Huawei Pulls The Pin On The Raiders: What We Can Learn About Sports Sponsorship

Huawei Pulls The Pin On The Raiders: What We Can Learn About Sports Sponsorship

Chinese telco Huawei shocked many on Monday when it announced it would be quitting its major sponsorship with the Canberra Raiders at the end of the year.

Huawei will finish up the decade-long partnership at the end of this year, despite the fact it signed a new deal last year running through until the end of 2021.

Huawei’s call to pull the pin on the sponsorship deal can ultimately be traced back to the 2018 Turnbull Government’s decision to ban Huawei from taking part in the construction of Australia’s 5G network.

“This is a direct result of the 5G ban and the negative business environment at the moment for Chinese companies in Australia,” Huawei Australia’s Jeremy Mitchell said.

“Unfortunately Huawei has been caught in the middle of a great trade war. The effect on our business is greater than we expected.”

Mitchell confirmed the 5G ban has significantly harmed the company’s Australian operations – which has been reduced from 1,000 staff to 100 in a few years.

And while there are numerous political forces at play in the Raiders/Huawei deal, the termination of the deal is indicative of a shifting attitude towards sports sponsorships.

Sports and entertainment agency MKTG recently surveyed 800 marketers from across 30 countries to gather a detailed understanding of the views and sentiment toward the sponsorship, sports and entertainment market.

While 90 per cent of respondents said sponsorships can help brands create a meaningful connection with customers, there is a shifting attitude in what these sponsorships should look like.

Exposure is no longer enough for brands to justify sponsorship deal – with brands now demanding authentic connections.

“A key trend from our study is the rapid shift in sentiment towards whether brands should pay for all their rights or just those that are used,” said MKTG’s national managing director Matt Connell.

“Pre-pandemic, there was an alignment between brands and right holders.

“Fast forward two months and 72 per cent of brands now say that fixed sponsorship may not be the only way forward. This may signal a shift in how rights and partnerships are constructed in the long run.”

And while sponsoring the Raiders gave Huawei exposure on the highest level – last year’s NRL Grand Final – its decision to exit the NRL shows that this is no longer enough.

 




Please login with linkedin to comment

canberra raiders Huawei NRL

Latest News

New Business Wins For We Scout
  • Marketing

New Business Wins For We Scout

Indie comms agency We Scout announces new business wins. Well, you'd hardly announce new business losses, would you?

Oceania map with connection networks.
  • Media

Zenith Wins Superloop’s Media

The Zenith Christmas party set to be a wholly more bawdy, jolly soirée after agency nabs end-of-year win.

Archibald Williams Wins NBA Digital, Activation & Fan Engagement Accounts For APAC
  • Media

Archibald Williams Wins NBA Digital, Activation & Fan Engagement Accounts For APAC

Independent brand and digital agency, Archibald Williams (AW) has been appointed to lead the NBA account across the APAC region. The NBA is one of the most prestigious sporting leagues in the world and basketball is one of the fastest-growing sports in Australia. Effective immediately, AW said it was “excited” to work across all digital, […]

QMS Champions Creativity As First Most Contagious APAC 2023 Sponsor
  • Advertising

QMS Champions Creativity As First Most Contagious APAC 2023 Sponsor

Leading digital outdoor company QMS has announced it is the first-ever inaugural partner for Most Contagious APAC, the landmark London event by creative and strategic intelligence company Contagious, which will be showcased in Australia on Tuesday, 12 December in Sydney and Wednesday, 13 December in Melbourne. Most Contagious is an event that delivers key advertising […]

OMG’s Annalect First To Get Meta’s Advanced Analytics
  • Technology

OMG’s Annalect First To Get Meta’s Advanced Analytics

Omnicom’s data and analytics division Annalect has partnered with Meta, giving it access to Advanced Analytics (AA) – one of Meta’s privacy-focused measurement solutions – to provide Omnicom’s clients with future-proof, next-level measurement. Omnicom is the first holding company to have access to AA. AA allows advertisers to combine their first-party data with Meta’s ads […]

AKQA Launches Eco-Conscious AI DIY Assistant Encouraging People To Gift More Sustainably
  • Technology

AKQA Launches Eco-Conscious AI DIY Assistant Encouraging People To Gift More Sustainably

WPP’s AKQA has launched Fixmas.gift, an environmentally conscious AI-powered DIY assistant, affectionately known as Fixie, for a one-stop solution for all things repair. Fixmas.gift hosts an array of guides and inspiration to empower people to prolong the lives of their belongings or purchase pre-owned items that need a little love and care. Fixie can: Help […]