Dark Side of Sponsorship: When Sports & Brands Clash

In the roaring arenas of sport, where passion meets performance and dreams are built with sweat and spirit, there’s another story being written quietly in the background – a story not about players or fans, but about brands. In today’s world, sports and sponsorship are inseparable. It’s a partnership that fuels the industry, adds glamor to the game, and brings brands closer to billions of hearts. But beneath all the glitter and noise lies a truth far less talked about — the dark side of sports sponsorships.

What happens when the logos that athletes wear don’t reflect the values they believe in? What message does it send when a cricket team proudly flaunts an alcohol or gambling brand while being watched by millions, including children? And at what cost do these partnerships continue to thrive?

Welcome to the other side of sports sponsorship — where ethics blur, controversies rise, and integrity is often put to the test.

The Business of Visibility

Let’s begin with why brands love sports. In 2023, the global sports sponsorship market was valued at over $70 billion, with India contributing more than ₹15,000 crore to that pool. The IPL alone pulled in ₹10,000 crore in sponsorship revenue, thanks to its unmatched viewership. For companies, it’s a dream — massive reach, emotional connect, and a captive audience.

But in this rush for reach, some brands ignore the impact their presence might have on a population of billions.

The Wrong Fit: When Brands and Values Clash

Imagine an athlete who promotes healthy living being sponsored by a fast-food chain. Or a team that runs social campaigns against addiction, only to be backed by a surrogate alcohol brand. These contradictions aren’t just ironic, they’re damaging.

Most popular surrogate advertisement currently in India

Take the case of surrogate advertising. In India, direct promotion of alcohol and tobacco is banned. But companies sidestep this law by branding under soda or music CDs. Kingfisher becomes Kingfisher Soda, Royal Stag becomes Royal Stag Music CDs. Everyone knows the real product, yet it’s allowed. This creates a grey zone where ethics are compromised for visibility.

The IPL has often faced criticism for this. In past seasons, several teams were sponsored by alcohol and betting-related brands. The problem? A large chunk of the IPL audience is under 25, including teenagers. What kind of messaging are we normalizing?

Case Studies: Where Sponsorships Backfired

1. Paolo Di Canio & Lazio FC

Italian footballer Paolo Di Canio sparked outrage when he promoted a sponsor linked to controversial political views. The result? Fan backlash, damaged brand image, and eventually the partnership dissolved.

Paolo Di Canio’s Controversial Signs

2. Pepsi & Indian Cricket

In 2015, Pepsi pulled out as the title sponsor of IPL after the league was rocked by match-fixing scandals. The association became a liability, proving that a brand’s reputation can be tainted if the sport it backs is involved in controversy.

Pepsi Sponsoring ICT

3. Byju’s & Indian Team

While Byju’s is an education platform, its massive spending on sports sponsorships, especially during a financial crunch and layoffs, drew heavy criticism. Questions were raised about priorities — should education companies spend crores on cricket, or invest more in affordable learning and support those unprivileged get education?

Byju’s Sponsoring ICT

The Psychological Impact on Youth:

Sports stars are role models. What they wear, endorse, and promote leaves an impression. A 2021 study found that over 67% of teenagers admitted to being influenced by the brands their favorite athletes support. So, when a young footballer is seen wearing a jersey promoting a betting app, it’s more than just a sponsorship — it’s indirect endorsement.

In fact, in the UK, rising concerns about gambling addiction among youth led to the ban of gambling sponsors on the front of Premier League shirts starting 2026.

Why wait for damage control? Why not act before harm is done?

Surrogate Advertising: A Loophole in India

India’s Advertising Standards Council (ASCI) tries to regulate surrogate ads, but enforcement remains weak. Brands continue to exploit these gaps. A key example is the use of near-identical logos, taglines, and themes across banned and allowed product categories.

In 2022 alone, ASCI flagged over 800 advertisements for violating the surrogate promotion norms — but most were still aired during prime-time matches.

Shouldn’t the platforms — leagues, broadcasters, and athletes — share some accountability?

The Role of Governing Bodies and Leagues:

Sports leagues have the power to say no. In 2023, UEFA banned Russian energy giant Gazprom’s sponsorship in response to the Ukraine crisis. It was a strong stand – politically and ethically.

Back home, however, regulations remain murky. The BCCI allows alcohol surrogates and betting-linked fantasy apps to pour crores into cricket. While fantasy gaming is legal, the difference between skill-based apps and betting is thin, especially in public perception.

Why can’t Indian governing bodies draw a clearer ethical line?

When Brands Get It Right:

Not all sponsorships are problematic. In fact, many set brilliant examples. Nike’s partnership with women athletes, Adidas’ campaigns around sustainability, and Tata’s investments in grassroots sports are powerful narratives of purpose-driven marketing.

In 2024, Puma tied up with para-athletes in India, showing that visibility can be given to the deserving, not just the popular. These examples remind us that brands can make a difference — if they choose to.

Adidas Partnered With Parley To Produce Sustainable Products

Athletes Speaking Up:

We’re also entering an era where athletes are questioning the brands they work with. In 2021, Cristiano Ronaldo moved two Coca-Cola bottles aside during a Euro press conference and lifted a water bottle instead, saying “Agua.” The brand lost $4 billion in market value overnight.

More athletes are choosing endorsements aligned with their beliefs. This shift could encourage better sponsorship ethics in sports.

Christiano Ronaldo Promoting Water Instead Of Unhealthy Aerated Beverages

The Road Ahead: 

As fans, we celebrate sixes, goals, and records. But we also need to pay attention to what’s behind the game. Ethical sponsorship is not a luxury — it’s a necessity.

Here’s what can be done:

• Stricter regulations against surrogate and misleading advertising.

• Greater transparency in how sports bodies choose sponsors.

• Platforms like IPL and ISL should set ethical guidelines.

• Athletes should be educated on sponsorship contracts and their long-term impact.

• Fans and media must demand accountability.

Conclusion:

Sponsorship is a powerful force in sports – it funds teams, fuels growth, and connects brands to billions. But with great power comes great responsibility. The jerseys our players wear and the logos we see on screens are more than just ink and design – they’re messages.

We, as fans, deserve a game that entertains without compromising values. And brands must realize that true impact lies not just in how loud their logo is, but in how meaningful their message is.

It’s time we reimagine the field — where business meets ethics, and where winning off the field matters just as much!

Reference to dark side of Formula 1 sponsorships: CLICK HERE

Our previous post on Ayush Mhatre, a rising star: CLICK HERE

Written by:- Shakshi Jain