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Sponsorship in Sport: A Waste of Space?

Do all sports events/organisations/individuals encourage sponsorship?

Interestingly, the answer is 'not always'. Indian Formula 1 racing driver, Narain Karthikeyan has been prevented from displaying his home country's national flag on the side of his driver's helmet. It seems that, unusually for a modern sportsperson, the driver was not making any money from this logo being there, he says he was merely seeking to show his national pride.

India's 'flag code' prohibits all displays of the country's tricolour on clothing or equipment. Karthikeyan claims that it is the Indian Government's loss, saying that he could probably make a lot of money from selling the space on this driving helmet. So this case offers an example of a sports competitor encouraged to seek sponsorship as a result of being prevented from making a patriotic gesture.

It is not clear where the UK authorities stand on whether there should be a limit to patriotic gestures. We can safely assume, however, that if there was money to be gained, authorities would be in a race with competitors and organisers to secure it. At times, though, it can become commercially right to turn down sponsorship opportunities.

At the start of the 2004/05 domestic season, the English Football Association (FA) announced that it would be dropping the sponsorship of the name of its premium competition: The FA Cup. The FA was trying to bolster the image of the Cup at a time when its commitment to the competition was coming into question.

Also at times, there can be benefits in public relations terms from refusing to accept commercial sponsorship, as in the case of Athletico Bilbao, who in 2005 announced that its team would be avoiding commercial shirt sponsorship, having the word 'Athletic' emblazoned on front of its kit instead. This decision would have been well received by the club's supporters. It could also result in increased sales of club merchandise, as fans flock to buy 'pure' Athletico Bilbao-branded goods.

Some commercial organisations are becoming afraid of the negative publicity that can result from consumers associating their brands with teams and individuals who are identified as being scandal-prone. It may be safer for some sponsors to target the grassroots of certain sports and the buying public. A growing number of examples are appearing:

• McDonald's sponsorship of schools' football
• Pepsi's 'Thirst for Football' schools' football programme
• Norwich Union, who sponsor UK athletics has joined up with the Daily Telegraph to promote sport in schools. Its 'School Sport Matters' campaign aims to address the decline of 'physical literacy' which many believe is fuelling obesity in children. The campaign will highlight and reward schools where there is evidence of best practice in the use of sporting opportunities and facilities
• Barclays Bank 'Spaces for Sports' programme (see further information sources list at the end of this Argument)

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