Potential Negative Outcomes From Sponsorship For A Sport Property

Sponsorship funding has become a staple source of revenues for many sport events, but there are two types of potentially negative outcomes for properties that may be associated with it: operational risk and reputational risk. Operational risk occurs when sponsors insist on changing the rules or format of the event, or when they exercise undue influence on its content, timing, location or participants. The primary source of reputational risk is increased public sensitivity to the negative health impacts of some product categories, most prominently those of tobacco, alcohol, gambling and products that are high in fat, salt or sugar that may make it contentious for a sport property to partner with companies in these product classes. Similar controversy from public sensitivity may emerge around issues of corporate social responsibility, as expectations grow regarding the impact of a company’s actions on society. Reputational risk also may emanate from over commercialization of an event, since this may erode “fan equity”, i.e. the passion of fans who traditionally have supported it.

Read More!

Sponsorship Asset Development Model


This paper proposes a conceptual model of B2B factors in sponsorship. For that, an extensive body of literature has been reviewed and contextualized accordingly to create a model of the component elements of the sponsor and sponsored property and the sponsorship asset geerated by this B2B relationship. The paper briefly outlines the component elements of the business to business side of sports sponsorship in an effort to redress the lesser emphasis on the B2B elements of sponsorship theory. The paper also addresses the future research required to continue and expand the current model.


Farrelly and Quester (2003) noted that limited research had been conducted into the business to business relationships between the sponsor and sponsored parties. This paper represents an exploration of business skills and capabilities required by the sponsor and sponsored organisation to facilitate sponsorship arrangements as an attempt to expand the academic research on the role of B2B in sports sponsorship. It is focused on the amalgamation of prior...

Read More!