Many companies sponsor sports to advertise their products or service. What advantages and disadvantages does this bring for the teams and individuals that these companies sponsor?
Promoting products or services through sponsoring sports is widely used by many companies. Both teams and individuals may gain several merits and demerits from this issue which I will elaborate in the following paragraph.
Considering the benefits, using sport in product endorsement offers the bigger promotion of both companies and teams, particularly long-term investment. Along with flourishing greater company profile, growing popularity — the engagement of sports club as brand’s icon — gradually attracts the wide range of fans, and thus being able to involve in global sport events. Recently, Fly Emirates sponsorship elevates Real Madrid performance to the top of European football club. Furthermore, this also gives each individual the opportunity to expand their career prospects, for instance becoming a well-known person. It is showed by Nike-Michael Jordan collaboration, basketball shoe line, influencing consumers purchasing behaviour to have their idol’s product that may generate worldwide market.
In contrast, we should emphasize some drawbacks of this issue that the sport club commercialism somehow fails to ensure remarkable feedback when contractual agreement might limit team’s career flexibility. The consistency of stable team performance should strive to meet high mutual expectations of their collaboration, professionally keeping company reputation. Moreover, personal attitude scale involving athletes may determine how advertisement products will be on sales and marketing, similar to Ronaldo's response of removing Coca-Cola bottles during Euro 2020 press conference — took $4 billion from its market value. Together with media news reported, any athlete scandals may bring negative consequences to sport brand advertising that might be considered by the company.
In summary, the positives of endorsing sport may uplift company’s brand and enhance individual’s career path. However, the negatives of this promotion are the complexity of greater sport management and individual’s current rumours.
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