,695m per year according to a new report.

The figures, are presented in European Sports Marketing Data, part one of the three-part report, Driving Business Through Sport (2nd edition). The data shows that the industry has grown by 37% since 2000. Apart from the continued growth, the biggest trend detected is the emergence of the financial services sector as the largest investor in sport.

In 2000 the sector accounted for less than 8% of the value of sponsorship deals, and trailed the motor and alcohol industries. Financial Services is now in first position with 13% of the value of all deals. In the UK the figures are even more marked with financial services representing 22% of deal value, 13% ahead of alcohol and IT which are each on 9%.

Football receives more sponsorship cash than any other sport accounting for €1,872m (38%) of expenditure with motor sport coming second with receipts of €1,558 m (32%). No other sport breaks the 4% barrier.

The findings demonstrate clear trends as the sponsorship industry matures according to report author, Simon Rines.

"There is clearly strong growth in sponsorship rights fees across Europe, especially among the high profile properties such as FIFA, UEFA, premier football clubs and Formula One. The size of the deals means that sponsors have to evaluate their investment carefully and this has led to specific industries using sponsorship as a business platform on an international basis.

"Barclays, for example, views its English Premier League title sponsorship as a global opportunity to develop its brand awareness and image given the international interest in the competition. Its £21.5m per year rights fee is seen as good value when compared to what could be achieved through investing the same amount on advertising. The key point, however, is that such major sponsors don't consider rights acquisition to be the end of their investment, they often spend a similar amount on promotional activity to maximise their return on investment."

The motor industry is the second largest spender on sports sponsorship, but most of this goes to motor sport. Deals from the industry on other sports have dropped significantly over the decade. Telecommunications is the third largest investor in which Deutsche Telecom, through its T-Home and T-Mobile brands, is the biggest sponsor in Europe with rights including (the German Bundesliga, Bayern Munich and one of Europe's leading cycling teams.

The report also shows that following the withdrawal of tobacco, several industries have made big new investments in sport. The fastest growing sectors are energy, gambling and airlines, which collectively now account for 9% of European spend, up from 3% in 2000.

"In both the energy and gambling sectors, there are now a lot of brands that are new to consumers," say Rines.

"They are keen to generate both awareness and a point of difference in an increasingly competitive market place. E.On's sponsorship of the FA Cup in the UK is a prime example. Most UK consumers are unaware of the energy brand and an association with the FA Cup produces both a high level of awareness and credibility. In the airline sector, Emirates now spends an estimated €68 million per year in Europe on sponsorship rights with the objective of establishing itself as a major global player."

Key findings in the report
  • Europe's sponsorship industry is worth €7,785 million
  • Sport accounts for 86% of the expenditure (€6,695m), with arts and broadcast sponsorship taking 7% and 5% respectively (other is 2%)
  • Football is Europe's biggest recipient of sports sponsorship income on €1,872 m (38%)
  • Motorsport is second on €1,558 m (32%)
  • Sailing and Cycling are third on €190m and €184m respectively (4%)
  • Other sports include Rugby Union on €161m (3%)
  • Germany is Europe's biggest sports sponsorship market with estimated expenditure of €2,600m (33%) of the market
  • The UK is the second largest market on €1,395 (17%)
  • Europe's biggest sponsor is Deutsche Telecom, which spends an estimated €90m per year on sponsorship rights fees in Europe
  • Britain's biggest sponsor is Vodafone, which spends an estimated €45m per year in Europe

International Marketing Reports analysed 2,157 sports sponsorship deals across Europe in 2007.

For more information, including executive summary, table of contents and sample material, see report page



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