SEM1 1.06 PI – Explain the use of Sponsorship and Naming Rights in sport/event marketing

Sponsorship Sponsorship is supporting an event, activity, individual, or organization by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as part of the publicity for the event.

Sponsorship Sponsors wish to be recognized and have affiliation with the event Financing can be in the form of money, products, services, equipment or any combination of the four Businesses, individuals or organizations can sponsor events Sponsorships include naming rights, can be corporate or product related and have multiple levels of involvement

Sponsorship is not Licensing In a sponsorship agreement, a company pays a fee to a team or an event for the right to affiliate itself with that team or event. You can usually spot a sponsor by looking for its advertisements at the game or its name on the promotions. For example, the PGA tournament lineup includes the Buick Invitational, the Buick Classic, and the Buick Open. At a recent Indiana Pacers game, fans received a team poster, courtesy of Pepsi.

Naming Rights Naming rights - a business, corporation or other entity purchases the right to name a facility or event. Typically for a defined period of time. (3-20 Years) Key players in a naming rights sponsorship are: Sport teams/owners – venue owners – corporations

Sponsorship Advantages and Disadvantages Buyer/sponsor/corporation Advantages Exclusivity in sponsorship or at a venue (No Wells Fargo ATMs at Bank of America Stadium) Maximize promotion of products and services Promote customer loyalty and or increase sales Public relations with the community Disadvantages This can be very expensive and may not reach your target market Team may have losing season or lose popularity (Does this reflect on the sponsor as well?)

Sponsorship Advantages and Disadvantages Seller/venue Advantages Increases revenue and public awareness of venue Pay for construction or maintenance costs at the venue Good public relations in gaining corporation support within a community Most naming right deals involve suite, and advertising purchase too Disadvantages Venue must protect it’s target market and sign with correct corporation Corporation could go bankrupt, engage in fraudulent activities, or be purchased