Sports leagues facing more than $300m drop in airline sponsorships

As US sports leagues continue to welcome back fans to stadiums, the impacts of Covid-19 are still lingering and may interfere with airline sponsorship revenue. Data analytics firm GlobalData projects sports leagues worldwide will face more than $300m in sponsorship losses and “will likely see a wide withdrawal of the airline sector from its sponsorship commitments” as the travel sector recovers from Covid-19. “Given the damage done to the industry following government-enforced lockdowns around the world, and the subsequent fall in international travel, airlines, even those able to rely on sovereign wealth funds, have seen drastic losses and job cuts,” wrote Patrick Kinch, a sports analyst at GlobalData. “As a result, in an effort to recoup costs, it is likely the airline sector will withdraw from its current sporting commitments.” Added Kinch: “Rights holders will be facing the challenge of having to either find an industry that has been less troubled by the pandemic or accepting a reduced value for their sponsorship assets.” GlobalData released its findings on Thursday and estimates global airlines will spend roughly $737m for sponsorships in 2021. And of that figure, US sports leagues will receive approximately $197m in fees for deals with American Airlines, United and Delta. Conrad Wiacek, head of sports analysis at GlobalData, estimates United will spend $29m in 2021 on sports sponsorships, of which $13m in deals will expire this year.<br/>