What are the risks associated with sports sponsorships?
Sports sponsorships can pose several risks, including reputational damage, financial instability, and dependency on athlete performance.
Can you explain how reputational damage occurs?
Reputational damage can occur if a sponsored athlete engages in controversial behavior, reflecting poorly on the brand.
What about financial instability?
Financial instability can arise if the sponsorship does not yield the expected return on investment, leading to losses.
Are there any ways to mitigate these risks?
Yes, companies can conduct thorough research, choose athletes carefully, and set clear performance metrics to mitigate risks.
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