Tough times

I blogged about it a while back, but the financial crisis is creating a serious problem in terms of sponsorship for professional sports across the globe.

Unfortunately companies are being forced to cut back on their spending or simply disappear leaving sports teams without much needed sponsorship to see them survive from month to month.

Sports is big business and sponsorship is the lifeblood of this business - if sponsors fold then all those nice fancy dinners and big money salaries become a little tougher to offer.

But most unfortunately, the areas that are likely to suffer are going to be the grassroots infrastructures offered by club setups.

The top end of the spectrum might go on about 'cost cutting' and might see a few personnel let go, but the bottom end of the budget (The guys who ask for R100 000 as opposed to R100m) are likely to feel it that much harder.

I know for a fact that our small amateur hockey setup had been counting on R20k in sponsorship which never materialised this year. These kind of problems are likely to increase and I guess a word of warning to sports administrators banking on money from sponsors - IT IS ONLY SPONSORSHIP WHEN THE BUCKS ARE IN THE BANK

Some tough times ahead and I guess for those sports administrators it is going to make their lives quite challenging at times.

Read an article today, highlighting some of the problems that the financial crisis is having on sport already and thought I would highlight some of them:

- Manchester United football clubs primary sponsor - AIG - has just been bailed out by the US government who will be looking to cut costs so that they can get their multi-billion dollar loan repaid

- David Triesman, the chairman of the English FA, has said that English soccer was collectively 3 billion pounds ($5.23 billion) in debt and that he could not rule out a top club collapsing

- West Ham and Newcastle are under huge pressure with sponsors folding

- Even a glamour sport like motor racing has had its seen administrators come out and suggest that teams forfeit their technical advantages and use standard engines in 2010 to try and help team survive this period...

Tough times ahead...