When Sponsorships Overshadow Salaries: The Ethics of Corporate Priorities

A soccer team sponsorship

In recent years, we’ve seen a massive surge in corporate sponsorships — especially from platform -based, tech and fintech companies. From high-profile sports events and e-sports tournaments to music festivals and influencer partnerships, these companies are investing heavily to stay visible and relevant in the public eye.

But there’s a growing problem.

Behind the glamour and sponsorship deals lies a harsh reality: many of these same companies are not compensating their workers fairly. Employees are being overworked, shortchanged, underpaid, or replaced by automation with little to no transition support. Some are even battling for basic labor rights or struggling to unionize. And yet, their employers are spending millions to slap their logos on stadiums and athletes’ jerseys.

Viva Prop 22

Remember the 2020 Proposition 22 battle between “independent contractors” (aka the App-based drivers) and the platform-based-tech companies? These companies spent millions of dollars to fight re-categorizing of the drivers and avoid giving them healthcare stipends. $180 million to be precise. My thoughts then, was that these companies would rather spend such money for legal battles against their drivers than to give them a portion?! 🤔

By the same token, these companies would rather sponsor sports, looking good to the public, than pay their contractors a fair pay?! Sounds like misplaced corporate priorities, hypocrisy, callousness and or narcissism.

So the question is: Should such companies even be allowed to participate in sponsorships?

It’s a tricky one because there’s no legal rule stopping them. But should they? From a moral standpoint, many would argue: not until they put their house in order. After all, charity is meant to start from home. If workers are underpaid, or being replaced by AI with no human-first transition plan, or if union efforts are being suppressed—then spending millions on Super Bowl ads, NBA,

or sponsoring e-sports tournaments is tone-deaf at best, exploitative at worst.

Brand Over People?

Sponsorships are about visibility and perception. A flashy campaign or a partnership with a popular sports team gives off the impression of success, dominance, and prosperity. But when employees within that same company are fighting for fair wages or being laid off en masse, it’s hard not to see the hypocrisy.

It’s like inviting the world to admire your mansion while your family is stuck in the basement without food or heat.

The Ethical Disconnect

It’s not illegal to sponsor events while cutting jobs or freezing salaries. But it is ethically questionable.

Employees are the ones who build and sustain these companies. They write the code, manage the data, solve the problems, and drive the innovation. Yet when it comes to distributing profits or spotlighting success, they are often left in the shadows — replaced instead by stadium lights and celebrity endorsements.

Can This Be Changed?

There are several ways this could shift:
   •   Transparency Mandates: Regulations could require companies to publicly disclose their wage structures, employee satisfaction scores, or compensation ratios before engaging in large-scale sponsorships.
   •   Stakeholder Accountability: Consumers, athletes, influencers, and even partnering organizations can demand ethical employee treatment before signing on with a brand.
   •   Worker-Led Change: We’re already seeing unions and employee advocacy groups in tech rise up to challenge these imbalances. They need continued support and amplification.

Final Thoughts

Sponsorship in itself isn’t bad. In fact, it can bring visibility, unity, and inspiration. But it becomes a problem when it’s used as a cover for deeper injustices.

If a company wants to be celebrated in public, it must first be just in private. The workers who power the machine deserve more than a paycheck — they deserve respect, fairness, and recognition.

Before companies fund the next major sports tournament (aka majoring externally), perhaps they should take a look at their own team — right the internal affairs – and make sure everyone is winning.

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