Financial Services, Technology, Others to Spend $14.1bn in 2020
Over the years, sports sponsorships became an important piece of marketing plans of big companies willing to spend millions of dollars to get their brand displayed on big screens and stadium walls.
According to data presented by Safe Betting, the financial services, technology, and automotive industry, as the three leading markets, are expected to spend $14.1bn on sports sponsorships in 2020.
Financial Services Top the List of Sponsorship Deals
From basketball shoes and football boots to Olympic runners’ arms and stadium walls, sponsorship deals have taken a significant turn over the last few years. Thanks to its global reach, sports became a fantastic market for advertising, no matter the company location or target audience. Because instead of running many campaigns to engage with different cultures, sports sponsorships provide companies a unique image with an amazing reach.
Analyzed by industry, financial services top the list of sponsorship deals, revealed the Two Circles survey. Statistics show this sector is expected to spend $6.92bn on sports sponsorship deals in 2020. Companies from the technology market ranked second, with $4.58bn worth of contracts. The Two Circles data showed the automotive industry, as the third-largest sector on this list, is forecast to put $2.67bn in sponsorship deals in 2020. Telecoms, the retail sector, and soft drinks follow, with $2.55bn, $1.81bn, and $1.42bn, respectively.
Statistics also show that TV advertising has the biggest share in the combined value of sports sponsorship deals worldwide. That doesn’t surprise considering that the average television viewership of an NFL regular-season game in the United States during the 2019 season was around 16.5 million.
In 2019, 83% of the value delivery for sports sponsors came through TV ads. However, this figure is expected to fall under 73% in the next four years.
Total Sports Sponsorships to Plunge by 37% Amid COVID-19 Outbreak
Despite leading industries spending billions of dollars on sponsorship deals in 2020, the coronavirus pandemic put most new contracts on hold.
The Two Circles data showed the global sport sponsorship spending amounted to $44.3bn in 2018. By the end of 2019, this figure rose to $46.1bn. However, due to the COVID-19 crisis, global sports sponsorship rights-fees are expected to plunge by 37% year-on-year to $28.9bn in 2020.
As the leading investor, the financial services sector put a total of $12.6bn in sport sponsorship in 2019, with almost 40% of that value spent in the United States. However, this figure is expected to stumble by 45% in 2020.
The automotive industry, as the second-biggest spender in 2019, is expected to witness a 55% plunge this year with the total value of sponsorship deals falling by $3.2bn amid coronavirus pandemic.
Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd
The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.
The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.
The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.
The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.
Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.
The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.
Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins
Oil Prices Recover from 4 Percent Decline as Joe Biden Wins
Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.
This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.
Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.
On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.
“Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”
The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.
“There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.
“Either you’re crimping energy demand or consumption behavior.”
Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020
Revenue of OPEC Members to Drop to 18 Year Low in 2020
The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.
EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.
“If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.
The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.
It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.
It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.
“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”
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