US sponsorship commitments worth more than $10 billion will be impacted by the coronavirus pandemic if there is a six-month shutdown, according to a new study.
IEG, the US sponsorship valuation consultancy, said that the halting of sports and entertainment events has already disrupted 120,000 deals involving more than 5,000 brands.
Around $26 billion in sponsorship money has been committed to US sport, entertainment events and venues such as stadiums in 2020, and brands are now assessing their options, according to the company.
The report has also listed some of the concerned areas for the sponsorship decision makers which sports and event market needs to address –
– Consumer Comfort of attending events
– Length of down time
– Lost revenue and budget cuts
– Scheduling Conflicts
– Messaging Sensitivity
– Industry Job loss
According to the report brands sponsorship will have to go through potential tension and period of conflicts between buyers and the sellers. Survey by IEG report shows that some industry alignment would be required on following points –
– No Consistent standard for conciliation
– Sponsorship spending will decrease
– Everything will need to be re-evaluated
– Sponsorship structures will change
– Increasing reliance on social, digital and branded integration