Sports Sponsorships to Drop 37%

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  • This article was first published in the FOS Daily Newsletter. Subscribe here.
  • Sports sponsorships are projected to drop from $46.1 billion in 2019 to less than $29 billion this year.

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%