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
Every game that Madrid (and every major teams) plays in is televised and watched by millions. They also sell millions of jerseys, which are worn out and about, meaning millions of non sports watchers still see the logo. Every social media post by the team, or by a player of the team, or of a fan who bought the jersey shows the logo. It’s difficult to track quantifiable return on indirect advertising like that, but hundreds of millions of people see the logo on the jersey every year. It definitely has a return on the investment.
(Also a lot of Middle Eastern airlines are owned by the country, and they’re less concerned with the company being purely profitable, they’re more focused on sportswashing or funneling money to certain teams, but that’s a somewhat different topic.)
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