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

Emirate Airlines revenue is 32 billions US Dollar, says wikipedia. Spending 100 millions in marketing is spending 0.3125% of their annual revenue. After all expenditures they pocket 3 billion per year as profit.

If that marketing campaign increased revenue by 0.4% it’s bringing more than it costs.

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