HomeSports 2.0KreedOn Case StudyAn analysis of the role of sponsorship & corporate investment in sports
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An analysis of the role of sponsorship & corporate investment in sports

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Sports: An admiration 

Nobody has forgotten when India won the 1983 cricket world cup. Indeed, even today, the fervor is in the air whenever there is an India-Pakistan match, and that can’t be matched by anything else. We are a country that inhales and lives cricket. We are a country that loves sports and we all know, how Sports unite people. Sports reach a wider audience and their awareness, promotion, and sponsorship play a crucial role. Sponsorship provides the funding and promotion for a large event to reach its max potential.

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The driving force of corporate investment in sports

An analysis of the role of sponsorship & corporate investment in sports | KreedOn
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In an exceptionally cutthroat commercial center where brands are quick to get into the purchasers’ mind space, contribution with sports is an extraordinary method for interfacing essentially because the game is socially satisfactory. In India, sports like cricket, and amusement viz. Films, and so on are among the top activities for relaxation and attract the greatest attention. For a brand, in this manner, it makes the ideal method for getting into the core of the crowds.

Another motivation behind why brands use sports as a way to make brand mindfulness and notability is the personal interface that fans have with sports and sportspersons. The many groups of followers that have grown via online entertainment channels are declarations of that. With sponsorship and different types of relationships with groups and sportspersons, brands are supported as well as become ‘accomplices’ throughout some period.

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Changes in sports with corporate investing 

An analysis of the role of sponsorship & corporate investment in sports | Kreedon
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Over the past five years, a significant amount of capital has been invested in professional sports. Teams, leagues, or media partnerships have been acquired in more than half of the deals. The remainder has concentrated on related components of the sports ecosystem, such as online betting, fitness hardware and software, and digitally enhanced fan experiences-supporting technology. This trend has accelerated as teams and leagues have become more open to limited partner investments as a result of the pandemic’s resulting liquidity squeeze in 2020–2021. Asset prices are rising as expected, and new ownership structures will require greater operational efficiency and a greater emphasis on disciplined financial management. To put it another way, the sports industry is about to become more businesslike.

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A shifting playing field: new ownership and investment are just two of the numerous pressures that are rapidly altering sports. The shift from broadcast to streaming, the rise of digital experiences such as eSports, technologies that facilitate deeper fan engagement, and the rise of online betting in some markets are all altering how fans engage with their favorite teams and players and the monetization of that engagement.

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Sports Sponsorship 

An analysis of the role of sponsorship & corporate investment in sports | KreedOn
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When brands sponsor sports and sportspeople, they have a variety of marketing goals. The majority of international and Indian brands employ sports as a sustained, decades-long marketing campaign. For instance, Coca-Cola has long been associated with the Olympics and the FIFA World Cup. In complete accordance with the attributes of the brand, the top-of-the-heap brand has been developing marketing campaigns around these high-profile events, providing fans with the opportunity to share their joys and sorrows. Some companies use sports sponsorship to launch new products, such as mobile payment platforms, cell phone manufacturers, and mobile service providers, or for a one-time campaign or event.

The dynamic association of sports sponsorship & corporate investment

From simply signing athletes or employing them as brand ambassadors to strategically engaging with fans and followers, corporate and brand involvement in sports has evolved. Today, brands want to be a part of the debates and discussions. They’re looking for more ways to surprise fans by giving them better experiences that bring them closer to the sports and athletes they follow.

Sports marketers will need to learn more about data analytics because the dynamics of sports sponsorship are always changing. This will give them a lot of insight into the preferences of the audiences and allow them to create initiatives that can meet the needs of fans. Not only will comprehensive, real-time data assist in increasing fan engagement, but it will also provide sponsors with an indication of the effectiveness of their investment in sports. Another tool that sponsors should consider to create a unique atmosphere around sports and teams is to support artificial intelligence (AI).

sports data analytics - KreedOnAlso Read | How sports data analytics is changing the face of sports & helping create better sporting strategies

The relationship between fans & sports

The fan commitment towards sports starts from wearing attire with logos to discussing the game and players. Brands have begun to create and make stories around the game, which structure a strong scaffold among them and their crowds, where they dig profound into their mind to foster partiality for the brand through a socially admissible channel. 

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However, we are by all accounts not the only ones. We as a whole have seen the power of sports when an extremely renowned footballer said something about a cola brand and the brand experienced a gigantic misfortune in its image value, losing its market capitalization. It is one of the major examples of the impact of fans’ response to the comment made by the footballer, which adversely affected the brand. 

The rapid growth of sports sponsorship & investment 

The global sport sponsorship industry is anticipated to expand by $ 44.99 billion between 2022 and 2026, growing at a compound annual growth rate of 18.55%, according to a study published in the summer of 2022 by Infiniti Research Limited. This impressive feature demonstrates the effectiveness of sports sponsorship in today’s marketing environment. While pay-per-view services, over-the-top services, and social media continue to make it easier for sports fans all over the world to attend sporting events. Sponsorship opportunities are increasing in number and effectiveness. Sports offering sponsors a variety of benefits and engagement opportunities.

The sports industry and sponsorship, for the most part, have evolved over the past two decades. Sports sponsorship is still a great way to build brand awareness and get fast-lane access to the fan base. However, today, sports stand out by creating a positive and healthy image for brands and companies and monetizing engaging content and storytelling.

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Ayushi Bhatti
Ayushi Bhatti
I am Ayushi Bhatti, a graduate of B.A. English Honours from St. Stephens College, University of Delhi. Currently, I am pursuing M.A. in Journalism and Mass Communication from Sharda University. Over the years, I have attained proficiency in the English language through my consistent hard work and efficient writing skills. I have formerly written content for several prestigious platforms and some of them are NDTV Lifestyle Swirlster, LernEzy, Yhills, Kreedon, Zee Media. I have also been doing freelance writing besides writing articles, blogs, advertisements for campaigns, and website content. I possess the capability to write insightful and lucid content to bewitch my readers.


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