Sponsorship word & # 39; it has a somewhat ambiguous meaning. Some see sponsorship as "gifts." nothing is expected. In the world of sports sponsorship, nothing can be far from the truth. In this article, I would like to dispel this myth about sponsorship of sport and give an idea of how it works as part of the company's global marketing strategy.
Sports support began with athletes in the 1960s – these athletes were paid money to support a company for a product. In golf, athletes like Arnold Palmer and Jack Nicklaus are top-notch luxury items like watches and cars. Tennis players were paid to wear clothing such as Nike and Adidas while competing in court. These companies saw marketing-valued athletes help them sell their products on the global market. These athletes were icons and heroes for so many people, and the psychology of human behavior tells us that we want things to be our icons and heroes. Here, these athletes have become footboards for companies to promote their products on the global market.
Sports agencies such as Octagon and IMG have started to present these athletes' interests and become the middle men; for sponsorship transactions between athletes and Fortune 500 companies. Television has played a huge role in athletes in wearing and using the company's products. Companies have been given a commercial time to advertise and rent their relationship with these athletes, and consumers are encouraged to buy their products.
Since the beginning of the sports marketing industry, much has changed in the 1960s. Sports support has become a multi-billion dollar business. Not only were they sponsored by athletes, but events, teams, stadiums, etc. Companies pay millions of dollars to link their name to a particular athlete, team, event, or stadium.
In 1997, when Tiger Woods became a professional, he signed a $ 40 million, 5-year job with Nike, which was then the largest golf business. In 2013, Rory McIlroy joined Nike for a announced $ 250 million 10-year deal. This $ 250 million is subject to certain bonus clauses, but it shows how valuable these athletes are to companies like Nike and how important their marketing strategy is.
Today, a sponsorship agreement has become very technical. The company pays X for certain rights related to sponsorship. Through different matrices, Sports Marketing companies can show return on investment (ROI) for most sponsorships. Using these matrices, they can make one dollar, which companies have to pay for sponsorship. These figures are usually the starting point for starting negotiations between Sport Marketing companies and brands, and lead to an agreement that works for both parties.
When you look at the list of major money producers among athletes, you'll see lovers of Tiger Woods, LeBron James, Roger Federer and David Beckham – all the leading figures that go beyond sport. All the icons that people watch and have a huge marketing version; having paid large sums for their sponsorship. In fact, Tiger's $ 1 billion net worth comes from 85-90% of the sponsorship and victory reminder. I think these numbers are just as important as the importance of companies in sponsoring appropriate athletes or real estate.
Source by sbobet th