Sponsorship and sports have long gone hand in hand. It’s evident in everything from NASCAR and Formula 1 cars plastered with sponsors’ names to the excitement and massive cash injections that accompany the announcement of new shirt sponsors for famous European soccer clubs. Given the important role sponsorship plays in promoting both brands, here we take a look at its importance in sports marketing.

The connection between sports and sports betting

Marketing through sponsorship in the sports world isn’t just about the excitement of being associated with famous athletes and sports teams. They also help to strengthen the brand being marketed through such connections. However, for it to make sense for both parties, there usually has to be a connection. Given the immense rise of technology-focused industries such as cryptocurrency, social media, and the online casino and sports betting industry, technology companies have been responsible for a massive rise in modern sports sponsorships.

According to crypto author Kane Pepi, the best new online casinos provide gambling enthusiasts across the US with the opportunity to access and play their favorite gambling games even if they live in a state where online gambling is not legalized. With some great offers like faster payouts, higher bonuses, and a top-notch gaming experience, these platforms have become very popular over offshore websites.

Since many of them also offer a variety of online sports betting options or websites that specialize in them, the iGaming industry has aligned itself with some major American sports franchises. For example, college teams and the NFL have signed deals with DraftKings and BetMGM respectively. There are now similar partnerships in the NBA and MLB with teams such as the Philadelphia 76ers and the Chicago Cubs deals with DraftKings.

It’s the same across the pond. With the UK having the largest iGaming market in the world, many famous Premier League teams have highly visible and lucrative sponsorship deals with online betting platforms, such as West Ham United with Betway. Given the obvious connection between sport and online sports betting, this ever-growing connection between the two makes perfect sense.

Other well-known industry sponsors in major sports franchises

Many other major industries beyond gambling and sports betting have also become synonymous with corporate sponsorship of sports franchises and the famous stars they produce. For example, the cryptocurrency industry has seen a massive push towards greater visibility for its major brands through sports-related sponsorship partnerships. Major deals such as Binance’s with global superstar footballer Cristiano Ronaldo and his CR7 brand have seen them jointly strike a colossal deal for both sides, via high-priced Ronaldo-themed NFT collections and other offers.

Likewise, Formula 1 and UFC’s deals with Crypto.com have brought major profits to the brand. The respective deals now include prominent marketing banners and billboards visible during broadcasts. The platform has since reported a huge increase in new customers, which is a direct result of its marketing efforts in these sports.

Of course, specialized sports brands themselves are one of the most obvious examples of the role of sponsorship in sports marketing. Giants such as Nike, Adidas and Spalding have been closely intertwined with a wide variety of sports and the individual sports stars they sponsor for decades.

The important role of sponsorship in sport

Big brands often pump millions into sponsorship deals with the sports industry because they usually result in a win-win situation. For the sponsoring brand, the various marketing techniques used to publicize the deal allow fans of the sports franchise to associate it with the brand. Given the global influence of major sports teams and athletesThis can open up a variety of new customer bases for the brand and sometimes even enable it to expand into other international markets.

Although it may seem like the team or athlete is the main beneficiary, as they receive millions just for signing up to the deal, in most cases the money spent actually benefits the marketing brand. This is because the sponsorship is actually a long-term investment for the company behind the brand. By entering new markets, these brands can massively expand their customer base, increase their sales, and open up new avenues for a variety of different product offerings in the process.

A symbiotic relationship

These deals also result in additional revenue streams for both sides. That’s because the deals often include clauses that provide for revenue sharing from the sale of things like team or athlete-branded jerseys, apparel and shoes, or a wide range of other products and services that can now combine the strength of both brands’ logos – essentially allowing both sides to take advantage of each other’s customer base.

This symbiotic relationship has resulted in some of the most lucrative and long-lasting contracts in the sports entertainment industry, making each party synonymous with the other – the partnership between Nike and Michael Jordan through Nike’s Air Jordan range is a prominent example. In the modern world, sponsorship deals play a crucial role in sports marketing, whether it’s crypto gambling sportsbooks or social media giants lending their name to the sporting world.