Crowd Funding: the New Frontier of Sports Sponsorship?

Yann Abdourazakou, Marie-Josèphe Leroux-Sostenes

Abstract


Background: At a time when the economy becomes increasingly unstable, some large companies put an end to their partnerships. Sports sponsorship must therefore be reinvented with a more collaborative vision. Individuals but also corporations can now actively help their favorite teams or athletes and be rewarded for their success. Objective: The present study aims at studying these two concepts by analyzing their potential substitution as financing models. Our research offers an insight into the implementation of those two concepts. Our goal is to assess the potential substitution or co-existence of sponsorship and crowd funding in communication strategies. Method: This study is based on two qualitative analyses. The first was made with crowd funding platform professionals considered as equity financing experts. Five interviews were conducted, with an interview guide articulated around two axes: corporate motivations supporting crowd funding projects and perception of substitution between sponsorship and crowd funding. Second, based on the business objectives identified among sponsors, a grid of thematic analysis was built. A qualitative study was then conducted with project leaders (people looking for financing). The information was gathered via mail. Following those two steps, an analysis of the career financing modes chronology for the athletes prior to filing a project was studied. Results: The results of our qualitative analysis articulate points of views from platform leaders and elite athletes, i.e. users of these platforms. It appears that specialists see these two sport funding modes as complement, particularly in the communication strategy of large corporations. But results show that there is no systematic permanence between getting a project funded and having access to corporate financing. The study shows the existence of a hybrid model between sponsorship and crowd funding: participatory sponsorship. Conclusion: Sponsorship targets long-term relation whereas crowd funding is more project-based with a short-term approach.

Keywords: Sponsoring; crowd funding; awareness; communication strategies; sports projects

Full Text:

PDF

References


Bechter, C., Jentzsch, S. Frey, M. (2011). From wisdom of crowd to crowd funding. Journal of Communication and Computer, 1, 951-957.

Brabham, D. (2008). Crowd sourcing as a Model for Problem Solving: An Introduction and Cases. Convergence: The International Journal of Research into New Media Technologies, February, 75-90.

de Bruysere, K., Gajda, O., kleverlaan, R., Marom, D. (2012). A framework for European crowd funding. Retrieved from http://www.crowdfundingframework.eu/ 1-40.

Bessière, V., Stéphany, E. (2014). Le financement par crowdfunding. Revue Française de Gestion, 5, N° 242, 149- 161.

Derbaix, C. Gérard, P., Lardinoit, T. (1994). Essai de conceptualisation d’une activité éminemment pratique : le parrainage. Recherche et Applications en Marketing, 9, 2, 43-67.

Evrard, Y., Pras, B. Roux, E. (1993). Market Etudes et recherches en marketing. Nathan.

Gerber, E., Hui, J., Kuo, P. (2012). Crowd funding: Why People are Motivated to Participate. ACM Conference on Computer Supported Cooperative Work, Working Paper, Northwestern University.

Germon, R., Maalaoui, A. (2014). Le crowd funding, une nouvelle voie de financement pour les PME. In Lecointre G. Le grand livre de l’économie PME 2015. Gualina Editeur.

Hui, J., Greenberg, M., Gerber, E. (2014). Understanding the Role of Community in Crowd funding Work. Februry, 15-19, Baltimore, MD, USA.

Kappel, T. (2009). Ex Ante Crowd funding and the Recording Industry: A Model for U.S. ?. Loyola of Los Angeles Entertainment Law Review, vol 29, N° 3, 375-385.

Lambert, T., Schwienbacher, A. (2010). An empirical analysis of crowd funding. Electronic copy available at: http://ssrn.com/abstract=1578175

Lynn, D. (2012). The crowd funding provisions of JOBS Act. Financial Executive, May, 42-43.

Lynn, D., Sabbagh, H. (2012). The JOBS Act open door for crowd funding offerings. Morrison & Forrester Social Media Newsletter, 4, 11, 6-8.

Mollick, E. (2014). The dynamics of crowfunding : An exploratory study. Journal of Business Venturing, 29, 1-16.

Onnée, S., Renault, S. (2013). Le financement participatif : atout, risques et conditions de succès, Gestion, /3 Vol. 38, 54-65.

Onnée, S., Renault, S. (2014). Crowd funding : vers une compréhension du rôle joué par la foule. Management & Avenir, 8, N° 74, 117-133.

Powers, T. (2012). SEC regulation of crowd funding intermediaries under Title III of JOBS Act. Banking & Financial Services Policy Report, 10, 31, 1-7.

Ramsey, Y. (2012). SEC regulation of crowd funding intermediaries under Title III of JOBS Act. Banking & Financial Services Policy Report, 10, 31, 1-7.

Ricordeau, V. (2013). Crowd funding le financement participatif bouscule l’économie. Collection Stimulo, Editions Fyp.

Schwienbacher, A., Larralde, B. (2012). Crowd funding of small entrepreneurial ventures. Handbook of Entrepreneurial Finance, Oxford University Press.

Sigar, K. (2012). Fret no more : inapplicability of crowd funding concerns in the internet age and the JOBS Acts safeguards. Administrative LaxReview, 2, 64, 474-505.

Walliser, B. (2003). An international review of sponsorship research: extension and update. International Journal of Advertising, 22, pp5-40.

Walliser, B. (2006) Recherche en parrainage, Revue Française de Gestion, 4, 163, 45-58.

Wheat, R., Wang, Y., Byrnes, J., Ranganathan, J. (2012). Raising money for scientific research through crowdfunding. Trend in Ecology and Evolution, 2, 28, 71-72.


Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

2013-2020 (CC-BY) Australian International Academic Centre PTY.LTD.

International Journal of Kinesiology and Sports Science

You may require to add the 'aiac.org.au' domain to your e-mail 'safe list’ If you do not receive e-mail in your 'inbox'. Otherwise, you may check your 'Spam mail' or 'junk mail' folders.