Sponsorship in the sports industry is a vast and very opportunistic industry simply because of the type of relationship that exists between a company and a sports team. Companies that well known globally are the common ones to fund individual athletes or the whole team and it costs millions or more per year. One has to wonder if the costs is worth it compared to the benefits or revenue in sales. What it really comes down to is the sport played, the team or individual player and the company who is sponsoring. Rugby union is a sport played in over 100 countries across all the continents making it a well known sport. Rugby has also been recently included in the Olympic sports competition which promises to ignite even more interest in financial investment. The traditional investors are England, France, Ireland, Italy, Scotland and Wales (best known as the Six Nations), and Australia, New Zealand and South Africa. Due to popular demand for this sport has raised the commercial value in these countries. The following are a few of the benefits to sponsorship:
Advertising Opportunities
Advertising these days can be a difficult effort for many businesses. However, sponsorships allow for a company to always be advertised through the team whether it is game gear, company products being used , or ads (on Tv or the game arena ) etc.Every sponsorship package or deal varies and may have certain benefits built in: field signage, website advertising, company logo, design or name on the uniforms, etc.This level of recognition actually costs less and yields benefits beyond what is expected. It really is as simple as a team member wearing a jersey or sports jacket made by the company for millions of people around the world to decide that they also want one. Not only are people being hyped about a brand but those who didn’t know will become aware of it. The further a team goes, the more free media coverage they will receive and can expanding the marketing reach. Expansion of the product leads to revenues that can be invested into making more products of different sorts. Depending on the company there may be room to venture out in the types of products or services they provide. This is a cycle that will always work positively for each other.
Good Will
Whether the team that is being sponsored is a small hometown team or international sensation, there are many fans involved emotionally to the team. People will always follow the team they’re loyal to. Sports is something that is widely supported for a multitude of reasons beyond what one can even list. For that reason, companies that help make it viable to keep a team going financially throughout the season are without a doubt recognized and appreciated for their support. Whether a company helps directly or not, the customer’s positive feelings will always lead to an increase in the market share, revenue, and customer loyalty for the business.local businesses investing has a positive effect on the community. From a public relations standpoint, a community gathering together in support of their local team is the type of feel-good story that news media want to share.