Product Type: Market Research Report
Published by: Key Note Publications Ltd
Published: November 2007
Product Code: R310-1505Description Sports sponsorship is enjoying a purple patch in the UK, with spending on sponsorship deals rising by 5% to 6% a year in 2006 and 2007, a trend that contrasts with a far more negative period earlier in the decade. Even so, the full benefits of London's historic winning of the 2012 Olympics have yet to feed through into the market, and the UK market may also benefit if Glasgow wins its bid to host the 2014 Commonwealth Games.
The organisers of `London 2012' are hoping to earn £625m from sponsors to cover a third of the cost of hosting the Olympics, and this compares with a current spending value on sports sponsorships of £451m (for 2006, according to the sponsorship research agency Ipsos MORI). Although significant, this expenditure accounts for less than 3% of all spending on marketing communications in the UK.
Olympics sponsors, or `Partner' agreements, will temporarily shift the focus of the market away from the regularly targeted sports. More than one third of sponsorship money now goes on football, followed by motorsports (mainly Formula One). Other sports with significant market shares include Rugby Union, which enjoyed a high-profile World Cup in 2007, plus athletics, cricket and horse racing.
The main sources of Olympics sponsorships will, however, be familiar industry sectors, such as banking, energy and sports goods. Lloyds TSB and EDF Energy were the first `Tier One Partners' announced for London 2012, echoing current deals such as Barclays' title-sponsorship of the Premier League or npower's support for English Test cricket.
The precarious balance of risks and rewards in sports sponsorship was vividly illustrated in the closing months of 2007. England's rugby team battled through to a World Cup final, but in football all five British Isles teams were struggling to qualify for Euro 2008. Drug abuse continued to haunt athletics when a former Olympic champion sprinter, Marion Jones, admitted to having cheated in winning her medals. On a more positive note, Formula One attracted exceptional interest as Lewis Hamilton narrowly failed to win the drivers' award in his first season, although the Formula One championship as a whole was not without its controversies.
Away from the `glitzy' Premierships and global games, grass-roots sponsorship of sport at a local level is growing in importance, approved by the Government in its ambition to improve the fitness of the population. Major examples include Barclays Space for Sport campaign and funding of local football opportunities by Nationwide and McDonald's.
The combination of grass-roots and major event sponsorship should ensure strong growth for the market right up to London 2012 and, by then, England could also be preparing itself to host football's World Cup 2018. This would ensure further growth in the sport over the next decade.
Table of Contents - Executive Summary
- 1. Market Definition
- REPORT COVERAGE
- Definitions
- Exclusions
- The London Olympics 2012
- MARKET SECTORS
- MARKET TRENDS
- A Mid-Decade Recovery
- Football More Dominant
- Key Sports
- Table 1: Examples of Current Major Sponsorships†, 2007
- Grass-Roots Investment Increasing
- Globalisation and Consolidation
- Changes by Sport, Sponsoring Sector and Media Coverage
- ECONOMIC TRENDS
- Population
- Table 2: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006
- Gross Domestic Product
- Table 3: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006
- Inflation
- Table 4: UK Rate of Inflation (%), 2002-2006
- Unemployment
- Table 5: Actual Number of Unemployed Persons in the UK (million), 2002-2006
- Household Disposable Income
- Table 6: UK Household Disposable Income per Capita (£), 2002-2006
- MARKET POSITION
- The UK
- Overseas
- 2. Market Size
- THE TOTAL MARKET
- Table 7: The Total UK Sports Sponsorship Market by Value of Major New Deals (£m), 1994-2007
- Figure 1: The Total UK Sports Sponsorship Market by Value of Major New Deals (£m), 1994-2007
- NUMBER OF DEALS
- Table 8: Number and Average Value of Major New Deals in UK Sports Sponsorship (number of deals, £m and £), 1994 and 1999-2006
- BY MARKET SECTOR
- Table 9: The Top Ten Sports Sponsored in the UK by Value (£m and %), 1994, 2000 and 2004-2006
- Table 10: The Leading Recipients of Sportsmatch Support (number of awards, £m and £), 1993-2005 and 2005/2006
- PROFILES OF LEADING SPONSORED SPORTS
- Football
- Motorsport
- Rugby Union and Rugby League
- Athletics, the Olympics and the Commonwealth Games
- Cricket
- Horse Racing
- Golf
- Tennis
- Other Sports
- 3. Industry Background
- Recent History
- Number of Companies
- Employment
- Regional Variations in the Marketplace
- How Robust is the Market?
- Legislation
- Key Trade Associations
- European Sponsorship Association
- 4. Competitor Analysis
- THE MARKETPLACE
- SPONSORING COMPANIES BY INDUSTRY SECTOR
- Table 11: The Origins of Sports Sponsors by Broad Industry Sector (number of deals and %), 2003-2006
- Financial Services
- Alcoholic Drinks
- Sports Goods
- Information and Communications Technology
- Automotives
- Other Sponsoring Sectors
- INDIVIDUAL BRAND RECOGNITION
- Table 12: Consumer Recognition of Brands as Sponsors of Sport (% of respondents), 2006
- OUTSIDE SUPPLIERS TO THE INDUSTRY
- Marketing Services Agencies/Consultants
- The Media
- MAIN MEDIA ADVERTISING
- Table 13: Main Media Advertising Expenditure on Sponsored Sports Events (£000), Year Ending June 2007
- Table 14: Main Media Advertising Expenditure on Sporting Events (£000), Year Ending June 2007
- 5. Strengths, Weaknesses, Opportunities and Threats
- STRENGTHS
- WEAKNESSES
- OPPORTUNITIES
- THREATS
- 6. Buying Behaviour
- Introduction
- INTEREST IN TEAM SPORTS
- Table 15: Any Interest in Team Sports by Sex, Age, Social Grade and Region (% of adults), 2007
- REGIONAL AND SOCIAL GRADE INFLUENCES
- PASSIONATE FOLLOWERS
- Table 16: Major Team Sports Followed in the Media or as Spectators (% of adults), 2007
- PARTICIPATION IN SPORT
- Table 17: Regular Participation in Sports and Physical Activities (% of adults), 2007
- 7. Current Issues
- Introduction
- Football — Euro 2008 Qualifiers
- England Bid to host World Cup 2018
- More Open Competition in Premiership
- Formula One's Lewis Hamilton
- Rugby Union World Cup
- Recent Sponsorship Deals
- Awards for Sponsorship Campaigns
- 8. The Global Market
- Overview
- 9. Forecasts
- INTRODUCTION
- Population
- Table 18: Forecast UK Resident Population by Sex (000), Mid-Years 2007-2011
- Gross Domestic Product
- Table 19: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011
- Inflation
- Table 20: Forecast UK Rate of Inflation (%), 2007-2011
- Unemployment
- Table 21: Forecast Actual Number of Unemployed Persons in the UK (million), 2007-2011
- FORECASTS 2008 to 2012
- Table 22: The Forecast Total UK Sports Sponsorship Market† by Value and Number of Deals (£m and number), 2008-2012
- Figure 2: The Forecast Total UK Sports Sponsorship Market† by Value and Number of Deals (£m and number), 2008-2012
- Market Growth
- Figure 3: The Forecast Growth in the Total UK Sports Sponsorship Market by Value (£m at rsp), 2002-2012
- FUTURE TRENDS
- Olympics Developments
- Underlying Growth
- Consolidation Among Sponsors and the Sponsored
- Moving Sponsors Closer to Consumers
- Crown Jewels Review
- General Future Issues
- 10. Consumer Confidence
- METHODOLOGY
- KEY FINDINGS THIS QUARTER
- THE WILLINGNESS TO BORROW
- Confidence Improves
- Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
- Willingness to Borrow Slips Slightly
- Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007
- SPENDING FROM SAVINGS
- Slight Increase in Spending from Savings
- Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
- Saving Grows in Relative Importance
- Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007
- 11. Further Sources
- Associations
- Publications
- General Sources
- Government Sources
- Other Sources
- Bisnode Sources
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