An advancement in the study of marketing partnership longevity: analysing sport sponsorship survival

Abstract

Naming rights agreements are some of the most high profile, and costly, sponsorships in the world. Yet, while growth in investments in these multimillion-dollar partnerships has recently outpaced that of traditional marketing approaches, sponsorship revenue forecasting still largely relies on a decades-old methodology, the renewal rate. Thus, this research seeks to assist the major stakeholders involved in the relationships between sport organisations and sponsoring brands by applying survival analysis methodologies to the study of sport sponsorships, utilising 205 naming rights sponsorships of facilities based in North America and Europe. Consistent with exchange theory, results indicate that these sponsorships are more susceptible to dissolution earlier in the relationship, and results vary based on the type of facility and location. This research advances our understanding of the dynamics of naming rights sponsorships and demonstrates the importance of providing managers with more advanced methodologies to assist in their organisation's sponsorship revenue forecasting activities.