The tariffs being introduced by US President Donald Trump and the retaliatory tariffs from other countries could have a major impact on sports teams around the world, despite the industry not being directly affected, according to a new report.
GlobalData’s Geopolitics in Sport report states that one of the most immediate impacts of tariffs for sports teams is the potential decline in sponsorship revenue.
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It says: “Companies in sectors like automotive and technology, which are heavily affected by tariffs, may reassess their marketing budgets, particularly their sponsorship commitments in sports.
"As these companies face increased costs and reduced profits, they may cut back on spending for sponsorships, which are crucial for many sports teams.”
By way of example, the report notes that Audi, a major sponsor in US sports, has halted exports to the US, which it in turn suggests raises questions about the brand’s future sponsorship activities in the market.
It is suggested that the US-based NHL ice hockey league is particularly vulnerable due to its substantial ties to Canadian teams. Seven of the league’s franchises are located in Canada and contribute around a quarter of the league's revenue.
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By GlobalDataThe report says: “If the tariffs negatively affect the Canadian dollar relative to the US dollar, this could have a detrimental impact on player salaries and overall revenue.
“The NHL operates a revenue-sharing program that redistributes funds from high-revenue teams to support those in smaller markets. A reduction in revenue from Canadian teams could shrink this pool, making it financially challenging for smaller market teams and potentially leading to franchise relocations.”
Among other potential ramifications for sports teams are the emergence of a more challenging economic landscape as a result of the tariffs and potential rises in the costs of goods. Tariffs of 25% on steel and aluminium, for example, are likely to have knock-on effects for stadium construction costs.
The report also notes that soccer’s 2026 FIFA World Cup, which the US will co-host with Canada and Mexico, could be impacted.
“The ongoing trade tensions between the US, Canada, and Mexico have cast doubt on the ability of these nations to effectively collaborate for the World Cup,” it says. “The animosity stemming from these tariffs may cause sponsors, particularly foreign companies that traditionally engage with such events, to reconsider their involvement.”
