Sponsorship on the European Tour : what factors contribute to calculating a return when sponsoring a European Tour player?

Abstract

The purpose of this paper is to identify the factors that truly contribute to sponsoring a professional golfer on the European Tour. With spending on sponsorship estimated to have reached $55.5 billion worldwide for 2014, and an estimated $1.65 billion having been spent on golf sponsorship, the industry has grown significantly. Although research exists on sports sponsorship, there is little research that has been conducted specifically on the European Tour. Additionally, the existing research available surrounds quantifiable and measureable aspects of sponsoring, such as media values for logo placement and the impact of social media, but fails to address the qualitative and intangible benefits a sponsorship activation may bring to a brand and which factors truly influence a sponsorship decision. This research paper investigates the factors of a decision, addressing both the measurable and immeasurable variables in order to understand what is most important and most beneficial to a sponsor. As background information, both the history of sponsorship and the history of the European Tour were outlined, along with the European Tour-s global reach and target market segmentation. During the research for this paper, the calculation of market value for logo placement was investigated with specific case studies on professional Louis Oosthuizen and The Masters Tournament 2013. To further explore the qualitative elements of a sponsorship decision, interviews were conducted with former and current professional golfers, sponsorship executives and the agents that bring the two parties together. The insight provided during these interview showed a clear shift from early sponsorship practices and the emphasis of logo placement, to a now seemingly more importance being placed on the relationship between a player and the brand and its subsequent benefits. What used to be an industry focused on prime real estate of logos being placed on the most `seen- golfers for the most impressions has merged to become an sophisticated decision, searching for a golfer that fits to the sponsoring brand, one that can carry transferable brand attributes and identity, brand prominence and be available to the sponsoring brand for corporate events and golf days. This research as shown that the factors that are intangible, where a monetary value is incalculable, have replaced the tangible benefits in order of importance.