Sports marketing

Sports Marketing and the Law: Three Dos and Don’ts around Sporting Events

For more than a century, sponsorship and advertising revenues have been essential components of sporting events. They not only help pay for the events themselves, but also stadiums and team salaries – they even play a role in lowering ticket prices for fans. Without advertising and sponsorship, the sports industry would be a much more expensive area of ​​interest for potential fans and a much less profitable business for franchise owners and athletes.

What has changed in sports marketing over the years and how?
Over the course of several decades, the complex but inextricable relationship between sporting events and advertising has continued to evolve. From the introduction of radio and television to social media and live streaming technologies, this continuing evolution in sports marketing has spawned a specialized industry of professionals with expertise in relationship development, both with businesses and consumers.

As much as the game has changed in the symbiosis of sporting events and marketing over the years, so much has remained the same in the realm of rules and regulations. In this article, we take a look at three of the dos and don’ts of sports marketing, especially when it comes to the most well-known advertisers of sporting events.

So what can and can’t you do? (With examples)

Franchise owners, as well as advertisers of big brands like Nike, Emirates, Mercedes-Benz and Gillette, are all well aware that sporting events give them access to what is not just a trap advertising audience but also those in the mood to spend. For this reason, several rules and regulations have been put in place to protect both fans and owner interests from outright exploitation in this dynamic marketing scenario. Here are three examples of key prohibitions, in no particular order:

  • False association alias “Ambush Marketing” Ambush marketing is when a company coordinates a promotional campaign to involve association with a team, franchise, or sporting event under false pretenses. One example is the 2010 FIFA World Cup, where Dutch beer brewer Bavaria (a rival brand of event sponsor Budweiser) sent around three dozen women into the match disguised as supporters of the Denmark team. . Arriving at their seats, the women stripped off their Danish team’s clothes to reveal identical Bavaria-branded orange tops and miniskirts while drawing the attention of cameras, fans and the stadium titantron with loud demeanor and joyful. The women were quickly ejected from the stadium a few minutes later.
  • Unrelated calls to action or one-sided publicity When a business purchases ad time or space from a franchise or sporting event, it is reasonable to expect that the business then designs an ad with at least some relating to the event, sport or franchise with which they are advertising. A vaping The company, for example, cannot just use their time or advertising space to entice sports fans to register on their website for a chance to win a raffle style vape mod giveaway in an advertisement. completely arbitrary and unrelated.
  • Encouragement or inducement to play The elicitation is when a company tries to increase its advertising revenue through commissions through partnerships with sports betting entities like BetDSI or UniBet. So while it is perfectly normal for a rum or cigarette company to showcase its own products, they are not allowed to do so in a way that sponsors, condones or directs fans towards the act of betting or gambling – with its own promotion or partner program.

Is it different for cannabis? Sports Marketing and Emerging Industries

For emerging players such as the cannabis industry, the rules and regulations remain largely the same, except for the additional consideration of the legal status of cannabis by state. It should be noted that the advertisements to say cannabis-based food products or edibles would have an extra layer of complexity for this reason.

As the number of states where recreational cannabis is legal continues to increase, additional coordination between cannabis companies and state programming directors would be required to comply with laws in states where it is. not yet legal (or legal only for medical use in adults). It’s because of these extra layers of red tape that emerging industries such as cannabis – although they already claim a multibillion-dollar market – stay away from the advertising around sporting events and franchises.