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African Journal of Education and Developmental Studies . Vol. 6., No.

1, September, 2009

WINNING CORPORATE SPONSORSHIP OF COMPETITIVE SPORTS IN


NIGERIA: DETERMINANTS, PROBLEMS AND PROSPECTS

IFEANYICHUKWU CHRISTIAN ELENDU (Ph.D.)


Contact: +2348037433601
+2348070749710
E-mail: elelifey2k@yahoo.com

&

GBENEGBARA AMOS DEEMUA (M.Ed.)

DEPARTMENT OF HUMAN KINETICS AND HEALTH


EDUCATION, UNIVERSITY OF PORT HARCOURT, PORT HARCOURT,
RIVERS STATE, NIGERIA.

Abstract
The sports development of any nation including Nigeria depends substantially on the
status of facilities, equipment, motivation of athletes, sports personnel, sports
preparations, among others. These require huge amount of financial resources. Since
Nigerian government allocation for sports is inadequate considering the economic
recession and demands from other sectors of the economy, the need for sports organizers
to scout for where and how to get both financial and material assistance for sports
development outside government arises. One of the means of getting the necessary
resources and assistance for sports development is through winning sports sponsorship
deals from sponsors, especially corporate firms. This paper discusses some factors like
size and composition of the anticipated spectators, type of sport or event, security,
athletes’ personality, level of competition, sport setting, and personality of sports
organizers as they influence corporate firms in signing sponsorship deals with sports
organizers or bodies. Some of the problems of sports sponsorship such as conflict on who
and event to sponsor, demands and expectations of sponsors, conflict over sponsorship
deals, lack of continuity, lack of evaluation, ambush marketing, setting deceitful
objectives, and lack of accountability were discussed. Possible prospects were
highlighted.

Keywords: Sponsorship, Competitive sports, Sports organizers/bodies, Corporate firms.

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Introduction
One of the greatest concerns to every sports organizer or body is how and from who to
secure financial and material assistance. Nigeria government has for a long time
remained the sole sponsor of competitive sports in Nigeria (Abone, 2003). Onuchukwu
(2003) defined competitive sports as those physical activities which individual or teams
indulge in with the sole aim of winning the other individual or teams for the purpose of
emerging victorious and becoming the overall champion. He further emphasized that in
competitive sports, the participants are individuals or partners or teams who represent
formally organized pressure groups and whose aim is to achieve their set objectives and
ultimate goal by out-winning their opponent or opponents.
Apart from the government, sports organizers scout to secure sponsorship for their
sporting events. Sponsorship, according to Pope (1998) refers to the provision of
resources (eg. money, people, equipment) by an organization (sponsor) directly to an
individual, authority or body (sponsee) to enable the later to pursue some activity in
return for benefits contemplated in terms of the sponsor’s promotion strategy, and which
can be expressed in terms of corporate marketing or media objectives. From the above
definition, the following can be deduced:
1. Sponsorship is a symbiotic business relationship.
2. Sponsorship involves at least two parties that have interest and need for each other.
3. Sponsorship is a marketing and promotional strategy.
4. Sponsorship is goal-oriented.
5. Sponsorship involves an agreement or deal between parties.
6. Sponsorship occurs between unrelated organizations or parties in terms of products
and services.
7. Sponsorship requires checks and balances.
8. Sponsorship is being sought for.
Sponsorship is a financial or material assistance to an individual or organization
with expectations of benefits from the assistance rendered. International Olympic
Committee (1999) noted that finding a sponsor is not an easy task. Armstrong (1988), and
Pope and Voges (1997) noted that it often takes time to build recognition with an event.

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This is why sports organizers are faced with the problems of who are the potential
sponsors; how to meet the potential sponsor(s); when to meet the potential sponsor(s);
where to meet the potential sponsor(s), and what to present to the potential sponsor(s).
There is no doubt that sports organizers seek for sports sponsorship. Pope (1998)
defined sports sponsorship as the provision of resources (eg. money, people, equipment)
by an organization (the sponsor) directly to a sponsee (eg. sports personality, sporting
authority or sport body or code), to enable the sponsee to pursue some activity (eg.
participation by the individual or event management by the authority or sport body or
code) in return for rights contemplated in terms of sponsor’s marketing communication
strategy. Sports sponsorship refers to the financial or material assistance sought and
granted to a sports organizer (sponsee) towards promoting sporting event, athletes, sports
body or code, sports facilities, equipment and supplies, and sports personnel by an
individual or organization (sponsor) in expectation of some rights and benefits.
Sports, especially competitive sports require huge amount of money for its
organization especially in the sphere of purchase and maintenance of sports facilities and
equipment. Abone (2003) noted that it has become extremely difficult for government to
provide adequate funds for sports in the face of global economic recession. Since a sports
organizer or administrator cannot afford the required huge amount of money for sports,
there is need for sponsors to come to aid. Corporate bodies have been involved in
sponsoring sports in Nigeria.

The growth and significance of corporate sponsorship over the last 20 years is
well chronicled (Busser, Benson & Feinstein, 2001). Howard and Crompton (1995)
posited that corporations attempt to attract customers to a particular product or service by
sponsoring an event that matches the demographic characteristics of a particular type of
customer. Sport sponsorship is one of the fastest growing areas of marketing (Speed &
Thompson, 2000; Lough & Irwin, 2001). Edeme (1995) pointed out that corporate bodies
remain a driving force in the advancement of the frontiers of sports by offering players,
officials, organizers, and spectators the opportunity to savour their goodwill. Ibikunle
(1994) observed that business organizations like Coca-cola, Nigerian Breweries,
Guinness, Mobil etc have contributed to the improvement of sports preparations in major

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competitions. Other corporate bodies and business institutions like Globacom and MTN
communications; Central Bank of Nigeria; Shell; banks; Nestle Milo etc have
participated in sponsorship of competitive sports in Nigeria.
Concept of Sponsorship
Individuals have different but related conceptualizations of sponsorship. Hart
(1988) viewed sponsorship as a means of promotion that is a deliberate financial support
given to an event to achieve brand awareness, enhance corporate image, increase
goodwill, and raise employee morale. Pound (1989) conceptualized sponsorship as a
technique that seeks to create a linkage between the sponsor (and its products or services)
and the event or organization, which is being sponsored. Sponsorship, according to
Ikhioya (2001), is an aid or assistance given to another person or organization to achieve
an objective or goal while at the same time projecting or promoting the product of the
aided person or organization and the organization or person itself. He further emphasized
that sponsorship could be in cash or kind (product), or a combination of both.
Sponsorship is a calculated effort to assist and be assisted. The sponsor gives the sponsee
assistance in anticipation to be assisted in terms of benefits and some rights.

Aims and Objectives of Sponsorship


Sponsors attempt to realize multiple objectives through a type of sponsorship
(Arthur, Scott, Woods & Booker, 1998). The sponsor’s aims are often purely commercial
and profit-maximization (Gratton & Taylor, 1985). Sandler and Shani (1993), and Pope
(1997) categorized the sponsorship objectives for businesses as broad corporate
objectives (image based, marketing objectives, brand promotion, increased sales) and
media objectives (cost effectiveness, reaching target markets). In the same vein, Turco
(1994) pointed out that the primary objective of corporations engaging in sponsorship is
to increase public and target market awareness of the company and its products or
services.
According to Howard and Crompton (1995), a sponsorship is sought to maintain
four benefits for a corporation, including awareness improvement, image enhancement,
relationship building through hospitality, and increased sales. Kuzma, Shanklin and

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McCally (1993) in their study found that awareness and image enhancement were the two
most valued sponsor objectives. Expanding consumer awareness of a corporation and its
product or services remains foundational objectives of sponsorship (Busser, Benson &
Feinstein, 2001). Gladden, Milne and Sutton (1998) stated that sponsors seek to increase
consumer awareness of their product or services through sponsorship communications or
product demonstration. It could be seen that no sponsor embarks on sponsorship deal on
charitable basis, without a vision. The sponsor has aim, specific objectives and targets to
accomplish without adverse effect on the organization.
Concept of Sports Sponsorship
Wilmshurst (1993) defined sport sponsorship as a financial or material assistance
by an organization for some independent activity such as sport “not usually related to the
organization’s normal business but support from which the organization would hope to
benefit. Sport sponsorship, according to Dibb, Simkin, Pride, and Ferrell (1994) is the
financial or material support of an event, activity, person, organization or product by an
unrelated organization or donor in return for prominent exposure of the sponsor’s
generosity, products or brands. In the same vein, Jobber (1995) is of the opinion that
sports sponsorship takes place when a payment is given in return for some business,
consideration or benefit. Shimp (1997) regarded sports sponsorship as the practice of
promoting the interest of an organization and its brands by associating the organization
with a specific activity or event such as tennis tournament.
Sponsorships can take many forms. The level at which companies choose to
sponsor events, such as sporting events, may range from simple and low involvement to
an elaborate and expensive level of involvement. Signage at a single sporting event,
tickets printed with a company logo, or logos on team athletic uniforms are but a few
examples of the sponsorship opportunities available to corporations who wish to spread
the message about their company or product. Print-based messages can include the use of
a company name, logo, slogan, product name, or a combination of these on signage, t-
shirts and promotional merchandise that may be displayed at events (Slattery & Pitts,
2002). Sponsors have the opportunity to purchase a wide variety of sponsorship types.

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Sponsorship types range from stadium naming rights, to event entertainment, to product
demonstrations at an event.
Characteristics of Sports Sponsorship
The characteristics of sports sponsorship, according to Simkins (1980) include;
the sponsor makes a contribution in cash or in kind to the sport; the sponsored activity is
not part of the main commercial operations of the company, and the sponsor expects a
return in terms of publicity, which does not reflect adversely on the sponsor. Gratton and
Taylor (1985) noted the name of the sponsor will appear boldly and this is emphasized by
media coverage of the occasion.
Why Firms Sponsor Sports Competitions
Sponsorship can be seen as a profit-maximizing behaviour of a firm. The primary
motive for firms to sponsor sports is to increase sales. Simkins (1980) enumerated five
reasons for firm’s sponsorship of sports competition as publicity; building the corporate
image; public relations and contact with the local community; entertainment and trade
relations, and marketing and promotion. Authorities (Copeland, 1991; Copeland, Frisby
& McCarville, 1996; Komoroski & Biemond, 1996; McCook, Turco & Riley, 1997;
Brown, 2000) have identified public awareness of the company; alter public perception;
identify the company with certain market segments; establish an image of goodwill or
‘give back’ to the people; generate media benefits; achieve sales objectives or returns on
financial investments; establish exclusivity over competition; product positioning; gain
tie-ins with current advertising campaigns; raise employee morale, and gain hospitality
opportunities.
Many businesses decide to sponsor sport in order to demonstrate good citizenship;
demonstrate interest in the community; generate visibility for products and services, and
generate favourable media interest and publicity (Ensor, 1987). Turco (1994) also pointed
out that through increased visibility of the company and its products or services through
sports sponsorship, most businesses anticipate, and many expect increased product or
service consumption. Strength, competitiveness, and the will to win are part of both sport
and the competitive business environment. Hence, the aim of corporate sponsorship of
sports include increased sales and profit-maximization in products sold, promotion and

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projection of image, advertisement of the products, establishing mutual relationship with


the consumers of their products, establishing presence and public recognition.
By associating with elite sportsmen and women, the aim is to create an elite
image for the company. For instance, associating Nigerian elite player, Kanu Nwankwo
with Peak milk, the message is that if one wants to be a professional footballer, he or she
should be taking Peak milk. These elite athletes are models to children and some parents
who may want their children to be professional athletes. This may invariably increase the
consumption of the products, which the athlete is associated with.
Determinants of Favourable Sports Sponsorship Deal
Speed and Thompson (2000) stated that sponsor-event fit; perceived sincerity of
the sponsor; perceived ubiquity of the sponsor; liking of the event; perceived status of the
event; personal interest in the event, and attitude towards the sponsor are key factors
generating a favourable response from sponsorship. Other factors influence every
potential sponsor in signing sponsorship deal with a sports organizer or body. They
include:
Size and composition of the anticipated spectators.
Sports and sponsorship are money-making ventures for both the sponsor and
sponsee. The sponsor would want to have an idea of the composition of the spectators in
terms of number, and personalities, which the sports organizer is anticipating. For
instance, potential sponsors mostly appreciate a sporting event, which is likely to attract
large crowd with high socio-economic, political background and from international
communities. With this practice, the potential sponsors create unnecessary stress for the
sports organizers should their expectations in relation to spectators does not come to
reality.
Type of sport or event.
Some sports, especially team sports like football is regarded as a crowd-puller. In
Nigeria, this could be seen in the number of spectators who turn out to watch football
competitions than any other sports. This gives football an advantage of attracting
competing sponsors of the event.
Security.

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Hostile environment scares people, as everybody is conscious of safeguarding his


or her life and properties. Most sponsors would want to have security assurance of their
lives and products during the event. For any sports competition to be organized in a life-
threatening community, it will be difficult for any sponsor to sign a sponsorship deal with
the sports organizers.
Athletes personality.
Sports events that feature elite athletes are more likely to attract crowd. The
sponsor will see it as an opportunity of getting closer to the target market and potential
consumer of its products. For instance, any sports competition that will feature prominent
footballers like Kanu Nwankwo, Jay Jay Okocha, Mikel Obi, etc is an opportunity for
people who may want to have contact with them. For amateur sports competition, number
of spectators is usually small, thereby making potential sponsors not to be interested.
Level of competition.
Sports competitions have been going on at the local, state, national, and
international levels. The international competition is the most crowd pulling, with
spectators of different social, economic, and political status. Very few sponsors are
interested at sponsoring sports competitions at the local government level. This does not
encourage the development of sports as talented and young athletes are identified at the
grass-root sports competitions.
Sports setting.
Sports competitions organized at the cities attract more sponsors than the ones
organized in rural areas. This is as result of crowd that will be attracted. The crowd is
likely to have people with high economic status than in rural areas. This means that sports
organizers in the rural areas may not have sponsors for their sports programmes. Others
factors include; personality of the sports organizers, time, policy of the corporation, etc.
Personality of sports organizers.
People of high integrity and experienced in sports marketing as sports organizers
attract potential sponsors. Udoh (2002) pointed out that a sports manager must be trained
and experienced in sports marketing so as to be able to attract sponsorship for his various
sports programmes. He further emphasized that a sports manager is expected to be

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persuasive as well as be able to highlight some benefits that could accrue to the sponsor.
Corporate bodies may find it difficult to sign sponsorship deals with sports organizers
who are untrained and inexperienced in sports marketing.
Problems Facing Sports Sponsorship
Conflict on who and event to sponsor.
According to Gratton and Taylor (1985), one of the most serious problems is that
the sponsor, in order to gain maximum publicity, is normally only interested in the top,
most prestigious events and the elite performers, and the superstars. He further stated that
conflict arises between the willingness of companies to sponsor elite sportsmen, and the
rules of international sports federations on the amateur status of competitors. Martin
(1994) noted that finding which sport will most enhance the image of the corporation (or
product) is a significant concern to potential sponsors.
Demands and expectations of sponsors.
The top competitors are often subjected to a too crowded schedule in order to
satisfy the demands of the sponsors (Gratton & Taylor, 1985). This over-indulgence often
makes sportsmen and women to burn-out easily during competition. The performance of
sportsmen may be negatively affected by these sponsors’ high expectations. The sponsors
expect athletes to always create world records in their sports. This high sponsor’s demand
forces the athletes beyond their physiological limits and possibly to resort to some
unethical practices such as use of performance enhancing drugs.
Conflict over sponsorship deals.
Conflicts arise between the governing body of a sport and the competitors because
of sponsorship deals. Sponsorship of individual competitors often lead to a situation
where the governing body receives no income from the sponsorship deals. The governing
body has responsibility for the sport right down to grassroots levels and may feel that it
has the right to a share in the sponsorship money received from use of its competitions.
Such conflicts are often exacerbated by specialist agencies that arrange sponsorship deals
between competitors and companies. These agencies sometimes cut across the
responsibilities of the governing bodies by staging their events, but essentially by putting
themselves between the sport and the individual competitor (Gratton & Taylor, 1985).

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Lack of continuity.
Another problem facing sports sponsorship is the lack of continuity. This is seen
in most sponsored activities. Some sponsors often withdraw from the sport with very
little notice. Some corporate firms fail to pay their contract fees as at when due leading to
the termination of their contract. This volatility in income can cause serious problems for
a governing body of sport (Gratton & Taylor, 1985). In the same vein, Copeland, Frisby
and McCarville (1996) posited that discontinuation poses implication for the evaluation
of sponsorships.
Lack of evaluation.
Javalgi, Traylor, Gross and Lampman (1994) noted that individuals who are
responsible for sponsorship may be reluctant to examine its effects because of possible
career risk, especially as the amount of money devoted to sponsorship increases.
Association of Marketers (1997) indicated that sponsors are unable to measure the cross
impact between their sponsorships and the marketing communication variables such as
direct marketing, sales promotion, sales (personnel selling), and public relations.
Sponsors do not have the means or access to measurement tools that can measure such
cross-impact.
Ambush marketing.
Ambush marketing is extremely destructive. McKelvey (2000) viewed ambush
marketing as a strategy employed by firms to associate themselves with an event without
the need to secure official sponsorship rights. According to Sandler and Shani (1989),
ambush marketing is a planned effort of an organization to associate itself directly with
an event in order to gain at least some of the recognition and benefits that are associated
with being an official sponsor. Mullin, Hardy and Sutton (2000) described ambush
marketing as an example of “why sponsorship” do not always work. Also, McAuley and
Sutton (1999) emphasized that ambush marketing creates confusion in the consumer’s
mind which may deny the legitimate sponsor recognition for its investment. They further
maintained that ambush marketing has a devaluating effect on corporate sponsorship.
Setting deceitful objectives.

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Association of Marketers (1997) noted that the local sponsorship managers seem
to set objectives that tend to focus on media coverage and awareness that do not really
reflect a real return on investment. This makes it difficult to know the effect of
sponsorship on their business activities.
Lack of accountability.
Every sponsorship money must be accounted for. Some sponsors may need a
report at the end of the event on how the money was used. Corrupt sports organizers find
it difficult to secure sponsorship deal from corporate firms for their inability to give
accurate account of expenditures of the sponsored event. This may make it difficult for
the corporate bodies to continue sponsoring the sporting event. Misappropriation of
sponsorship money by sports organizers may discourage sponsors from sustaining their
sponsorship deal of an event.
Prospects
To arrest the problems of sports sponsorship, the following have been suggested:
1. Sponsors should sponsor sports events or athletes notwithstanding their status, that
is, whether they are amateurs or superstars.
2. Athletes should not be over-tasked by their sponsors so as to avoid athletes’ burn-
outs, and the temptation of using performance enhancing drugs.
3. The sponsorship deals should be shared between the sports governing body and the
competitor, with the competitors having greater share of the sponsorship deal.
4. Firms should not withdraw from their sponsored sports event or athlete without
proper and advance knowledge of the sponsee (s).
5. People with reputable personality and integrity should be appointed as sports
organizers to secure sponsorship deals for the purpose of accountability.
6. There should be proper monitoring and evaluation of the sponsored sports events
and programmes.
7. Contractual rights must be fully covered by the governing body of the sports.
8. There should be monitoring team to avoid ambush marketers from associating
themselves with the sponsored sports

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