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By Pat Evans
Sports sponsorships are taking a major hit in 2020. An analysis from sports marketing company Two Circles found global sports sponsorship rights fees will decline 37% this year to $28.9 billion after totaling $46.1 billion in 2019.
The financial services sector – generally the largest investor in sports partnerships globally – was one of the hardest hit by the pandemic, and is expected to drop its spending by an expected 45%. The segment spent $12.58 billion in 2019 but is projected to drop to $6.92 billion this year. Other industries with impending reductions of more than 40% include airlines, energy producers and automotive manufacturers.
The financial services decline alone could have major implications in the U.S. sports market. The industry accounts for 36% of sports sponsorship spend in the U.S., including more than 25% of NBA jersey patch partners and more than a third of NFL stadium naming rights partners.
Top 10 Global Sport Sponsor Segments
- Financial Services: -45% projected decrease
- Automotive: -55%
- Technology: -18%
- Telecoms: -19%
- Retail: -37%
- Soft Drinks: -39%
- Energy: -44%
- Airline: -61%
- Alcohol: -19%
- Gaming: -31%
