Investigating sport league sponsor retention: Results from a semi-parametric hazard model

Jonathan A. Jensen, David Head, Olivia Monroe and Scott Nestler

Sport Management Review, 2022, vol. 25, issue 1, 31-58

Abstract: Belying the maturity of the sponsorship-linked marketing literature is the fact that quantitative research on sponsor retention is scant, specifically which organizations retain their sponsors at higher rates and investigations of factors that lead one sponsor to renew while others exit. This study fills this gap by analyzing a dataset inclusive of nearly 500 “official product” sponsorships across six North American sport leagues utilizing a proportional hazards model. Results indicate that partnering with tech firms, clutter, and sponsoring at a lower level reduces the probability that sponsors are retained, while congruent and B2B sponsors are more likely to be retained. In addition, results indicate the superiority of the National Football League (NFL) and the National Association for Stock Car Auto Racing (NASCAR) in their ability to retain sponsors. From a managerial standpoint, these findings improve our understanding of sponsor retention, and assist both sponsors and sponsees in developing longer-term relationships.An analysis of the retention of sponsors of six North American sport leagues (MLB, MLS, NASCAR, NBA, NFL, and NHL).Results indicate that NASCAR and NFL sponsors are retained at a significantly higher level.Undergirded by schema theory, clutter and sponsoring at a lower level reduces the probability that sponsors are retained.Tech sponsors are more likely to exit, while automotive and credit card sponsors are more likely to be retained.Results improve understanding of sponsor retention, assisting sponsees in targeting sponsors that engage in longer-term relationships.

Date: 2022
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DOI: 10.1016/j.smr.2020.09.001

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