MAL 15/16 MAL 15.16 | Page 92

SPORTS MARKETING
SPORTS MARKETING

EXIT 2016 , WHITHER 2017 ?

By Richard Wanjohi

FIn one of my earlier pieces this year , titled ‘ 5 Sports Business Forecasts for 2016 ’ I highlighted a number of events and activities that would affect the Kenyan and world sports scene . These included Betting , Sponsorship and the Olympics among others . In this writ , we shall review in brief how the 3 changed the face of Kenyan sport .

Sports Betting - Put your Money where your Mouth Is
This has become an integral part of Kenyan sport and is still becoming a runaway phenomenon . As we go to press , SportPesa the biggest and most active of sports betting companies has announced a shirt sponsorship deal with the Kenya Rugby 7s team – both ladies and men .
After sponsoring the Kenya Premier League earlier this year , I ’ m beginning to lose count of the number of sponsorships by the firm . They include among others , the most recognizable Kenyan football teams , AFC Leopards and Gor Mahia , Super 8 football tournament , Kenya Harlequins , and Kenya Rugby Union .

‘‘ Sports betting has indeed affected the way fans interact with their respective sports . We have seen a number of publications publish the long-term effects of betting being equated to gambling . Stories are told of how students in our higher learning institutions in colleges and universities have reduced their indulgence in alcohol and parties to spare monies for sports betting .’’

Add the 3-year shirt sponsorship deal with English Premier League team Hull City for an undisclosed amount running into millions of British pounds . I ’ m sure you ’ ve seen the running pitch ads as the team is playing in the 2016-17 season thus far . The firm became only the second African betting firm to secure shirt sponsorship of the EPL teams , after South Africa ’ s Bidvest secured Sunderland ’ s deal in 2013 .
While the monies coming in from the betting public is by no means enough to secure such sports properties , the firm has taken advantage of the mobile telephony to penetrate across the country . By early 2016 , the platform had over 900,000 registered users . Simple calculations of at least 2 / 3 active users spending at least KES 500 every month would put monthly revenues at approx . KES 300 million ! The firm has even developed a USSD solution to reach mobile phone users without smartphones .
As of the third quarter of 2016 , SportPesa had become one of the top 5 advertisers according to preliminary ad figures across all media – radio , TV , print and online . The success of the firm has led to a proliferation of betting firms across the country
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