The Annual Sponsorship Business Survey 2012 - Sporsora

T h e A n n u a l S p o n s o r s h i p B u s i n e s s S u r v e y 2 0 1 2 P a g e | 7
2.2 Sports Sponsorship by Region
2.2.1 North America
PwC’s report of the global sports industry suggests
that North America will remain the largest market
for sports revenue up to 2015. The study also
forecasts growth of the sports sponsorship market
for the next three years of 6.1% for the continent,
which is slightly higher than the 5.3% global
average. Its thriving nature is evident with a series
of large sponsorship deals in the continent’s
leading sports, such as BBVA’s $100m deal with
the NBA, whilst a revival of the US automotive
industry has seen companies in this sector
increase their spend in sponsorship.
Despite this, results of the Sponsorship Business
Survey found that North American respondents
were not as receptive as elsewhere to the notion
of sponsorship having a wider impact than
advertising. When asked this question, 39%
agreed it was more effective. This was a lower
level of agreement than their European (63%) or
UK (70%) counterparts.
2.2.2 Europe
Despite the financial difficulties of the Eurozone,
the European Sponsorship Association values the
European sponsorship market at €23.33bn, which
is higher than previously forecast. The ratio of
sport to non-sport sponsorship is 70:30, suggesting
that sport is the most attractive proposition for
businesses considering sponsorship. Karen Earl,
chairman of the European Sponsorship Association
(ESA), argues that sponsorship is becoming more
appealing because brand marketeers understand
how to activate sponsorships better. With major
events such as the London
Olympics and the 2012 European
Football Championships in
Ukraine and Poland, sponsorship
in European sport will continue to
be an attractive proposition.
2.2.3 The Middle East
In recent years, the Middle East has risen in
prominence in the sporting world. Bahrain and
United Arab Emirates have been hosts in the
Formula 1 Circuit, whilst Doha and Dubai are
integral to the ATP World Tour in tennis. However,
the most significant
announcement last
year was that Qatar
will hold the 2022
Football World Cup.
In terms of sponsorship, two significant
partnerships involved Middle Eastern based
companies. Qatar Foundation became the first
shirt sponsors of World Club Champions FC
Barcelona in a five-year deal worth £123m, whilst
Etihad Airways announced a partnership with
Manchester City Football Club valued at £400m,
the largest deal of its kind in sporting history. The
club’s Eastlands home was renamed The Etihad
Stadium as a consequence.
2.2.4 BRIC Nations
Growth in the sports market among the BRIC
countries (Brazil, Russia, India and China) is
expected to continue. PwC predicts a growth rate
of 4.5% from $8.3bn in 2010 to $10.4bn in 2015.
These countries will continue to enhance their
international profile through branding for and
hosting major global sporting events. Following
China’s 2008 Olympics in Beijing, Brazil will be
hoping for similar success in 2016 in their hosting
of the event. Furthermore, Brazil and Russia have
the next two Football World Cups in 2014 and
2018 respectively. India continues to be a hotbed
of sport enthusiasts. Advances in media
technology have exposed the Indian population to
a vast array of sports such as tennis, football and
Formula One, and this has led to an influx of
sponsorship interest from global companies
including a giant deal totalling over $60 million by
Nike to extend their deal with the Board of Control
for Cricket in India.
Sponsorship is an important revenue source for
BRIC nations. Whilst the biggest component of the
sports market in North America and Europe is gate
revenue, sponsorship is the largest in these four
countries. In China, sponsorship accounts for 48%
of total sports revenues (PwC). The BRIC nations
are expected to see their sports sponsorship
markets increase in the foreseeable future.