SPONSORSHIP TODAY

 Brazil sponsorship report
ISBN: 2050-4888
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Brazil - Sponsorship Analysis

Executive Summary

BRAZIL'S SPONSORSHIP GROWTH

Brazil’s sponsorship economy has grown at a faster rate than the country’s GDP in the past
five years. There are several reasons for this including the rapid growth in the country’s
economy, the increasing levels of sophistication in the Brazil’s marketing industry, the
commercialisation of sport and the winning bids for the FIFA World Cup in 2014 and Olympics
in 2016.

Sports sponsorship rights in Brazil are now worth approximately US$1 billion, however the rate
of growth is already starting to show signs of slowing. At the time of going to press, two of the
country’s biggest football (soccer) clubs have no primary shirt sponsor and no club deal has
matched Corinthians’ $23m contract with Hypermarcas signed in 2010.

Major domestic deals for the World Cup and Olympics have already started to slow following a
series of announcements in 2011, which added more than $150m per year to the total rights
fee value in Brazil.

Despite this, the underlying trend in the sponsorship market is strong. Total rights fees may
peak in the next two years because of the huge global sporting events scheduled, but their
impact is likely to include a legacy of greater professionalism in sports marketing and an
increase in demand for domestic properties that allow engagement with an ever more affluent
population.

FOOTBALL DOMINANT

Football remains the dominant sport in Brazil taking an estimated 62% of sports sponsorship
spend. Several of the country’s top clubs can now command fees that are on a par with some
of the European giants of the game. The national governing body, the CBF has also achieved
considerable commercial success with sponsorship deals greater than any of its international
competitors.

DOMESTIC OLYMPIC DEALS SET TO BREAK RECORDS

Domestic sponsorship of the Rio 2016 Games has already overtaken the country’s second
sport, volleyball, in terms of rights fees realised. With just four significant deals signed, Rio
2016 is on course to break the $1 billion barrier and many categories, particularly in the lower
tier offerings, are yet to be agreed.

MARKET  IMMATURE

Despite the considerable number of large and high profile rights holders in Brazil, it is still
generally accepted that the country’s sponsorship industry is immature. In football, for
example, many of the recent major deals have been for just a single year, which severely
limits what can be achieved by the brands in question. Similarly, the professionalism and
experience of many rights holders is a long way behind that found in the USA and Western
Europe.

Given the size of Brazil as a consumer market, its projected economic growth, the passion for
sport in the country and the stature of its football clubs, Brazil is, however, on course to join
the world’s top five sponsorship markets.

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