Covid-19 / Sponsorship: "Global sports sponsorship rights-fees will fall 37% in 2020" (Two Circles)

"Global sports sponsorship rights-fees will fall from $46.1bn (€42.1bn) in 2019 to $28.9bn (€26.7bn), a 37% year-on-year decrease in 2020 as the result of the Covid-19 pandemic," according the British marketing research agency Two Circles on 18/05/2020.

"The Covid-19 pandemic has seen most new sponsorship agreements put on hold, and many existing agreements will be ended as a result of companies implementing major cost-cutting measures or going out of business. Sponsors will also be given 'makegood' sponsorship collateral and cash rebates due to the postponement and cancellation of live sport, significantly reducing their financial outlay in 2020. The figures do not include spend on partnership activation, often non-contractual expenditure which will also be significantly impacted by cost-cutting measures," explained the agency, in which Bruin Sports Capital, an American investment fund specializing in sports, acquired 80% of the capital on 16/12/2019.

The 2020 projections include a 45 % year-on-year decrease in spend ($5.7bn, €5.2bn) from Financial Services companies, who are…