A recent study reveals that Canadian sponsorship expenditures have reached record levels. The Canadian Sponsorship Landscape Study indicates that a total of $4.68 billion was dedicated to sponsorship in Canada last year, with professional sports, grassroots sports, and non-profit organizations being the primary beneficiaries. The study was presented at SponsorshipX, a branding and sponsorship conference held in Toronto.
Dr. Norm O’Reilly, a professor at the University of Florida and one of the survey’s authors, highlighted the impact of inflation post-pandemic on sponsorship discussions. Despite a four percent annual inflation rate since the COVID-19 outbreak, brands increased their commitment to rights fees by 17 percent compared to the previous year.
The study emphasizes the shift towards optimizing sponsorships through digital channels to connect with younger Canadians, especially those under 40. The cost of digital assets continues to rise, making them key in marketing strategies.
In this year’s survey, CSLS gathered data from 114 brands, 50 properties, and 24 agencies. Notably, the average brand allocated $10.2 million to sponsorships in 2025, with some spending over $100 million. On average, brands engaged in 20.1 sponsorships during the year.
O’Reilly pointed out that the rise of new leagues such as the Northern Super League and Professional Women’s Hockey League, along with the introduction of the WNBA’s Toronto Tempo, has fueled the sponsorship surge. The increased interest from Canadian brands in supporting women’s professional sports has contributed to the growth in sponsorships.
However, the study revealed a concerning trend where while rights fees have increased significantly, activation spending has plateaued. O’Reilly expressed worry over this imbalance, as activation spending plays a crucial role in maximizing the effectiveness of sponsorships.
Overall, the survey underscores the evolving landscape of sponsorships in Canada, with a focus on digital channels, emerging sports leagues, and the importance of balancing rights fees with activation spending for optimal sponsorship outcomes.