Abstract

Apparel sponsorship represents a major competitive arena for sportswear brands. Prior research suggests that challenger brands often overinvest in sponsorships to compete with more prominent rivals, yet there is little guidance on how these brands can enhance their competitiveness effectively. This study examines the extent to which team identification and team performance can strengthen a challenger brand’s position against leading competitors. A best–worst discrete choice experiment (BWDCE) was conducted among an Australian football club fans. The findings showed that both team identification and team performance were significantly associated with fans’ preferences for their team’s sponsoring brand and willingness to pay (WTP) a price premium. This study provides empirical evidence of the role of psychological and contextual factors in mitigating the prominence bias that often favours market leaders. It also offers a practical framework for identifying sponsorship-related factors that can generate greater economic value and higher profitability for challenger brands.

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