The business of sports sponsorships

Never before has more money been thrown into marketing with athletes, sports teams or sporting events and this billion-dollar industry continues to grow

- By Shannon Manuel

Sports teams and athletes attract sponsors to finance certain aspects of their business, such as the cost of managing major stadiums through naming rights. How does that benefit brands? Well, the digital age allows companies to engage with a ready-made global audience of sports fans meaningfully, raising awareness and marketing an image that suits their objectives. Group CEO of Unorthodox Group, Sibabalwe Sesmani, gives us more insight into the business of sports sponsorships.

GQ: What does managing an athlete involve? We manage them holistically by working on a brand strategy that helps us govern their messaging and decide which brand collaborations align with their core values. We don’t just look after them as athletes but also hone in on their interests to help us understand their passions. And their affairs, for instance, helping them with their retirement plan.

GQ: Talk us through the basics of a sports sponsorship contract. After a brand approaches us, we thoroughly research them and decide whether they're relevant to the athlete. Then we look at expected deliverables and if the brand's value is equal to that of the athlete. Usually, considerable negotiation takes place before signing a contract, including consulting with the athlete.