Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • Kerry calls for 'coalition of nations' to battle IS militants

    Read more

  • EU leaders meet in Brussels to seek a response to Russia

    Read more

  • Exclusive: Fabius warns Russia of more sanctions

    Read more

  • IMF backs Lagarde amid French corruption probe

    Read more

  • Ebola drug ‘ZMapp’ heals all monkeys in study

    Read more

  • Lesotho army seizes police HQ, jams radio stations

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • Suriname leader’s son pleads guilty to courting Hezbollah

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • France shines in IMF list of world’s promising economists

    Read more

  • Chelsea’s Torres set for AC Milan switch

    Read more

  • First case of Ebola confirmed in Senegal

    Read more

  • Obama has 'no strategy yet' against IS militants in Syria

    Read more

  • Netflix to woo French with ‘House of Cards’ set in Marseille

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

  • Syrian refugees surpass three million, UN says

    Read more

  • UN says 43 peacekeepers captured in Golan Heights

    Read more

Sponsors wince amid financial crisis

Text by Sébastian SEIBT

Latest update : 2008-12-06

Honda's withdrawal from Formula One competition is the latest episode in the saga of how the financial crisis is damaging sports.

Does sport without sponsorship mean the ruin of sports business?  The financial crisis is hitting companies hard and they are now shifting their sponsoring strategies. Honda is just another in a long line of financial-crisis-related sports casualties.

In November, General Motors dropped their seven-million-dollar per year contract with star golfer Tiger Woods. Golf sees its development threatened by the economic slowdown. Two important tournaments, the European Tour and Golf in Dubai have failed to find sponsorship to date.


NASCAR, merge to resist

Football is also affected. English clubs West Ham and West Bromwich Albion are sponsor-hunting. Insurance giant American International Group (AIG),  which sponsors premiership giant Manchester United, says it is reviewing “all of (its) deals to focus on the essential ones”. 

NASCAR, the popular US stock-car races, have also suffered fund slashes. General Motors is no longer a partner of the circuit, and two of the main teams had to merge to survive.

In the US, finance companies have always been active in sponsoring. William Chipps, a journalist for IEG Sponsorship reports explains “these companies struggle for survival and these partnerships are far from topping their priorities.”

Even the London 2012 Olympics is having a hard time getting sponsorship.

A two-level sponsorship

Wayne DeSabro, president of a research center on sports business in Pennsylvania, explains: “Big sports stars will keep earning lots of money from sponsors. Those that are less-known are more likely to suffer.”

Indeed, the crisis didn’t impede football star Thierry Henry or tennis giant Roger Federer from snagging their latest contract with shaving specialist Gillette. In the end, however, a wider gap between rich and poor sportsmen is what may well be in store. 

Date created : 2008-12-05

COMMENT(S)