Essay 157 – Companies sponsor sports as a way of advertising themselves

GT Writing Task 2 / Essay Sample # 157

You should spend about 40 minutes on this task.

Write about the following topic:

Many companies sponsor sports as a way of advertising themselves. Some people think that it is a good thing, while others think that it has many disadvantages.

Discuss both views and give your own opinion.

Give reasons for your answer and include any relevant examples from your own knowledge or experience.

Write at least 250 words.

Model Answer:

Today’s business world has become highly competitive. Many transnational companies, therefore, sponsor popular sports events so as to stay competitive or advertise themselves. However, many seem to have a positive opinion about this, yet others believe the influence of these corporations on sports through sponsorship deals has a detrimental effect. In my view, the advantage beneficiaries secure from sponsorships can outweigh its negative impacts.

There are two significant drawbacks to corporate sponsorship deals in sports events. One of the major disadvantages is the reputational risk. The key source of reputational risk is heightened sensitivity to the detrimental health impacts of some product classes, such as alcohol, tobacco, and junk foods that are enriched with sugar, salt or fat that may translate it into contentious for a sporting spirit to partner with corporations of these product categories. Another major disadvantage is the operational risk. To illustrate, operational risk takes place when sponsors demand to change the format or rules of the event, or when they exert undue influence on the event’s timing, content, and even participants.

sports sponsorships by multinational companies, however, also confer many advantages. For a start, sponsorship very often is regarded as a vital source for operational expenditures of an event. The operating budget for many renowned sports events relies solely on the sponsorship revenue; the failure to get sponsorships is more than likely to cancel the event entirely. A case in point is the 2011 Colorado Springs Pro XCT event, a professional mountain biking competition. The event was cancelled owing to the lack of financial sponsorship. Apart from that, sponsorships also reap benefits to the players or athletes as it covers costs, for example, match fees, kit, equipment, accommodation, and so on. Corporate sponsorships thus offer many decisive advantages.

To conclude, while there are some disadvantages, the beneficiaries of the benefits can reap from corporate sponsorship are enormous. Therefore, I think that the advantages of sponsorships negate the shortcomings that stem from this business and partnership agreement.