European Sports Summit
Major events: Major opportunities
20th June 2013
Sports, Sponsorship and Europe
Helen Day
ESA - the voice of the sponsorship industry in Europe
•
European
Sponsorship
Association
Established since 1990
• Members across Europe from sponsors, rights holders,
consultancies, associated research and professional firms
and affiliates linked to sponsorship
• Aim to set standards in sponsorship, with education and
representation of the members
• Regular workshops, training and conferences
• Annual European Sponsorship Excellence Awards
• Establishment of the ESA Diploma and other continued
professional development (CPD)
• First Advertising Code in 1937
ICC Code on
Sponsorship
– Provided globally acceptable framework for
responsible creativity and communication
• First Sponsorship Code in 1992
– Expression of social responsibility in light of
globalisation and market liberalisation with
emerging new media and markets
– Instrument of self-discipline as an interpretive aid
for practitioners and as reference for courts in any
disputes
• Latest Sponsorship draft in 2011
– Incorporated with other commercial
communications into a Consolidated Code on
Marketing with specific chapter on sponsorship
1992 version:
ICC Definition of
Sponsorship
Any communication by which a sponsor contractually
provides financing or other support in order to
establish a positive association between the
sponsor’s image, identity, brands, products or
services and a sponsored event, activity, organisation
or individual
2003 and 2011 versions:
Any commercial agreement by which a sponsor, for
the mutual benefit of the sponsor and sponsored
party, contractually provides financing or other
support in order to establish an association between
the sponsor’s image, brands or products and a
sponsorship property, in return for rights to promote
this association and/or for the granting of certain
agreed direct or indirect benefits
Global Sponsorship Spend 2001 to 2011
$ billion
North
America
Europe
Asia
Pacific
Central &
Southern
America
Other
$51b
$18.9b
$14.1b
$11.9b
$3.9b
$2.2b
2011
$48.7b
$18.2b
$13.6b
$11.1b
$3.7
$2.1b
2010
$46b
$17.1b
$12.9b
$10.6b
$3.6b
$2b
2009
$44.4b
$16.5b
$12.1b
$10.1b
$3.5b
$1.9b
2008
$43.4b
$16.6b
$11.7b
$9.5b
$3.5b
$2b
2007
$37.7b
$14.9b
$10.6b
$7.4b
$3.0b
$1.8b
2006
$33.7b
$13.4b
$9.5b
$6.4b
$2.7b
$1.7b
2005
$30.5b
$12.1 b
$8.5b
$5.8b
$2.5b
$1.6b
2004
$27.9b
$11.1 b
$7.8b
$5.2b
$2.3b
$1.5b
2003
$25.9b
$10.25b
$7.4b
$4.7b
$2.2b
$1.4b
2002
$24.4b
$9.6b
$7.1b
$4.7b
$2.1b
$1.3b
2001
$23.5b
37.1%
27.7%
23.3%
7.6%
4.3%
2012
Global
Sponsorship Spend
(projected)
2012 %
Figures are based on sponsorship rights fees
Source: IEG
Sponsorship in Europe 2010 and 2011
€ billion
Total Sponsorship
European
Sponsorship Spend
2010
2011
Europe Countries
€22.8b
€25.2b
Pan European events
€0.5b
€0.7b
Global Events - Europe
€0.03b
€0.6b
Total
€23.3b
€26.5b
% Change Year on Year
+14%
Figures cover all forms of sponsorship include global events staged in Europe
Source: European Sponsorship Association 2012
Sponsorship in Europe Breakdown 2010
€ billion
European
Breakdown
Total
Sponsorship
Sport
Non-Sport
Europe Countries
€22.8b
€15.6b
€7.2b
Pan European &
Global Events
€0.53b
€0.53b
€-
Total
€23.33b
€16.13b
€7.20b
69%
31%
% Breakdown
Figures cover all forms of sponsorship include global events staged in Europe
Source: European Sponsorship Association 2012
Global Deals
2012
Source: The World Sponsorship Monitor 2012
Top Ten
Industries
- Value
Source: The World Sponsorship Monitor 2012
Top Ten
Sponsored Sports
- Value
Source: The World Sponsorship Monitor 2012
Top Ten
Sponsored Sports
- Deals
Source: The World Sponsorship Monitor 2012
Sponsorship
Deals by Type
Source: The World Sponsorship Monitor 2012
Olympic
Torch Relay
Coca Cola bus
Lloyds TSB advertising
Samsung fund-raising
P&G and the
2012 Olympics
1996 European Commission Green Paper on Commercial
Communications considered sponsorship in detail, and
recommended:
Pan-European
Sponsorship
• Sponsorship to be seen a separate marketing
discipline to advertising, PR, sales promotion, direct
mail, product placement, patronage etc.
• Country of origin principle was appropriate
• No harmonisation needed, but subsidiarity works,
allowing each member state to set its own laws and
regulations
• No EC central legislation was needed
“Sponsorship is the most effective form of cross-border
commercial communications.”
Jean Bergevin, EC DG Markt 1998
EU and UK
Legislation
EU Directives
UK National Law
Green Paper on Commercial
Communications (1996)
-
Consumer Protection on Distance
Contracts (2000)
Consumer Protection
(Distance Selling ) (2000)
Unfair Trading and Business
Protection (2008)
Unfair Commercial Practices (2005)
Electronic Communication and Data Privacy and Electronic
Privacy (2002)
Communications (2003)
Television without Frontiers
Directive (1997)
Audio Visual Directive (2007)
Communications Act (2003)
Directive on Advertising and
Sponsorship of Tobacco (2003)
Tobacco and Advertising
Promotions Act (2002)
(Not yet implemented)
Prohibited Advertising
• Political advertising
• Prescription-only medicines (1994 Act)
Legal Framework
in UK
• Tobacco
– 1965 Ban on TV advertising of tobacco products
– 1977 Labour manifesto pledges to ban tobacco
advertising including sponsorship
– Nov 2002 Tobacco and Advertising Promotions Act
– July 2003 Ban on sponsorship of sporting events
held within the UK
– July 2005 Ban on sponsorship of excepted global
events (Formula One and World Snooker
Championships)
Self Regulation
Principles
Sponsorship Complaints
•Normally would made by the public to the rights holder
•Contractual terms normally allow for sponsorship to be cancelled
due to disrepute of either sponsor and sponsored party
EASA (European Advertising Standards Alliance)
•European network of national self-regulatory organisations (SROs)
•Competence to handle all complaints within advertising but their
sponsorship remit varies for events or broadcast
ESA joined EASA in 2008 to establish a pan-European
sponsorship self-regulation process
•Complaints made to national SROs could be passed on to
Joint Arbitration Panel to adjudicate on issues
But very few complaints have been made nationally and
NO sponsorship complaints have been referred to EASA/ESA
Aegon and
British Tennis
Heineken and
Champions League
Responsible advertising
Global Advertising
Competitions
Hospitality
App and Social Media
Government Legislation
• France – Loi Evin ban in place since 1991
• Ireland – currently considering a ban
Sponsorship Laws
& Codes for
Alcohol Producers
Government Co-Regulatory Frameworks
• Scottish Government Sponsorship Guidelines
• UK Responsibility Deal Code on Sponsorship
Self-Regulatory Industry Codes
• Beer /Spirits / Wine associations codes on Advertising
and Marketing
•Alcohol Producers
• Internal Corporate Guidelines and Policies
EC Alcohol &
Health Forum
EC Alcohol and Health Forum
• Launched on 7th June 2007
• Membership from 68 organisations representing:
o Producers, wholesalers and retailers of
alcoholic beverages
o Marketing bodies including advertising,
media and sponsorship
o Health and consumer NGOs
o Family and youth organisations
• All members sign up to make commitments aimed at
reducing alcohol-related harm
• All commitments independently monitored and assessed
ESA Guidelines and Legal Clauses for Rights Holders
regarding Alcohol Sponsorship (2012)
•General principles
• Ensure all are aware of codes and guidelines
• Encourage responsible drinking promotions
Alcohol Advice for
Rights Holders
•Sponsorship
•Not of events with particular appeal to those under 18
•Care if involved with motorsports events
•Marketing
• Consideration regarding permanent alcohol signage at
venues used by predominantly those under 18
•Promotions and Merchandise
•No marketing to those under 18 in competitions, clothing,
merchandise or sampling activities
•Alcohol Consumption
•Legal Clauses
• Regulations, Compliance, Obligations, Responsibilities etc.
http://www.sponsorship.org/content/policy.asp
Research on
Alcohol Support
Report on “Supporting Local Communities:
Assessing the Contribution of Europe’s Brewers”
• €928 million spent p.a. across Europe
• Only 11.9% goes to major sports events
• Most support is local (36%) or regional (48%)
• 70% of public say beer support helps events occur
• 78% of rightsholders said they would suffer considerably
from losing beer support
Source: Sponsorship Ideas 2011
• UK government’s Responsibility
Deal seeks new UK Alcohol
Sponsorship Code
UK Alcohol
Regulations
• Portman Group reviewing own
code and using Scottish Guidelines as
basis for new UK Alcohol Sponsorship
Code with ESA and some
rightsholders on working group
• Binding on alcohol producers but
seeking endorsement from major
rights holders
• Note that of the 196 complaints
received by Portman Group since
1996, none have related to
sponsorship
Alcohol Sponsorship
of Rugby in Europe
Heineken Cup
Guinness Premiership
Brains Welsh team
Betfair
Sponsorship
World Snooker Championships
World Matchplay Darts
Horseracing
Gambling
Sponsorship
Source: The World Sponsorship Monitor 2012
European Commission:
Gambling
Sponsorship
in Europe
•
March 2011 consultation process on draft Green Paper on
online gambling
•
Dec 2012 resulted in Communication on “Towards a
comprehensive European framework on online gambling” which
did not have concerns about gambling sponsorship issues
•
EC Workshop (today) in The Hague “The marketing and sale of
sports rights (media rights, sponsorship, and sports data):
current and emerging market trends”
Council of Europe:
n
•
Sept 2010 Council of Ministers meeting proposed “Betting
operators should be banned from funding or sponsoring teams
or individual competitors if they manage bets placed on
competitions in which they are participating.”
•
Discussions resulted in change of clause to: “Sponsorship
contracts should state that the sponsor plays no role in, and will
exercise no influence on, the sporting decisions taken by the
sponsored team or individual.”
•
Gambling
Sponsorship
in UK
•
•
•
•
2005 Gambling Act - comprehensive regulatory
framework for the advertising of gambling (betting,
gaming and lotteries) which lifted gambling
advertising restrictions in Great Britain (not
Northern Ireland)
Creation of new Gambling Commission in UK
2007 - Gambling sponsorship allowed when CAP and
BCAP Advertising Codes came into force
Gambling Industry Code for Socially Responsible
Advertising was issued by the marketing industry
May 2013 – Gambling (Licensing & Advertising) Bill
published limiting the marketing by licensed
gambling operators in the UK
bwin
Sponsorship
Kite surfing
Soccer
Moto GP
Padel Pro Tour
Norbert
Teufelberger
CEO of BWin
Euroleague Basketball
Trends in
Sponsorship
•
Growth area despite recession (compared to advertising)
•
Need to demonstrate value and return on investment
•
Increasingly innovative and complex, using new
techniques with social media, digital technology, multimedia platforms
•
Major events can offer excellent opportunities for range of
sponsorship deals if packaged creatively
•
Essential source of income for elite sport in order to fund
grassroots activities
•
Increasing expertise in sports bodies regarding
sponsorship issues
•
Potential threats include restrictive legislation, ambush
marketing and media clutter
Athletics event
Sponsorship
Samsung withdrawal from Diamond League
Toyota and Seiko joint promotion
Aviva UK sponsorship
European Sports Summit
Major events: Major opportunities
Sports, Sponsorship and Europe
Helen Day
Head of European Policy
European Sponsorship Association
www.sponsorship.org