Sports, Sponsorship and Europe

Helen Day

European Sports Summit Major events: Major opportunities

20th June 2013

European Sponsorship Association

ESA - the voice of the sponsorship industry in Europe

• Established since 1990

• Members across Europe from sponsors, rights holders, consultancies, associated research and professional firms and affiliates linked to sponsorship

• Aim to set standards in sponsorship, with education and representation of the members

• Regular workshops, training and conferences

• Annual European Sponsorship Excellence Awards

• Establishment of the ESA Diploma and other continued professional development (CPD)

ICC Code on Sponsorship

• First Advertising Code in 1937 – Provided globally acceptable framework for

responsible creativity and communication• First Sponsorship Code in 1992

– Expression of social responsibility in light of globalisation and market liberalisation with emerging new media and markets

– Instrument of self-discipline as an interpretive aid for practitioners and as reference for courts in any disputes

• Latest Sponsorship draft in 2011 – Incorporated with other commercial

communications into a Consolidated Code on Marketing with specific chapter on sponsorship

ICC Definition of Sponsorship

1992 version: Any communication by which a sponsor contractually provides financing or other support in order to establish a positive association between the sponsor’s image, identity, brands, products or services and a sponsored event, activity, organisation or individual

2003 and 2011 versions: Any commercial agreement by which a sponsor, for the mutual benefit of the sponsor and sponsored party, contractually provides financing or other support in order to establish an association between the sponsor’s image, brands or products and a sponsorship property, in return for rights to promote this association and/or for the granting of certain agreed direct or indirect benefits

North America

Europe Asia Pacific

Central & Southern America

Other

2012 (projected)

$51b $18.9b $14.1b $11.9b $3.9b $2.2b

2011 $48.7b $18.2b $13.6b $11.1b $3.7 $2.1b

2010 $46b $17.1b $12.9b $10.6b $3.6b $2b

2009 $44.4b $16.5b $12.1b $10.1b $3.5b $1.9b

2008 $43.4b $16.6b $11.7b $9.5b $3.5b $2b

2007 $37.7b $14.9b $10.6b $7.4b $3.0b $1.8b

2006 $33.7b $13.4b $9.5b $6.4b $2.7b $1.7b

2005 $30.5b $12.1 b $8.5b $5.8b $2.5b $1.6b

2004 $27.9b $11.1 b $7.8b $5.2b $2.3b $1.5b

2003 $25.9b $10.25b $7.4b $4.7b $2.2b $1.4b

2002 $24.4b $9.6b $7.1b $4.7b $2.1b $1.3b

2001 $23.5b

2012 % 37.1% 27.7% 23.3% 7.6% 4.3%

Source: IEG

Global Sponsorship Spend

Global Sponsorship Spend 2001 to 2011$ billion

Figures are based on sponsorship rights fees

  Total Sponsorship

  2010 2011

Europe Countries €22.8b €25.2b

Pan European events €0.5b €0.7b

Global Events - Europe €0.03b €0.6b

Total €23.3b €26.5b

% Change Year on Year +14%

Sponsorship in Europe 2010 and 2011€ billion

Source: European Sponsorship Association 2012

European Sponsorship Spend

Figures cover all forms of sponsorship include global events staged in Europe

 Total

Sponsorship Sport Non-Sport

Europe Countries €22.8b €15.6b €7.2b

Pan European & Global Events €0.53b €0.53b € -

Total €23.33b €16.13b €7.20b

% Breakdown 69% 31%

European Breakdown

Sponsorship in Europe Breakdown 2010€ billion

Source: European Sponsorship Association 2012

Figures cover all forms of sponsorship include global events staged in Europe

Source: The World Sponsorship Monitor 2012

Global Deals 2012

Top TenIndustries

- Value

Source: The World Sponsorship Monitor 2012

Source: The World Sponsorship Monitor 2012

Top Ten Sponsored Sports

- Value

Source: The World Sponsorship Monitor 2012

Top Ten Sponsored Sports

- Deals

Source: The World Sponsorship Monitor 2012

Sponsorship Deals by Type

Source: The World Sponsorship Monitor 2012

Olympic Torch Relay

Coca Cola bus

Lloyds TSB advertising

Samsung fund-raising

P&G and the2012 Olympics

Pan-European Sponsorship

1996 European Commission Green Paper on Commercial Communications considered sponsorship in detail, and recommended:

• Sponsorship to be seen a separate marketing discipline to advertising, PR, sales promotion, direct mail, product placement, patronage etc.• Country of origin principle was appropriate• No harmonisation needed, but subsidiarity works, allowing each member state to set its own laws and regulations• No EC central legislation was needed

“Sponsorship is the most effective form of cross-border commercial communications.”

Jean Bergevin, EC DG Markt 1998

EU Directives UK National Law

Green Paper on Commercial Communications (1996)

-

Consumer Protection on Distance Contracts (2000)

Unfair Commercial Practices (2005)

Consumer Protection (Distance Selling ) (2000)Unfair Trading and Business Protection (2008)

Electronic Communication and Data Privacy (2002)

Privacy and Electronic Communications (2003)

Television without Frontiers Directive (1997)Audio Visual Directive (2007)

Communications Act (2003)

(Not yet implemented)

Directive on Advertising and Sponsorship of Tobacco (2003)

Tobacco and Advertising Promotions Act (2002)

EU and UK Legislation

Legal Framework in UK

Prohibited Advertising• Political advertising• Prescription-only medicines (1994 Act)• Tobacco

– 1965 Ban on TV advertising of tobacco products– 1977 Labour manifesto pledges to ban tobacco

advertising including sponsorship – Nov 2002 Tobacco and Advertising Promotions Act– July 2003 Ban on sponsorship of sporting events

held within the UK – July 2005 Ban on sponsorship of excepted global

events (Formula One and World Snooker Championships)

Self Regulation Principles

Sponsorship Complaints•Normally would made by the public to the rights holder•Contractual terms normally allow for sponsorship to be cancelled due to disrepute of either sponsor and sponsored party

EASA (European Advertising Standards Alliance)•European network of national self-regulatory organisations (SROs)•Competence to handle all complaints within advertising but their sponsorship remit varies for events or broadcast

ESA joined EASA in 2008 to establish a pan-European sponsorship self-regulation process•Complaints made to national SROs could be passed on to Joint Arbitration Panel to adjudicate on issues

But very few complaints have been made nationally and NO sponsorship complaints have been referred to EASA/ESA

Aegon and British Tennis

Heineken and Champions League

Responsible advertising

Competitions

Hospitality

Global Advertising

App and Social Media

Competitions

Sponsorship Laws & Codes for

Alcohol Producers

Government Legislation• France – Loi Evin ban in place since 1991• Ireland – currently considering a ban

Government Co-Regulatory Frameworks• Scottish Government Sponsorship Guidelines• UK Responsibility Deal Code on Sponsorship

Self-Regulatory Industry Codes• Beer /Spirits / Wine associations codes on Advertising and Marketing

•Alcohol Producers• Internal Corporate Guidelines and Policies

EC Alcohol & Health Forum

EC Alcohol and Health Forum • Launched on 7th June 2007• Membership from 68 organisations representing:

o Producers, wholesalers and retailers of alcoholic beverageso Marketing bodies including advertising, media and sponsorshipo Health and consumer NGOso Family and youth organisations

• All members sign up to make commitments aimed at reducing alcohol-related harm• All commitments independently monitored and assessed

Alcohol Advice for Rights Holders

ESA Guidelines and Legal Clauses for Rights Holders regarding Alcohol Sponsorship (2012)•General principles

• Ensure all are aware of codes and guidelines• Encourage responsible drinking promotions

•Sponsorship•Not of events with particular appeal to those under 18•Care if involved with motorsports events

•Marketing• Consideration regarding permanent alcohol signage at venues used by predominantly those under 18

•Promotions and Merchandise•No marketing to those under 18 in competitions, clothing, merchandise or sampling activities

•Alcohol Consumption•Legal Clauses

• Regulations, Compliance, Obligations, Responsibilities etc.http://www.sponsorship.org/content/policy.asp

Research on Alcohol Support

Report on “Supporting Local Communities: Assessing the Contribution of Europe’s Brewers”

• €928 million spent p.a. across Europe

• Only 11.9% goes to major sports events

• Most support is local (36%) or regional (48%)

• 70% of public say beer support helps events occur

• 78% of rightsholders said they would suffer considerably from losing beer support

Source: Sponsorship Ideas 2011

UK Alcohol Regulations

• UK government’s Responsibility Deal seeks new UK Alcohol Sponsorship Code

• Portman Group reviewing own code and using Scottish Guidelines as basis for new UK Alcohol Sponsorship Code with ESA and some rightsholders on working group

• Binding on alcohol producers but seeking endorsement from major rights holders

• Note that of the 196 complaints received by Portman Group since 1996, none have related to sponsorship

Alcohol Sponsorship of Rugby in Europe Heineken Cup

Guinness Premiership

Brains Welsh team

Betfair Sponsorship

World Matchplay Darts

Horseracing

World Snooker Championships

Source: The World Sponsorship Monitor 2012

Gambling Sponsorship

European Commission:• March 2011 consultation process on draft Green Paper on

online gambling

• Dec 2012 resulted in Communication on “Towards a comprehensive European framework on online gambling” which did not have concerns about gambling sponsorship issues

• EC Workshop (today) in The Hague “The marketing and sale of sports rights (media rights, sponsorship, and sports data): current and emerging market trends”

Council of Europe:• Sept 2010 Council of Ministers meeting proposed “Betting

operators should be banned from funding or sponsoring teams or individual competitors if they manage bets placed on competitions in which they are participating.”

• Discussions resulted in change of clause to: “Sponsorship contracts should state that the sponsor plays no role in, and will exercise no influence on, the sporting decisions taken by the sponsored team or individual.”

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Gambling Sponsorship

in Europe

Gambling Sponsorship

in UK

• 2005 Gambling Act - comprehensive regulatory framework for the advertising of gambling (betting, gaming and lotteries) which lifted gambling advertising restrictions in Great Britain (not Northern Ireland)

• Creation of new Gambling Commission in UK• 2007 - Gambling sponsorship allowed when CAP and

BCAP Advertising Codes came into force • Gambling Industry Code for Socially Responsible

Advertising was issued by the marketing industry• May 2013 – Gambling (Licensing & Advertising) Bill

published limiting the marketing by licensed gambling operators in the UK

Padel Pro Tour

Euroleague Basketball

Moto GP

Kite surfing

Soccer

bwin Sponsorship

Norbert Teufelberger CEO of BWin

Trends in Sponsorship

• Growth area despite recession (compared to advertising)

• Need to demonstrate value and return on investment

• Increasingly innovative and complex, using new techniques with social media, digital technology, multi-media platforms

• Major events can offer excellent opportunities for range of sponsorship deals if packaged creatively

• Essential source of income for elite sport in order to fund grassroots activities

• Increasing expertise in sports bodies regarding sponsorship issues

• Potential threats include restrictive legislation, ambush marketing and media clutter

Athletics event Sponsorship

Samsung withdrawal from Diamond League Toyota and Seiko joint promotion

Aviva UK sponsorship

European Sports Summit Major events: Major opportunities

Sports, Sponsorship and Europe

Helen Day

Head of European PolicyEuropean Sponsorship Association

www.sponsorship.org