Local Sports Sponsorship – Is it right for my small business?

Sponsoring your local sports team can be beneficial for your small business…depending on how you leverage it. By sponsoring a local sports team or club, businesses can increase their visibility and build a strong connection with the local community.

Local sporting teams can range from your local footy club, to a city / state based sporting team, such as the Brisbane Broncos or Brisbane Lions. Most small businesses will not have the financial capacity to sponsor a city or state based team, so for relevance, we will focus on this being for local (suburb / individual athlete based) sports sponsorship.

Here are some specific benefits of sponsoring a local sports team, club or althlete:

Increased Local Brand Awareness

By sponsoring a local sports team or club, businesses can reach a highly targeted audience within the local community. This can help to increase local brand awareness and create a stronger connection with potential customers.

Targeted Local Marketing

Sponsoring a local sports team or club can provide businesses with the opportunity to target specific demographics and markets within their local community. For example, if a business wants to target families, they may choose to sponsor a youth sports team.

Enhanced Community Involvement

Sponsoring a local sports team or club can also help businesses to build stronger relationships with the local community. By supporting a local team or club, businesses can demonstrate their commitment to the community and engage with local residents on a personal level.

Positive Local Publicity

Sponsoring a local sports team or club can generate positive publicity for businesses within the local community. Local media outlets often cover local sports teams and events, which can help to generate positive publicity for the sponsoring business.

Increased Local Sales

Sponsoring a local sports team or club can also help businesses to increase local sales. By sponsoring a local team or club, businesses can create a sense of loyalty and affinity among local residents, which can lead to increased sales.

Enhanced Local Relationships

Sponsoring a local sports team or club can also help businesses to build stronger relationships with their local customers. By supporting a local team or club, businesses can create opportunities for their customers to engage with their brand in a fun and exciting way.

Community Leadership

Sponsoring a local sports team or club can also position a business as a community leader within their local area. By supporting a local team or club, businesses can demonstrate their commitment to the local community and differentiate themselves from their competitors.

Employee Engagement and Community Involvement

Sponsoring a local sports team or club can also help to engage employees and foster a sense of community within the business. By sponsoring a local team or club, businesses can create opportunities for their employees to come together and engage in a shared passion. This can help to build a sense of community and team spirit within the business.

But is it right for MY small business?

While sponsoring a local sports team or club can offer numerous benefits for businesses, it may not be the right choice for many small businesses. Here are some reasons why a small business may not want to sponsor a local sporting team / athlete:

Limited Resources

Small businesses often have limited resources, both in terms of time and money. Sponsoring a local sports team can be a significant investment, requiring financial resources, staff time, and other resources. Small businesses may need to focus their resources on other marketing and business development initiatives.

Ineffective Marketing

While sponsoring a local sports team can offer targeted local marketing opportunities, it may not be the most effective way for some small businesses to reach their target audience. For example, if a small business primarily serves a niche B2B industry, sponsoring a sports team may not be the best way to reach their target audience.

Lack of Alignment with Business Values

Small businesses should consider whether sponsoring a local sports team aligns with their core business values and mission. For example, if a small business focuses on health and wellness, sponsoring a team that promotes unhealthy behaviors may not align with their values.

Lack of Return on Investment

Small businesses should carefully consider the potential return on investment (ROI) when sponsoring a local sports team. The costs associated with sponsorship may not be offset by the benefits that the business receives. Small businesses should conduct a cost-benefit analysis to determine whether sponsoring a local sports team is a wise investment.

Limited Brand Exposure

Sponsoring a local sports team may not provide the level of brand exposure that small businesses need to achieve their marketing goals. Depending on the size and reach of the local sports team or club, the business may not receive significant exposure or reach their desired target audience. In other words, will your logo on the jerseys of a local sporting team truly generate additional brand exposure and sales for your products and / or services?

Negative Publicity

In some cases, sponsoring a local sports team may result in negative publicity for the sponsoring business. If the sports team or club experiences negative press or behavior, the sponsoring business may be associated with those negative actions.

Contractual Obligations

Sponsoring a local sports team often involves contractual obligations and commitments. Small businesses should carefully review these obligations before committing to sponsorship, as they may be costly and difficult to fulfill.

Conclusion

While sponsoring a local sports team or club can offer numerous benefits for businesses, it may not be the best choice for every small business. You will often get approached by local sporting teams to help fund their sporting activities, however you need to truly consider whether you have the time, money and resources to fully commit to an effective sponsorship deal. Small businesses should consider their marketing goals, business values, ROI, brand exposure, potential negative publicity, and contractual obligations before committing to any sponsorship.

Not sure if your current sponsorship arrangement is bringing you strong ROI / brand exposure? Or you’re considering a sponsorship deal and want to run it past an independent third party? Why not organise a marketing audit and plan with Buck The Trend Marketing?