The global financial crisis has caused sponsorships in Australian sport to decline, according to research by Sweeney Sports.
Figures show that one in four companies have axed sponsorships while nearly half have shelved plans for new sponsorships.
“Some 27 per cent of corporate sponsors have quit existing sponsorships as a result of the crisis,” said general manager of Sweeney Sports Todd Deacon.
“48 per cent have put on hold signing new sponsorships at the moment and I think it will get worse, with another 15 per cent of companies saying they will put sponsorship on hold for the next 12 months.”
Deacon added he expected big-name sponsors to remain in their long-term sponsorship deals but he expected mid-sized and smaller sponsors to suspend deals.
20 per cent of Australian companies experienced an increase in their sponsorship budget last year. Companies are believed to have reacted swiftly to cut their expenditure because of threats to revenue.
