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DOI: 10.14526/2070-4798-2019-14-2-71-75 About the problem of sponsor support in sport
Victor B. Myakonkov*, Darja V. Maleeva
Lesgaft National State University of Physical Culture, Sport and Health, Saint-Petersburg ORCID: 0000-0003-0314-4168, [email protected] ORCID: 0000-0002-0543-5025, [email protected]
Abstract: The 21st century is considered to be the century of communications. It is not surprising that on the basis of this we witness the development of sponsorship. It is one of the most popular kinds of marketing communications. Nowadays it is difficult to imagine sport without commercial support provided by companies. Very often it is difficult to get this sponsorship. The difficulty between the potential sponsor and the organization, which wants to get sponsorship, is in the absence of effective communications between them. There is one more difficulty. It concerns the fact that sponsorship is underestimated by PR-departments of the companies. They can help sport organizations on mutually advantageous terms. Materials. The article is about the question why it is profitable for companies- sponsors to invest money in sport. Research methods. Information sources analysis and summarizing, comparative methods, methods of analysis and synthesis. Results. We considered and analyzed the main peculiarities of sponsor support subject and object interrelations. Conclusion. The results of the held research showed that sponsor support subject and object interrelations are based on mutually advantageous terms. Sponsors support some sports club being motivated by advantageous terms for the company. For the sports club it is profitable to interact. The sponsor pays the part of expenses. Keywords: sponsorship in sport, sponsoring, sponsor activity, sports marketing, sponsor help, sponsor support, sponsor.
For citation: Victor B. Myakonkov*, Darja V. Maleeva. About the problem of sponsor support in sport. The Russian Journal of Physical Education and Sport. 2019; 14(2): 61-64. DOI 10.14526/2070-4798-201914-2-71-75
Nowadays sport is an integral part of everyday In reality private investors and big companies life. A great amount of different sports events are choose young, promising athletes and help in popular among population. It especially concerns financing sports grounds and complexes. Very often winter and summer Olympic Games, Europe it helps young athletes to win and it increases the and World Championships and World Cups. income of the sponsor. In all cases financial support Undoubtedly such competitions are organized for influences not only economic development of a town, athletes, for sport popularization among population. but also in general the development of a country. At the same time, it is a competition between states. The notion "sponsor" itself means "guarantor, It is supported by the desire to show the state to the secured provision". In economic sources this term is best advantage. It is the desire to show the whole explained as "taking tutorship, different assistance world that the definite state has the strongest, the provision". In practice more often financial most talented and enduring nation. It is impossible support in the event organization is meant and also without competition. sponsor's products provision. It should be noted that
If we consider competitions organization, it sponsoring has some differences from other kinds becomes clear that these events demand great of material help: first of all, it means the definite financial injections. From this point of view sports service, more often it has advertising character. industry is the sphere for investments. Thus, as it Money is invested on mutually advantageous terms was previously stated, sport means great expenses. (image support, prestige, promotion of brand image It is not always available for the definite person or and etc.). As a result, it provides sales volume some sports association. It is clear that sports events increase and sponsor's company capitalization. are vivid and have mass character and that is why In Russia sponsoring as a social and economic sport is attractive in investments. phenomenon appeared not long ago (in 90-s of the
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previous century). The pioneers of these changes were athletes. The first agreement of the Soviet players with "Adidas" meant that players wore only "Adidas" footwear and were provided for this footwear free of charge. In 80-s advertising contracts with "Olivetti" and "Jindo" were signed. There appeared the opportunity of sports organizations and business cooperation.
As it is known, sport is not financed enough by the state. This is the reason why sports clubs, federations, teams have to search for other ways of support.
The aim of the research is to reveal the reasons, why sponsorship is profitable not only for sports organizations, but also for commercial companies.
RESULTS AND DISCUSSION
It is obvious that the structures, which present sponsors, have the aim of increasing the income from sponsoring some object. They want to take advantage of their product advertising. Moreover, a sponsor can choose the object himself and take part in a big sports project. It will make him recognizable.
Sport became the part of marketing instruments. One of these marketing instruments is advertising. To some extent advertising is the reason for sponsor contracts. In practice advertisement in sport can give great results.
Millions of potential consumers follow their favorite teams, athletes or sports clubs. It provides great variety of potential audience.
Sponsors lay their account on the fact that their brand would associate with another brand. It became a mainstream in so called sports branding. Sports branding is the image of a sports team formation. It is based on the history, traditions, symbols of a sports club. It includes core audience of fans and marketing instruments for this brand promotion. It is easy to see brand-brand interconnection: cooperation of such big football clubs as "Zenit" and "Spartak" with oil companies "Gasprom" and "Lukoil".
It should be noted that state also tries to support professional sport. But it doesn't mean the exclusion of the search for the alternative sources of investments in a form of sponsor support. The example can be Football World Championship
2018. It attracted such giants as "Adidas", "Visa", "Macdonald's" and others.
We should consider benefits of a contract both for the sports organization and for the sponsorcompany. On the one hand, such contract has advantages for a sports organization:
additional financial support during the definite event and during the whole season (it depends on the conditions of the contract);
v sponsor's products provision (more often in case barter deal);
v different services provision (transport, help in the event organization);
On the other hand, sponsors also benefit from the cooperation:
v company's recognizability increase; v prestige;
v business contacts with potential consumers of a product;
v the opportunity to present something new; v staff motivation owing to bonus programs; v search for new solutions in "society-brand" communications;
v front contests organization for sports event audience;
At the same time, there can appear some contradictions between a sponsor and a sports organization:
v very often personal preferences of the company head play great role in choosing some sports organization or a club. This is the reason why many kinds of sport are not paid attention to.
v lack of qualified staff for qualitative work with sponsors and lack of experience in this kind of work. It leads to the following problem;
v the problem of violating the contractual obligations by sports organization and incompetent reporting concerning realization and control;
v excessive expectations of companies-sponsors in terms of feedback from a sponsor project. If sponsors don't get benefit from the vent they may reject further cooperation with the sports organization.
These are the peculiarities of adjacent disciplines and the topic for the separate discussions. One more factor of sponsor and sports organization interaction should be noted: not all brands and trademarks
are suitable for sponsoring in this or that kind of sport. The example is the company, which produces products for men, which can be hardly advertised by gymnastics national team.
In a short time we expect competition increase between the organizationsl. They want to be sponsors of this or that event. However, there is still the problem that not all kinds of sport are equally attractive for sponsors. How should not popular kinds of sport survive? This problem is not solved. There is the increased demand only for big sports events, such as winter and summer Olympic Games, Europe and World Championships, World Cups and Universiades. It is commonly supposed that one of the most expensive kinds of sport is football. Football will have great prospects of further sponsoring. It is also expected that sponsors will be interested in other kinds of sports activity. Moreover, we expect the increase of sponsors, who would like to be the partners only during one event. It can lead to the content of contract correction with sports organizations. They may have to create International unified principles of business and sport cooperation. Of course, it would take a lot of time and human resources.
Sports management and sport marketing today are in step with the time and become more popular in native arena. The experience of European sports management is adopted. New opportunities appear both for sports organizations and companies-sponsors. In terms of this problem it is very important to teach and select qualified staff in this sphere. It which will become good base for further cooperation development between business and sport.
CONCLUSION
The results of the held research show that companies-sponsors have enough reasons for using sport as an alternative opportunity not only for company's image support, but also for loyal audience formation concerning its product and own brand promotion. It is possible that this direction will be more popular with advertising opportunities and different instruments of brand promotion development.
Such events, as the Olympic Games, World
Cup or Super Bowl provide great income for their sponsors. Sport at amateur and professional levels is business that is why sponsors should understand the importance and the main principles of marketing. Companies try to get maximum income from their investments. At the same time, fans and audience want to see how their club and team succeed, winning the main prize.
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Submitted: 22.04.2019 Author's information:
Victor B. Myakonkov* - Doctor of Psychological Sciences, National State University of Physical Culture, Sport and Health named after P.F. Lesgaft, Saint-Petersburg, 190121, Russia, Saint-Petersburg, Dekabristov str., House 35, e-mail: [email protected]
Darjya V. Maleeva - Magister, National State University of Physical Culture, Sport and Health named after P.F. Lesgaft, Saint-Petersburg, 190121, Russia, Saint-Petersburg, Dekabristov str., House 35, e-mail: [email protected]
