Researchers tackle the impact of sports scandal on sponsorship

Two UQ researchers will explore the timely issue of how sports scandals affect sponsoring brands after winning The American Academy of Advertising (AAA) 2011 Research Fellowship.

Dr. Monica Chien from the School of Tourism and Dr. Sarah Kelly from the UQ Business School were presented with the award by AAA President Herb Rotfeld at the AAA 2011 Asia-Pacific Conference held in Brisbane in June.

Their project “When Sponsors Should Jump Ship: An Investigation of the Impact of Sports Scandal Upon Sponsoring Brands and Sport” will examine scandal outcomes upon the sport as well as sponsors.

The researchers said research on the range of scandal outcomes for various stakeholders remains limited.

“While some studies have examined the impact of crisis in sports on reactions from sponsors and media, there is virtually no empirical research on the influence imposed upon relationships among the sports consumers, sports properties, and sponsors,” Dr. Chien said.

Factors including the growing use of social media and the rising number of popular sports sponsors means the negative publicity generated by a scandal spreads quickly and widely.

“This can potentially be devastating not only to those directly involved in the scandal, but also for the fan base, sports proprietors and sponsors who have often made sizeable financial investments and cultivated various commercial linkages through associated marketing communications efforts,” Dr. Kelly said.

The researchers believe sponsors need to understand factors that sensitise or desensitise consumers to sports scandals, and consider whether exit strategies can be counterproductive to the sponsorship benefits received.

Dr. Chien and Dr Kelly plan to complete the research within three years and hope it will guide further research, possibly extending the examination to all relevant stakeholders in sport.

Provided by University of Queensland