A recent survey has revealed that sponsorship spending in Canada has surged to record levels. The Canadian Sponsorship Landscape Study indicates that a total of $4.68 billion was allocated 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 in Toronto.
Dr. Norm O’Reilly, a professor at the University of Florida and one of the survey’s authors, emphasized the impact of inflation post-pandemic on sponsorship discussions. Despite a four percent inflation rate since the COVID-19 outbreak, brands increased their commitment to rights fees by 17 percent compared to 2024.
The study highlights the shift towards digital channels to engage younger Canadians, particularly those under 40, as the preferred method of reaching audiences. CSLS gathered data from 114 brands, 50 properties, and 24 agencies for this year’s survey, marking the 20th year of conducting the study.
In 2025, the average brand spent $10.2 million on sponsorship, with some respondents investing over $100 million. On average, a brand engaged in 20.1 sponsorships that year.
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 contributed to the sponsorship surge. O’Reilly noted the increasing interest from Canadian brands in supporting women’s professional sports, leading to higher sponsorship prices.
However, the survey identified a concerning trend: while rights fees have escalated, activation spending has remained stagnant. Activation spending involves additional investment beyond rights fees to enhance the sponsorship investment’s impact.
O’Reilly expressed disappointment in the lack of growth in activation spending, as it is vital for maximizing the effectiveness of sponsorships. He highlighted the industry’s aim for a one-to-one sponsorship activation ratio, which was achieved in 2023 but has since declined.