Covid-19 And The UK Sponsorship Industry - Tackling The Current Crisis And Preparing For The Future

In a recent report, analysts at IEG estimated that around 120,000 US sponsorship agreements were in limbo as a result of measures to prevent the spread of Covid-19. All told, more than 5,000 brands were faced with decisions on how to recoup lost value, said IEG. No similar analysis exists for the rest of the world, but it’s safe to assume that the global sponsorship industry is experiencing a similar impact.

In the short-term, the situation doesn’t look like it’s going to get much better. While many companies and individuals have displayed innovation, resilience and a spirit of solidarity, recent rises in infections have seen several territories start to re-impose tougher restrictions on their population’s movements and activities – with inevitable knock-on consequences for the sponsorship sector. At time of writing, for example, the UK’s new ‘rule of six’ was seen as a potential threat to the proposed reopening of sports stadia.

Sadly, many companies and events will not survive the economic carnage inflicted by Covid-19. But for those that do, there are two main areas of concern. Firstly, what are the best options if they are currently in the midst of sponsorship-based partnerships? Secondly, what are the key lessons for those that are lucky enough to come out the other side? Over the coming weeks, we’ll explore both issues –from the point of view of both brands and rights holders. This week we start by looking at the immediate implications of Covid-19.  Read on