Mistakes to Avoid: How to Learn From Sponsorships Gone Wrong

July 31, 2024

Sports sponsorships have long been a staple of marketing strategies for businesses of all sizes. 

When done well, they can lead to exponential increases in brand awareness, consumer engagement, and, of course, sales. 

However, sometimes these deals go wrong, leaving behind a trail of lessons to be learned.

These failures can be attributed to a variety of factors: scandals, poor planning, poor brand-to-sport fit, and unforeseen events. 

What can we learn from these mistakes?

What the Past Teaches Us About Sports Sponsorships

Hoover and English Football

A classic example of a negative sponsorships dates back to the early 1990s and features Hoover.

The appliance company launched a promotion that offered free flights to the United States and Europe to anyone who purchased its products over a certain price threshold, aiming to revive sales during a period of decline. 

However, the cost of the tickets far outweighed the additional revenue generated, causing the company a million-dollar loss.

The ties to English football ended because of a failed management of the campaign associated with football events. 

In this case, the world of sport was more a collateral victim than a bad partner.

Reebok and the Super Bowl

In 1997, Reebok signed a costly sponsorship deal with the NFL and launched a advertising campaign with Green Bay Packers running back Brett Favre.

The ad confidently predicted that the Packers would win Super Bowl XXXII, which, however, did not happen.

In the end, when the Denver Broncos defeated the Packers, Reebok’s campaign became instantly irrelevant.

What was supposed to be a memorable ad became a monumental example of how not to do sports marketing.

Fastweb and Formula One

In 2004, Fastweb announced a partnership with the Sauber Formula One team, aiming to gain international visibility.

However, the collaboration proved problematic almost from the beginning.

The team’s performance did not live up to expectations and Fastweb found itself paying millions for much lower visibility than desired.

The early termination of the contract demonstrates how crucial performance goals and exit clauses are in any sponsorship.

Adidas and College Basketball

Finally, in 2017, it was Adidas’ turn to find itself at the center of a scandal involving the illegal payment of college basketball players and their families.

The case led to federal investigations and a series of arrests.

For Adidas, which had invested heavily to position itself as one of the leading sponsors in the industry, it was a hard blow in terms of image and trust.

This episode teaches how thorough due diligence and a firm adherence to corporate ethics are essential for starting any sponsorship.

Learning from History to Avoid New Mistakes

Sponsorship deals can go wrong for various reasons, but we can learn valuable lessons from every failure.

Understanding the target audience, verifying the investment, and adhering to ethical principles are just some of the key considerations to keep in mind.

Additionally, planning for the unexpected and including clauses that protect against any setbacks safeguard the interests of both the sponsor and the sport.

A well-calibrated and informed approach reduces the likelihood of failure and increases the chances of a significant and positive return on investment.

If you’d like a free consultation to discover what kind of sponsorship might suit you, contact us. We’re waiting for you!