Sports sponsorships. How do companies make money when spending 10s of millions on sponsorship?

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Question came from thinking of Emirates Airline who sponsor Arsenal, Real Madrid and Milan (and others). This costs them over £100m, surely they cannot be seeing a return on that investment?

In: Economics

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Anonymous 0 Comments

People are talking about sport washing and the relation with oil barons. Which is true.

However there are other sponsorships, and one of the reason for sponsorships is that some companies sell products that have competitors. For years Manchester United was sponsored by Vodafone. Any economic activity that have competition and that profits by selling products to millions of people (such as cell phones) will benefit in sponsoring a sports team. The only question is how much they will pay for it.

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