Clear vision needed for drinks sponsorship issue

Business of Sport: €25 million, €12 million, €10 million, €1 million

Business of Sport: €25 million, €12 million, €10 million, €1 million. This is just some of the money that has been, and will be, pumped into Irish sport from various alcohol companies such as Guinness, Budweiser, Heineken and Carlsberg. And yet the Government is looking at restricting sports sponsorship by drinks companies.

Like it or not, sport - and increasingly so, Irish sport - is dependent on private money.

The estimated €10 million that is spent on Irish sport each year by alcohol companies is ensuring competitions can thrive and publicity is created; more importantly, it means money is pumping through the organisations from the top level to the grassroots.

The reality is, without drinks companies Irish sport would not be surviving. So why do we want to cut this lifeline?

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Critics of drinks sponsorship see the rise in underage drinking and binge drinking as being linked to high-profile exposure and marketing of sports stars and their sports. As tobacco sponsorship was banned, so too, say these people, should alcohol sponsorship.

But therein lies the problem. Where to next? Where will the line be drawn? Since studies have shown mobile phones can be bad for your brain, shouldn't sports sponsorship by mobile phone companies be banned?

But alcohol is a drug, they say. Yes, but tobacco is scientifically proven to be bad for you, to be addictive and to cause lung cancer. Alcohol can be good for you, the studies say. Moderation they caution - an argument you will never hear with tobacco.

So, if it is the misuse of alcohol that is at the heart of the matter, social responsibility, awareness and values are the crux to proper and legal use of alcohol. All of which sponsors are all too aware of, says Ardi Kolah, sponsorship consultant and board director of the European Sponsorship Association.

"Ten times out of 10 brand owners are responsible owners with clear strategies and aims that are guided by laws, frameworks and codes," he says "Drinks companies are an easy target and this is simply a kneejerk reaction by critics. What is needed - and which exists - is a code that provides a framework for companies."

The International Chamber of Commerce (ICC) established the new code of practice in November 2003 recognising the changes that had occurred within the European sponsorship industry and also removing the threat of legislation as a result of the adoption of the self-regulatory code.

Article One of the code establishes, "All sponsorship should be legal, decent, honest and truthful. It should be conceived with a due sense of social responsibility and should conform to the principles of fair competition as generally accepted in business.

"The sponsorship should be based on contractual obligations between the sponsor and the sponsored party. Also, sponsors and sponsored parties should set out clear terms and conditions with all other partners involved to define their expectations regarding all aspects of the sponsorship deal."

With such a code in place, the European Sponsorship Association asks why then a need for bans such as those operating in France.

The Office of the Parliamentary Council is working on drafting the Alcohol Products Bill (control of advertising, sponsorship and marketing practices/sales promotions), which will allow for the introduction of a series of regulations restricting alcohol advertising, sponsorship and sales promotions. Despite the report from the Oireachtas Committee on Health and Children recommending banning drinks sponsorship of sports events involving people under 25, the Department of Health says it is looking at banning alcohol sponsorship of sports events involving "young people".

What defines "young people", and whether a sports person under 18 would be allowed compete in an event sponsored by a drinks company, are still to be clarified. It is believed an outright ban similar to France's was ruled out because of fears it would be contrary to EU law on free movement of goods and services.

It's clear many grey areas remain. So while the critics point their fingers at the likes of Guinness and their hurling sponsorship and say, "that's bad, ban it", when it comes to figuring out the how and why of it all, we're left with recommendations that still aren't clearly defined.

In their defence, Kolah points out alcohol companies are acutely aware of the goldfish bowl they live in: "These companies have some of the best marketers and strategists in the world, they know very well that they're being scrutinised and criticised - why would they seek to do anything that damages their brand?" ...

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