Memorandum submitted by the European Sponsorship
Association
INTRODUCTION
The Culture, Media and Sport Committee has agreed
to inquire into community sport and the support provided to it,
both strategically and financially, by the Department for Culture,
Media and Sport, the United Kingdom Sports Council (UK Sport),
Sport England and local authorities. The Committee wishes to focus
its inquiry on the development of grassroots sport and has invited
views to be submitted on current levels of participation by all
members of the community. It intends to review existing initiatives
and expenditure. Submissions have been invited from interested
organisations.
THE EUROPEAN
SPONSORSHIP ASSOCIATION
The European Sponsorship Association (ESA) is
the voice of the sponsorship industry across Europe. It was formed
in 2003 from the Institute of Sports Sponsorship (ISS) and the
European Sponsorship Consultants Association (ESCA). ESA's membership
comprises leading sponsors, consultants, governing bodies and
rights holders, suppliers and professional bodies working within
the sponsorship industry. ESA provides information and expertise
on all types of sponsorship activity including sport, broadcast,
the arts, music, environmental and charity.
ESA is responsible for Sportsmatch, the Sport
England funded initiative which matches grants to business sponsorship
of grass roots sports.
Key role of sponsorship of community sport in
ESA mission
The Institute of Sports Sponsorship (ISS), a
predecessor body of ESA, was founded in 1988 with one of its aims
being to contribute to UK sport through encouraging businesses
to provide additional funds and resources through sponsorship.
This aim was a key part of the ISS mission and the ISS saw the
well-being of the community as an important goal for business
sponsorship of sport. From this recognition, ISS initiated in
1992, Sportsmatch which has grown into one of the most successful
of matching schemes by which business contributes to the community.
Sportsmatch has made a separate submission to the Committee.
This recognition of the importance of sport
to the well-being of the community has been carried through to
the work of ESA as the successor body to ISS. It is further heightened
by ESA which now represents not just sponsors but all those with
an interest in sports sponsorship including sport governing bodies
and rights holders.
Responsible sponsorship
ESA, as the representative body for those engaged
in sponsorship, requires that its members adopt a responsible
approach to sports marketing, particularly on issues relating
to health and marketing to young people. Of particular focus for
ESA in responsible marketing are topics such as health, fitness,
obesity and alcohol. ESA has recently worked with the International
Chamber of Commerce to produce a revised International Code of
Sponsorship which includes guidelines for sponsorships promoting
to the community, schools, youth and other audiences. ESA has
also collaborated with the Incorporated Society of British Advertisers
and the Consumers Association on a Guide to Commercial Activities
in Schools.
ROLE OF
COMMUNITY SPORT
IN SPONSORSHIP
Community sport is largely funded by national
and local government but the role of funding from the private
sector is growing. The Sportsmatch statistics support this with
evidence that of the nearly 5,000 companies funded by Sportsmatch,
the funded projects represent around two-thirds of the companies'
sports activities.
BENEFITS OF
SPONSORSHIP FOR
COMMUNITY SPORTS
Sport sponsorship is becoming increasingly important
as a marketing tool. Major companies and brands are using sponsorship
much more as a front-line marketing option. The proliferation
of the media, the development of new technology and changes in
particular to TV viewing habits are making it increasingly hard
for the advertising industry to reach mass audiences. This, coupled
with a shift towards experiential-led marketing is all having
a major impact on the sponsorship industry, not only at the top
level but spreading throughout sport to all levels and particularly
at grass roots and development level. These are areas where major
companies are identifying increased opportunities. As such, interest
and opportunities for community sports sponsorship is becoming
significant and the benefits can include those listed below:
— Additional funds: these can be provided
by the sponsors through the core sponsorship fee but may also
be leveraged funds from other bodies such as trusts or the lottery.
— Promotion and recognition: raising
the profile of the rights holder and the sport including promotional
budgets which expand and enhance the core sponsorship activity.
— Access to skills: sponsors can bring
skills across a wide range such as marketing, project and event
management, promotion, communications and new technology.
— Employee involvement: access to skills
and resources of employees including activities such as mentoring,
team challenges, fund-raising.
— In-kind support: access to a range
of in-kind resources such as sponsors' products and services,
use of meeting rooms and facilities, information technology, design,
marketing and promotion, training—often the in-kind services
provided are those in short supply at the grass roots level.
— Innovation: sponsorship can bring
creativity and unattached funds to enable the sport to undertake
new activities.
— Event creation: sponsors often create
new innovative and attractive community sports ventures and events
which are sponsor-led but are a valuable addition to the opportunities
for the community and sport.
BENEFITS FOR
SPONSORS FROM
SPONSORING COMMUNITY
SPORTS
Enhancing high-profile sponsorships
Major sponsors have recognised that high profile
sponsorships can be significantly enhanced by building-in community
sports programmes.
Here are just four high profile examples:
— Ariel is a brand sponsorship with
major sponsorship of Tim Henman associated with grass-roots workshops
and training courses.
— B&Q has invested heavily in the
British Olympic programme which involves a few high profile Olympians
but mainly focuses on giving young Olympic hopefuls the opportunity
to work for the company but at the same time receive invaluable
help and support with training and preparation for their sport.
— Coca-Cola in addition to its sponsorship
of professional soccer also sponsors schools soccer through community
knock-out competitions and training.
— Norwich Union began its sponsorship
of UK Athletics in 1999 and in 2001 it announced it was to continue
until the end of 2006, with a further £20 million to go to
the sport of which 20% would be invested in four grassroots and
development programmes— Norwich Union star:track, sports:hall,
the Norwich Union agility:challenge and the Norwich Union shine:awards.
Fulfilling corporate responsibility
Companies are increasingly valuing the role
of sport in corporate responsibility programmes, seeing sport
as not only of educational benefit but a key way to improving
the well-being of communities, and also helping produce a new
generation of potential employees that will be healthy, have good
personal skills and be motivated. Community sport sponsorships
can provide a platform for opportunities for employee involvement
through ways such as administration of clubs and events, fundraising,
mentoring, team challenges. Community sport also address social
issues of concern to business such as obesity, diabetes, crime,
diversity and social exclusion. Community regeneration is another
area where business can be a partner in fostering community sport.
This can include providing funds through sponsorship but also
supported by in-kind support such as business skills.
Here are some examples of leading community
sponsorships:
— Barclays through the Barclays Spaces
for Sports, a new £30 million investment, is contributing
to community sports facilities across the UK. The sponsorship
is being carried out in partnership with the Football Foundation
and Groundwork and aims to create over 300 new spaces for sports
over the next three years.
— BSkyB is partnering the Youth Sport
Trust in Living For Sport, a sports initiative which is tackling
disaffection through sport. Recognising that sport can create
a spirit of adventure and creativity, the project aims to inspire
11 to 16 year olds while also helping schools meet their behaviour
improvement targets through a structured programme of activities.
— Kia, the car manufacturer, is sponsoring
the Lawn Tennis Association with £500,000 over three years
for grass roots tennis competitions—The KIA National Club
League will feature around 800 club teams, represented by up to
7,500 men and women playing more than 11,000 matches each year.
— McDonalds have been forced to introduce
new healthier options to their menus. However, their core products
are perceived as unhealthy. They have therefore invested significant
levels of funding in grass roots soccer, which is now providing
thousands of extra coaches to enable more youngsters to participate
in the sport.
— Provident Financial through its PACK
project (Provident Action for Creative Kids) is supporting the
Youth Hostel Association of England & Wales to provide activity
breaks for schoolchildren from inner city communities.
— Spar through the SPAR Sprints Initiative,
a three year sponsorship, is supporting UK Athletics to introduce
a co-ordinated structure to the development of sprinting and sprint
hurdling. The scheme aims to get more children sprinting both
in schools and in clubs.
A platform for marketing
Cause related marketing can provide valuable
income and promotion for community sport. Examples are EDF Energy
providing sports equipment for schools in association with the
London Evening Standard and the Sainsbury's Active Kids vouchers
scheme.
RECOMMENDATIONS
Government should:
— Foster an environment which will
encourage sponsors to support community sport by means such as
tax incentives, leveraged funding and government endorsement and
recognition.
— Expand the funding for matching grants
for sponsorship through Sportsmatch.
— Recognise formally the role and significance
of business sponsorship in community sport by inviting ESA to
participate as a member of review and other bodies, shaping the
future of community sport on issues such as sports development,
governance, regeneration, new technology, volunteering (as being
considered s part of the Carter Review).
— Encourage and involve businesses
as early as possible in originating and developing community sport
initiatives at local, regional and national levels so that business
expertise, creativity and sponsorship resources can be best utilised
to enhance the initiatives.
— Develop a campaign aimed at highlighting
the opportunities for major companies/brands and showing just
how impactful sponsorship programmes can be in getting more youngsters
involved in sport and the impact this would have in the areas
of health, society and education.
31 March 2005
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