SPONSORSHIP

3.1 The Sponsor

Event Triangle

event

fan sponsor

Role of SponsorshipDEFINED:

Investment in a sports entity or property to achieve organizational goals

Examples• The Dew Tour• Visa Halftime Show• Red Bull Space Jump

Reason a Company Wants To Be Involved With An Sporting

Event or Property

Borrowed Equity!!!Using the appeal of an event or Sports Property to market a company and/or it’s products

Sponsor Revenues• Revenues from sports leagues

comparing 2005 with 2012.

SPORT 2005 REVENUE 2012 REVENUE

NFL $560M $1.01BNBA $360M $610MMLB $380M $628MNHL $230M $372M

Match-Up Hypothesis

The idea that the sponsor should match up with the appropriate Target Market of the Sports Property

Acquisition Consideration

Ambush MarketingCompany’s capitalizing on a

particular event without paying any sponsorship fee

Signature Sponsor

Sometimes called a “Title Sponsor”

The main sponsor of an event or arena Pays for the Naming Rights of event• Events will separate sponsorship levels• Usually named by value invested

– Platinum + Gold + Silver + Bronze . . .

Sponsorship Levels

Sponsorship Levels

Goals of SponsorshipGoals are either:

Direct – easily measured“tangible”What can be measured?

Indirect – not easily measured“intangible” What can be “felt” but not

measured?

Sponsorship Exclusivity• Exclusivity in Sponsorship is in “Categories”

• Example: Fast Food, Non-Alcoholic Beverages, Banking

• Events– Want Narrow Categories for Exclusivity

• Sponsors– Want Broad Categories for Exclusivity– “THE OFFICIAL FAST FOOD OF OUR TEAM”

Budgeting Considerations

EXCLUSIVITY

Goals of Sponsorship

1. Increase Sales2. Increase Awareness3. Be Competitive4. Reach the Target Market5. Build Customer Relationships6. Develop Image

Which goal is DIRECT?