American firms that are receiving federal bailouts, or are hurting in the current economy, risk alienating consumers with their continuing sports sponsorship deals, according to a new Performance Research study.

Almost a third of consumers in the U.S. are paying “less attention” to corporate sponsorships today than they did a year ago. In particular, most are finding it hard to see how firms that are suffering in the current financial climate can continue to spend millions on sports sponsorships, with 62% wishing to see expenditure decreased for firms with financial difficulties. Even more consumers (68%) want to see firms that have received federal bailouts spend less on sponsorship.  http://www.reuters.com/article/sportsNews/idUSTRE52969320090310

“Consumers are recognizing that they need to live within their means - and they expect corporate America to do the same,” said Jed Pearsall, president of Performance Research. “This is not the time for stable companies to drop sponsorships, but to provide more value to consumers with their programs.”

However, the report shows that consumers appear to expect the same or higher level of corporate sponsorship from stable or profitable companies.

Many firms are feeling the pinch. The survey found that over half (51%) of companies said sponsorship fees would be down on 2008, and 36% said they would remain unchanged. Perhaps more worryingly, 47% of companies surveyed said they were seeking to get out of current deals even though they were not up for renewal.

The sports industry began feeling the bite of recession late last year, with sports such as the NFL and NASCAR experiencing a reduction in sponsorship, reports MediaPlannerBuyer.com.