Sports industry facing $313m sponsorship loss from airline sector in 2022 as deals face termination, says GlobalData

  • Airline sector sponsorship deals with the sports industry that are expiring in 2021 are currently worth $313.85m
  • The COVID-19 pandemic is forcing industry wide job losses and bankruptcies, making non-renewals of sport sponsorships inevitable
  • Etihad Airways stands as the most exposed airline with $61.67m in sponsorship agreements expiring in 2021

Having been a consistent partner to the sports industry for a number of years now, the COVID-19 pandemic could force the airline sector to withdraw from its sport sponsorship commitments as the industry faces sweeping losses and job cuts, says GlobalData, a leading data and analytics company. As a result, rights holders will likely have to source alternative sectors to partner with their sponsorship assets in 2022 after sponsorship deals with the airline sector expire in 2021.

Currently, $737m in airline sector sponsorship is committed to sport partnerships. However, with $313.85m of this set to expire at the end 2021, the sports industry is facing a multi-million dollar sponsorship hole that it may struggle to fill going into 2022. Etihad Airways stands as the most exposed airline with $61.67m in sponsorship agreements expiring in 2021.

Patrick Kinch, Sport Analyst at GlobalData, comments: “Having been partnered with the sports industry for a number of years, 2022 will likely see a wide withdrawal of the airline sector from its sponsorship commitments. Given the damage done to the industry following government enforced lockdowns around the world, and the subsequent fall in international travel, airlines, even those able to rely on sovereign wealth funds, have seen drastic losses and job cuts. As a result, in an effort to recoup costs, it is likely the airline sector will withdraw from its current sporting commitments. Rights holders will be facing the challenge of having to either find an industry that has been less troubled by the pandemic or accepting a reduced value for their sponsorship assets.”

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