Kampala — THE current global financial crisis that has hit the world economy sparked off worries of an eminent dip in revenue for sports organisations across the world.

Sports organisations that largely dependent on sponsorship and commercial rights for revenue have every reason to worry as Multinationals, their source of revenue, brace for recession in many countries.

In Uganda sports federations and teams expect their sponsors to trim their budgets for the 2009 season, but major companies involved in sports sponsoring have allayed such fears.

MTN sponsorship and promotions manager Aggrey Kagonyera, reiterate the telecommunications company's commitment to funding sports.

"We will continue funding whatever we are sponsoring. There's no change yet," Kagonyera stated.

MTN is involved in sponsorship of basketball, football, rugby, athletics and golf.

Uganda telecom that annually commits a significant amount of money to sponsorship of football, rugby, golf, boxing, Inter-university games and the glamourous USPA-Uganda telecom Annual Sports Awards will stick to sports despite heightening fears of a recess.

"Sports have a positive effect on the community and as a Ugandan brand our support will continue. Our commitment to supporting sports will not be curtailed. We shall not relinguish our commitment to sports because of the global financial crisis," Uganda telecom marketing and communications officer, Emmy Olaki commented.

Daniel Kagwe, the general manager Gateway Television (GTV), which owns the media and commercial rights football in Uganda, cautioned against ignoring the looming recess. But Kagwe believes it will not substantially take its toll on sports sponsorship.

"We cannot assume we live on an island. We are connected. The financial crisis will eventually affect us. If Citi Bank goes down it affects Citi bank worldwide. We will have to feel it. We can't ignore it," Kagwe warned.

With a hearty laugh, Kagwe quickly turned to the positive side of the coin.

"We must keep expanding despite all this. We are going into more advertising. It is easier to get partners in football now, this is the right time. When the going gets tough, the tough get going. Companies will instead go into sponsorship to show that they are solid and win public confidence," Kagwe stated.

John Chihi, the proprietor of Mediage PR, anticipates companies to spend less on marketing and advertising in the first and second quarters of 2009 as they observed the situation.

"We are also looking at how that may impact on our business next year. The only consolation is the unique in situation in Africa where we are not so much into complex financial dealings," Chihi argued.

Elsewhere in the world of sports, organizations have made proactive cost-cutting decisions.

The organisers of the London 2012 Olympics have down-scaled on their grand designs-- reducing the apartments from 4200 units to 3000 in anticipation of a slump in property prices after the Olympics.

In basketball the NBA has cut the number of pre-season games in Europe from seven in 2007 to just four in 2008 and laid-off 9% of its employees.

The FIA, World motorsport governing body, has proposed radical cost-cutting measures, including the possible use of standard engines from 2010, to help teams survive the global financial storm.

Reuters reported that some question marks were raised over the future of Manchester United's record 56.5 million pounds agreement with American International Group (AIG) after the insurance company's bail-out by the U.S government.

Fellow Premier League club West Ham United are without a shirt sponsor following the collapse of tour operator XL Leisure Group and promoted West Bromwich Albion has also failed to find a replacement for Deutsche Telekom's T-Mobile.

Newcastle United was close to losing its shirt deal with Northern Rock bank, which had to be rescued by the British government, and Lazio, traditionally Italy 's sixth-largest club, were also without a shirt sponsor.

Next season the global financial crisis may eventually hit the world of Sports elsewhere in the World.