Across the finish line

From accurately measuring returns on investments to considering value-to-cost propositions, major conglomerates from the UAE are successfully navigating the sports sponsorship industry and the mega-money involved in it

- VARUN GODINHO

According to a recent PricewaterhouseCoopers (PwC) Sports Survey report, the annual growth rate for the sports market will likely slow from 8 per cent to 3.3 per cent over the next 3-5 years. However, a major driver of that market will continue to be brand sponsorships, led by investments worth tens of billions annually.

Mike Davis, regional director for the Middle East and Africa at CSM Sport & Entertainment, estimates that pre-Covid, the global brand partnership industry was worth around $70bn annually. Of that, the Middle East and North Africa accounted for around $2.8bn – an amount that although far smaller than North American and European markets, still isn’t a figure to be mocked.

With the Covid-19 pandemic taking a sledgehammer to the global economy, some of the hardest-hit industries including aviation and tourism were aware that they can ill afford to drop brand visibility.

“We have continued with a number of our sponsorships this year, but all of the overseas events have been scaled back and held without spectators including our two sporting events in Ireland – the Dubai Duty Free Irish Derby at the Curragh Racecourse in June and the Dubai Duty Free Irish Open which was held at Galgorm Castle Golf Club in September,” Colm McLoughlin, executive vice chairman and CEO of Dubai Duty Free told Gulf Business.

“All of the events still provided us with TV coverage, so our brand was visible to the international audience and the message that ‘Dubai is Open’ was very evident,” added McLoughlin while confirming that Dubai Duty Free continued its participation with this year’s Omega Dubai Moonlight Ladies Classic in November and said that discussions were ongoing with the Dubai Sports Council about the next edition of the Dubai Duty Free Championships.