Infographic: Breaking Down Sport Sponsorships for CFDs Brokers

Sports sponsorships are a desired marketing channel for forex and contracts for differences (CFDs) brokers, many of which now prefer to be called multi-asset brokers because of their wide range of offerings. In a recent series, Finance Magnates elaborated on the details of these sports sponsorship deals, from trends to financials.

Varying Strategies of Sports Sponsorships

To recap, different brokers have different strategies around sponsorships: eToro has about two dozen sports deals, while Libertex signed a big-ticket sponsorship deal with FC Bayern. For a long time, football sponsorships were the favorite of brokers. However, the trend is changing, and many brokers promote their brands with niche and local sports, including cricket, rugby, tennis, golf, and others.

Industry experts told Finance Magnates that one of the primary reasons the brokers ink these sports deals is to ensure “trust and brand awareness.” Despite the effectiveness, sports deals cannot replace performance marketing.

When it comes to costs, the numbers vary within a wide range. Factors like exclusivity, real estate involved in the deal, social media appearances, and even hospitality packages determine the prices for a football deal. Then comes the reputation of the clubs. According to the estimations, a regular football deal can cost between $1 million and $50 million, the highest being the main shirt sponsor of top clubs.

The entry cost in F1 sponsorship starts from about $500,000, but that excludes the top three or four teams. Brokers like FxPro and AvaTrade have active Formula One sponsorship deals.

But, the question remains: how should a new broker approach a club for sports sponsorship? Well, there is heavy involvement of agencies in brokering such deals. Clubs usually outsource the sales and marketing of sports deals to agencies, which handle all the tasks until the closure of the deal.

The strategies around sports marketing have changed drastically. However, the crux remained the same: assuring trust and brand awareness.