The coronavirus pandemic has put sports sponsorship into freefall, with worldwide spending expected to plummet 37%, according to a new study by Two Circles. The international sports marketing agency projects global sponsorship fees will decline a staggering $17.2B, from $46.1B in '19 to a projected $28.9B this year. As the leading spender in sports sponsorships, financial services is predicted to take the biggest hit, declining 45% from $12.58B to $6.92B. Industries like automotive, energy and airlines also will cut their sponsorship spend, the study forecasts. Two Circles Senior VP/Consulting Sam Yardley said, "We believe the marketing power and appeal of sport will endure, but this is not a short-term industry concern. We’ve got a long road ahead of us." Cuts in spending will be prompted both by negative business results and the massive amount of sponsorship renegotiations, producing rebates and make-goods that sports properties will have to issue due to games/seasons missed.
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GLOBAL SPORTS SPONSORSHIP SPEND BY SECTOR (All FIGURES $B)
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SECTOR
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'18
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'19
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'20 (PROJECTED)
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Financial Services
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$12.45
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$12.58
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$6.92
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Automotive
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$5.76
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$5.93
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$2.67
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Technology
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$5.17
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$5.58
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$4.58
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Telecoms
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$3.02
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$3.14
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$2.55
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Retail
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$2.70
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$2.87
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$1.81
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Soft Drinks
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$2.29
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$2.33
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$1.42
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Energy
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$1.60
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$1.76
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$0.99
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Airline
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$0.79
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$0.83
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$0.33
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Alcohol
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$0.75
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$0.76
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$0.62
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Gaming
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$0.63
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$0.70
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$0.48
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Other
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$9.13
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$9.61
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$6.55
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TOTAL
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$44.30
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$46.10
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$28.90
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