Saudi Arabia's Sporting Rise: Vision 2030 and the Quest for Global Recognition

Sponsorship is the financial support for a sporting event, organisation or athlete by an outside body, for the mutual benefit of both parties. At the professional level this tends to be by companies, to raise the profile of their brand by associating it with the athlete.

The company aims to generate brand awareness and customer recognition, whilst the event, organisation or athlete receives a boost in funding.

A popular example is a brand logo printed on a team shirt. Visibility is guaranteed, even more so in the modern world with social media and online highlights.

In the land of media and marketing rights today, there is no cookie-cut solution for brands, and a simple logo placement will not provide the sufficient return on investment (ROI) for sponsorship, nor does it give their target audience the “why?” - the reason to spend their money and engage with the product.

Companies investing in sports sponsorship need to look at the bigger picture to engage with fans and not rely on just one piece of inventory.

Sponsors get the opportunity to showcase their brand and products to a greater audience of varying demographics. The global nature of sport today means that athletes feature within competitions that attract millions, sometimes billions of viewers worldwide. By placing their brand within this sphere, organisations can catch the attention of people around the world.

In modern times, the value of social media cannot be underestimated. Even traditional forms of sponsorship are likely to appear on social media, opening the brand up to an even wider audience - even appearing in new territories.

Through placements on jerseys and advertising boards, sponsors get a high visual presence and become part of the action. If visibility is the core objective, then it's a surefire way to succeed, whether that’s inside the stadium, TV or online.

It is the emotional engagement which sets sponsorships in sport apart from almost all other forms of advertising and sponsoring initiatives. Traditional advertising platforms such as TV can attain similar reach figures to sport, but can’t compete with sports fans’ engagement.

In modern sports, several different types of partnerships exist, all of which can generate significant value.

Sponsorship deals are perhaps the most common form of sports partnerships. Companies invest in sports teams or events in exchange for advertising and brand exposure. These deals provide financial support to the teams and help sponsors connect with their target audience.

Strategic alliances involve two or more sports organisations coming together to achieve common goals. This could include sharing resources, facilities, or even talent. Such partnerships can lead to improved facilities, enhanced scouting networks, and ultimately, better performances on the pitch.

Successful sports teams recognize the importance of engaging with their local communities. Community partnerships involve initiatives such as youth sports programs, charity events, and education. These partnerships not only create goodwill but can foster a committed and engaged fan base.

In today's digital age, media collaborations are key. Sports teams and media outlets often join forces to collaborate on engaging content, including exclusive interviews, behind-the-scenes footage, and live broadcasts. These partnerships boost visibility for both parties.

Sports athlete sponsorships are those where individual athletes are sponsored by a brand. They may wear branded apparel whilst competing or during commercial appearances and press conferences, or they might appear in advertisements or other promotional materials for the brand. The brand will either offer a set fee to them, or pay for their kit, equipment or travel in return.

Sports organisation sponsorships involve entities like a team or league being sponsored by a brand. Like with individual athletes, they will either receive a fee from the brand, or payment for things like kits, equipment or ground maintenance.

In return, a team may display the company’s logos around its stadium, for example, while a league might include the sponsor in its name.

Sports event sponsorships are where sports events — like an international or regional tournament — are sponsored by a brand. This type of partnership can involve things like the event either changing its title to incorporate the brand’s name, or using the brand’s logo on official products. The event organisers will either receive a set fee or have expenditures like venue hire, hospitality, catering, publicity, programmes and officials’ costs covered.

A brand partnership is a mutually beneficial agreement between two or more businesses. All parties agree to help one another by promoting and sponsoring each other or creating content together.

Brand partnerships aim to increase brand recognition and ultimately boost sales and customer loyalty.

In sports, co-branding exists, where two or more companies jointly promote their brands, services, and products through cross-marketing efforts.

This can include anything from social media posts, advertisements, and commercials to events and appearances by high-profile athletes and celebrities.