SPONSORSHIPS. Objectives of this Simulation To understand how to negotiate a sponsorship deal To understand the nature and perceived value of different.

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Presentation transcript:

SPONSORSHIPS

Objectives of this Simulation To understand how to negotiate a sponsorship deal To understand the nature and perceived value of different kinds of sponsorship possibilities

What is a sponsor? Sponsors include organizations, firms, or individuals that give teams money in exchange for advertising rights on stadium signage and naming rights –Naming Rights: The exclusive right of a sponsor to have its name and logo on a stadium –Negotiation: The act of discussing an issue between two or more parties with competing interests in order to reach an agreement

Why Sponsor? Companies sponsor a sports team as a form of advertising, since they feel that the fans of the sports team are good candidates to buy their products Sports and entertainment businesses try to provide a wide range of sponsorship opportunities to meet the needs and budgets of all different types of potential sponsors

Sponsorship Opportunities Sports and entertainment businesses negotiate with potential sponsors to create the right mix of advertising opportunities at an acceptable price to the sponsors Potential sponsors have a wide range of advertising options, so sports and entertainment businesses must be careful not to wear out their patience with repeated, unacceptable offers

Advertising Opportunities Signage: The collective use of signs, symbols, or design. –Sports and event stadiums may reserve areas where sponsors can use signage for advertising purposes Small signage advertisements may appeal to smaller companies or local businesses Stadium naming rights may appeal to large national or international corporations