9 ways sports rights holders benefit commercially from ESG.

ESG is one of the thorniest issues facing sports rights holders’ today. Supported by fans, mandated by the governing bodies responsible for funding and increasingly required by potential sponsors and yet a challenging journey for you, demanding resources, knowhow and inevitably investment. A classic Catch 22 situation.

?But, investing the necessary time and effort to develop a clear and integrated organisational strategy around ESG is the only effective way to secure long term sponsors into the future. A future in which there will be little room for rights holders and rights that do not meet Government mandates and align with partner brand values and commitments.

?It’s not an easy pathway. It does require full adoption by rights owners. But it is a journey that can be accelerated and eased by the development of an integrated strategy that sits at the heart of your organisation. There is a real appetite amongst your employees, sports fans, players, and the media for these actions and for this reason the benefits seem to us, self-evident.

1.???? De-risk investment for sponsors – most brands see reputational risk as an existential threat. Safe and secure partnerships are increasingly the only ones that their boards will ratify.

?‘86% of UK investors* believe that companies that prioritise ESG

represent better opportunities for long term returns’ Edelman Trust Barometer

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2.??? Unite your people – an increasingly high % of the population are influenced by how businesses behave. A strong, fair, and responsible culture will engage employees and engage participants creating increased loyalty and advocacy.

‘88% of consumers will be more loyal to a company that supports social or environmental issues.’

3.??? Signal change – a strategy that activates your progress in your articulation of the brand and social purpose in a positive and visible way through new stories will show you’re a business worth consideration.

4.?? Amplify your brand – in turn, the sharing of your new positioning and the stories you can build from that can grow your awareness via word of mouth, social media, the community and engaged media partners.

?‘69% of sports fans between 16-24 expect brands, teams, and athletes to support their values’ - GWI.

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5.??? Build your connections & data – engaging with the views and values of your audience, particularly deeply held views such as around the environment will increase engagement and if you give them the opportunity through campaigns, offers and participation an increase in the proportion that will connect with you.

6.?? Grow your profile – the media appetite for the sustainability / ESG story is significant. Being part of that narrative will help increase coverage and the ability to be seen by all your stakeholders.

?“Coverage of ESG investment increased over 70% in 2020 in our global sample of influential media…the number of journalists covering ESG, and sustainable investment has multiplied severalfold in two years” Cognito.

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7.??? Monetise new assets – ESG won’t create increased revenue on its own, but the process will help to identify new stories, initiatives, and properties that partners may wish to engage with, with your organisation, your ambassadors, in the community, in nature and in offering diversity and inclusion.

?The ‘Sport & Purpose survey’ indicates that 58% of brands claimed that their purpose-led sponsorships perform better than non-purpose led sponsorships.

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8.?? Grow relevance – having a voice on this topic will make you pertinent to more brands that share those views and / or are looking for ways to reinforce their own values in different settings.

‘According to the CBI, two-thirds of investors take ESG factors into account when investing in a company’.

9.?? Motivate you and your team – the topics central to ESG are both rationally important but also emotionally very engaging. Feeling passionate about these things will drive your collective sense of pride, purpose, and determination. Passion is the ultimate motivator.

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If you’d like to understand more about how your organisation can get more value from your ESG journey or commission one of our Creating Value Through Sustainability (CTVS) strategy workshops, please get in touch:

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?Victoria Hartley – Head of Sustainability

[email protected]k

?Mark Joy – Head of Business

[email protected]

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