It is a collateral effect of the crisis which hit the country. The revenue of sponsorship for sport clubs based so that the cultural universe is feared that the sponsorship will reduce substantially in the coming months.
Although no one can precisely predict the magnitude and duration of the economic crisis, whose effects will primarily be felt in the fall, the companies, themselves, are already suffering from declining revenue and rising expenditure. Gestures barriers, partial unemployment, teleworking, … the epidemic of Covid-19 has led to all companies to refocus their priority in budgetary terms.
The hunting of expenditure puts pressure on sponsorship and patronage
And by seeking to reduce the expenses, companies are wondering naturally on the decline of their communication budget. We must of course continue to promote the products to sell (advertising), but to invest for taking care of its brand image (Branding) is part of the first budget cuts. The contracts for sports sponsorship and / or patronage are, therefore, not renewed or scaled down.
While the cultural actors and sports clubs can understand the priority of their partner (overcoming the crisis by avoiding layoffs and bankruptcy), they worry about the future. Depending of the disciplines, sports sponsorship represents between 20% and 50% of the economic model of the sport.
An uncertain future, models to reinvent
A study conducted by the Union sports and cycle points out that 60 % of enterprises engaged in sponsorship and believe they will not be able to maintain their commitment while more than one in 4 (27 %) underlines its intention to reduce its budget and sponsorship.
For the culture, the actors show themselves to be even more worried. In addition to this drop in donations, they now know that the companies will consider the cultural patronage as “less a priority” that the patronage ‘ special Covid-19 “. 95 % of companies surveyed by theAdmical (Association for the development of sponsorship’s commercial and industrial) reported having engaged (or wanting to) in health and/or social-related to the outbreak of coronavirus.
And it could last, the bonds of societal of the company, replacing in part the cultural patronage. It is therefore necessary for the sport as a culture, reinvent their economic model, especially as this decline in sponsorship and patronage is added to the revenue challenged by the containment, and the existing constraints from (not competitive sports, museums closed for weeks, …)