Sports in the United States and Europe is a multi-billion dollar industry. It seems that on every television ad, billboard, and bus stop is a picture of a sports celebrity pitching a product. School-age children, adults, and even the elderly tune in to watch their favorite teams compete week in and week out. With such a lucrative and popular business one would think that there is no downside to the idea of sports marketing. However, there is a downside and it is important to understand it before investing and getting into the sports marketing business.
One of the biggest downsides is trying to put together meetings and advertising campaigns. In sports marketing you are trying to sell a product with sponsorship, or you are trying to get sponsorship to sell a product. Either way, you are going to need to throw parties or to have several meetings a week. Sports marketing and sports sponsorship is a dog eat dog world. You and your company will likely not be the first to approach a business and try to get them to buy a product or become a sponsor. Another thing to consider in sponsorship is that the economy is really stagnant and businesses are less likely to sponsor an item.
Another downside of sports marketing that many people do not consider is the amount of product that you are likely to be stuck with. See, sports marketing and sponsorship is all about striking while a team or an individual is at their zenith. If you miss the moment, which is what any marketing strategy depends on, then you could possibly get stuck with boxes and boxes of merchandise that you cannot unload for a profit. Let’s say that you get a business to sponsor a shirt that features a prominent local athlete. Let’s say that you order 10,000 shirts because that will maximize your profits plus get you the best price on the shirts. Let’s now say that the prominent athlete gets busted for a D.U.I. There goes your shirt and all the profits. Your sponsor is probably going to call up and tell you that they do not want the shirt handed out because they do not want their business associated with someone who has a drinking and driving problem.
Many people see sports marketing and sponsorship as a lucrative and glamorous job. This article is not to dissuade someone from their dream, however it is written to make sure that people understand what they are getting themselves involved with. Sports marketing is a high risk but high reward business and there are many downsides to working in this type of emotional industry.