Australia Australia & New Zealand Sponsorship Data Analysis Report

  • ID: 3097120
  • Report
  • Region: Australia, New Zealand
  • International Marketing Reports Ltd
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Sponsorship market analysis in Australia & New Zealand
The report is the most in-depth analysis of the sports sponsorship market in Australia and New Zealand to date. It lists 1,662 deals with either reported values or estimates to provide the reader with a clear picture of who sponsors which sport and how much they pay. The data is further analysed using 82 charts and tables to show detailed analysis and trends by sport, by industry sector, by company and by international source of sponsorship investment.

Key issues identified include:

- Australian sponsorship worth $735 million per year
- New Zealand market worth $145 million
- Biggest deal in rugby union at $25 million
- Aussie Rules brings in $135 million
- Financial services spend less than in most countries
- Car manufacturers big investors
- Alcohol still a major player in Australia despite Government programme to replace it
- Tennis still big earner despite lack of domestic success

The report answers key questions for anyone invloved in sponsorship in either country:

- What is the sponsorship profile for all major sports?
- Which global sponsors don't invest?
- And why this is more important in Australia and New Zealand?
- Why might doping and match fixing scandals not hurt sponsors?

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1. Executive summary
- Sponsorship industry size
- Investing industries
- Major challenges in Australia
- New Zealand - rugby is king
- The future

2. Popularity of sport in Australia / New Zealand
- Australia
- New Zealand
- - Super Rugby

3. Australia / New Zealand sponsorship analysis
- Australia / NZ sponsorship analysis by sport
- Australia / NZ sponsorship analysis by industry sector
- Australia / NZ sponsorship by international source
- Australia / NZ sponsorship analysis by company

4. Australia - sponsorship analysis by sport
- Australian Rules Football sponsorship analysis
- Australian rugby league sponsorship analysis Australian rugby league sponsorship analysis
- Australian motorsport sponsorship analysis
- Australian soccer sponsorship analysis
- Australian cricket sponsorship analysis
- Australian tennis sponsorship analysis
- Australian rugby union sponsorship analysis

5. Australia - sponsorship analysis by industry sector
- Financial services
- Government
- Automotive
- Alcohol
- Soft drinks
- Airlines
- Telecommunications

6. Australia - sponsorship analysis by international source

7. Australia - sponsorship analysis by company

8. New Zealand sponsorship analysis by sport
- New Zealand rugby union sponsorship analysis
- New Zealand soccer sponsorship analysis
- New Zealand cricket sponsorship analysis

9. New Zealand sponsorship analysis by industry sector

10. New Zealand sponsorship analysis by international source

11. New Zealand sponsorship analysis by company

12. Australian sports sponsorship deals

13. New Zealand sports sponsorship deals

Table of charts and tables:
Table 1. Comparative population of Australia and New Zealand by major cities
Table 2. Total attendance of Australian primary sports 2003-2012
Chart 1. Average attendance of Australian primary sports 2003-2012
Chart 2. Total attendance of Australian primary sports 2003-2012
Table 3. Australian club attendance 2012 - AFL
Table 4. Australian club attendance 2012 - NRL
Table 5. Australian club attendance 2012 - Super Rugby
Table 6. Australian club attendance 2012 - A League
Chart 3. Super Rugby average attendance by country 2006-2012
Chart 4. Super Rugby average attendance by club 2012
Table 7. Australia / New Zealand sponsorship spend overview
Table 8. Comparative GDP - Australia and New Zealand
Table 9. Australia / New Zealand sponsorship analysis by sport
Chart 5. Australia / New Zealand sponsorship analysis by sport by number of deals
Chart 6. Australia / New Zealand sponsorship analysis by sport by value of deals
Table 10. Australia / New Zealand sponsorship analysis by industry sector
Chart 7. Australia / New Zealand sponsorship analysis by industry sector by number of deals
Chart 8. Australia / New Zealand sponsorship analysis by industry sector by value of deals
Table 11. Australia / New Zealand sponsorship analysis by international source
Chart 9. Australia / New Zealand sponsorship by international source by number of deals
Chart 10. Australia / New Zealand sponsorship by international source by value of deals
Table 12. Australia / New Zealand sponsorship analysis by company
Table 13. Australian sponsorship analysis by sport
Chart 11. Australian sponsorship analysis by sport by number of deals
Chart 12. Australian sponsorship analysis by sport by value of deals
Table 14. Australian Rules Football analysis by industry sector
Chart 13. Australian Rules Football analysis by industry sector by number of deals
Chart 14. Australian Rules Football analysis by industry sector by value of deals
Table 15. Australian Rules Football leading sponsors
Table 16. Australian rugby league analysis by industry sector Australian rugby league sponsorship analysis
Chart 15. Australian Rugby league analysis by industry sector by number of deals
Chart 16. Australian Rugby league analysis by industry sector by value of deals
Table 17. Australian Rugby League leading sponsors
Table 18. Australian motorsport analysis by industry sector
Chart 17. Australian motorsport analysis by industry sector by number of deals
Chart 18. Australian motorsport analysis by industry sector by value of deals
Table 19. Australian motorsport leading sponsors
Table 20. Australian soccer analysis by industry sector
Chart 19. Australian soccer sponsorship analysis by industry sector by number of deals
Chart 20. Australian soccer sponsorship analysis by industry sector by value of deals
Table 21. Australian soccer leading sponsors
Table 22.. Australian cricket sponsorship analysis by industry sector
Chart 21. Australian cricket sponsorship analysis by industry sector by number of deals
Chart 22. Australian cricket sponsorship analysis by industry sector by value of deals
Table 23. Australian cricket leading sponsors
Table 24. Australian tennis sponsorship analysis by industry sector
Chart 23. Australian tennis sponsorship analysis by industry sector by number of deals
Chart 24. Australian tennis sponsorship analysis by industry sector by value of deals
Table 25. Australian tennis leading sponsors
Table 26. Australian Rugby Union sponsorship analysis by industry sector
Chart 25. Australian Rugby Union sponsorship analysis by industry sector by number of deals
Chart 26. Australian Rugby Union sponsorship analysis by industry sector by value of deals
Table 27. Australian Rugby Union leading sponsors
Table 28. Australian sponsorship analysis by industry sector
Chart 27. Australian sponsorship analysis by industry sector by number of deals
Chart 28, Australian sponsorship analysis by industry sector by value of deals
Table 29. Australian sponsorship analysis by international source
Chart 29. Australian sponsorship by international source by number of deals
Chart 30. Australian sponsorship by international source by value of deals
Table 30. Australian sponsorship analysis by company
Table 31. New Zealand sponsorship analysis by sport
Chart 31. New Zealand sponsorship analysis by number of deals
Chart 32. New Zealand sponsorship analysis by value of deals
Table 32. New Zealand Rugby Union sponsorship analysis by industry sector
Chart 33. New Zealand Rugby Union sponsorship analysis by number of deals
Chart 34. New Zealand Rugby Union sponsorship analysis by value of deals
Table 33. New Zealand Rugby Union leading sponsors
Table 34.New Zealand soccer sponsorship analysis by industry sector
Chart 35. New Zealand soccer sponsorship analysis by number of deals
Chart 36. New Zealand soccer sponsorship analysis by value of deals
Table 35. New Zealand soccer leading sponsors
Table 36.New Zealand cricket sponsorship analysis by industry sector
Chart 37. New Zealand cricket sponsorship analysis by number of deals
Chart 38. New Zealand cricket sponsorship analysis by value of deals
Table 37. New Zealand cricket leading sponsors
Table 38. New Zealand sponsorship analysis by industry sector
Chart 39. New Zealand sponsorship analysis by industry sector by number of deals
Chart 40. New Zealand sponsorship analysis by industry sector by value of deals
Table 39. New Zealand sponsorship analysis by international source
Chart 42. New Zealand sponsorship analysis by international source by value of deals
Table 40. New Zealand sponsorship analysis by company
Table 41. Australian sponsorship deal values and duration by company
Table 41a.. Australian sponsorship deal values and duration by company
Table 41b. Australian sponsorship deal values and duration by company
Table 41c. Australian sponsorship deal values and duration by company
Table 41d. Australian sponsorship deal values and duration by company
Table 41e. Australian sponsorship deal values and duration by company
Table 41f. Australian sponsorship deal values and duration by company
Table 41h. Australian sponsorship deal values and duration by company
Table 41i. Australian sponsorship deal values and duration by company
Table 41j. Australian sponsorship deal values and duration by company
Table 41k. Australian sponsorship deal values and duration by company
Table 41l. Australian sponsorship deal values and duration by company
Table 41m. Australian sponsorship deal values and duration by company
Table 41n. Australian sponsorship deal values and duration by company
Table 41o. Australian sponsorship deal values and duration by company
Table 41p. Australian sponsorship deal values and duration by company
Table 41q. Australian sponsorship deal values and duration by company
Table 41r. Australian sponsorship deal values and duration by company
Table 41s. Australian sponsorship deal values and duration by company
Table 41t. Australian sponsorship deal values and duration by company
Table 41u. Australian sponsorship deal values and duration by company
Table 41v. Australian sponsorship deal values and duration by company
Table 41w. Australian sponsorship deal values and duration by company
Table 41x. Australian sponsorship deal values and duration by company
Table 41y. Australian sponsorship deal values and duration by company
Table 41z. Australian sponsorship deal values and duration by company
Table 41za. Australian sponsorship deal values and duration by company
Table 41zb. Australian sponsorship deal values and duration by company
Table 41zc. Australian sponsorship deal values and duration by company
Table 41zd. Australian sponsorship deal values and duration by company
Table 41ze. Australian sponsorship deal values and duration by company
Table 41zf. Australian sponsorship deal values and duration by company
Table 41zg. Australian sponsorship deal values and duration by company
Table 41zh. Australian sponsorship deal values and duration by company
Table 41zi. Australian sponsorship deal values and duration by company
Table 41zj. Australian sponsorship deal values and duration by company
Table 41zk. Australian sponsorship deal values and duration by company
Table 41zl. Australian sponsorship deal values and duration by company
Table 41zm. Australian sponsorship deal values and duration by company
Table 41zn. Australian sponsorship deal values and duration by company
Table 41zo. Australian sponsorship deal values and duration by company
Table 41zp. Australian sponsorship deal values and duration by company
Table 41zq. Australian sponsorship deal values and duration by company
Table 41zr. Australian sponsorship deal values and duration by company
Table 41zs. Australian sponsorship deal values and duration by company
Table 41zt. Australian sponsorship deal values and duration by company
Table 41zu. Australian sponsorship deal values and duration by company
Table 41zv. Australian sponsorship deal values and duration by company
Table 42. New Zealand sponsorship deal values and duration by company
Table 42a. New Zealand sponsorship deal values and duration by company
Table 42b. New Zealand sponsorship deal values and duration by company
Table 42c. New Zealand sponsorship deal values and duration by company
Table 42d. New Zealand sponsorship deal values and duration by company
Table 42e. New Zealand sponsorship deal values and duration by company
Table 42f. New Zealand sponsorship deal values and duration by company
Table 42g. New Zealand sponsorship deal values and duration by company
Table 42h. New Zealand sponsorship deal values and duration by company
Note: Product cover images may vary from those shown
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Sponsorship Industry Size:

Australia and New Zealand not only share a geographical region, a common language and a similar history but also a sporting culture in which rugby and cricket are major sports and soccer is becoming increasingly popular. Economically the countries are close trading partners and large domestic companies such as Holden, Lion Nathan and Sky City sponsor sports in both countries.

In both countries sport is a very important part of national culture and pride. However, there are some significant differences. In Australia, for example, the most popular sports code is Australian Rules Football, whereas in New Zealand it is rugby union. In the modern era, both countries have punched above their weight (relative to population size) in a wide range of sports on the international stage.

Analysis of 1,662 deals in Australia (1,405) and New Zealand (257) shows that the two countries’ combined sponsorship rights income is US$734 million dollars. The deals analysed represent the main rights holders in major sports such as Australian Rules Football, rugby union/league, cricket, soccer, motorsports, tennis, athletics and horseracing.

Given that there will still be a considerable number of much smaller rights holders not examined, it is fair to estimate the total to be $880 million (Australia $735m / New Zealand $145m).

This total value is in line with expectations for major western economies given the relative size of the populations of the two countries. The United Kingdom, for example, with a population approximately three times the size of Australia, has an annual sports sponsorship rights spend in the region of $1.5 - $2 billion. The sum for Australia and New Zealand can be seen as a sign of a mature industry given that, unlike the UK, the two countries do not have the major global sporting brands of the English Premiership, which command high rights fees due to international exposure.

Investing Industries:

In most regions with advanced sponsorship industries the financial services sector is the dominant investor, accounting for approximately 20% of the market by spend. In Australia and New Zealand however, the sector accounts for just 15% of total spend. There are several reasons for this reduced proportion but the main reason is the significant investment from national Government to virtually every major sport in Australia. The payments are partly a result of the Government subsidising those sports which drop alcohol sponsorship in the so-called ‘Be the Influence’ programme. The Australian Sports Commission has also invested heavily in sport as part of its programme to improve the nation’s health and enhance the international image of the country.

Despite the government campaign, alcohol still accounts for 7.4% of sponsorship spend in the country, a higher total than Germany, Italy, Spain, Brazil or the USA and roughly equivalent to that of the UK, which was measured at 9% in 2007 (although this figure has since fallen).

The automotive sector in Australia is a high investor in sponsorship with General Motors’ Holden subsidiary, Ford, Toyota, Kia and Hyundai all major sponsors of sport.

On the other hand telecommunications, traditionally a major sponsorship investor in western economies, spends relatively little on sport in either country with the only large deal being Telstra’s title sponsorship of rugby league in Australia.

Major Challenges in Australia:

The sponsorship industry in Australia and New Zealand faces major challenges, in particular from the doping and match-fixing scandals that have rocked sports in Australia in recent months.

A major report from the Australian Crime Commission has uncovered evidence of performance enhancing and recreational drug use, the former run as a very sophisticated operation. Links to organised crime and match fixing have also been uncovered, and the inquiry has identified serious problems in most of the major sports in the country.

This is obviously of significant concern to sponsors (for example Telstra has stated that it is awaiting the outcome of full inquiries into the matters raised) and, given the complexities of modern sponsorship agreements, there is a very strong likelihood that sponsors affected could invoke ‘morality’ clauses to withdraw from their contracts if they felt the issues were damaging their brands.

Ironically the scale of the problem might offer some reassurance to sponsors. Because the scandal has affected so many sports, there is no one sponsor that stands out as being associated with ‘wrong-doing’. In commercial terms this could protect the sponsors and there might even be a legal argument to challenge any sponsor considering withdrawal if termination is based on the grounds that brand damage has occurred. At present, however, there have been reassuring noises from the major rights holders and big sponsors appear to be awaiting further developments before making their decisions.

Another significant challenge for the Australian sports industry is the performance slump at international level. The country’s Olympic team has not performed as well as expected in the past two Olympic Games; the national cricket team, for a long time the world’s best, has spent the past six years in decline and, in rugby union, Australia is eclipsed by the pre-eminence of New Zealand’s All Blacks. In tennis, no Australian has won a Grand Slam men’s tournament since Lleyton Hewitt won Wimbledon in 2002 and only one woman, Samantha Stosur (US Open 2011), has won a grand slam since Evonne Goolagong Cawley in 1980.

Despite huge advances in Australian soccer over the past two decades, the national team is still a relative minnow on the international stage. Given that Australian Rules Football has no significant appeal beyond the national borders and that rugby league has only the English clubs to compare in stature, the international profile of Australian sport is at its lowest in the modern era.

This obviously has an impact on sponsorship and is witnessed by the huge discrepancy in sponsorship value for New Zealand’s rugby union team, the All Blacks, to that of the Australian national team. Admittedly rugby union is by far the pre-eminent sport in New Zealand and the All Blacks have a legendary status wherever rugby is played. Despite this, the difference is still significant.

New Zealand - Rugby is King:

In New Zealand rugby union is, as discussed, the most popular sport by far and the country’s All Blacks are a powerful symbol for the entire nation. As a result they have attracted very large sponsorship deals from both Adidas and AIG, although the latter is somewhat controversial given that it has introduced branding to the team’s jerseys.

Aside from rugby (both union and league), cricket and soccer are the key sports in terms of sponsorship value. The national soccer team, the All Whites, qualified for the 2010 World Cup for the first time since 1982 and, despite elimination in the first round, they were the only team not to lose in the tournament. This raised both the domestic and international profile of the team and the status of soccer within New Zealand. Whether this will deliver long-term commercial returns remains to be seen.

Because of the small population size of New Zealand, it is not home to major multi-national companies and a high proportion (72%) of sponsorship spend is derived from international companies. However, when analysed by deal numbers, domestic companies are ardent backers of sport with more than 60% of deals being from home-grown businesses.

When Adidas and AIG’s huge deals with the NZRU are removed from the equation, the big spenders in New Zealand are the financial services sector (BNZ, Investec, MasterCard, ANZ and ASB) and car manufacturers, in particular Ford who invest in major rights in both rugby union and cricket.

The Future:

The future of sports sponsorship spend in Australia and New Zealand is based on the security of a well-established and successful sporting culture and infrastructure. Given the relative strength of the economies of both countries, especially when compared to other western nations, the issue of restricted marketing budgets is not pressing and there is no inherent reason for a slowdown in the growth of rights fees.

The primary challenge for the Australian industry is, of course, for rights holders to get their house in order when it comes to illegal activity.

The sponsorship industry in Australia is fairly sophisticated, with expertise roughly on a par with countries such as the UK, Germany and Scandinavia. However, as is the case in virtually every country worldwide, rights holders are still generally one step behind sponsors in their knowledge. With a growing demand for social media activation and measurable return on investment, this is an area that needs to be addressed for those rights holders to justify increasing their rights fees.

In New Zealand the major All Blacks deals are secure for the foreseeable future. The main challenge is for smaller rights holders to develop their understanding of the industry and build strategies to attract sponsors. With limited budgets to attract high calibre staff, this will be difficult. The initial problem, common to small rights holders everywhere, is in understanding that there is a need for a more professional approach and having the courage and commitment to invest in auditing and marketing their commercial rights.

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