Assessing the survival of shirt sponsorships in English football: an exchange theory perspective

Abstract

Purpose Over the past several years, growth in sponsorship spending has surpassed that of traditional marketing and promotional approaches, as it has become an indispensable part of the marketing mix. Yet, despite considerable advances in the application of analytics across the sport industry, sponsorship revenue forecasting still largely relies on a decades-old methodology. The paper aims to discuss this issue. Design/methodology/approach This research seeks to assist sport organizations by applying more advanced survival analysis methodologies to the study of shirt sponsorships of football clubs, utilizing more than 300 sponsorships of every team that has competed in the English Premier League (EPL) over the past 25 years. Findings The analysis of the lifetimes of shirt sponsorships provides several insights for those employed by European football clubs and tasked with managing these increasingly lucrative sponsorships. Notably, tests confirmed that survivor functions of EPL shirt sponsorships are significantly different than those that appeared solely in English Football League (EFL) Championship play. In addition, results found that the median lifetimes of shirt sponsorships of EPL clubs were more than one year longer, when compared to EFL clubs. Originality/value This research marks the first attempt in the literature to apply survival analysis methods to describe the lifetimes of European football shirt sponsorships. The results provide empirical evidence that the potential effects of promotion or relegation could have consequences for football clubs in the tens of millions of dollars, and illustrate the importance of providing those tasked with managing such partnerships with more advanced methodologies to assist in the organization’s sponsorship revenue forecasting activities.

An introduction to the challenges of distributive equity in the English Premier League

“…These teams are also more likely to appear on television, resulting in higher facilities fees. Conversely, should a team be relegated from the EPL for an extended period, there is a high risk of losing their shirt sponsorship or its value, which could result in the loss of up to hundreds of millions of dollars (Jensen et al , 2019). Like the EPL prize fund revenue, sponsorship revenue is also skewed towards the top clubs, compounding the income differential.…”