Dozens of construction companies are investing in Premiership Rugby sponsorships. Let’s see why.
This is an updated version to an article in 2022.
In 2022, after nearly a full season, I took notice of how many construction firms were advertised around the Brentford stadium.
It got me thinking…why are construction firms investing in this?
Before I go any further, let’s see who’s sponsoring who:
- MJ Church: Bath
- GRS Group: Northampton Saints
- Toolstation: Northampton Saints
- Travis Perkins: Northampton Saints
- Allstone Speedy Skips: Gloucester
- Reef Group: Gloucester
- Markey: Gloucester
- Bradfords: Exeter Chiefs
- Advanced Scaffolding: Exeter Chiefs
- Troy: Exeter Chiefs
- RGB: Exeter Chiefs
- Jewson: Exeter Chiefs
- Topps Tiles: Leicester Tigers
- Breedon Group: Leicester Tigers
- Stelrad: Newcastle Falcons
- Hitachi Construction Machinery: Newcastle Falcons
- BS3 Services: Bristol Bears
- Kellaway Building Supplies: Bristol Bears
- P.P. O’Connor: Sale Sharks
The Premiership itself, is sponsored by Gallagher, who have a large construction insurance division.
Rugby clubs are bad businesses. Why bother?
Most clubs don’t make a profit. Period.
London Wasps, London Irish, and Worcester Warriors dissolved in 2022 & 23. Wasps owed over £90m in debt when they folded, according to Bloomberg. A third of their debt came from supporters, who were due to have been paid by May 2022. Worcester folded owing £25m to debtors, including £6m to HMRC.
So, why are construction firms still investing in the sport?
A couple of reasons why:
- Community: Rugby has a tight group of supporters and companies that follow their team…tapping into tight communities can unlock many new avenues.
- Heritage: Wealthy construction owners want to see their clubs continue, regardless of a return on investment.
- Company Culture: Investing in sports can show commitment to lifestyle and mental wellness within the sponsoring organisation.
Now, let’s dive deeper and back up what I just said.
Frank Elkins, Chief Operating Officer at Travis Perkins (Northampton Saints) says:
“We’re excited to focus on driving community impact through a series of exciting programmes over the next four years, aligned with our broader values and objectives across the Travis Perkins Group.”
Paul Markey, Group Managing Director at Markey (Gloucester) says:
“Markey Group have been visiting Kingsholm for over twenty years, so we’re delighted to be partnering with a business that has a deep-rooted connection with the Club.”
Pat Ward, Former CEO of Breedon Group (Leicester Tigers) says:
“Breedon and Tigers have a great deal in common. We are both ambitious and competitive and believe that you can only achieve your goals by working together as a collaborative and mutually supportive team.
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Other reasons why firms might be sponsoring
- New business.
- Account management.
New business
You are probably not going to land new clients from your brand being advertised on a jersey. I think most sponsors know that.
However, good sports clubs organise B2B events for their sponsors. For example, Leicester Tigers organise “Tigers Touch Rugby Tournament” at Welford Road every May. It’s a way for sponsors and partners to have a day out, get some exercise, and network with like-minded companies.
Me at the Tigers Touch Rugby Tournament in 2022, pictured below.
These events as well as matchday networking can result in a lot of good conversations. It’s worth the sponsorship alone if this is executed well by the club.
Account Management
Unlike football, spectators can drink while watching a live rugby game. Therefore, it has the makings of a great day out.
For a lot of firms, this is the real reason for sponsoring. Building relationships, treating staff and having a good day out with an important client or vendor.
Wrapping Up
It’s hard to know whether this trend will continue. The sport is in the spotlight from a commercial aspect. But, when researching this article, I was shocked to see how many construction companies were quietly sponsoring Premiership Rugby teams (and I only touched the surface). The business side of the sport is weak, but the community is strong. And when a community is strong, there are opportunities for sponsors to gain some commercial value.