Economic sciences / 4. Investment banking and stock markets

Matvienko A.I.

Polotsk State University, Republic of Belarus

Investment in the sports industry as a promising sector for sponsorship investments

In the modern world sport is a profitable sector for investments and receiving quite big money. As an independent business space, sports stood out recently. Before all sports organizations, clubs, companies were non-commercial, and therefore, no investment from outside from individuals did not accept.

In fact today the clubs themselves have to make money, but there are still due to sponsor support, which in most cases are not focused on economic returns. Which consequently makes the position of the clubs is very unstable. Sponsorship investments in the sport constitute about 80% of the total cost of sponsorship [1].

The sponsor is associated with a popular club, inevitably causes positive emotions of the fans of this club. Sponsorship positive impact on the company itself, please note the following possible benefits for the company – sponsor: increase awareness of the company and its services; change/strengthening of image of the company; establishing and strengthening business relations with partners and authorities; the strengthening of relations and management, motivation of employees; propaganda of social responsibility company; optimization of communications portfolio; increasing the market capitalization of the company.

As well as directly to the brand: development of brand loyalty; increase brand awareness on the part of the target audience; brand positioning in the framework of the target audience; demonstration of the functional characteristics of the brand/product; increase market share, direct sales; indirect sales; the use of universal message in the framework of "free" ether; blocking competition [1].

Thus, sponsoring sporting events for companies – channel of communication with their own advantages and disadvantages in comparison with direct advertising. It is becoming an increasingly popular because of increased market competition forces companies to look for new ways to promote and contact with the target audience.

Issue of own securities. With the purpose of attraction of financial resources from external sources sports organization could issue its own securities. Received from the sale of securities funds may be used sports organisation for scientific research, for the reconstruction of sports facilities, purchase of new players, to refinance debt and other needs.

Investments in related business. One of the investment options for sports clubs and organizations is to buy shares in related business through the acquisition of shares or of shares of the respective companies. In recent years, sports clubs purposefully invest funds in the model and the advertising business, publishing activity, the company of mobile communication and even in the network of filling stations. Thus, sports clubs and organizations diversify your business, make it more stable and sustainable [4].

Investment in Internet projects. Without exaggeration we can say that all modern sports clubs and federations have their own web sites, which are widely used for commercial purposes. So, with the help of Internet resources sports clubs carried out with the fans two-way communication – athletes and coaches give interviews and answer questions on-line and off-line mode at the sites of clubs are online auctions for the sale of goods and personal things of the players, is a subscription to an Internet broadcast matches etc.

Investment in sports facilities and subsidiaries. Often, sports clubs, leagues Federation invest the earned money in construction of new or reconstruction of existing sports facilities. Such allocation of funds can be very profitable sport organizations, sports facility pays off and starts to bring to the investor's net income.

Investments in athletes and coaches. The main group of consumers in sports activities are fans. It is noticed that worldwide fans is better to attend competitions and performances sports club, where the athletes demonstrate a high level of sportsmanship, struggle with wholeheartedly [4].

The advantages can be attributed directly, that investing in sport gives very not bad profit. For all this when investing in sport, you can add, that in addition to profit by the sponsor come as fame and celebrity. Because sport is always public and open for all people in the world [3].

At present, the main sponsorship money rotate in international sports, while at the national level, their volume is much smaller. It's simple: all interested in large-scale event, and the interest of the audience higher, the better. This is because the sponsors from the IOC right in their marketing and PR-actions to use the Olympic theme, as well as favorable terms of advertising from television companies broadcasting the event. Yes and attributes of the international competitions, you can use universal [2].

In the near future, competition between companies willing to act as sponsors sports teams, events and athletes to increase. Therefore, to find promising sport or sporting event will be hard enough. According to experts, the key value will be of high sports results and wide audience of fans and spectators. But the personal factor in attracting money will gradually diminish. Interest generally will be manifested for major sports events – the world Championships, known cups and tournaments, traditionally the main part of the sponsorship money will go in football.

The list of used sources:

1. Баков, Л. Инвестиции в спорт – это выгодно? / Л. Баков // Спорт Магазин. – М.: ООО «СпортАкадемРеклама», 2010. – № 7 (212). – С. 16-22.

2. Золотов, М.И. Настольная книга спортивного менеджера: справочное пособие / М.И. Золотов, В.В. Кузин, М.Е. Кутепов. – М.: «Физкультура, образование и наука», 1997. – 278 с.

3. Investments in the sport. Pitfalls of investing // O-invest.com. [The electronic resource]. – 2014. – Access mode: http://www.o-invest.com/investicii-v-sport-podvodnye-kamni-investirovaniya. – Date of access: 24.06.2014.

4. Tasks and functions of the financial Manager of the sports organizations // Vadim-Galkin.ru. [The electronic resource]. – 2014. – Access mode: http://vadim-galkin.ru/sport-2/sport/functions-of-financial-manager/. – Date of access: 11.07.2014.