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Agency Q&A | Will the cost-of-living crisis cause the sponsorship market to go soft?

(Photo by Rob Pinney/Getty Images).

The sports sponsorship sector is facing a squeeze from multiple angles with doubts emerging about the long-term viability of the crypto sector, betting marketing spend threatened by government legislation and a cost-of-living crisis thrown into the mix. We asked five agencies about the future direction of the sector.

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Fifa will almost certainly secure a big uplift in sponsorship income for the 2023-2026 cycle, culminating in the 2026 World Cup in the US, Mexico and Canada. However, it will struggle to achieve the kind of increase which Fifa president Gianni Infantino has mandated from his commercial team.

SportBusiness Sponsorship analysis indicates Fifa has generated around $1.74bn (€1.67bn) in sponsorship income during its 2019-22 sales cycle, a more than 4.5 per-cent increase from the previous four-year period when it generated $1.66bn from the sale of its marketing rights.

Red Bull Racing is targeting $30m in licensing revenue after deciding to split its apparel licensing category into five separate tiers once its current deal with Puma expires. 

Tyre brand will sponsor the German national team from 2023  The firm has bought the premium LED package for national team deals