Sports sponsorship has become one of the most powerful marketing tools in the modern business landscape. Major clubs like FC Barcelona or athletes such as LeBron James attract sponsorship deals worth more than EUR 50 million annually. Events like the European Football Championship demonstrate why global brands such as TikTok and Booking.com invest heavily in sports: the combination of mass entertainment value and social relevance delivers unmatched exposure and engagement.
But what exactly drives companies to spend such staggering sums? Is it just about logos on jerseys, stadiums, or digital backdrops—or do these partnerships create measurable business impact? To answer this, let’s explore the benefits, risks, and evolving future of sports sponsorship.
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The Rise of Big-Ticket Sponsorships
In 2021, an unexpected name entered the sports sponsorship spotlight: TeamViewer, a software company from Göppingen, Germany. The brand became the main sponsor of Manchester United, replacing long-established corporate giants like Adidas and Chevrolet.
What made headlines was not just the partnership, but the scale of the investment. TeamViewer committed around GBP 47 million annually (EUR 55.25 million)—over 10% of its 2020 revenue—to this single sponsorship deal. For a company with EUR 456 million in turnover, the decision was bold, signaling strong confidence in the brand-building power of football.
However, the partnership was short-lived, as TeamViewer later announced it would not renew the agreement beyond 2026. This raised an important question:
Why do companies invest so heavily in sponsorship, and what tangible benefits do they receive?
| Rights | Special Features |
| Main & Jersey Sponsorship | Omnipresent – whether on or off the pitch. The jersey sponsor is the largest and most important partner. In addition to numerous tangible rights, it also has large activation rights with access to athletes. |
| Sleeve Sponsorship | Less obtrusive, but with good media value & great activation opportunities. A place on the athletes’ clothing creates closeness. |
| Stadion Naming Right | The home of the club & its fans. The host role in B2B is also extremely valuable. Media exploitation, anchoring in the vernacular. Potential to become a regional landmark. |
| League or Event Naming Right | Overarching, more “neutral” sponsorship that focuses more on fan association with an event or sport than on individual clubs. You are an enabler and not only present at individual games/clubs, but everywhere. The name is carried in all communication. |
Key Advantages of Sports Sponsorship
Enormous Brand Visibility
Sports deliver massive visibility across venues, television broadcasts, and digital platforms. Logos on jerseys, stadium naming rights, and advertising boards guarantee constant brand exposure during games and highlight reels.
The rise of social media amplification multiplies this effect. For instance, when a club posts behind-the-scenes content or players share training updates, the sponsor’s logo—often placed prominently on the chest—remains visible, regardless of who created the content. Similarly, naming rights ensure sponsors become part of the everyday language of fans through geo-tagging and references like “visiting Old Trafford, home of Manchester United.”
Emotional Association with Clubs and Athletes
Sports sponsorship is not just about visibility—it’s about emotional connection. Fans form deep bonds with their favorite clubs and players, and these associations often transfer to the sponsor’s brand.
A loyal football supporter, for example, may be more inclined to use products or services from a sponsor they see supporting their team. This emotional bridge strengthens both B2C loyalty and B2B credibility. The closer the brand is to star athletes or iconic clubs, the stronger this association becomes.
Extensive Activation Opportunities
Large sponsorships come with expansive activation rights, allowing brands to design creative campaigns, immersive fan experiences, and unique storytelling initiatives.
From digital campaigns to behind-the-scenes access with players, sponsors gain tools to craft narratives that resonate with audiences. These rights extend to exclusive interviews, collaborative content, and promotional events, which smaller sponsorship deals often cannot provide.
Global Market Expansion
Sports are universal, with clubs like Manchester United, Barcelona, and Real Madrid commanding fan bases in every corner of the globe. Sponsorship allows companies to expand into new markets strategically.
For instance, a brand entering Asia or North America can leverage the global reach of a major club to instantly gain credibility and awareness. Similarly, emerging sports like esports provide a younger, tech-savvy audience that traditional advertising often struggles to reach.
Positive Social Positioning
Unlike many forms of advertising, sports sponsorship is often seen as socially accepted and positive. By supporting teams, athletes, and tournaments, companies position themselves as enablers of organized sport, community building, and cultural engagement.
This boosts reputation, portraying the sponsor as not just a business entity but a contributor to social good.
The Risks of Sports Sponsorship
While the benefits are significant, high-value sponsorships also involve notable risks.
Passive Investment
Simply writing a check is not enough. Without active activation strategies, sponsorships risk becoming wasted opportunities. Fans and consumers expect engaging experiences, not just logos. Brands that fail to activate their sponsorship miss out on converting visibility into meaningful interaction.
Performance and Reputation Risks
Sponsorship success is closely tied to the fortunes of athletes or clubs. Sporting failures, injuries, doping scandals, or controversies can damage the image of both the team and its sponsors.
However, adversity can also be an opportunity. Sponsors who remain loyal during tough times may gain fan admiration for their resilience and authenticity.
External Crises and Force Majeure
Unpredictable events such as pandemics or geopolitical crises can disrupt sports calendars, reduce fan attendance, or cancel tournaments. For example, during the COVID-19 pandemic, sponsors lost significant exposure from cancelled matches and reduced stadium audiences.
Smart sponsors, however, adapted by leveraging digital activations—virtual events, online fan engagement, and esports collaborations—to maintain relevance.
Are Sports Sponsorships Still Worth It?
With the global economy facing uncertainty, many businesses question whether multimillion-dollar sponsorship deals remain viable. The truth is nuanced.
In some leagues, such as the NFL, sponsorship revenues are climbing. In others, financial strain has reduced club budgets and sponsorship appeal. The short-term outlook is mixed, but the long-term fundamentals remain strong.
The post-pandemic world has introduced new players into the sponsorship arena. Tech companies, trading platforms, and Asian investors are stepping in aggressively, seeing sports as a gateway to credibility and mass consumer attention. Meanwhile, esports sponsorship continues to grow, offering fresh audiences and engagement models.
Frequently Asked Questions:
Why do companies invest millions in sports sponsorship?
Companies invest in sponsorship to boost visibility, build emotional connections with fans, expand into global markets, and strengthen brand reputation.
What benefits do sponsors gain beyond logo placement?
Beyond logos, sponsors receive storytelling rights, fan engagement opportunities, access to athletes, and long-term brand association with clubs or events.
How does sponsorship help companies enter new markets?
Global sports brands attract diverse fan bases. Sponsorship allows companies to quickly gain awareness, trust, and credibility in new markets.
What risks are associated with large sponsorship deals?
Risks include team performance issues, scandals, lack of activation, and unexpected crises such as pandemics or event cancellations.
Is sports sponsorship still effective in today’s economy?
Yes. Despite economic uncertainty, sponsorship remains valuable due to sports’ emotional appeal, global reach, and growing digital activation opportunities.
Do smaller sponsorships offer similar advantages?
Yes, smaller sponsorships provide visibility and brand association, though at a reduced scale. They can still deliver high ROI when activated effectively.
How can companies maximize their sponsorship investment?
Brands should focus on fan-centered activations, digital campaigns, storytelling, and loyalty-driven strategies rather than relying only on logo exposure.
Conclusion
Sports sponsorship is no longer just about placing a logo on a jersey or a stadium wall—it’s about building trust, creating emotional connections, and reaching audiences on a global scale. Companies that invest millions in these partnerships gain more than visibility; they secure a place in the hearts of fans, open doors to new markets, and position themselves as enablers of sport and community. While risks such as performance failures, scandals, or unforeseen crises exist, the rewards often outweigh the challenges when sponsorships are activated strategically. With the rise of digital engagement and evolving fan expectations, the potential for brands to innovate and connect has never been greater.
