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FACTBOX: Corporate spending on sport in North America

CHICAGO
Mon Oct 20, 2008 11:23pm EDT

CHICAGO (Reuters) - As fears of a global recession rise, U.S. sports executives are left to wonder whether companies in North America will cut spending on advertising, sponsorships, tickets and other areas related to sports.

Crisis in Credit

Below are some statistics on sports sponsorships and marketing.

The biggest North American-based corporate spenders in 2007 on sports sponsorships:

1. Anheuser-Busch Cos Inc

2. Pepsico Inc

3. Coca-Cola Co

4. Nike Inc

5. General Motors Corp

6. Toyota Motor Corp

7. Miller Brewing Co, a unit of SABMiller PLC

8. Sprint Nextel Corp

9. AT&T Inc

10. Visa Inc

11. McDonald's Corp

12. Bank of America Corp

Source: IEG Sponsorship Report

The financial services sector has been especially hard hit by bad mortgage debt and tighter credit markets. That sector historically has been a big spender on sports.

In 2007, financial services companies based in North America divided their sponsorship money across a broad array of sports, favoring auto racing and sporting venues:

Auto racing -- 18 percent

Arena/stadium -- 15 percent

Golf -- 8 percent

Soccer -- 8 percent

Football -- 8 percent

Olympic sports -- 6 percent

Baseball -- 5 percent

Ice hockey -- 3 percent

Sailing -- 3 percent

Tennis -- 3 percent

Other -- 22 percent

Source: IEG Sponsorship Report

Sports up to now have been a popular way for advertisers to reach consumers, but many analysts said that spending may drop in the near term due to the economy.

Top 10 advertisers as ranked by millions of dollars spent at major TV sports events.

Company Oct '07- Oct '06- Pct

Sept '08 Sept '07 change

General Motors Corp $130.1 $132.0 -1.4

Anheuser-Busch Cos Inc $68.1 $64.5 +5.6

AT&T Inc $62.4 $36.5 +71.0

Pepsico Inc $62.0 $40.4 +53.5

Coca-Cola Co $47.6 $41.3 +15.3

SABMiller Plc $32.8 $22.6 +45.1

Yum Brands Inc $32.5 $29.5 +10.2

U.S. government $27.1 $18.6 +45.7

Ford Motor Co $25.3 $24.8 +2.0

Verizon Communications $24.9 $16.3 +52.8

Note: Sporting events cited in ranking include Major League Baseball's World Series in October, the NCAA college football bowl games in January, the National Football League's Super Bowl in February, the NCAA men's basketball tournament in March and the National Basketball Association's finals in October.

Source: TNS Media Intelligence

(Compiled by Ben Klayman, editing in London by Jon Bramley)
Crisis in Credit


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