Paris 2024 Bids Adieu - Why Brokers Love Sports?

The quadrennial global sports extravaganza concluded last weekend in Paris, France. Over 10,000 athletes from 200 countries and regions competed across 32 sports. During the past 17 days, iconic venues like the Palais Garnier were packed with spectators, a stark contrast to the almost empty stadiums of the Tokyo Olympics three years ago, which had been postponed by a year due to the pandemic. Ultimately, the United States, China, and Japan ranked the top 3 of medal count.

Such massive attention and viewership naturally attracted a plethora of brands to engage in partnerships. According to data from the Paris 2024 Olympic Games official website, over 4,000 businesses have signed partnerships with the organizer since 2020. Notably, the financial services sector has been well-represented among these partners.

The Allure of Olympic Sponsorship: Insights from Financial Institutions

Financial companies have long been keen on sponsoring sports events and clubs, from national / continental leagues to the World Cup and Olympics. Unlike the multi-million-dollar sponsorship deals seen with the World Cup or top football leagues, the Olympics offer unique opportunities for financial brands. They can engage in significant or minor sponsorships, such as exclusive Olympic partnership programs or individual athlete endorsements.

A survey by the consulting firm BAV Group found that being an Olympic partner boosts a brand's association with labels such as "daring," "prestigious," and "authentic" by 117%. Additionally, brand loyalty increases by 49%, differentiation by 54%, and relevance exceeds competitors by 39%.

Browsing the Paris 2024 Olympic Games website, it's evident that leading financial brands among the event's partners include Allianz and Visa. Allianz, for instance, invests approximately £77.5 million annually in its partnership. Visa, on the other hand, has been the official global paytech partner of the Olympics since 1986 and has sponsored every Paralympic Games since 2002.

The Financial Backing of Major Sporting Events

As powerful engines of the global economy, major sporting events like the Olympics have a significant economic impact. They not only generate substantial revenue through ticket sales, broadcasting rights, and tourism but also drive economic growth in host cities and beyond, create jobs, and improve infrastructure, all of which benefit the partnering financial brands.

This is why, over recent decades, sports sponsorship has evolved from a luxury for super-rich guys to a strategic investment decisions for companies, especially among forex brokers.

Sports have become increasingly reliant on sponsorship and advertising from financial brands. Numerous forex brokers have entered into partnerships with sports clubs in recent years. For instance, Plus500 is the official partner of the NBA's Chicago Bulls; Pepperstone is a global partner of the ATP Tour; and brokers like ThinkMarkets, Axi, Go Markets, and Doo Group sponsor Premier League teams Liverpool FC, Manchester City FC, Chelsea FC, and Manchester United FC, respectively.

Conclusion

At the Paris Olympics, Lloyds Banking Group was the title sponsor of the GB cycling team. The bank's CEO, Etienne Thobois, had predicted pre-event that the total sponsorship revenue for the Paris Games would surpass €1.24 billion, with 99% of this amount already secured before the opening ceremony. Financial institutions worldwide play a crucial role in this achievement.

The popularity of sports sponsorship among financial brands continues to rise, extending beyond football and Formula 1 to include niche sports such as golf, gaming, and cricket. However, for brokers investing in sports sponsorship, it is not a one-off marketing strategy. Effective brand marketing still requires clear positioning, awareness, market preferences, and budget considerations.