Potential negative outcomes from sports sponsorship

Abstract

While substantial literature has addressed the benefits that sponsors seek from linking with a sports property, relatively little attention has been given to the potential costs businesses risk from such relationships. This paper suggests that beyond ambushing there are eight risks companies are likely to consider. Four can be controlled relatively easily: liability exposure; insensitivity to public sentiment to changing established rules or formats, the name of a facility or team or a team's uniform; insensitivity to the prevailing societal and political environment; and opposition from workers or stockholders. Companies have less control over: poor presentation of the event; poor performance by either the sponsored team/player or the company's products if the event is being used as a demonstration platform; association with disreputable behaviour; and trauma to performers.

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