The sports sponsorship landscape continues to expand rapidly. The global sports sponsorship market was valued at around USD 66.7 billion in 2024 and is projected to reach over USD 70 billion in 2025. Forecasts even anticipate it will surpass USD 90 billion by 2029 as more brands invest in sports partnerships.

For small and medium-sized enterprises (SMEs), this trend presents a valuable opportunity. Aligning with sports properties—whether a local club event, a community race, or even a digital motorsport platform—offers a high-impact way to stand out and build lasting customer relationships. Top-tier series like Formula 1, MotoGP, WEC, and Formula E offer global exposure, while grassroots events provide targeted engagement at manageable costs.

Sports Sponsorship: An Opportunity for Small Businesses

Sports sponsorship gives SMEs access to broad and engaged audiences. For example, Formula 1 reached 1.5 billion TV viewers in 2023. According to Nielsen Sports, 81% of motorsport fans feel more connected to brands that sponsor their favorite teams.

Local sponsorships enhance community involvement, whether through karting championships, junior leagues, or fun-runs. Many packages are highly affordable—for example, pitch-side advertising in a UK local club can start from £450 per season.

Moreover, sponsorship provides trial opportunities: sampling products at circuits, promoting via team social channels, and capturing fan feedback. Industry data suggests an average return of $6.20 for every $1 spent, especially when paired with social media campaigns.

Visibility and Local Brand Awareness for Businesses

Even small placements—like a banner at a racetrack—can deliver powerful visibility. Repetition builds recognition and trust: fans seeing your logo at events or on uniforms begin to associate it with their passion.

SMEs also benefit from exposure via the sponsored team or event’s communication channels: shout-outs on social media, logo placement on websites and newsletters, and even official team merchandise. Programs like F1 Academy’s “Shop Small” campaign show how small businesses can ride the visibility wave of major sports platforms.

Niche sports often yield higher sponsor engagement, as their fans tend to interact more deeply. This makes targeted campaigns especially effective.

Increasing Customer Loyalty through Sports

Sponsorship enhances emotional loyalty. A 2024 survey showed that 20% of consumers chose a brand because it sponsors their favorite sport, and 28% recommended it to others.

Beyond branding, small sponsors often receive VIP perks—tickets, pit access, meet-and-greets—which can be used for rewarding customers, contests, or employee incentives. These memorable experiences drive word-of-mouth and long-term loyalty. In fact, 85% of consumers say they are more likely to buy after participating in such experiences.

Supporting local sports builds shared community pride and identity. Fans begin to view the business as “one of us,” creating advocates who promote the brand organically.

Economic and Fiscal Benefits for Small Businesses

Compared to traditional advertising, sponsorship is cost-effective. Many packages start in the hundreds, not thousands. Sponsors get sustained visibility across a season—not just a one-time ad impression.

In some countries, sponsorship is also tax-deductible as a business expense. For instance, in the UK, if done “wholly and exclusively” for business purposes, it can reduce taxable profits. This financial treatment further strengthens the business case.

Beyond tax savings, the return on investment can be significant. Nielsen research showed a 10% increase in purchase intent among fans exposed to sponsor messaging. These effects often turn initial sponsorships into long-term strategies, where small businesses grow with the sport—from local events to larger leagues as their budgets and brand equity increase.

Conclusion

Sports sponsorship offers small businesses a powerful tool to:

• Boost visibility and brand awareness
• Foster emotional customer loyalty
• Unlock financial and tax advantages
• Engage deeply with communities and passionate fan bases

It’s a scalable, cost-effective strategy that delivers measurable results. Whether partnering with a grassroots event or targeting a niche in top-tier motorsport, SMEs that embrace sponsorship stand to gain marketing value that transcends budget constraints—connecting not just with customers, but with the culture they care about.

Sources

• Global Market Report – GII Research
• AutoAds – How Motorsport Sponsorships Drive Brand Loyalty
• Sponsor Worcester City FC
• Nielsen – Sponsorships Raise Brand Awareness
• HMRC – Sponsorship and Tax Guidance