Sponsorship Expectations for 2022

T. Bettina Cornwell

Crypto entered the chat – This is not last year's news even though others have noted the dizzying pace of crypto investments in sponsorship in 2021. There is more potential for this asset class given that 2021 is closing with 15,000 cryptocurrencies in the marketplace. During the user acquisition landgrab preceding consolidation for this asset class there will be more investments in audience via sponsoring. Partnerships also make sense for crypto since sports can offer a low-risk trial of crypto currencies as well as a gateway to non-fungible tokens (NTFs) for fans. Also important is that crypto currencies, as a new product, and a product new to sponsorship, have their pick of available inventory. It is a unique context and will fuel additional crypto sponsoring.

Women in sport – We cannot leave 2021 without respect for Sedona Prince (not just because she is a Duck) and how she pointed out the inequalities women face in sport. We’ve seen some progress for women in sport but there is more potential. Deloitte’s football money league, in tracking the growing stature of women’s football, notes that 18 of the top 20 European clubs have women’s teams but, less than half of these have a separable shirt sponsor for the women’s team. Moreover, for many sports, women are passionate fans. Consider the Zoomph report on women gaming fans- they are an audience that brand categories would like to reach, and they understand reciprocity. The pro move in 2022 is to stop treating partnerships in women’s sport like add-ons, buy-one-get-one deals, or charity sponsorships.

Real estate expansion – The 2017 introduction of NBA jersey patches was a clear sponsorship success. In the new round of patch deals, the LA Lakers 5-year, 100-million-dollar jersey patch deal with Bibigo food of Korea was a record breaker. So why not add patches to NBA warmup shirts for 2022…done. In contrast, NHL decided to start small with helmet logos but gain value for home and away decals. For the Arizona Coyotes, Mountain America for home and Dignity Health for road games. This strategy holds considerable potential for teams seeking income and for sponsors seeking to expand their markets from their headquarters with their hometown team. While adding complexity in terms of exclusivity, there will no doubt be more interest (and wrangling) about center of action sponsorship, right NFL?

Sponsorship as fulcrum – Civic engagement accomplished via pressure on sponsors, and via sponsor pressure on others, is becoming inculcated as a strategy for civic action. For example, the pressure placed on Manchester United’s shirt sponsor, TeamViewer, was actually directed to the owners of the team, the Glazers, for their mismanagement. Angry fans bombarded TeamViewer with negative reviews and launched a boycott campaign against the team’s partners. As well, when brands take stands, such as those in support of Naomi Osaka when she chose mental health over competition, we are seeing the expression of civic (and brand) values. The fulcrum role that sponsors play in sport, art and event ecosystems has been evolving for years and is becoming regularized.

Partnerships will continue to be highly valued – Based on our recent meta-analysis of how sponsorship announcements influence stock returns, we have evidence that partnerships provide value to firms. Sponsorship prices tell a similar story. For example, the Premier League clubs smashed their own records for shirt sponsorship deals in 2021. Despite the challenges for the global economy, we can expect sponsorship spending to be stable, even strong. If we design sponsorship activation to provide symbolic and social benefits, our research shows that fans will see the altruism and respond positively. As people seek immediate happiness and comfort in the coming year, there is nothing better than viewing, attending, or participating in sport.