With a controversial Olympic Games Beijing 2022 over and an equally contentious FIFA World Cup 2022 on the horizon, the pressure is on for sponsors to take a stand. But will they?
In the weeks leading up to the 2022 Winter Olympics, several countries, led by the USA and followed by the likes of the UK, Japan, Canada, Australia, New Zealand, declared a “diplomatic boycott” of the Games in response to China’s poor human rights record. It meant that although athletes from the countries would attend, no government officials would be present.
Meanwhile, Olympic sponsors were busy preparing for one of the biggest sports events on the calendar, watched by millions of people around the planet, and no doubt taking up a sizable portion of marketing budgets. Among them are some of the world’s largest brands, many of them American: Coca-Cola, Intel, Airbnb, Proctor & Gamble, Visa, Samsung and Audi, to name but a few.
The difference between political and commercial interests was stark and underlines the dilemma brands are facing when making a decision to sponsor any event. Jeopardise access to large audiences, or deal with the reputational risk of associating with the “wrong” event.
The companies argue that sports should not be politicised and that they have contracts spanning multiple Olympic Games, not just the ones in Beijing. According to the New York Times, the top 13 Olympic sponsors have contracts with the International Olympic Committee that add up to more than USD1 billion. In a comment to the New York Times, Omega, the official timekeeper and data handler of the Olympic Games, said that since it started its partnership with the Olympic Games in 1932, “it has been our policy not to get involved in certain political issues because it would not advance the cause of sport in which our commitment lies.”
In addition, brands have in the past felt the wrath of Chinese netizens for believed slights or missteps. Fashion brands including Adidas, Nike and H&M have all experienced boycotts after expressing concerns over reports of forced labour camps in Xinjiang province, where the Chinese government is keeping millions of Uyghur Muslims in mass detention and re-education camps.
The silence of Olympic sponsors this year is in contrast to the outcry in 2014 when it was announced that Qatar would host the 2022 FIFA World Cup. Back then, big-ticket sponsors such as Adidas, Coca-Cola, Hyundai, BP, Visa and Sony demanded FIFA investigate its decision to award Qatar the World Cup, citing fears that “negative tenor” around corruption allegations is damaging their brands.
Eight years on, however, Adidas, Coca-Cola and Hyundai/Kia remain partners having all signed the top-tier GBP25 million partner package, which includes preferential advertising slots as well as stadium promotion, according to iNews.
But two slots remain unsold as of November last year. FIFA has set a GBP5 billion profits target from broadcast and sponsorship deals but experts believe some brands are scared off by Qatar’s human rights record and laws against homosexuality.
Some teams are taking a stance. Shortly after qualifying for the World Cup, the Danish Football Union (DBU) revealed six actions it will take to highlight human rights issues in Qatar. Instead of brandishing sponsorship logos on their training apparel, the Danish players will display messages of support for human rights throughout the competition. The team will also have no involvement in any commercial activities arranged by event organisers, while DBU officials will make minimal trips to Qatar, participating only in activities that contribute to improving conditions for migrant workers.
The difference in some sponsors’ stance at the Olympics and the World Cup may be the way football has made tackling racism and homophobia a priority in recent years. Taking a stand in the Black Lives Matter movement and calling out race-related harassment following the UEFA European Championship in 2021, football has shown a willingness to get political. If sponsors feel the same remains to be seen.
The Sponsorship Experts offer a comprehensive engagement and activation service that helps sponsors find the right sponsorship that best fits your marketing needs and maximise that sponsorship. The service includes sector analysis, taking into account potential sensitive dynamics at play.
Paul Poole (South East Asia) Co., Ltd. is an independent marketing consultancy based in Bangkok, Thailand specialising in commercial sponsorship and partnership marketing, working with both rights holders and brands - acting as a catalyst by bringing them together and maximising the relationship.
We have packaged, sold and managed sponsorship and partnership opportunities for a wide range of rights holders and worked with many of the world’s leading brands to source and engage the right sponsorships and partnerships for them to maximise.
