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Despite the unprecedented disruption in the sports ecosystem and the fact the coronavirus pandemic represents the greatest single business challenge in modern history, many leading sponsorship figures agree that brands and rights holders need to work collaboratively. 

The rapid rate of change and complexities around handling the impact of the virus is seeing many sponsorship negotiations being put on hold as brands and rights holders work towards an understanding of the immediate impact on their organisations. 

However, many sponsors are still looking to honour current deals according to Brett Daniher, head of commercial at Bastion EBA. 

“Uncertainty is common among brands and rights holders, as it is with most facets of life at the moment,” he said. 

“I think we will rightly see new deals delayed until the industry as a whole starts to get a better view of how COVID-19 will potentially impact competitions, clubs, festivals and public institutions. 

“Despite this, we are getting a strong sense that both brands and rights holders want to collaboratively work through the challenges that lie ahead, which will require good faith from both parties.” 

For brands, supporting the sporting organisations/properties most affected financially by prolonged disruption  –  particularly grassroots sport – there is a clear opportunity to use this crisis to invest in a way that “cuts through” he said. 

Meanwhile, with sport and events largely shutting down under current advice, rights holders are now looking at alternatives that provide value to partners, says Basil Scaffidi, managing director at Sports & Entertainment Ltd. 

“Sponsorship is very different to the old days, when it was all about brand slapping. 

“A lot of the deals now are more detailed and sophisticated, where the benefits include using digital assets and working out how the sporting organisation and sponsor strive to get ROI,” he said. 

“Do they look at their current set of benefits and say, well some of that obviously doesn’t work now, but do we come up with some online activities and campaigns by utilising players that are not playing rather than just being about sponsorship on a jersey and game day signage. 

“Sure, you may not get the same benefits or the same value, but I think you can still give them enough benefit for them to stay involved.” 

If brands were to walk away at a time when sport needs them most, they have to be prepared for an enormous amount of backlash from consumers and the greater sporting community, he added. 

If there are any positives from the whole experience, Sam Goodwin, managing director at CSM Sport & Entertainment, says it maybe that the delay to sport could see attendance and participation soar when it returns because it is so central to Australian culture. 

“There is a lot of positivity all round that things will pick up again rapidly, because you can’t keep something as fundamental as sport down for long,” he said. 

“When it does return, people will be even more enthusiastic about being out and socialising. So popularity could soar.   

“Brands will need to inject positivity to bring back consumer confidence and sport will be marketed as an ideal agent to effect that.” 

As many sporting leaders have pointed out in the last few days, innovation and purpose will be more important than ever.

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