What is a potential negative effect for sponsors linked to sports?

The potential negative effect for sponsors linked to sports arises from the possibility of being associated with a scandal that can tarnish their reputation. When a sponsor backs a sporting event, team, or athlete, their brand often becomes linked with the values and behavior of that entity. If the athlete or organization is involved in a scandal — such as doping, legal issues, or unethical behavior — the sponsors may suffer significant backlash. This could lead to a decline in consumer trust and brand loyalty, impacting sales and public perception adversely.

In contrast, while positive brand associations, visibility among wider audiences, and better promotional opportunities can significantly benefit sponsors, these advantages can easily be overshadowed by negative incidents. Hence, the association with a scandal stands out as a distinct risk in the complex relationship between sports and sponsorship.