Health Committee - The Government's Alcohol StrategyWritten evidence from Sport and Recreation Alliance (GAS 22)
Summary
Sponsorship is worth approximately £2.8 billion to the sports industry in the UK every year.1
Over £300 million comes from alcohol sponsorship2 to sport. This creates investment in facilities, stadia, player development, regional structures, tournaments, etc.
Approximately £50 million of which goes directly to grassroots sports.3
National Governing Bodies of sports are non-profit organisations; surpluses are reinvested into their grassroots. Generating income through sponsorship is key to their business models and to grassroots sport.
Grassroots clubs average just £1,000 surplus every year.4 Many rely on bar takings and sponsorship deals.
The evidence connecting marketing to consumption is inconclusive and we ask the committee to ensure recommendations are proportionate and evidence based.
We believe that self-regulation by the industry is a proportionate approach to sport sponsorship, however we would like to see sports rights owners directly involved in reviewing codes.
Introduction
1. The Sport and Recreation Alliance is the national alliance of governing and representative bodies of sport and recreation in the UK. Our 320 members represent 150,000 clubs across the country and some 8 million regular participants. The Alliance exists to promote the role of sport and recreation in healthy and active lifestyles, to encourage a policy and regulatory environment in which sport from grassroots through to elite level can flourish. Our membership stretches from organisations such as the England and Wales Cricket Board and the FA to Ultimate Frisbee and the Ramblers.
2. The sport sector welcomes the opportunity to respond to the Health Committee’s inquiry. As only certain elements of the consultation are relevant to sport, the response concentrates on those specific areas. Namely:
The role of the alcohol industry in addressing alcohol-related health problems, including the Responsibility Deal, Drinkaware and the role of the Portman Group.
The effects of marketing on alcohol consumption, in particular in relation to children and young people.
Plain packaging and marketing bans.
The response also puts into context why alcohol sponsorship is so important to sport.
The Value of Sponsorship and Alcohol Sponsorship to Sport
3. According to the European Commission’s report on sustainable financing of sport in Europe, sponsorship is one of the key funders of sport. The 2012 study (data from 2008) shows that sport receives more funds from sponsorship in the UK than from central Government.
Revenue from (2008): |
Million € |
Share of total |
€ per capita |
||
General Government |
4,105.6 |
13.1 |
66.6 |
||
of which: |
|||||
— |
Central Government : |
2,334.2 |
7.4 |
37.9 |
|
— |
Ministry in charge of sport |
279.5 |
0.9 |
4.5 |
|
— |
Other governmental entities |
2,054.8 |
6.5 |
33.4 |
|
— |
Local authorities |
1,771.4 |
5.6 |
21.0 |
|
Private stakeholders |
27,315.0 |
86.9 |
443.4 |
||
of which: |
|||||
— |
Household’s expenditure on sport |
23,813.7 |
75.9 |
386.6 |
|
— |
Companies (sponsoring, donations, others,…) |
3,158.8 |
10.1 |
51.3 |
|
— |
Revenue from media rights |
342.5 |
1.1 |
5.6 |
|
Total revenue |
31,420.6 |
100 |
509.2 |
4. Alcohol sponsorship is believed to account for approximately 12% of sports sponsorship.5 More importantly for the sustainability of sport in the UK, the European Commission study estimates that approximately 15% of sponsorship directly benefits grassroots sport, meaning a boost from alcohol sponsorship to the UK grassroots estimated at around £50 million.
5. Indeed 30% of grassroots clubs in the UK have sponsorship arrangement netting the average club with sponsorship just over £2,500 per year.6 When we compare this to the average club surplus of just over £1,000, we can see the importance of sponsorship to grassroots sport.
6. Individual clubs often have sponsorship deals with local breweries and such community sponsorship programmes should be considered differently to mass marketing and should not be forgotten in this debate. One example of such sponsorship programmes is Ripon RFC which has the longest running commercial sponsorship of a rugby club in the country through its partnership with T&R Theakstons, in Masham. The brewer’s association with the club goes back to the early 50s.
7. Local leagues also benefit from alcohol sponsorship for example Shepherd Neame are major sponsors of rugby in Kent, Essex and Sussex being the sponsors of the Kent Metropolitan Leagues and the Kent Cup. Their contribution is used to support the Essex leagues, the County Senior Cups (Senior, Intermediate and Shield) as well as, and the Senior and U20’s XV’s who take part in the unsponsored RFU County Championships. They also source their products at some of these events as well as the County dinner.
8. Not only is direct sponsorship important for grassroots, but many national governing bodies of sport and professional clubs also use their alcohol sponsorship to fund grassroots projects, for example, Carlsberg is the FA’s Official Referees Partner and it lends considerable support to the recruitment and retention of referees at grassroots level in England.7
9. Sports charities also benefit from their work with alcohol companies. For example, a proportion of each pint of Lord’s Taverners Ale made by Marston’s Beer goes directly to the Lord’s Taverners. The Lord’s Taverners is a charity which supports young people, particularly those with special needs, enjoy cricket and sport. They support grass roots cricket in the UK and have raised over £30million for schools and clubs.
Sport and Responsible Drinking
10. Self-regulation has proved effective in sports sponsorship for some time and the sport sector is keen to ensure our products are only associated with brands that promote responsible drinking. Sports often have policies and clauses in their sponsorship contracts designed to encourage responsible promotion. For example, the RFU require reasonable prominent references to responsible drinking and prescribes minimum standards for match days such as:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
The Relationship Between Alcohol and Consumption
11. Alcohol marketing is designed to grab a greater proportion of the market share, not to increase alcohol consumption. Econometric studies examining the relationship between marketing expenditure and consumption have shown no or only slight correlation.8 Meanwhile the European Commission report “Alcohol in Europe” also highlighted the inconclusive nature of researching stating that “research on the effects of sponsorship is limited, and much more is needed”.9
12. Removing sports sponsorship will not lead to an overnight change in drinking patterns, and people would still be influenced by alcohol marketing in other ways. Sponsorship is only one part of the marketing communications mix,10 which also includes TV advertising, merchandise, internet presence, electronic communications and positive marketing.
13. Due to the importance of alcohol sponsorship to the sports industry we request that any policy recommendations be clearly based in evidence and that further research is carried out if required.
Should sports sponsorship by drinks companies be banned?
14. Currently sponsorship (excluding TV programme sponsorship) is regulated through the Portman Group’s Code. Sponsorship can only be undertaken if at least 75% of the audience or participants are aged over 18.11
15. Furthermore, the Portman Group’s Code now prevents drinks companies from putting their logos on children’s replica shirts. Although there was no evidence to link this marketing with under-age drinking, drinks companies were concerned about the negative perception surrounding their logos appearing on children’s shirts.12
16. We believe that self-regulation by the industry is a proportionate approach to sport sponsorship, however we would like to see sports rights owners directly involved in reviewing the code to ensure that best practice sport solutions are considered.
Conclusion
17. Sport relies on sponsorship for a large proportion of its funding and this is true of both grassroots and professional sport. A high proportion of this sponsorship comes from alcoholic brands. The evidence connecting marketing to consumption is inconclusive and we ask the committee to ensure recommendations are proportionate and evidence based. Self-regulation has proved effective in this area for some time and the sport sector is keen to ensure our products are only associated with brands that promote responsible drinking. The sector would welcome being further involved in the creation of any guidance and self-regulation and ask for the sports team at DCMS be consulted when the Government considers its recommendations.
May 2012
1 European Commission commissioned report (2012 ) Study on the funding of grassroots sports in the EU.
2 European Commission commissioned report (2012 ) Study on the funding of grassroots sports in the EU and percentage of sponsorship from alcohol as in Ipsos Mori, cited in BMA, Under the Influence (November 2009).
3 Ibid.
4 Sport and Recreation Alliance (2011) Sports Club Survey.
5 Ipsos Mori, cited in BMA, Under the Influence (November 2009). The alcohol industry was the second sponsor of sport from 2003 -2006, accounting for 11.6% of the overall sports sponsorship market. Only the financial services sector had a larger share (19.2%).
6 Sport and Recreation Alliance (2011) Sports Club Survey.
7 The FA.
8 Portman Group, Alcohol marketing and its regulation in the UK: A briefing note.
9 Anderson and Baumberg (2006) Alcohol in Europe: A public health perspective (for the European Commission (p277).
10 Hutton (1996).
11 Portman Group, Alcohol marketing and its regulation in the UK: A briefing note.
12 Ibid.