chapter  3
Brand activation in sports organizations
ByFrank Pons, Lionel Maltese, Marilyn Giroux
Pages 11

The level of competition in the sports industry has tremendously increased in recent years and sports organizations have to fight to get a part of the sports consumer dollar. The global sports revenue should continue to grow in the coming years and generate more than $145 billion in 2015. From this, the gate revenue accounts for the largest source of income, with 32.6 percent of the total sports market. This is especially true for North America and Europe, where live events are part of the traditions. However, gate revenue has the smallest growth compared to other types of income. The second source of revenue is sponsorship with a significant 28.8 percent of the total income. Sponsorship is the most promising factor for sports organizations and teams in the coming years, with an average increase rate of 5.3 percent (PWC, 2011). However, in order to be effective, sponsorship activities need the development of differentiated and strong sports brands that can cater to potential sponsors’ objectives. Therefore, being part of this extremely competitive environment, brand managers of different sports entities and organizations are focusing more on the notion of brand development, brand equity and how to better transfer more efficiently these values and equity from sports properties to sponsors. In addition, sponsorship activities are becoming more and more subtle as exposure and visibility are not sufficient objectives anymore. In this complex landscape, brand activation has become critical for sponsors to maximize their return and for properties to attract sponsors.