A recent study reveals that sponsorship spending in Canada has reached record levels, with a total of $4.68 billion invested in sponsorships last year. The Canadian Sponsorship Landscape Study, presented at the SponsorshipX conference in Toronto, highlights professional sports, grassroots sports, and non-profit organizations as the primary beneficiaries of this spending surge.
Dr. Norm O’Reilly, a professor at the University of Florida and one of the survey’s authors, emphasized the impact of inflation on sponsorship decisions post-pandemic. Despite a four percent annual inflation rate since COVID-19, brands have increased their commitment to rights fees by 17 percent compared to 2024. O’Reilly noted the shift towards optimizing sponsorships through digital channels to engage younger demographics effectively.
The study, which involved interviews with 114 brands, 50 properties, and 24 agencies, marks the 20th year of its annual assessment. It found that the average brand allocated $10.2 million to sponsorships in 2025, with some companies investing over $100 million and engaging in an average of 20.1 sponsorships that year.
O’Reilly attributed the sponsorship boom to the rise of new leagues like the Northern Super League, Professional Women’s Hockey League, and the WNBA’s Toronto Tempo. He highlighted the growing support for women’s professional sports among Canadian brands, leading to increased sponsorship prices due to heightened market demand.
However, the study highlighted a concerning trend where activation spending has stagnated while rights fees have substantially increased. O’Reilly expressed worries about the effectiveness of sponsorships in such scenarios, emphasizing the importance of balanced activation investments to maximize the impact of sponsorships.
