Sponsorship and the Stock Markets
Posted: 7/22/2009 11:31:35 AM by
Jim Andrews | with 0 comments
The U.K.’s Press Association news service sent out an article yesterday headlined “Stock Markets: Samsung Electronics Riding High on Back of Chelsea Deal.” Reading the piece left me with mixed emotions. I’m always happy to see sponsorship get credit for positive results, however there was not one shred of evidence that last week’s renewal of Samsung’s shirt sponsorship with the Barclays Premier League football club was the reason for the company’s share price rise. In fact, the only factual information provided in the article indicates that the recent gains are part of a trend of the last two months in which Samsung stock has “rocketed.”
Such flimsy reporting and writing infuriates me because it allows critics of sponsorship to point to such articles as proof that measures of sponsorship success are fluff. The good (factual!) news is that there is research that proves major sponsorship announcements do positively influence stock value. Read an IEG Sponsorship Report article on the research here.
The upshot is that Samsung’s Chelsea extension likely helped boost the stock price a few points higher than it otherwise would have risen this week, but an article that misleadingly credits the deal as the primary factor for shares reaching their yearly high doesn’t do anybody, including the sponsorship industry, any favors.
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Filed under: research, sponsorship measurement, sponsorship ROI, international