Other benefits that title sponsorship can offer include that it can enable brands to reach new audiences who may not have been very familiar with their products. This year’s title sponsors of ‘Queen’s’, cinch, have embraced sport and other entertainment events as a means of broadening awareness of its brand – in addition to its arrangement with The Queen’s Club, cinch have partnerships with the Lawn Tennis Association, England Cricket and the Scottish Professional Football League, as well as The British Motor Show and The Isle of Wight Festival, among others.
For other brands, title sponsorship can offer the opportunity to reconnect or increase connections with existing consumers, gain a competitive advantage over rivals who are absent, and increase brand visibility. Title sponsor branding will, for example, feature in official communications from tournament organisers, including on social media, on official branded merchandise, on marketing boards around event stadia and in the backdrop to TV interviews, as well as at prize presentation ceremonies. The more high-profile, prestigious, the event, the more likely it is that consumers will consider the brand and associated products or services of title sponsors to be reputable and reliable.
The risks and pitfalls of title sponsorship
One of the risks of becoming the title sponsor at a major sporting event is that the actions taken by event organisers or by participants will be linked to that title sponsor. These are things the title sponsor has no control over.
Whilst it may be less of a risk when sponsoring a long-standing prestigious event than an individual player or new tournament, there is always a risk of tarnishment by association. One example might be the Adria Tour which Novak Djokovic set up during the Covid-19 pandemic in 2020 while regular events on the ATP Tour were suspended.
The Adria Tour was intended to be held in Serbia, Croatia, Montenegro, and Bosnia and Herzegovina but had to be cancelled before the finals on the second tour stop in Croatia due to several players testing positive for Covid-19. An event that was intended to bring joy to fans and raise charitable funds ultimately ended up being highly criticised globally for being irresponsible and for disrespecting social distancing rules when much of the world was still in lockdown or subject to public health restrictions.
Title sponsorship is also no guarantee of a return on investment. This emphasises the need for brands to ensure their contracts are robust and provide for an exit strategy.
There is also a risk that brands that take on title sponsorships will be overshadowed by previous title sponsors. In the context of ‘Queen’s’, it could be argued that the enduring association between Stella Artois and The Queen’s Club tournament has made it harder for subsequent title sponsors to enjoy the same benefits. There can also be brand confusion if consumers fail to distinguish the tournament from the sponsor – this can be a problem not just for the new sponsor but the tournament organisers too if all but hardcore tennis fans assume the different titles correspond to completely different events.
There are also risks that the regulatory environment will change. Tighter controls on, for example, alcohol or gambling sponsorship in sport, as some campaigners have called for, could have implications for businesses active in those industries.
Actions for brands
There are things brands can do to limit their exposure to the risks and the pitfalls that come with title sponsorship in sport to maximise the benefits to be gained from such relationships.
Businesses first need to have a clear understanding of what it is they want to achieve from title sponsorship. Commercial factors should be considered, such as whether the event provides the right exposure, reaches the right audience, fits with the brand values and sends the right message.