Risky Game –Sports Sponsorships

                In todays world one used to always associate sponsorships with sports.  However, in the last few years we have seen a trend in the decline of sponsorships going to various well-known athletes.  The trend started with Tiger Woods scandalous behavior off the golf course that negative bad behavior in personal life that was trickling into his career so inevitably sponsors dropped him.  Why would a highly respectable brand want to be associated with an athlete with a tarnished image- it would ruin the brands credibility and veracity with the public.

         

             Sponsors and big companies are weary of these sports athletes because the athletes are letting the fans down with their tarnished and corrupted personal lives, which ultimately affect their sport that they are playing.  Big companies are starting to ask why should they endorse men and their infidelity (Tiger Woods), men accused of rape (Bryant), and then they’re Michael Vik and his cruelty of hurting dogs.  The sponsorships are extremely huge amounts of money for the sports athlete to drink the companies drink, or wear the company’s merchandise so the brand is tied to that athletes for the fans to go out and buy that brand too.  Thus, when an athlete’s career is affected by his personal life then the sponsor has no choice to but to pull out so their brand will no longer be associated with that athlete. 

              We are witnessing a decline in the spending on sports since 2009 the sponsorships have decreased from $100 million to $11.3 million-sponsorships hitting the skid.  The companies are analyzing the situation more and asking themselves if they are getting a return on their investments. Thus, Pepsi split with soccer athlete David Beckham for reason unknown except that does David actually drink Pepsi? Thus ended their 10-year relationship at $4 million a year.  Also, in 2008 Microsoft declined to renew a two-year $1 million dollar deal with basketball Lebron James.  Therefore, there is a decline in the sponsorships too because there is disconnect with the athletes and the product they endorse.   

              In conclusion, companies are realizing there is a big element of risk of sponsoring these star athletes because once they disappoint the fans that product their endorsing becomes tarnished too, or not looked upon as favorably and ultimately causes the sponsor to leave the athlete. 

References:   

1.  Fitch, S. (2010, January 18). Sports sponsorships hit the skids. Retrieved from http://www.forbes.com/forbes/2010/0118/outfront-tiger-woods-golf-sponsorships-hit-skids.html

2.  Ewig, J. (2007, June 7). Sports sponsorhsips a risky game. Retrieved from http://www.businessweek.com/globalbiz/content/jun2007/gb20070607_140258.htl