Peter Lynch once noted that over a 93-year span, there were 50 market corrections of 10% or more, 15 bear markets, and 33 recessions — nearly one disruptive event every few years. And yet, over that same period, the stock market soared more than 60-fold.

His point? Disruption isn’t rare — it’s routine.

Today, industries from automotive to tech to CPG are once again facing new headwinds: tariffs, rising costs, supply chain stress, and shifting consumer sentiment. For sponsorship stakeholders — both rights holders and brands — the question isn’t if disruption will happen. It’s how you’ll respond when it does.

That same thinking applies to sponsorships. Today, industries across the board are bracing for impact: rising tariffs, inflation, interest rate hikes, supply chain stress, and economic recalibration. For sponsorship stakeholders — from rights holders to brand marketers — the question isn’t if disruption will strike. It’s how you’ll lead when it does.

Let’s take the latest example: tariffs targeting the auto industry, a sector that represents 7.1% of all sponsorship dollars, or roughly $1 of every $14 spent across the space, per SponsorUnited data.

Roughly 63% of those dollars are contractually locked in, but the remaining 37% — often tied to short-term or renewal-phase deals — represents a sizable chunk of potential revenue that’s now in limbo as brands hit pause to see how new costs shake out.

What Rights Holders Can Do When Disruption Hits

With tariffs shifting course again, industries are feeling the ripple effects — and for rights holders, it can feel like déjà vu. Much like the early days of COVID, these moments are marked by uncertainty, silence from partners, and stalled decisions. It’s tempting to hit pause and wait things out.

But elite organizations — whether in sports, business, or crisis response — understand a simple truth:

In high-stakes moments, clarity, speed, and calm execution are your greatest assets.

When the path forward is unclear, the best teams don’t freeze — they double down on communication, creativity, and flexibility. That’s what turns disruption into long-term loyalty.

Here’s how rights holders can lead from the front when the road gets bumpy:

Diversify, Always

One of the most overlooked risks in sponsorship isn't just losing a client — it's being too dependent on where your revenue comes from.

Relying heavily on a small number of industries — even historically stable ones like automotive — creates structural vulnerability. It’s the classic 50/10 trap: 50% of your revenue coming from 10% of your customer base, often concentrated in just a few verticals.

To build a more resilient foundation, rights holders should think like portfolio strategists:

• Audit your industry exposure regularly — are you overweight in categories susceptible to macro challenges outside of their control or speculative growth?
  
  
• Analyze revenue concentration — if one or two sectors pull back, what’s the real impact on your business and can you handle that drop in the near-term?
  
  
• Proactively pursue underrepresented categories — SponsorUnited tracks over 50 categories with less than 20% penetration in any given sport. That’s not just white space — it’s opportunity. These are sectors where brands can stand out, and where your organization can gain a competitive edge by learning how new industries approach partnerships, decision-making, and measurement.
  
  

The goal isn’t to avoid big categories — it’s to avoid being imbalanced. Diversification isn’t just about defense — it’s a long-term growth strategy.

Make the First Move

World-class teams don’t wait for problems to arrive — they get ahead of them.

Reach out to your partners before they reach a decision point. Acknowledge what’s happening in their industry. Offer to brainstorm options. This isn’t just good relationship management — it’s smart strategy.

🔍 Example: During COVID, a Chief Revenue Officer I spoke with offered a major sponsor a restructured deal — including delayed payments and reduced short-term obligations — before they were asked. That move was remembered, appreciated, and ultimately repaid many times over through renewed trust and expanded business.

Be a Strategic Problem-Solver

When the landscape shifts, don’t just react — reframe the opportunity.

• Can you shift value across fiscal periods?
  
  
• Convert physical assets into digital exposure?
  
  
• Create a bonus package to maintain momentum without increasing spend?
  

Come to the table with scenarios, not just empathy. The goal isn’t just to “save” a deal — it’s to build a better one for both sides under new conditions.

🎯 Pro Tip: Prepare 2–3 restructured options before your next partner touchpoint. It makes you look thoughtful, nimble, and collaborative — and often leads to better outcomes than waiting for a formal ask.

🤝 A Proactive Partner Checklist for Rights Holders:‍

• Have you reviewed your industry exposure recently?
  
  
• Have you checked in with leaders at sponsors in high-risk sectors?
  
  
• Are you proposing solutions, or just reacting to asks?
  
  
• Can you model a few flexible scenarios in advance and A/B test them?
  
  
• Are you listening with empathy more than pitching?

‍🧩 What Brands Can Do When Budgets Get Tight

In tough times, sponsorships are often put under the microscope. But that’s also when smart brands double down on building emotional equity — not just impressions.

Here are three ways brands can stay visible and strategic during disruption:

1. Lead with Transparency

If your budget is under review or shrinking, discuss with your partners early. Rights holders can only help if they’re in the loop and have a deep understanding of what’s going on.

📘 Case Study: Toyota & MLS
In early COVID, Toyota worked directly with MLS teams to pivot toward digital campaigns and social-good activations. The trust and flexibility built then are still paying dividends now.

2. Get Creative, Not Quiet

Cutting isn’t the only option. Shift from hospitality to digital, from signage to story. Your goals may change — your presence doesn’t have to.

📘 Case Study: Kia & NBA Green Week
Facing budget stress, Kia reallocated dollars from live events to digital campaigns around NBA Green Week. Players led the storytelling. Fans stayed engaged. The brand stayed visible.

3. Show Up When It’s Hard

Your fan loyalty isn’t earned during peak years — it’s forged when times are tough.

📘 Case Study: Goodyear & NASCAR
Even as rubber supply chain challenges mounted, Goodyear held firm on their title sponsorship of the Goodyear 400. In turn, NASCAR amplified the brand across broadcast and social — a mutual show of trust.

Final Thought: This Is What Partnerships Are For

The word “partner” gets used a lot in sponsorship — but it’s during moments of adversity that the term is truly tested.

If you’re going to call it a partnership, then act like one. That means showing up — not just with ideas and assets, but with empathy, flexibility, and shared sacrifice. And when you do? That’s where the stickiest, strongest, most successful relationships are born.

The strongest partnerships in sports marketing aren’t built during boom times. They’re forged in turbulence — and built to last.

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