Negotiate Sport/Event Contract

 Ultimate goal is gain the sponsorship contract!  Build Trust with the sponsor  Make sure both parties are “winners”

 Do your homework Know your alternatives or BATNA (best alternative to a negotiated agreement) in case the deal does not happen. Know your counterpart Know the Standards  Double and Triple Think-anticipate what the other party wants ( double ) and anticipate what the other party thinks you want ( triple ).

 External listening-actually listen to the other party.  Make an aggressive first offer. › Present multiple, equivalent, simultaneous offers. › But NO more than 3 offers at once!

 Move beyond “positions ” › Not be intimidated or intimidating › Own you Power-”position power” never assume because someone has titled position that he/she is the “all power”

 Always know the BATNA, (best alternative to a negotiated agreement) in case you aren’t successful.  Trademarks  Merchandising  Company status  Terms of contracts  Past sponsorships

 Fee and Payment Schedules  Exclusivity  Lead time  Reach  Brand Positioning  On-site sales  Signage  Product Placement  Ticket Discounts or Premium Tickets  Etc.

An important part of negotiating a sport/event sponsorship contract involves both the sport/event and the sponsor agreeing on the fee and payment schedule.

Prepare sponsorship agreement

A sponsorship agreement between a sport team and a local business should benefit both parties.

When preparing a sponsorship agreement, it is important for the sport/event to include detailed information concerning the sponsor's marketing rights

 Exclusivity.  Are companies willing to pay a higher fee to keep competitors from participating?  Can the sponsee use phrases such as “official sponsor” or “presented by”?

 Media package.  Exactly what type of coverage will be provided?  How much airtime will be provided?  Will sponsors need to purchase additional media coverage?  Will there be vignettes (short story, video or musical compellation)?  What type of signage will appear on television?  Will ad space be provided?  Will the sponsor’s name and logo be included on information sent out about the event?  Will the sponsor be able to conduct contests or advertising campaigns?

 Signage.  What type of signage will be available?  Will rotational and virtual signage be used?  Will banners be allowed or provided?

 Entertainment.  Will luxury boxes, hotel rooms and VIP passes be provided?  Will the sponsor have access to the athletes or stars?

 Merchandise rights.  Will there be an area to sell merchandise?  Will logos and trademarks be used?

 In-Kind.  Are sponsors willing to provide products?  How much non-cash sponsorship will be provided?

 Internet.  Will the entity provide links to corporate websites?  Will possible banner advertisements be provided?

 By assigning a staff member to communicate and coordinate activities with each of its sponsors, a sport/event organization facilitates goodwill by servicing their sponsors. (making sure that they are well taken care of from start to finish

Obtain endorsements for sports/event

 When an event planner seeks celebrity endorsements for an upcoming event, she/he should make sure they are credible and trustworthy.

 The selection of a particular entertainer to endorse a new product should be directly linked to the company's image

 What portion of the license agreement specifies the exact begin and end dates of the contract term

 What does the license grant portion of the license agreement specify Which properties are being licensed and what types of merchandise will be produced

 What should every sport organization do before registering a trademark Conduct a trademark search for conflicting/similar marks

 Professional sport franchises' marks are considered service marks because of the entertainment value of sporting events.

 Trade Dress - product's physical appearance, including its size, shape, color, design, and texture. In addition to a product's physical appearance, trade dress may also refer to the manner in which a product is packaged, wrapped, labeled, presented, promoted, or advertised, including the use of distinctive graphics, configurations, and marketing strategies It protects the distinctive appearance/image of a good or service.

 Any Questions????