For many athletes in niche or emerging sports, securing sponsorship can be a significant challenge. Despite hard work, exceptional performance, and national titles, these athletes often find themselves overlooked. Why is it that while the top 1% of athletes enjoy lucrative sponsorship deals, those competing in smaller sports struggle to gain the financial backing they deserve?
In this post, we’ll explore the underlying reasons for the imbalance in sports sponsorship and offer insights into how athletes, brands, and sports organizations can navigate these challenges to create more opportunities for all.
The State of Sports Sponsorship Today
Globally, sports sponsorship is a $70 billion business and continues to grow. Top athletes in well-known sports like soccer, tennis, and basketball secure large sponsorship deals, providing them with a comfortable income. But for the athletes outside of this elite 1%, the story is quite different. Instead of becoming more inclusive, sports sponsorship has grown more exclusive over the last two decades.
Emerging sports, which vary significantly by geography, often struggle to gain the attention they need from sponsors. While American football might be a massive sport in the United States, it’s considered a niche sport in Europe. Similarly, many smaller sports remain under the radar, and athletes competing in these fields face a tougher road when seeking sponsorship.
Why is it Hard to Get Sponsors?
There are two key reasons why athletes in smaller sports struggle to secure sponsorships:
Limited spectator reach: Many emerging sports don’t have the widespread audience that mass spectator sports enjoy. Without large TV audiences or substantial media coverage, it becomes harder for athletes to pitch themselves to sponsors using the same metrics that are successful in mainstream sports.
Validation and recognition: Sponsors tend to focus on athletes who are already well-known, often trusting familiar sports figures who appear in mainstream media. Athletes from smaller sports often face the hurdle of convincing sponsors that their sport is legitimate, and that they are indeed worthy of investment.
The Struggle for Recognition: A Personal Journey
JP, the founder of NxtStride, shared his personal experience as a semi-professional athlete in niche sports like climbing, sled dog racing, and American football. While he was able to secure some sponsorships during his career, it wasn’t because of his athletic prowess – it was because he spent countless hours working on sponsorship pitches and networking with brands.
Even after moving into leadership roles in national sports federations, JP saw firsthand how difficult it was for emerging sports athletes to get recognition. He implemented various strategies to promote athletes and increase the legitimacy of the sport, such as sending detailed press releases to media outlets. Despite all efforts, there was no significant media coverage, and the athletes continued to struggle for validation.
This lack of recognition stems from the structural changes in media and sponsorship. Over the last 20 years, social media platforms like Facebook began capturing attention from traditional media, leading to reduced revenue for news outlets. As a result, many media companies reduced their staff, relying more on algorithms to guide their coverage. With fewer people to find and validate new stories, niche sports were left out in the cold.
The Problem with Automation in Sponsorship
Brands face a similar issue. With increased reliance on algorithms and mass media trends, sponsors are focusing on what’s already popular. This approach may work for mainstream sports, but it overlooks the potential of athletes in emerging sports who lack media exposure but still have strong, loyal fanbases.
Algorithms don’t create new trends – they only amplify existing ones. This creates a loop where already-popular sports continue to grow, while smaller sports struggle to break through.
How Can We Fix This?
The key to addressing this issue lies in building trust and expanding the way we think about sponsorship. NxtStride was created to address the problem of trust in sports sponsorship, regardless of the size of the sport. By helping brands understand the potential of athletes in emerging sports and providing a platform to connect sponsors with authentic, verified athletes, NxtStride is working to create a more inclusive and sustainable sponsorship model.
Here’s how brands, athletes, and sports organizations can help fix the sponsorship imbalance:
Athletes and organizations: Tell a growth story
Instead of competing with major sports events, athletes in niche sports should focus on the growth and transformation potential of their sport. Sponsors are more likely to support a compelling narrative that highlights growth from small to medium to large, especially if it includes unique elements not found in mainstream sports.
Brands: Rethink metrics of success
Traditional metrics like TV viewership or large media exposure don’t always apply to niche sports. Instead, brands should focus on authenticity, influence, and the connection between athletes and their fans. Emerging sports athletes often have highly engaged, dedicated fanbases, making them powerful brand ambassadors.
Federations: Build trust
Sports organizations can support their athletes by building and communicating trust. This involves creating systems for verifying athletes’ legitimacy and achievements, and ensuring that brands can rely on accurate, validated information. NxtStride plays a key role here by offering brands a trusted platform to connect with emerging athletes.
A Path Forward for Emerging Sports
There’s immense untapped potential in emerging sports. With the right approach to sponsorship, athletes in smaller sports can gain the recognition and support they need to reach their full potential. At NxtStride, we are committed to creating a more inclusive sponsorship ecosystem that benefits everyone involved – athletes, brands, and sports organizations.
If you’re an athlete struggling to gain sponsorship in your sport, or a brand looking for authentic, high-impact ambassadors, NxtStride can help. Our platform is designed to connect sponsors with athletes in a way that builds trust and drives success.
Ready to Take the Next Step?
Whether you’re an athlete, brand, or sports federation leader, NxtStride is here to support you. By focusing on trust, authenticity, and the power of emerging sports, we’re changing the landscape of sports sponsorship for the better.
Published at October 10, 2024
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