Sports social media holds massive potential for business, but beware verbally dangerous stars and unsubtle plugs

THE RAPID growth of social media means it is now possible for millions of people across the globe to communicate directly and instantaneously with their heroes. This has created new opportunities in sponsorship.

Sports stars have a massive online following on Twitter and Facebook. Real Madrid’s Cristiano Ronaldo is among the most followed people in sport on Twitter, with more than 5.5 million followers.

Irish sports stars more than hold their own, with golfer Rory McIlroy leading the way with about 700,000 followers and Leinster and Ireland rugby star Brian O’Driscoll having more than 100,000 followers.

Increasingly, an athlete’s social media presence is a key part of their commercial programme because sponsors are starting to recognise the potential benefits of using an athlete’s Twitter and Facebook pages.

The potential sponsor benefit stems from fans’ ability to communicate directly with their idols, which builds a relationship between them. The resulting goodwill often leads to the athlete having the potential to influence fans’ purchasing behaviour. Such influence is the stuff of sponsors’ dreams, especially given the relatively low cost.

To capitalise on this potential, many sponsorship contracts now include a social media clause.

How it works

A social media clause obliges an athlete to promote the sponsor on their Twitter and/or Facebook pages and encourage fans to find out more about the products or services.

An athlete may tweet to endorse their sponsors products or services, friend their sponsors Twitter or Facebook pages and suggest that their followers do the same.

An example of this type of promotional activity is the following tweet by Leinster and Ireland international Rob Kearney regarding one of his sponsors: “For those of you out there who like amino acids for staying healthy! Optimum Nutrition have just launched essential amino energy – v good!

In order to encourage this type of activity, a sponsor may structure payments to its athletes in a way that incentivises them to increase their social media presence.

For example, the sponsor may pay an athlete an additional lump sum for adding 1,000 new followers on Twitter. Alternatively, they may stipulate that the athlete reach a quota of monthly tweets promoting the brand.

Tips

While this developing area offers sponsors many potential benefits, remember the content and extent of the promotional activity will be vital in determining its success.

The content of the promotional message should be subtle enough to ensure fans want to find out more about the sponsor and potentially buy their products or services.

If a sales pitch is too blatant, it will seem contrived and at best will be ignored or, at worst, will attract a negative response.

In addition, both sides should ensure the athlete does not endorse the sponsor too many times within a given period.

David McHugh of Line Up Sports Media Entertainment, whose client list includes Leinster and Irish internationals Rob Kearney, Leo Cullen and Fergus McFadden, explains: “If the message is nothing more than a cheap plug or if too many sponsor-related comments are made within a certain timeframe, the attempt is almost certain to backfire. For that reason, players have to consider whether it is worth opening themselves up to potential public criticism in the first place.

The key message for athletes and sponsors is: keep the sales pitches occasional and subtle.

Risks

Sponsors should also be aware that while the use of an athlete’s social media presence can be an asset, significant risks also exist.

Many athletes have a tendency to post controversial comments on Twitter without considering the damage they may cause.

A recent example of this occurred in the UK when footballer and avid Tweeter Joey Barton commented that former Wales manager Gary Speed’s suicide was in part “most selfish”.

This sparked outrage from the general public and suicide prevention groups .

This example should highlight to sponsors the importance of having a so called “morality clause” in any sponsorship contract. Such a clause allows a sponsor to end the contract immediately if an athlete they sponsor brings their image into public disrepute.

Such clauses have been used to quickly end relationships with an athlete sponsors are no longer comfortable being associated with, as with a number of Tiger Woods’s sponsors after revelations about his private life in 2009.

Another risk is that as advertising on social media becomes more sophisticated and extensive, the area becomes increasingly regulated either by national bodies or by the relevant website in a way that would restrict online advertising.

In Ireland at present, the area of advertising using social media is not formally regulated.

However, the Advertising Standards Authority of Ireland (ASAI) has set up a working group to investigate whether tweets endorsing certain products or services should come within its remit.

A decision is expected within the next six months, following a period of consultation.

Irish position

In Ireland, sponsors have only recently started utilising social media platforms to increase brand awareness and as a result, this area is underdeveloped, especially compared with the US market.

One high-profile example of a marketing campaign utilising athletes’ social media presence is Guinness Area 22.

This utilises the social media content of a number of Irish rugby internationals including Jamie Heaslip, John Muldoon and Stephen Ferris across its website, iPhone app, YouTube, Twitter and Facebook platforms.

At present, sponsorship contracts here tend to include generic wording to oblige an athlete to support the particular sponsor using his or her own professional network where possible.

Other sponsors may request that they are promoted using social media but are not inclined to be prescriptive regarding how much of this type of activity takes place.

Final Thoughts

It is likely a social media clause will become a standard part of sponsorship contracts across a variety of sports around the globe in the next couple of years. While many potential benefits may result for both sides, each should be mindful of the potential downsides.

Sponsors should be aware of the risk of the athlete they are sponsoring making controversial remarks or engaging in activity that the sponsor would not want to be associated with.

From an athlete’s perspective, the ability of a sponsor to exploit their social media presence may provide a welcome source of additional revenue.

However, they should be forewarned that they may be publicly criticised on the basis that they have “sold out” to a sponsor.

As the popularity of Twitter and Facebook continues to grow, and exciting platforms such as Flickr emerge, sponsors will want to exploit these tools to help maximise their return on the sponsorship while ensuring that they are protected by appropriate legal safeguards.

A well-drafted sponsorship contract is key to achieving these targets.

Chris Connolly is a solicitor in the sports law unit of A&L Goodbody.