Financial institutions are forming increasingly tight and profitable relationships with athletic organizations like sports teams – melding finance and sports and showing how finance intersects with many different aspects of modern life.

• Banks’ investment in sports has increased with its ‘gentrification’ – stadiums are newer, seats are more comfortable, and tickets are more expensive.
• An exclusive deal with a team can be a source of great revenue by bringing in retail customers (through affiliated debit and credit cards), managing the wealth of a team’s players and owners, or arranging the financing for a new stadium.
• There are indirect benefits as well – Swiss bank UBS uses its sponsorship of Alinghi, a sailing team, to enthuse its employees.

Facts & Figures

• In North America, sponsorship of sports by all companies grew by 11.2% in 2007 and 14.8% in 2008, but is expected to grow by only 1.8% in 2009.
• In 2007, Lloyds TSB (now Lloyd Banking Group) pledged to support the 2012 Olympic games with $124 million.
• Bank of America claims to make a $3 profit for every $1 spent on sports marketing.

Best Quote

“What people don’t see is how we’re using the Olympic access for our training and development. This is timely. If ever Lloyds needed Olympians, it is now.” — Sally Hancock, Director of Group Sponsorship at Lloyd Banking Group