Stephen Pearson, Sports Media Gaming : "Over 70% of broker investment into sport has gone into football"

While the eyes of the world are fixed on the pitches of the USA for the FIFA World Cup, veteran sports marketer Stephen Pearson pulls back the curtain on how brokers can turn the tournament's global buzz into real, localized commercial success.

sylwester.m@financemagnates.com
Stephen Pearson, Sports Media Gaming : "Over 70% of broker investment into sport has gone into football"

Sponsoring National Teams vs. Domestic Clubs

Q: Brokers like ATFX and PU Prime have sponsored national teams such as Argentina instead of domestic clubs. What are the marketing advantages and disadvantages of sponsoring a national team, with its huge patriotic appeal but relatively few matches, compared with a club that plays almost every week?

The Argentina Football Federation (AFA) has been innovative in creating regional sponsorships where brands can align to the World Champions at regional level which still gives them the rights to valuable intellectual property like images of players such as Messi and association to current World Champions that they can also promote at global level on digital channels. 

This is unique and why the AFA has so many regional partners.

Since Argentina won the World Cup in Qatar 2022 and are now set to play the Final in 2026, the exposure and association is magnified for brands that helps them project leadership in their category. 

Argentina commands a global fan base,  they draw in fans from around the world and from markets that are also  important for brokers.

With this type of partnership its geared more to IP and digital usage than brand exposure such as LED, there is no LED during matches of Argentina for regional sponsors. But it anyway serves the purpose of a sector that has traditionally anyway been digitally focused. 

There is also the issue of cost. A regional partnership with the national team of Argentina costs a fraction of being a partner of some of the top domestic clubs. 

These types of regional partnerships also don’t bring into question any national regulatory issues since the partnerships are mostly digitally driven, It is a win-win for all parties.

In terms of disadvantage, well most federations do not offer this type of package, in fact Argentina are the only one right now so this also means that there are currently at least five brokers promoting the same partnership, one in Asia, one in Canada, one in Europe, one in MENA etc . But the point of difference of course is how well they each promote it that creates the standout.

If Argentina win the Final in 2026 then these types of partnerships are likely to continue. A lot rests on one individual of course, so all the brokers will hope that Messi continues to play at international level !

The World Cup's "Quiet" Marketing

Q: The World Cup is one of the biggest sporting events in the world, yet FX and CFD brokers have remained surprisingly quiet. How could brokers have made better use of the tournament to reach retail traders, and why haven't we seen more activity?

The commercial identity to the World cup is very well protected by FIFA. 

Any brand, whatever the category, cannot simply start using FIFA intellectual property.

The words like ¨World Cup¨, ¨FIFA¨, the image of the trophy , they are all protected trademarks. Official sponsors of the World Cup are paying in most cases over $100m to be a partner of FIFA and it is not possible for unofficial brands to simply associate to these rights.

In the past, brands have tried to implement Guerilla Marketing techniques to indirectly  link them to the World Cup , but it is much harder now with stricter enforcement around intellectual property.

I have however noticed that some brands have used generic football themed marketing the last months and some have been offering tickets and flights to America to watch the event but you rightly point out they have remained quiet and it is as mentioned for legal reasons, not for lack of interest !

The Elite Premium vs. the Mid-Tier Opportunity

Q: Sponsoring a club like Real Madrid can cost more than $50 million, while a mid-tier Champions League club may cost only $10-13 million. Does paying that premium really deliver five times the value, or do mid-tier clubs offer a better return?

I think in this case you are talking about the cost of the Front of Shirt sponsorship and indeed for Real Madrid that is now verging nearer to €100m per season.

If you look at the history of activity by brokers in the shirt sponsorship market there have been only a handful of brands investing at higher levels on the front of shirts with top tier tams. 

The biggest deal to-date remains the front of shirt deal by Plus500 with Atletico de Madrid which was a partnership from 2015 lasting over 6 years. But we have also now just seen the announcement by CMC Markets to sponsor the front of the Everton shirt in the Premier League announced at over €30m per season.

Most brokers have  gone the ¨official partner¨ route. And these days the issue is also a lot about regulation. Global deals in markets like Spain, Italy, Germany, France and now even the UK are coming under the microscope of the regulators and so there is much more a trend for brokers, especially the offshore ones to be doing regional deals  for legal necessity as much as for marketing reasons.

It is correct that brokers do aspire to sponsor the big name clubs but we often remind our clients that the mid table and lower table clubs all have to play the big name clubs twice per season. Instead of multi million for sponsoring a top five club it can be six figures to sponsor a team lower down the table. The Premier League as example still represents the top 20 clubs in the country and like Formula1 with 10 teams you are still going to be part of the top tier.

At the end of the day it is about activation. To generate return on investment in this business is not about the team you sponsor, it is about how you activate the partnership to generate the value!

The Move Toward Regional Sponsorships

Q: We are seeing more brokers move away from expensive global sponsorships in favour of targeted regional partnerships with football clubs. Why do you think this approach is becoming more popular?

Good question. It can be attributed to several factors. 

Cost : 

A regional deal is much more cost effective than a global deal.

Regulation:

If a brand doesn’t have the relevant regulation to sponsor a Premier League team (FCA) or Serie a Team (CONSOB) then the only option to align with that team is to make a regional partnership. 

This is not just for this sector it´s one that is long associated with other sectors like sports betting. 

Brands can tactically align to a rights holder on regional level for a fraction of the cost. But there is a potential downside.

Since regional deals are becoming so popular and some clubs have multiple regional partners, many rights holders are now obliging brands to geo block their activity.

If you are an official Asia sponsor of a major club in LaLiga, ok but you must geo block your activity to Asia so the club can find other regional sponsors in other regions. 

Market Focus:

Many brands have key regional markets of focus, be it Asia, MENA or LATAM. 

If you sponsor a team at global level you are paying more and effectively paying for markets of no interest or where you have no regulation, a broker targeting MENA doesn’t need, nor want to pay for rights that go to USA or APAC.

The ROI Question

Q: Going back to national team sponsorships, what does the real ROI look like? Is sponsoring a national team an effective way to acquire new clients, or is it mainly about building credibility?

Many brokers over the years have used sport to garner credibility.  One of the indicators of success is the ongoing number of brands using sports and the number of brands which are renewing their partnerships. It is significant for both.

For brands that are relatively new or brands that are not licensed to operate in main European markets, the regional partnership with a national federation pays dividends in many ways….

It is aligning your brand to a major national federation in some cases like Argentina a very successful one, it us showing its clients that a major sports institution  has agreed to partner with them so they must be a credible broker.

The use of valuable IP like the image of Lionel Messi amplifies credibility and success. 

So the answer is that the sponsorship of a national team, especially a successful one is a truly effective way to acquire new clients and project credibility.

Turning Fans into Clients

Q: Football fans are loyal to their clubs but often pay little attention to sponsors. When a broker spends millions on shirt or stadium sponsorships, how can it turn football fans into trading clients?

It is all about the activation ! 

The broker must give supporters a clear reason to engage: 

This can be from exclusive  club content, VIP ticket competitions, money can’t buy experiences and ultimately every activation should lead into a trackable customer journey from fan interaction to account registration, verification and first deposit. 

When investing at this level it is not just about brand awareness, it is about making sure every dollar counts with a well thought out activation campaign. 

Use the sponsorship to build trust, not just visibility

Q: Football can provide a broker with credibility and familiarity in markets where financial brands often struggle to earn consumer trust. The opportunity is to combine the club’s reach with locally relevant campaigns, player-led content and educational messaging that makes trading feel more understandable and accessible. The objective is to move the fan from “I recognise this sponsor” to “I understand its product and have a reason to try it.”

Absolutely, the brand needs to localise the sponsorship as much as possible. 

It should use local players, language, cultural references, fan behaviours and market-specific offers to make the partnership feel relevant in each territory.

A campaign that resonates in Italy may not work in the UAE, Latin America or Southeast Asia. 

The most effective strategy is to combine the club’s global credibility with locally tailored content and activation that gives fans a clear reason to engage with the broker.

Standing Out

Q: Football sponsorship is now crowded with CFD, forex, and crypto brands. With so many companies competing for attention, how can a broker make its sponsorship stand out?

This is a great question. Over 70% of broker investment for example  into sport has gone into football and it has become a cluttered market.

To stand out , some brands have gone for a wall-to-wall strategy , sponsoring as many clubs as possible, some have opted for more tactical partnerships like the national team regional deal we have been talking about. Others have opted for brand ambassador partnerships with football stars or legends.

It is definitely a very challenging market. The brokers are all chasing  a similar demographic and that demographic also happens to be in the football world. 

The strategy is working but also a lot of brokers are veering out of football into other opportunities and we have seen that there has been a resurgence into Formula1, other Motorsports like MotoGP, MMA and other sports like tennis , sailing, golf and rugby.

Predicting Sunday's Final

Q: Finally, Sunday's World Cup Final between Spain and Argentina is almost here. Who do you think will lift the trophy? And from a broker's perspective, which result would create the bigger marketing opportunity?

If you examine the broker sponsorships with national teams , the only federation that has deals with brokers is Argentina. 

They are current world champions, they have Lionel Messi and they are the only federation offering such cost effective regional marketing partnerships.  

If Spain win , will this affect the deals that Argentina can continue to do with brokers?

 It is an interesting question , it depends on many factors like the longevity of Messi who has been instrumental in most brands signing with Argentina. 

The next big event is also coming which is the Womens’ World Cup in Brazil in 2027, this also offers a unique opportunity for brands who want to stay with the national team and harness the valuable IP of the Argentina national team.

Many of the partnerships with the Argentina FA will end after this World Cup on Sunday. The result will determine how many will contuinue the partnershiop going forward.My guess is many will whatever the result !

About the Interviewee

Stephen Pearson, CEO

Stephen Pearson, CEO

Sports Media Gaming

"Sports Media Gaming is a 20+ sports marketing agency that has acted for many online brokers in sports partnerships with teams and brand ambassadors .   The CEO Stephen Pearson was one of the founding directors of TEAM Marketing, the  UEFA Champions League’s exclusive agency and the first ever Commercial Director of the English Premier League, a career spanning over 30 years.   SMG is also behind  the prestigious Forex Sports Awards, now entering its 4th successful year."

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