final best of nine.
22nd October, 2010
Vodafone and Vodafone McLaren Mercedes extend Title Partnership
Vodafone and Vodafone McLaren Mercedes have announced the extension of their title partnership.
The extension of the partnership has clearly been prompted by its success to date, in both sporting and marketing terms. It can also be seen as testimony to Formula 1's enduring global marketing appeal.
Building on major successes already achieved, say the companies, the Vodafone McLaren Mercedes partnership will continue to focus on developing exciting new technologies as well as engaging Vodafone's customers in a series of innovative new marketing initiatives.
Under the new agreement, which runs until the end of the 2013 season, Vodafone will remain title partner and becomes official total communications partner of Vodafone McLaren Mercedes.
Covering fixed, mobile and broadband networks, content and communication services and associated devices, the partnership will continue, say the companies, to drive forward the relationship with a particular focus on empowerment and technical innovation by:
bringing Vodafone customers closer to the passion of Formula 1 through its services, events and experiencesProdigious
helping support the Vodafone McLaren Mercedes team’s on-track success through greater technical integration of Vodafone’s total communications services.
Morten Lundal, Group Chief Commercial Officer, Vodafone, said: "Vodafone is an international brand with strong local roots. As such, Formula 1 is a strong platform from which we can engage our customers with unique experiences and events. We've had great success in using the Vodafone McLaren Mercedes partnership to engage our customers in our key markets, and we're committed to new and exciting platforms which will allow customers to get even closer to the action".
Ron Dennis, Executive Chairman, McLaren Group and McLaren Automotive, said: "The success that Vodafone McLaren Mercedes has enjoyed since our two companies' partnership began in 2007 has been prodigious. Of the sixty-eight Grands Prix that have been staged during our partnership, our drivers have scored twenty-one wins and fifty-five podium finishes.
"Going forward, I'm confident that Vodafone McLaren Mercedes will build on and improve on our already impressive track record, delivering an ever more powerful return on investment for Vodafone, and proving once again what a formidable global marketing tool the sport of Formula 1 remains".
20th October, 2010
Champions Wigan Warriors unveil Applicado-FS as new main sponsor
Wigan Warriors, 2010 Super League Champions, have today unveiled Applicado-FS as the club's new Main Sponsor for an undisclosed "significant" six-figure sum.
The two-year deal covers the 2011 and 2012 Super League seasons and will see the Applicado-FS name and logo appear on the front of both the home and away match and replica shirts.
It will also well as branding throughout the DW Stadium, hospitality at Warriors matches and joint community-led initiatives.
Applicado-FS is one of the fastest growing independent management consultancy companies in the UK and delivers large and complex financial programmes as well as smaller technology-focussed projects.
The company, which was launched in 2007, specialises in System Architecture, Network Design, Infrastructure Builds, Application and System Integration, Service Management, Project Support and Business Analysis.
Andrew Pickering, CTO and Co-Founder of Applicado-FS said: "We are thrilled to become the Main Sponsor for the next two seasons and are keen to extend our already great working relationship with Wigan Warriors. I am a lifelong Wigan fan and have thoroughly enjoyed the 2010 season, which culminated in the club being crowned as Grand Final Champions.
"I am looking forward to further success on and off the field for both the Warriors and Applicado-FS in the years to come".
Speaking about the news, Sales Director Geoff Warburton added: "We are delighted to announce Applicado-FS as our new Main Sponsor for 2011 and 2012. This is a natural progression of their involvement with the club, having spent the last twelve months as a Club Partner and Shorts Sponsor.
"We are delighted that the relationship continues to go from strength to strength, something which is reflected in the rapid growth and success of both the Warriors and Applicado-FS since 2007".
Photo: Andrew Pickering from Applicado-FS is welcomed to the DW Stadium by Wigan Warriors Head Coach, Michael Maguire.
19th October, 2010
HSBC announced as new Patron of the Open Championship
HSBC has been named as a Patron of The Open Championship for the next five years.
The partnership means that HSBC will become the 'Official Banking Partner' of The Open Championship, which next year will return to Royal St George's (14th-17th July, 2011) for the tournament taking place at Sandwich in Kent.
The R&A's Chief Executive, Peter Dawson said: "We are very pleased to welcome HSBC. The Open is golf's oldest major championship and its most international. For many years, The R&A has looked to establish relationships that help golf's growth globally. As The R&A seeks to engage in and support activities to grow the game, a partnership with 'the world's local bank' is a natural progression".
Over the last five years, HSBC has been at the forefront of the expansion of the game in Asia with the creation of the HSBC Champions in China, which it has helped develop from inception in 2005 to become Asia's first World Golf Championship tournament.
It has also created a comprehensive programme of grassroots activity across China, designed to increase both interest and participation in the game.
Giles Morgan, Group Head of Sponsorship at HSBC, commented: "The Open Championship is, without a doubt, one of the world's most important golf tournaments and HSBC is very honoured to become a Patron. Golf sponsorship continues to be an important investment tool for us to grow and sustain our business and brand. This new partnership is an exciting opportunity to take our current activity with professional and grassroots golf in both established and emerging markets to a new level".
2010 Open Champion Louis Oosthuizen was equally upbeat: "Winning The Open, particularly at St Andrews, is the pinnacle of any golfer's career. I could not have got there without the great support I've received from within the game and I hope this announcement will lead to further opportunities for The R&A to do even more to help the game to grow around the world".
The R&A is the governing body of world golf outside the US, with affiliated national governing bodies in 126 countries around the world. In 2010, 200,000 spectators attended The Open Championship and over 3,000 hours of television coverage were broadcast to 193 countries worldwide.
There were over three million unique visitors to The Open's official website (www.opengolf.com) during this year's Championship, with 300,000 hours of streamed coverage via the internet.
14th October, 2010
Foster's Funny.co.uk adds Partridge to its sponsorship programme
Foster's has announced that the Amber Nectar is to sponsor a new, one-off series of Alan Partridge shows on its new website, www.fostersfunny.co.uk.
The site will host twelve eleven-minute, standalone episodes on an exclusive basis over the next few months, starting on November 5th.
Alan Partridge commented: "I am delighted to announce that, after years as a regional broadcaster on North Norfolk Digital, my groundbreaking radio segment, Mid Morning Matters will now be accessible to a potential audience of billions via the World Wide Web (www).
"That it has taken Foster's to help realise my dream of joining the information superhighway is a damning indictment of the established broadcasters whose shabby treatment of me on September 10th, 2001 was frankly shabby.
"I made dozens of calls the next day, all of which were ignored. My appreciation must go to Armando Iannucci and Baby Cow for ignoring the lies, God bless them. In the meantime I look forward to hanging out 'n' chillin' with the MySpace generation".
Gayle Harrison, Marketing Manager - Foster's, at Heineken UK said: "We are delighted to be working with one of the UK's all-time favourite comedy shows as part of Foster's comedy sponsorship programme and we look forward to increasing the brand's dialogue and engagement with lager drinkers through this exclusive new partnership".
12th October, 2010
Ai Weiwei - Sunflower Seeds: latest exhibition sponsored by Unilever opens today at Tate Modern
Tate Modern today unveils the latest commission in The Unilever Series: Sunflower Seeds, by the renowned Chinese artist Ai Weiwei.
The exhibition is taking place in the gallery's Turbine Hall and will be on show until 2nd May.
The sculptural installation appears at first to be a vast, flat landscape of sunflower seed husks, covering the east end of the Turbine Hall. Visitors are invited to walk across the surface of the work and discover that each seed is in fact a unique porcelain replica, one of over a hundred million individually handmade objects which have been specially produced for the commission.
This is the largest work Ai has made using porcelain, one of China's most prized exports, with which he has previously created imitation fruit, clothes and vases. Although they look identical from a distance, every seed is different, and far from being industrially produced, 'readymade' or found objects, they have each been intricately handcrafted by skilled artisans.
Tate Media has launched a unique opportunity to communicate one-to-one with the renowned artist. Combining online and video technologies with the rise of social media and the popularity of contemporary art, the project enables visitors to the exhibition to engage in a global dialogue about the work.
A series of video booths installed in the Turbine Hall allows visitors to record questions and comments for the artist, or send a video answer to one of the artist's pre-recorded questions. These videos are then published online at www.tate.org.uk/go/aww.
Each week until May 2011, the artist will be selecting new videos to respond to and recording his answers. The website, featuring all the uploaded videos and responses, is also presented on touch-screens located on the Level 3 Concourse at Tate Modern.
People outside the Turbine Hall can join in via Twitter. Ai Weiwei will be monitoring and replying to postings with the hashtag #tateaww, and the resulting conversation can be seen both on Twitter.com and on Tate Online.
For Ai Weiwei, life is art, politics and exchange. The act of individuals voicing their opinions and communicating with one another is of great importance to him and his practice. Whether blogging, tweeting or making and circulating videos, Ai is passionate about speaking with people around the world. This new project, One-to-One with the Artist, is also a milestone in Tate's use of new media technology and the internet, transforming the Turbine Hall at Tate Modern into the hub of a global conversation.
Paul Polman, Chief Executive Officer, Unilever commented: "We are proud of our long relationship with Tate Modern. It is a partnership that has produced some spectacular commissions in the Turbine Hall over the last ten years. Ai Weiwei's imaginative and thoughtful approach to the eleventh commission is very much in this tradition. We hope that his work will bring pleasure to all who see it."
Sheena Wagstaff, Chief Curator, Tate Modern added: "Ai Weiwei has created a truly unique experience for visitors to this year's Unilever Series. The sense of scale and quality of craftsmanship achieved in each small perfectly formed sunflower seed is astonishing. In trying to comprehend their sheer quantity, Ai provokes a multitude of ideas, from the way we perceive number and value, to the way we engage with society at large."
6th October, 2010
HSBC to be first Sevens World Series title sponsor
The International Rugby Board has announced that HSBC has been appointed the first ever title sponsor of the IRB Sevens World Series.
The announcement represents a further boost for Rugby Sevens as the sport marks the one year anniversary of being voted onto the Olympic Games programme, starting with the 2016 Games in Rio de Janeiro.
Under the unprecedented five-year deal, HSBC has been awarded title naming rights to the record-breaking IRB Series, which comprises tournaments in Dubai, South Africa, New Zealand, USA, Australia, Hong Kong, England and Scotland. The Series will now be known as the HSBC Sevens World Series and will begin with the Emirates Airline Dubai Sevens on December 3rd.
International Rugby Board President Bernard Lapasset said: "These are very exciting times for our sport and this deal will benefit rugby at all levels. The appointment of a market leader in the banking industry as title sponsor of the IRB Sevens World Series further enhances Rugby Sevens' prominent stature as an Olympic sport with significant prestige and attraction within the global marketplace.
"HSBC is an internationally renowned brand and a true champion of the development of rugby around the world. HSBC has a massively successful history of working with its partners to develop the game on and off the field through the HSBC Rugby Festivals and sponsorship of the Asian 5 Nations.
"We look forward to working in close collaboration with HSBC to further the promotion of the game in new and existing rugby markets as we count down to Sevens' Olympic Games debut in Rio de Janeiro in 2016, an event that will herald the beginning of another exciting chapter in the Rugby Sevens success story".
Giles Morgan, Group Head of Sponsorship, HSBC Holdings, said: "HSBC has a long standing heritage in rugby, and is excited about investing in such a thriving area of the game. The addition of the HSBC Sevens World Series to HSBC's current international rugby portfolio will allow the bank to further engage with its customers and staff around the world.
"Through our continued investment in the grassroots level of the game, which will be expanded to include Rugby Sevens, HSBC will be at the forefront of encouraging even more people to watch and play the sport".
Rugby Sevens continues to go from strength to strength. For a fifth consecutive year a record global audience switched on to Sevens in 2010. Television broadcast coverage of the eight-tournament 2009/10 Sevens World Series reached 141 countries across six continents, with thirty-four broadcasters showing action from the most competitive series to date, won by Samoa for the first time in the Series' eleven-year history. The series also attracted record attendance figures, with over 500,000 fans enjoying the event festival atmosphere.
2010/2011 HSBC Sevens World Series
Dubai – December 3rd-4th, 2010
South Africa - December 10th-11th, 2010
New Zealand - February 4th-5th, 2011
USA - February 12th-13th, 2011
Hong Kong - March 25th-27th, 2011
Australia - April 2nd-3rd, 2011
England - May 21st-22nd, 2011
Scotland - May 28th-29th, 2011
* The 2011 Hong Kong Sevens will not feature HSBC branding in year one of the HSBC Sevens World Series due to the existing event title contract with another sponsor in the banking sector. Hong Kong will remain within the overall Series points structure in 2010/11.
6th October, 2010
Panasonic extends movies sponsorship to Sky 3D channel
Panasonic has announced its sponsorship of the movies on the Sky 3D channel, which launched on October 1st, extending their existing sponsorship of Sky Movies.
The company recently launched a TV commercial heralding the launch of its biggest ever pre-Christmas media campaign.
As far as customers are concerned, says the company, those with 3D TVs can enjoy the commercial in 3D over the coming weeks, while those without 3D TVs will enjoy a 3D-like experience thanks to advanced cinematic effects used to bring the advert to life.
Commenting on the new advertising campaign and Sky Movies sponsorship, Andrew Denham, Marketing Director, said: "Panasonic's significant media investment both above and below the line will clearly position Panasonic as the number one brand for 3D as the home market for 3D becomes established.
"Working with our key retailers, we have designed an integrated 360 degree campaign to drive awareness and footfall into stores in the critical run up to Christmas period".
4th October, 2010
New KPMG report highlights importance of sponsorship in top flight golf
KPMG's Golf Advisory Practice in EMA (Europe, Middle East and Africa) has published a special report, "The Business of Professional Tournament Golf", at the Ryder Cup, with revealing insights into tournament golf, talent management and sponsorship.
The specially commissioned report, free to download from www.golfbusinesscommunity.com, reveals that, for the thirty-two tournament circuits analysed in 2009, there were 671 professional golf tournaments in fifty-seven different countries, with more than 6,000 players competing for total prize money of EUR 476 million.
Despite the economic downturn, professional tournament golf has proved relatively resilient, the report finds, with a strong potential to grow in the rapidly emerging markets of Asia (Y. E. Yang of South Korea became the first Asian winner of a men's major championship in 2009) and South America, where golf will make its return to the Olympics in 2016 at Rio de Janeiro.
However, it is the established golfing territories – and Ryder Cup regions – of the United States of America and Europe that continue to lead the field. While the PGA Tour in America remains the richest tour with total prize money of EUR 196.4 million (USD 273 million) in 2009, the European Tour has enjoyed impressive growth over the past twenty years, increasing total prize money from EUR 14 million in 1989 to EUR 135 million in 2009, a compound annual growth rate (year-on-year) of 16%.
The report underlines golf's reputation as one of the most lucrative professional sports in the world – sixty-two players on the PGA Tour each won prize money of more than EUR 1 million in 2009. It is estimated that professionals in the top fifty of the World Golf Rankings almost double their on-course prize money with off-course earnings, including sponsorship and endorsements.
For golf's two biggest earners – Tiger Woods (left) and Phil Mickelson – the proportion is estimated to be between 77% and 85%, with Tiger Woods earning a total of USD 90.5 million in 2009, according to Sports Illustrated, making him the highest-paid athlete in the world, followed by tennis star Roger Federer (USD 61.8 million) and Phil Mickelson (USD 61.7 million).
In an exclusive survey of talent managers and agents representing more than 200 players, Tiger Woods was voted the most marketable golfer of all time followed by Jack Nicklaus and Arnold Palmer (joint second), Greg Norman (fourth) and Gary Player (fifth).
For the most marketable players under the age of twenty-five, agents across the globe picked European Ryder Cup player Rory McIlroy as the clear number one, followed by the USA's Rickie Fowler, who is also playing in the Ryder Cup this week, plus Japan's Ryo Ishikawa.
The survey also revealed that approximately two-thirds of agents felt that the economic downturn had significantly impacted upon the sponsorship income of their clients, while slightly over one-third of agents reported a similar negative impact on appearance fees.
However, talent managers were positive about the future, with 46% saying there would be growth in the sponsorship and endorsement market in the next three to five years. Once again, golf's inclusion in the Olympics was seen as a positive factor, with 73% anticipating a significant impact on corporate sponsorship demand.
Among the reasons sponsorship of professional tournament golf has proved relatively resilient throughout the economic downturn, the report finds, is that many deals were struck before the economic crisis, with contracts of three to five years commonplace. Also, the typical demographics of golfers have continued to make the sport highly attractive to sponsors.
The top five industries for golf sponsorship, accounting for close to half of all tournament sponsorship on five leading tours, are: 1) banking and financial services; 2) automotive industry; 3) state/tourism development authorities; 4) energy sector; 5) alcoholic beverages industry.
One recent trend is the emergence of public sector institutions and state-funded tourism destinations as sponsors of golf tournaments, realising the value of golf tourism and the fact that golf tourists tend to spend more on their golf holidays than typical leisure tourists.
Despite the general resilience of tournament golf sponsorship, many smaller or regional circuits have seen stagnating or declining purses for prize money. Equally, while the PGA Tour and especially the European Tour have enjoyed growth over the past twenty years, the search for future growth is turning towards emerging markets.
The success of South Korea's women professionals – eleven tournaments on America's LPGA Tour were won by South Koreans in 2009 – followed by Y. E. Yang's major victory at the PGA Championship last year, signals the arrival of Asia as a potential future superpower in golf.
Andrea Sartori, head of KPMG's Golf Advisory Practice in EMA, said: "The combination of significant media attention in Asia due to the success of professional golfers from countries such as Korea, and an increasingly affluent middle class in populous Asian markets such as China and India, could unleash a huge drive in the sport.
"Equally, South America and, more particularly, Brazil, which will host the 2016 Olympics, offers significant potential. The country's continued rapid economic development could, in time, be matched by new golf courses and golfers. With three in every 10,000 people playing golf in South America and a total population of nearly 380 million, there appears to be a significant development opportunity to satisfy both local demand and international golf tourism demand".
Commenting on the PGA Tour's discussions with bodies in South America to establish a tour in Latin America that could eventually feed local talent to its existing tours, Andrea Sartori said: "These developments suggest that the growth of professional tournament golf is expected to be fuelled by emerging economies rather than the traditional golfing markets of Europe and North America. However, these markets, and their respective tours, are still expected to remain the dominant forces in the global golf industry for the foreseeable future".
1st October, 2010
Highland Spring in sponsorship deal to become official water supplier to Barclays ATP World Tour Finals
Highland Spring, the leading UK produced brand of bottled water, has been unveiled as the official water supplier to the Barclays ATP World Tour Finals, taking place in London at The O2 from 21st to 28th November, 2010.
The bottled water brand has bolstered its links with tennis by signing a four year contract with the ATP to become the Official Water Supplier to the world renowned event until 2013.
Chris Kermode, managing director of the Barclays ATP World Tour Finals, said: "The Barclays ATP World Tour Finals has quickly established a terrific home for itself in London, and having Highland Spring as official water supplier will further serve to boost the growing reputation of the event as one of the best tournaments in the world".
Claire Wilson, head of sponsorship at Highland Spring, commented: "The Barclays ATP World Tour Finals is one of the biggest and most exciting events on the international sporting calendar and provides a fantastic platform for Highland Spring to strengthen its association with tennis. We are looking forward to supporting the event for the next four years and are delighted to be keeping the world's top eight players hydrated during the tournament".
Last year, attendance at the spectacular week-long event surpassed 250,000 – making it the highest attended indoor tennis event ever. The tournament is the climax of the men's professional tennis season and gives tennis fans the opportunity to see the top eight singles players and the top eight doubles teams battle it out for the coveted last title of the year. Rafael Nadal and Roger Federer have already qualified for the event.
Visitors to the tournament can also brush up on their own tennis skills by visiting the Highland Spring Hot Shots Tour which will be part of the new Fan Zone at The O2. Developed in association with the LTA, the interactive tennis feature will help budding players of all ages improve coordination and racquet skills with a range of fun and educational tennis games, claims the company.
As Highland Spring is a long-term supporter of British tennis, the sponsorship would seem to be a natural fit for the exclusive beverage sponsor to Andy (above left), Jamie and Judy Murray and the official water supplier to the Lawn Tennis Association.