Part 3 of 4
Jim Andrews, ONSIDE Strategic Consultant
TRICKY CONNECTIONS
Amid all the marketing industry talk of purpose and authenticity, the sports and entertainment world does not always make it easy for brands that invest in sponsorship. The two biggest global events in 2022 are the FIFA World Cup in Qatar and the Winter Olympic and Paralympic Games in Beijing. Long-standing partners of both FIFA and the International Olympic Committee will and have faced uncomfortable questions about human rights issues in the build-up to both events and participating teams and athletes will be challenged to speak up about Uyghurs, migrant workers and LGBT+ rights.
At the same time, Saudi Arabia’s involvement in sport and entertainment will continue to grow, building on the inaugural Formula 1 Grand Prix in Jeddah – which included performances from Justin Bieber, Tiesto and David Guetta – as well as significant investments in film, culture, golf and Newcastle United. Even beyond these well-flagged global topics, more rights holders will be held to account for their partnerships in 2022.
Tightening regulatory landscapes for the betting industry and foods that are high in fat, sugar and salt (HFSS) in the UK and Ireland will create challenges around structuring and activating partnerships, particularly in the sports sector. Sports rights owners will have to work harder to deliver returns to betting partners and non-sports rights owners may benefit from an uplift in interest from food and drinks sector brands looking for alternative approaches as part of their changing ways. Non-alcohol sponsorship leaders are showing a strong pathway for others to learn from.
2021 will be recorded as the year that sponsorship helped cryptocurrencies and other blockchain-backed assets such as fan tokens and NFTs take a large stride towards the mainstream, with almost 200 new deals for crypto exchanges and fan tokens across Europe and North America. There are more big deals to come, but also increased scrutiny as fans (Leeds United and Socios), media (Man City and 3KEY) and regulators (Premier League) get to grips with this unregulated sector. There will be losers as well as winners in this wave of investment.
Implication
Effective sponsorship governance is not a topic that creates headlines and wins awards (yet), but it will be in the spotlight throughout 2022. Close alignment between sponsors and rights owners of the biggest global events will be crucial if their relationships are to endure and thrive in a challenging 2022. Other rights owners will have to balance revenue requirements with the preservation of principles and values. Those that have the financial strength or ethical fortitude to prioritise the latter are likely to benefit in the long run.
“The Connection Series 2022”, is a four-part blog series, where the ONSIDE’s international consultancy team pull out the key themes from our 16th annual Irish Sponsorship Industry Report 2022.
To request an abbreviated version of the Industry Report 2022, click here.
You can read the other blogs in the series here:
