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Maximizing Sponsorship Benefits for Sporting Events

Explore the world of sports sponsorship, from defined roles to match-up hypotheses and acquisition considerations. Learn how sponsor revenues have grown and how companies strategically use borrowed equity. Discover the importance of sponsorship levels and exclusivity, along with budgeting considerations and sponsorship goals.

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Maximizing Sponsorship Benefits for Sporting Events

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  1. SPONSORSHIP 3.1 The Sponsor

  2. Event Triangle event Exchanges Benefits Ambush fan sponsor

  3. Role of Sponsorship DEFINED: Investment in a sports entity or property to achieve organizational goals Examples • The Dew Tour • Visa Halftime Show • Red Bull Space Jump

  4. 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

  5. Sponsor Revenues • Revenues from sports leagues comparing 2005 with 2012. SPORT2005 REVENUE2012 REVENUE NFL $560M $1.01B NBA $360M $610M MLB $380M $628M NHL $230M $372M

  6. Match-Up Hypothesis The idea that the sponsor should match up with the appropriate Target Market of the Sports Property Acquisition Consideration

  7. Ambush Marketing Company’s capitalizing on a particular event without paying any sponsorship fee

  8. 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 . . .

  9. Sponsorship Levels Champion Promoter Advocate Supporter

  10. Sponsorship Levels Title Founding Gold Silver Bronze Fun Run Post Race Pace Team

  11. Goals of Sponsorship Goals are either: Direct – easily measured “tangible” What can be measured? Indirect – not easily measured “intangible” What can be “felt” but not measured?

  12. 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

  13. EXCLUSIVITY

  14. Goals of Sponsorship Which goal is DIRECT? • Increase Sales • Increase Awareness • Be Competitive • Reach the Target Market • Build Customer Relationships • Develop Image

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