How American Sponsorship Models Differ from European Football?

A growing number of sports fans are beginning to understand the importance of sponsorship in the success of their favorite football teams. Financial support is what keeps the clubs going: it allows them to acquire top coaches, improve their training fields and routines, head-hunt the best players, and pay various travel expenses. The US and Europe have conflicting approaches to sports sponsorship. Learn about these key differences to understand the influence of various brands on your favorite teams!

How Sponsorship Got Here?

Casinos have always been among the biggest sports sponsors, and it’s not surprising, considering the element of thrill and competition that links these two fields. Most gamblers, both new and experienced ones, look for an instant withdrawal casino no verification because anonymity and quick payments are the most desirable factors in the iGaming world. When such casinos sponsor various teams, fans get a chance to watch their favorite players compete while discovering a new verified platform to bet at. 

But how did the whole sports sponsorship start in the first place? Here are the key steps in the evolution of both the American and European teams:

1. At the start, small businesses in the US and Europe tried to show support for their local teams. It was motivated by genuine sporting interest and regional pride, with the advertising of the businesses themselves playing a secondary role.    
2. In the mid-20th century, things began to change. In the US, the First Super Bowl was sponsored by several larger parties, and the price of $37,500 was required for a 30-second ad. 
3. In Europe, the first big shift happened thanks to Jägermeister’s sponsorship of one of the oldest European football clubs known as Eintracht Braunschweig. The resounding success stirred interest among the sponsors on a global level, with casinos quickly joining in. 

Today, the size of the sports sponsorship market in both Europe and the US continues to grow every year. It exceeded 100 billion dollars in 2023, and this number is expected to double by 2030.   

The Business Model Split

Business models are the key difference between the US and European sports sponsorships.

American Model: The Franchise System

American football is sponsored through the closed franchise system. Teams are considered franchises owned by different investors — the leagues give them membership, and they maintain it on a constant basis. Even if a team performs badly, it doesn’t get kicked out. The players can be replaced, but the name of the team and some of its key attributes remain stable.

There is also a revenue-sharing system in place. Various deals and perks are shared across the teams to make sure no one reigns supreme or lags behind. This approach helps ensure a fair distribution of resources among all the members of the franchise.  

European Model: Club-Based System

Europe, on the other hand, has a divided club-based system. The teams are promoted or demoted based on their performance — they act like separate parties, not as part of one whole, as in the US. 

Sponsor Space Style

Sponsorship inventory is also a point of difference. American teams offer a whole portfolio that includes such elements as:

• Naming rights. The names of stadiums and training centers are changed based on the wishes of the interested sponsors. As an example, there is a SoFi Stadium, named after Social Finance Inc., a well-known financial services company. 

• Jersey patches. Both the NBA and the MLB offer to wear special jersey patches according to their sponsors’ preferences. 

• Media deals. Exclusive broadcasting rights are transferred to specific media companies like NBC.  

In Europe, the spaces left for sponsors are more limited. They feature:

• Shirt sponsorships. There are various sponsorships where the players wear the shirts with the logos of their sponsors, like Arsenal promoting Emirates Airlines in exchange for its support. 

• Regional partnerships. Betting companies become frequent regional sponsors of European teams. 

• Training kits arrangements. Some teams agree to use their sponsors’ training kits and gear. 

Sponsors that support American and European football have to adjust their strategies according to these differences.

Ad Formats

The types of ads also differ between American and European football teams. This is what sponsors can count on in the US: 

• Hosting fan engagement zones with various ad attributes
• Promoting attributes exclusively, like Pepsi selling its drinks during Dallas Cowboys matches
• Being included in the teams’ social media campaigns
• Showing tailored ads during breaks

In Europe, the deals between the teams and the sponsors have a different nature. Some examples:

• Ad placement and sponsor messages situated around the stadium
• Player endorsement, like Lionel Messi’s deal with Adidas that brought him millions 
• LED boards displaying the ads from the sponsors

There are some similarities, too, particularly in terms of social media advertising.

What the Market Allows

The culture differs between Americans and Europeans, just as their laws and regulations. This fact has a big impact on what the sports sponsorship market allows and prohibits.

The US market is known for:

• Flexible regulations. The rules are pretty flexible, so all types of sponsors are welcome, from beverage providers to casinos. 

• Focus on commercial aspects. The US market is focused on generating as much profit as possible. 

• Active fan interactions. Sponsorships are tightly linked to fan engagement, so there are fantasy leagues where everyone can take part, special apps, and so on.

In Europe, the market is more limited.

• Legal restrictions. There are strict regulations in place, so many sponsors don’t make the cut, including those selling alcoholic drinks or offering financial services. 

• Traditional approach. European clubs prefer to make long-term deals, even if they are smallish, rather than entering short-term profitable arrangements. 

• Regional differences. Premier League, La Liga, and Bundesliga all have different requirements and approaches to sponsorships. 

Some sponsors choose American teams simply because they are not allowed to make deals with the European sports representatives.

One Industry, Two Playbooks

Football teams in the US and Europe welcome the deals with their sponsors. However, their criteria for choosing them and displaying their ads differ significantly. 

Since the US relies on franchises, all sponsorships follow a centralized model where every team in a league enjoys the perks. In turn, there is a strong competition among the European clubs where only top stars secure good deals.

The US has a more laid-back approach to regulations, while Europe subjects all potential sponsors to strict evaluation criteria. Explore these different football segments in depth and decide which approach you relate to most.