Sports Sponsorship: What It Is & Types | LALIGA Business School

What is Sports Sponsorship?

Sports sponsorship is a marketing strategy in which a company, brand, or entity financially supports or provides material resources to an athlete, team, event, or federation in exchange for visibility, promotion, and image association. It is a mutually beneficial relationship: the sponsored party receives support to develop their activity, while the sponsor gains notoriety, improves their reputation, and connects with the target audience through the values of sports. If you are interested in learning more about sponsorship contracts or training in this sector, discover our Master's in Global Sports Marketing to take the professional leap you seek.

Types of Sports Sponsorship

Sports sponsorship can be classified into different types based on the nature of the support and the relationship between the parties. Here are the main types of sports sponsorship:

1. Financial Sponsorship

This is the most common type and involves providing a sum of money in exchange for the brand's presence on the team's, event's, or athlete's platforms. For example, the main sponsor of a football club usually appears on the front of the jersey, on stadium signage, and on the club's official channels.

Example: Emirates as the main sponsor of Real Madrid, or Spotify on the jersey of FC Barcelona.

2. Material or In-Kind Sponsorship

Instead of money, the sponsor provides products or services necessary for the development of the sporting activity. This can include sports equipment, technology, food, transportation, etc.

Example: Nike providing sportswear to the national athletics team, or Gatorade supplying isotonic drinks to football teams

3. Media Sponsorship

The sponsor covers the costs of media dissemination, broadcasting, or coverage of an event or competition in exchange for advertising presence in the media.

Example: Movistar sponsoring the broadcast of the Vuelta Ciclista a España.

4. Nominative Sponsorship

In this case, the sponsor's name is integrated into the official name of the team, event, or sports facility. It is one of the most powerful formulas in terms of visibility.

Example: Wanda Metropolitano Stadium.

5. Personal Sponsorship / Individual Athlete Sponsorship

This involves direct support for an individual athlete, who acts as a brand ambassador and uses their personal channels to promote it.

Example: Rafael Nadal as the face of Kia Motors, or Carolina Marín sponsored by Iberdrola.

Benefits of Sports Sponsorship for Brands and Athletes

Sports sponsorship offers clear advantages for both brands and the athletes and sports entities themselves. Among the main benefits are:

Benefits of Sports Sponsorship for Brands and Athletes

Sports sponsorship offers clear advantages for both brands and the athletes and sports entities themselves. Among the main benefits are:

For Brands:

• Visibility and Notoriety

  Sports attract large audiences and generate millions of media impacts. Brand presence on jerseys, stadiums, broadcasts, and social media multiplies advertising reach.

•  Association with Positive Values

  Sports convey values such as effort, overcoming challenges, teamwork, equality, and sportsmanship. Associating the brand with these values enhances public perception and reputation.

• Targeting and Engagement

  It allows reaching very specific audiences (youth, families, fans of a specific sport) and generating a deeper emotional connection.

• Increased Sales

  Numerous studies show that well-managed sports sponsorship positively influences purchasing decisions and customer loyalty.

   

For Athletes and Sports Entities:

• Resources for Development

Sponsorship allows access to better facilities, equipment, training, and conditions.

• Greater Projection and Professionalization

Support from recognized brands contributes to the professionalization of sports and the international projection of athletes.

• Stability and Sustainability

Sponsorship is key to the economic viability of clubs, federations, and events, especially in minority or emerging sports.

Real Examples of Sponsorship

Sports sponsorship is present at all levels and disciplines. Some emblematic examples in Spain and the world include:

Emirates and Real Madrid

Emirates has been the main sponsor of Real Madrid for over a decade, achieving global exposure and associating its image with sporting excellence.

Iberdrola and Women's Football

Iberdrola has invested in sponsoring women's football in Spain, contributing to the growth and professionalization of the league and national teams.

Nike and the NBA

Nike is the technical sponsor of the NBA, supplying all sports equipment and leveraging the image of the league's star players.

Red Bull and Extreme Sports

Red Bull has built a brand strategy based on sponsorship and organizing extreme sports events, becoming a global reference.

Santander and Formula 1

Banco Santander has sponsored teams and major Formula 1 events, achieving significant international visibility.

Legal Aspects and Functioning of the Sports Sponsorship Contract

The sports sponsorship contract is a legal agreement between the sponsor and the sponsored party, detailing the obligations, rights, and considerations of each party. The key elements of this contract usually include:

• Object of sponsorship: What is being sponsored (team, event, athlete) and under what conditions.

• Duration: The term of the sponsorship.

• Considerations: What each party receives (money, material, visibility, image rights, etc.).

• Exclusivity clauses: To avoid conflicts with competing brands.

• Conditions for the use of the image: How and where the sponsor's logo or name can appear.

• Causes for termination: Reasons for which the contract can be terminated

• Tax advantages: In Spain, the Law on the Tax Regime of Non-Profit Entities and Tax Incentives for Patronage regulates applicable deductions.

How to Develop a Career in Sports Sponsorship?

To begin a professional career in the world of sports sponsorship, specialized training is a fundamental pillar. Currently, there are various educational programs oriented toward this field, such as the Master's in Sports Marketing at LALIGA Business School, which offers professionals the opportunity to enhance their commercial skills through a practical approach.