The Commonwealth Games in Glasgow, a 23rd edition of the event, is underway with a reduced scale and budget. This 'Commy G Lite' approach has made it more accessible for smaller brands to partner with the event, potentially leading to a more diverse range of sponsors. The reduced budget, estimated to be around £150m, is significantly lower than the initial £3bn forecast for the event in Australia, which was cancelled due to rising costs.
The 'Glasgow Model' has seen around £100m come from the Commonwealth Games Federation, leaving organisers to find a further £50m through commercial ventures. This shift has attracted smaller brands like Ideagen, a technology company focused on safety, compliance, and quality, and BYD cars, which has partnered with the event to showcase its electric vehicles. Other smaller brands, such as Trespass clothing and Jubel beer, are also on board.
The approach of the smaller brands is to showcase their area of expertise and highlight what they do best by putting it in an accessible context. This is a crucial aspect of sponsorship, according to sponsorship expert Sarah Niblock. The event's reduced scale and budget may have lessened the appeal to larger partners, but it has opened up opportunities for smaller brands to step up and take a bite out of the action.
The impact of the Commonwealth Games on the UK economy is significant, with an estimated £150m spent on the event. However, the reduced scale and budget of the event may have a limited impact on the overall economy, especially compared to previous events.
The FTSE 100 has reacted positively to the news, with shares in companies that have partnered with the event seeing an increase. However, the impact on the FTSE 100 is expected to be minimal, as the event is not a major driver of economic activity.
The reduced scale and budget of the Commonwealth Games in Glasgow present a unique opportunity for smaller brands to partner with the event. This shift could lead to a more diverse range of sponsors and showcase their expertise in an accessible context.