TAKE FIVE SPORT SPONSORSHIP’S BEAUTIFUL REBOUND!
SPORT SPONSORSHIP’S BEAUTIFUL REBOUND!
By Anthony Schaub
Everyone followed the incredible growth of the financial milieu in 2020 and 2021. Against the tide of a struggling global economy, some banks dared only hint at their dizzying success.
Regarding sports sponsorship investments and returns, however, 2020 will undoubtedly be remembered as an annus horibilis. In contrast, 2021, although still very impacted by the pandemic, recovered faster than expected. The European Sponsorship Association (ESA), of which The Consultancy is a member, monitored industry sentiment during this period. Although the indicator remained quite positive throughout, the results were even moreso.
According to a recent study conducted jointly by ESA and Nielsen Sports, sports sponsorship investments grew by 17.8% in 2021, nearly reaching pre-pandemic figures in Europe, with 27.8 billion euros in revenue. Keep in mind that 34% of this growth came from the APAC region, according to a recent study by Technavio.
There are two obvious conclusions to be drawn from this 2021 analysis. The first is the solidity of the sector leading up to 2020. Everything – from ticketing to stadium occupancy and merchandising sales – was at its peak without being overpriced. The other speaks to people’s commitment to share their passion for sport and support their teams and athletes.
Is the 2021 recovery a post-Covid rebound or a return to the 2015-2019* trend? Time will tell, but I would opt for the second option, especially considering the industry’s ability to adapt and innovate, even in times of crisis.
*Prior to the pandemic, the sports sector had been enjoying 10-15% annual growth since 2015, with equally encouraging prospects through 2025.