Money Smart Athlete Blog

Athlete role models and their relationship with sponsors and endorsements

May 31, 2023 | Athlete role models

By Iacovos Iacovides, Contributor

Sponsorships and endorsements have evolved into an integral part of modern-day sports. Counterintuitively, they developed almost hand-in-hand with the sport industry itself over the course of the late nineteenth and early twentieth centuries. Today, sponsors have become a vital part of the industry and the flow of money into the veins of sports, form the lion’s share of the industry’s turnover. The funds they secure for endorsements and from sponsors constitute an important part of their income. In some cases, the monetary rewards from such activities far surpass their base salaries; that is, the contracts with their club. During his second spell at Manchester United in 2021, Cristiano Ronaldo was making more money from his sponsors – taking home around £36 million – than from his very generous salary from the Red Devils (around £550,000 pw).

For footballers and basketball players, sponsorships and endorsements are lucrative add-ons, but solo-sport athletes rely on them for income. This creates a one-way dependency between athletes and sponsors, with athletes under pressure to maintain a flawless public image. Athletes must be mindful of their behaviour on and off the pitch, as cameras and journalists are always capturing moments.

A single slip of the tongue or reckless tweet can ruin multimillion-dollar contracts. On the other hand, sponsors remain unaffected by such incidents. Sponsors aim to boost their image, increase sales. This can create buzz by associating their products with successful athletes’ endorsements. Missteps from athletes negatively impact their sponsors, leading them to avoid reputational crises, although financial consequences are usually short-lived. When companies sponsor athletes, they attach their products to someone who represents their brand, ensuring their values align with the athlete’s.

Athletes must carefully consider the products they endorse. This is because their personal brand influences the deals they secure and their reputation. For example, Cristiano Ronaldo endorsing cigarettes or alcohol would contradict his image as a healthy, dedicated athlete, hurting his brand. Athletes should recognize that their brand, shaped by values and character, influences sponsorships, such as the cases of McGregor and Antetokounmpo.

The Money Smart Athlete® Blog is established and run by the Sports Financial Literacy Academy® (SFLA). Through its education programs, the SFLA has the vision to financially educate and empower athletes of all ages to become better people, not just better athletes.  For more information on our courses, our SFLA Approved Trainer Program®, and how they can benefit you and your clients, please get in touch with us at [email protected].

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