How Will Corona Virus Effect Sponsorship?

2020 is shaping up as a turbulent year on a number of fronts with the Eastern States Bushfires and Corona Virus (and subsequent Government shutdowns) reaping havoc on our social systems such as healthcare, education and sport.

The stresses that these factors will put onto small business is astounding and you don’t have to be Warren Buffet to realise that there will be plenty of businesses going under in the coming 12 months.

Doubt surrounding small business is a significant risk for sporting clubs as sponsorship is generally one of the major 3-4 income streams for grassroots sporting clubs.

Over the past 12 months, I have had conversations with around 500 club and school sponsors who currently sponsor a school or community sporting club.

An interesting but not surprising trend that I have noticed is that the vast majority of businesses that sponsor community groups, are not large, multi-national companies with vast amounts of money, but rather local mum and dad type businesses.

With it looking like small business will be the hardest hit with many small businesses feeling the pressure prior to this horror start to the year, many small businesses will be in the negative territory and some may never recover.

Most community sports have postponed their seasons commencement until at least 1 June, and without a dramatic turnaround of events regarding the Corona Virus in the coming fortnight, it is easy to see that this whole season may need to be abandoned.

This fact alone casts a serious doubt over existing sponsorships and what the expectations are on both the sponsor and the club.

Assuming there is no winter sport played this year and with regards to sponsorship, I would think it would be hard for a club to charge a sponsor for services rendered (even if it was contracted), especially considering the circumstances and challenges involving small business in the coming months.

The best clubs in this time will be looking for ways to link their loyal sponsors with their network (parents, players, friends and family and supporters) so that surviving small businesses will see linking with your club (and your community) as an integral part of their survival into 2021 and beyond.

So, I’d encourage all clubs that have benefited from small business through donations and sponsorships over the previous 12 months, to look at ways you can support these businesses in their time of need - which is here and now.

If COZ App can help facilitate a stronger connection between your community and your sponsors, we’d be only too happy to assist. After all, that is 100% why we exist.

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