Woodhouse, Rob (1996) A study of the issues and effectiveness of sponsorship in sport. Coursework Master thesis, Victoria University of Technology.

Abstract

The level of sports sponsorship in Australia since 1990 has been equally remarkable. According to Sydney-based research organisation Sponsorship Market Group, total sponsorship was about $160 million in 1990. The figure for 1994 was expected to reach $510 million, with $650 million forecast for 1995. Broadcast sponsorship and back-up promotions will push the figure over $1 billion in 1995 (Richardson, 1994). With continued growth expected in sponsorship and sports marketing well into the next century, the search for the most effective sponsorship investment could almost be classified as an Olympic event itself. The increasing role sponsorship plays in the marketing mix of many companies, from multinationals to small businesses, makes it necessary to research the factors which make up an effective sponsorship and how those factors can be put into effect for the benefit of both the business and the sport or event being sponsored. This report analysed the literature on sports sponsorship to provide a theoretical approach to the most effective sponsorship process. From why companies sponsor sporting events, how they select which events to sponsor, how the sponsorship is managed, sponsorship evaluation to why some sponsorships fail, the report provides an overall review of the sports sponsorship business. The sponsorship roles and procedures of nineteen companies are discussed and compared with a theoretical framework of sports sponsorship. Nine of these companies are involved in sponsorship of sporting events and teams. Five companies are among properties which attract such sponsorship, while the other five companies are involved in sponsorship research, evaluation and development. The report identifies the most effective method of sponsorship in theory, and discusses how it relates in practice to the real world.

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