Risk Mitigation in Sponsoring Global Sporting Events
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School of Business |
Bachelor's thesis
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Authors
Date
2024
Department
Major/Subject
Mcode
Degree programme
Markkinointi
Language
en
Pages
33
Series
Abstract
This thesis aims to identify the risks associated with the sponsorship of global sporting events and find ways to mitigate them. This objective is to be achieved based on the existing literature. Evaluating the risks of sponsorship requires a solid foundation in its fundamental principles. Sponsorship is recognized as an effective marketing strategy; it can increase brand visibility, foster emotional ties, build consumer loyalty, and increase sales. Sponsorship of sporting events is perceived to be highly effective because it involves high levels of emotion, which sponsors seek to transfer to their brand during the event. The most common risks associated with sponsorship are reputational, ethical, legal, and financial. Sponsorship risks are rarely isolated but often interact with each other, increasing the negative consequences of the risks. The study's key finding is that a "perfect fit" between sponsor and event must be achieved for sponsorship to be most effective and for the associated risks to be effectively mitigated. A perfect fit combine’s event and sponsor fit, emotional appeal, and product relevance. This thesis will highlight two case studies, Coca-Cola's long-term Olympic sponsorship and Adidas' behavior in the FIFA scandals. These cases illustrate effective risk management and lessons learned from failures. This study also presents practical recommendations that emphasize prioritizing long-term sponsorships, using measurement tools such as ROI and KPIs, and integrating ethical considerations into sponsorship strategies. This thesis offers actionable insights that can help brands optimize their sponsorship performance while reducing risk in global sporting events.Description
Thesis advisor
Tulensalo, OnniKeywords
sports sponsorship, risk mitigation, global sport events, sponsorship strategies