Coronavirus: Airlines To Lose Over $2bn Of Sports Sponsorship Agreements
LAGOS MARCH 27TH (NEWSRANGERS)-Following the recent news that sporting events are being cancelled in light of the coronavirus (COVID-19) outbreak;
Conrad Wiacek, Head of Analysis & Consulting at Sportcal, a GlobalData company, offers his view;
“The airline industry is being severely impacted by the COVID-19 outbreak. With many airlines already grounded and looking to make savings through measures such as asking staff to take unpaid leave. It is likely that many airlines will need some form of government support once the situation stabilises in order to resume operations.
“This will have a significant impact on the world of sport, with airlines committed to over $2.2bn worth of sponsorship agreements post 2021. Any sponsorship agreements will likely be under threat as marketing spend is diverted elsewhere. Those at risk include Allegiant Air, who made a commitment to spend an estimated $20m a year through to 2040 in order to be the title sponsors of the new Las Vegas Stadium, which is soon to be home of the Las Vegas Raiders. Another example, Delta Airline signed up as the official carrier of the 2028 Olympic Games, which was due to be held in Los Angeles at a cost of $400m.
“Even the Gulf carriers such as Emirates and Etihad are likely to scale back on some of their agreements, given the new reality airlines are likely to face once the pandemic eases.”
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Posted by News Rangers
on Mar 27 2020. Filed under National, Sports.
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