Abstract
Ghanaian football teams are not perceived to be thriving within the league and this makes it almost uncertain for the players to gain international recognition. This study will help identify the ways football teams position their brand and identify the criteria sponsors consider when venturing into a sponsorship deal. The aim of the paper is to determine whether sports sponsorship can help teams in terms of funding to become more competitive and upgrade their playing skills in order to improve their performances. The study will also help determine the most effective sponsorship tools that can help a team to become sustainable in the long run. Data was collected through a qualitative approach using semi- structured interviews in 3 Ghanaian football teams and 1 sponsor. The findings of the study reveal that without a huge involvement and funding from sponsors, Ghanaian football teams will find it difficult to compete with each other. Clubs really utilize the small amount of sponsorships possessed and are open to more funding. Sponsoring companies factor the team’s image, performances, professionalism and the perception of football fans. Sponsors enjoy mileage and brand visibility benefits from sponsoring clubs. The main considerations for sponsorship include the team’s history and success, large fans following and images. The major limitation was gaining access to more football teams would have helped emphasize the importance of sponsorships for Ghanaian football teams.
Key words: sports sponsorship, sports, football, football teams.
Table of Contents
Declaration………………………………………………………………………………………………………….. ii
Acknowledgement……………………………………………………………………………………………….. iii
Abstract………………………………………………………………………………………………………………. iv
CHAPTER ONE: INTRODUCTION……………………………………………………………………. 6
1.1.3 Sports Sponsorship……………………………………………………………………………………. 5
CHAPTER 2: LITERATURE REVIEW……………………………………………………………… 10
CHAPTER 3: METHODOLOGY……………………………………………………………………….. 31
CHAPTER 4: DISCUSSION ON FINDINGS AND ANALYSIS………………………….. 35
- Introduction………………………………………………………………………………………………. 35
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS…………………………… 46
References………………………………………………………………….. Error! Bookmark not defined.
Appendix 1: Interview Questions………………………………………………………………………. 59
Figure 1. The Integrated Marketing Communication Mix Model. From Integrated Marketing Communications. (Broderick & Pickton, 2005)………………………………………………………. 13
Figure 2. The emergence of goodwill. From Understanding Sponsorship Effects. (Meenaghan, 2001)…………………………………………………………………………………………………………………………. 23
Figure 3. How Sponsorships Work: The Sponsorship Engagement Model. Event Management. (Wakefield, 2012)……………………………………………………………………………………………….. 24
Figure 4. Sponsorship Engagement Process between MyBet.Africa and Dreams Football Club (Field Data, 2020)………………………………………………………………………………………………………… 41
CHAPTER ONE: INTRODUCTION.
Background and Overview
Globally, sponsorships exceeded $26 billion in 2002; two-thirds of this amount was invested in sports (IEG, 2002). Sports sponsorship has come a long way in world sports, as sports sponsorship amounted to $1.35 billion in 1987 in the United States of America alone. The motive of sports sponsorship was thought to be a charitable act previously, but the motive has changed these recent years. Sports is an avenue where sponsorship continues to grow because within sponsorships as a whole, sports sponsorship accounts for approximately between 50% to 70% in each country depending on the year of study (Lagae, 2005). Sponsorship research and consulting firm IEG stated that North American companies are the biggest investors in the sports sponsorship segment (IEG, 2013). North America is followed by Europe and Asia Pacific with Asia becoming the most important marketplace in sports sponsorship. Mullin, Hardy and Sutton (2007) define sports sponsorship as:
The acquisition of rights to affiliate or directly associate with a product or event for the purpose of deriving benefits related to that affiliation or association. The sponsor then uses this relationship to achieve its promotional objectives or to facilitate and support its broader marketing objectives. (p. 315)
The areas of sports sponsorship according to Lagae (2005) include sport’s governing body sponsorship, sports team sponsorship, athletes’ sponsorship, broadcast and media sponsorship, sports facility sponsorship and sports event sponsorship.
As a derivative of sports marketing, there are several benefits of sports sponsorship. Schaefer, Parker, and Kent (2010) reports that the benefits are enhanced ad
recall, ability to gain and hold consumers’ attention, increased desirability of the product and likelihood of purchasing, and increased brand loyalty.
The impact sports sponsorship has on football teams are all positive to teams internationally. These positive impacts as reported by Melovic, Rogic, Cerovic Smolovic, Dudic, and Gregus (2019) is that sports sponsorship influences the purchasing decisions as the consumers regarding the product of sponsors that creates a loyal base of fans as the consumers. Sports sponsorship is also considered to be an effective approach of promoting companies that are socially responsible, sustainable practices and provides an opportunity to build a customer base that is educated and highly dedicated. It goes without saying that the impact is a two-way street as the team and company benefits.
- Sports Sponsorship in Africa.
The importance of sponsorships as far as sports in Africa is concerned cannot be overemphasized. These sponsorships have provided opportunities and exposure for African teams, the players and coaches. In the Northern and Southern part of Africa for instance, club level football has advanced as compared to the football played by West African football teams (Moonda, 2019). Unlike their West African counterparts, the Northern and South African regions have more advanced economies are able to keep some of their talented players, and this accounts for the high standards of the leagues.
Sports sponsorship has come a long way as it has proved to be a large source of financial aid to African football. The agreement between Total and the Confederation of African Football is an example of financial infusion and a demonstration of the confidence that international businesses have in African football. Total in 2016 became the biggest sponsor in African football for a period of eight years. This resulted in the naming of the
African Cup of Nations as the Total African Cup of Nations. According to their Senior Vice President of Corporate Communications, Jacques Emmanuel Saulnier, Total aims for a 20% share on the African continent through the sponsoring of the African Cup of Nations (Total, 2017). Judging from their motive, sports offers the greatest audience and it is their ambition is to be able to interact with these members of the community through football.
Sports sponsorship and the benefits in Africa are mostly concentrated in few areas of Africa. Revenues from sports sponsorships globally reach an estimated $45 billion which had Africa accounting for less than $2 billion in 2015 (Toesland, 2016). And a large proportion of the revenue from these sponsorships went to South Africa. The Premier Soccer League (PSL) in South Africa announced that the revenue of the PSL exceeded R1 billion in revenue after the end of the 2018/2019 season (PSL Media, 2019). This record was aided by the funds generated from their seven main sponsors and broadcast partners: SuperSport, Absa, Nedbank, Telkom, MTN, MultiChoice and Glad Africa. This 7% increase in revenue was driven by a raise in broadcast agreements and an inflationary increase of sponsorship revenue.
Kenyan football in the Eastern part Africa has also benefitted largely from sports sponsorships. The Kenyan Premier League recently signed a sponsorship deal with SportPesa, a betting firm in a deal worth 450 million shillings (US$ 4.5 million). The deal by SportPesa is 60% more than what previous sponsor, Tusker offered- 270 million shillings (US$ 2.6 million) (Moonda, 2015). The agreements signed by the football association show the development of football in Kenya alongside the faith companies that have to invest in the sport. With their funding arriving in multiple ways, it is hard for other areas of Africa since they don’t profit from it. A major one involves not being able to keep
your players as Northern and Southern Africa teams sign them. This means Northern and Southern Africa become attractive football destinations for sponsorships. Skill drain in the context of footballing is not an issue for North and South African club teams because their leagues have talented players from other parts of Africa and they are also able to attract players from other continents (Liwewe, 2010).
Sports in Africa keeps improving in terms of quality and competitiveness as it has shown glimpses of talents that are worthy of investment. The international sponsoring companies have recognized the excellent skills athletes from Africa demonstrate in various sports, and as a result of this, varying sponsorships deals have been secured for them (The Observer Team, 2018). Investment in African sports and athletes is a market that is growing gradually, and corporations look to expand by engaging people on the continent.
Sponsorship in Ghana
Football is the most preferred sport in Ghana with national support that can captivate the whole nation whenever a national team is playing. It has oftentimes called for a presidential intervention to resolve issues (Amenyo, 2016).
Some Ghanaian top division teams in the Ghanaian Premier League have struggled in terms of finding sponsors for their team’s operational activities, butone of the most committed corporations that have helped Ghanaian football is MTN. Idowu (2016) asserts that MTN has been one of the most influential brands in Ghana. The biggest Ghanaian telecommunication company has played a key part in the development of Ghanaian football investing over $23 million between 2008-2014 to the sponsorship of all Ghanaian national football teams and the Ghanaian Premier League (Idowu, 2016). The organization has been headlining sponsors for most events including the MTN FA Cup. The tournament has
provided unknown teams and players with the chance to show their skills and contribute to the development of football in Ghana. One of MTN’s crucial sponsorship deal was with one of the Ghanaian football giants, Kumasi Asante Kotoko. And this deal was a deal that had a positive impact on the team improving team performances. The package MTN had for Asante Kotoko was for a combined amount of GHc 1,050,000 (Sports Business, 2012). MTN’s contribution to football in Ghana in terms of sponsorship on all levels has been unmatched as it continues to do everything in their power to see football taken to the next level in the country.
