Selecting Winning Sport Sponsorships: A Guide for Brands

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Strategic Sponsorships: How Brands navigate the World of Sports Partnerships

Published: tuesday, September 9, 2025, 7:45 AM | Updated: Monday, September 8, 2025, 7:09 PM

Brands are increasingly scrutinizing the return on investment from Sports
Sponsorships.

The landscape of Sports Sponsorships is undergoing a meaningful shift as
brands reassess their strategies and seek more meaningful returns on
Investment. From prominent placements on Formula 1 vehicles too expansive
displays in major stadiums, sponsorship is ubiquitous, but the approach to
securing these partnerships is becoming increasingly sophisticated.

The evolving Dynamics of Brand Partnerships

Historically, Sports Sponsorships were often viewed as branding exercises,
focused on visibility and association. However, modern brands are now
demanding more tangible outcomes, such as lead generation, enhanced customer
engagement, and measurable revenue growth. This has led to a more strategic
approach, where brands carefully evaluate potential partnerships based on
audience alignment, shared values, and opportunities for activation.

AirwallexS Jon Stona noted that while the temptation to jump onto high-profile
opportunities exists, his firm’s collaborations with Formula 1’s McLaren
Racing and arsenal Football Club are built on a “multifaceted” foundation
that extends beyond mere visibility. “We did a fairly large screening,”
Stona explained, adding that the global reach of Formula 1 and the London
market presence of Arsenal were key factors in their decisions.

This evolving dynamic necessitates a deeper understanding of the potential
risks and rewards associated with Sports Sponsorships. The right partnership
can be incredibly lucrative, but a poorly chosen alliance can lead to wasted
resources and reputational damage.

Navigating the Risks and Ensuring a Strong Fit

According to Sean Connell of The Sponsor, aligning a brand with another
entity involves inherent risks, particularly in the world of sports, where
athletes and celebrities often attract media attention, both positive and
negative. He highlights the importance of robust crisis planning and clearly
defined contractual safeguards.

The case of Cazoo,a car retailer,serves as a cautionary tale. While the
company successfully increased brand awareness, it reportedly struggled to
translate that visibility into actual sales, ultimately demonstrating the risk
of prioritizing brand exposure over concrete results.

Airwallex,conversely,emphasizes open communication and collaboration
with their partners. Stona stated, “We never say sponsor, we always say
we’re a partner to McLaren, because they’re helping us grow our brand.”
Internal data suggests the sponsorship has positively impacted brand trust
and purchase consideration among their target audience, with 65% reporting
increased trust and 67% indicating a greater likelihood of choosing
Airwallex for their payment needs.

Here’s a comparison of sponsorship levels and associated costs, as of late 2024:

Sponsorship Level	Estimated Annual Cost	Typical Activation Opportunities
Premier League (Main Sponsor)	£50M – £75M+	Shirt Branding, Stadium Signage, Digital Integration, Player Access
Formula 1 Team (Title Sponsor)	$75M – $200M+	Car Branding, Team Apparel, Hospitality Packages, Driver Appearances
Major League Baseball (team Sponsor)	$10M – $30M	Stadium Signage, In-Game Promotions, Community events
Smaller League/team Sponsorship	£50K – £500K+	website Branding, Event Activation, Social Media Campaigns

Professor Rob Wilson emphasizes that effective sponsorships require a strong
alignement between the brand and the sponsored entity. He states that a
“right function and fit can amplify both parties,”

What specific brand values can be effectively communicated through sports sponsorship, and how do these align with target audience perceptions?

Defining Your Sponsorship Objectives

Before diving into potential partnerships, clarify why your brand wants to engage in sports sponsorship.A well-defined strategy is crucial for maximizing ROI. Consider these objectives:

Brand Awareness: Reaching a wider audience and increasing brand recognition. This is often the primary goal for newer brands or those entering new markets.

Brand Image Enhancement: Associating your brand with positive values like athleticism, teamwork, and healthy lifestyles.

Lead Generation: Capturing contact information and nurturing potential customers through sponsorship activations.

Sales Growth: directly driving sales through promotions and exclusive offers tied to the sponsorship.

Corporate Social Responsibility (CSR): Aligning with sports initiatives that support community development or social causes.

Employee Engagement: Offering unique experiences and fostering team spirit through sponsorship benefits.

Identifying the Right Sport & Property

Not all sports marketing opportunities are created equal. The key is finding a synergy between your target audience and the sport’s fanbase.

Target Audience Alignment: Where does your ideal customer spend their time? A luxury car brand might find success sponsoring Formula 1, while a youth-focused energy drink might thrive with skateboarding or esports.

Sport Popularity & growth: Consider both current viewership and future potential. Emerging sports can offer unique opportunities, but established leagues provide broader reach.

Property Evaluation: Within a sport, evaluate specific teams, events, or athletes. factors to consider include:

Media Coverage: How much exposure will your brand receive?

Social Media Presence: Engagement rates and follower demographics.

Geographic Reach: Does the property align with your key markets?

Reputation & Values: Ensure the property’s image aligns with your brand’s values. Recent scrutiny around “sportswashing” (as highlighted with initiatives like Rugby360 and Saudi investments in golf,Formula 1,and UFC) underscores the importance of due diligence. Protect your brand by thoroughly vetting potential partners.

Sponsorship Levels & Costs: Understand the different tiers of sponsorship available and their associated benefits and price tags. Options range from title sponsorship to in-stadium advertising to athlete endorsements.

Negotiating a Sponsorship Agreement

A robust sponsorship contract is essential. Don’t rely on handshake deals.

Clearly defined deliverables: Specify exactly what the sports property will provide in exchange for your investment. This includes logo placement, advertising slots, hospitality access, and social media mentions.

exclusivity Clauses: Protect your investment by securing exclusivity within your product category.

Intellectual Property Rights: Clarify ownership of any content created as part of the sponsorship.

Performance Metrics & Reporting: Establish clear KPIs (Key Performance Indicators) and require regular reports to track the sponsorship’s effectiveness. Examples include:

Brand awareness Surveys

Website Traffic

Social Media Engagement

Lead Generation Numbers

Sales Data

Termination Clauses: Outline conditions under which either party can terminate the agreement.

Activation Strategies: Bringing Your Sponsorship to Life

A sponsorship isn’t just about logo placement. Sports activation is where the real value lies.

Experiential marketing: Create memorable experiences for fans at events. This could include interactive booths, contests, or VIP hospitality areas.

Content Marketing: Develop engaging content related to the sponsorship. This could include blog posts, videos, social media updates, and athlete interviews.

digital Integration: Leverage digital channels to amplify your sponsorship message.This could include online advertising, social media campaigns, and email marketing.

Influencer Marketing: Partner with athletes or sports personalities to promote your brand.

Cause-Related Marketing: Tie your sponsorship to a charitable cause to enhance your brand’s image and engage fans.

Measuring ROI & Optimizing Your Strategy

Sports sponsorship ROI isn’t always easy to quantify, but it’s crucial to track your results.

Pre-Sponsorship Baseline: Establish a baseline for key metrics before the sponsorship begins.

Regular Monitoring: Track your KPIs throughout the sponsorship period.

Post-Sponsorship Evaluation: Analyze the results and determine whether the sponsorship met your objectives.

* Continuous Optimization: use the insights gained to refine your sponsorship strategy for future campaigns. Consider A/B testing different activation tactics to maximize effectiveness.

Case Study: Red Bull & Extreme Sports

Red Bull’s success is largely attributed to its strategic investment in extreme sports sponsorship. Rather than sponsoring mainstream sports,Red Bull aligned itself with activities like skateboarding,snowboarding,and Formula 1,creating a brand image synonymous with energy,adventure,and pushing boundaries. This targeted approach has resonated deeply with its core demographic, driving brand loyalty and sales.