Standard Three Students will identify and develop sponsorship offerings for a sports marketing event.

Chapter 4 Understand and develop a sponsorship proposal and contract

Sponsorship – Is a situation in which a company pays a promoter a fee for the right to associate itself and its products with his or her event. Sponsorship Proposal – A written proposal that outlines the various benefits offered to a prospective corporate partner.

– Term or the length of the agreement What is included in a sponsorship proposal (Content) – Exclusivity – Television – Signage – Entertainment – Display/Merchandise – Promotions/Public Relations – Advertising – Cost Proposal Components

Sponsorship Levels – Title Sponsor pay the most money, lead sponsor for the event – Presenting sponsor – Official product sponsor – Associate sponsor Signage – The most visible benefit that you provide the sponsor – DORNA is a company that introduced rotating signage – Virtual signage is recent trend in signage Sponsorship Levels

Exclusivity Sponsor Exclusivity – Is going to be expected by a prospective sponsor – The event will want their categories defined narrowly. – The sponsor will want a broadly defined category.

Costs Associated with Sponsorships: – Cost of events covered by sponsorship – Cost of servicing sponsorship sold – Value for Value you will provide and the premium on that for the “value added.” – What you think the market will bear. Sponsorship Sales Process – Prepare yourself – Cold Calling – Closing the deal (The most important part of the sales process) Costs of Sponsorship

Types of Sponsorship Sales – Prepare yourself Know your product and your parameters Know their product Practice your speech Exercise perseverance Exhibit personality Ask for a meeting. – Cold Calling – Pitch letters Selling Sponsorships

Relationship Marketing Relationship Marketing/Development – Nothing will replace a solid relationship with your sponsors. – The key to your relationship with you sponsors is communications. – Corporate relationships are with people – Marketing strategies change – People move on to new companies

Benefits – A very specific outline of everything that you are granting to the sponsor – The paragraph on which you will eventually be judged by your corporate partners. Obligations – Where your benefits are listed Sponsorship fees Promotional obligations Products or services they provide Sponsorship Benefits

Insurance? Indemnity – Making sure that you are separated from your sponsors for things that might go wrong with their product during your event or at times otherwise related to your event Insurance in a sponsorship contract – Is to protect you and your organization

Legal Implications Confidentiality – Both parties have to be able to keep their mouths shut about sensitive issues! Laws that may effect sponsorships – Your goal should be to avoid any litigation with your sponsors – Make deals with people, not companies.

Contracts Sponsorship Contract – Parts of sponsorship contract Term Event definition Sponsor obligations Insurance and confidentiality

Sponsorship Letter of Agreement – Term – Event – Site/Date – Sponsor benefits – Obligations – Warranties – Indemnity – Insurance – Assignment – Waiver – Employer/Employee Relationship Letter of Agreement

Sponsorship Letter of Agreement Cont. – Notices – Terms of Agreement Confidential – Significance of Paragraph Headings – Governing Law – Sever ability – Force Majeure – Entire Agreement

Evaluations Sponsorship Evaluations Evaluations are on-going during an event Used to improve and manage offerings Typically conducted by management & staff Evaluation Methods/Measurement Methods – SWOT

Evaluations Evaluation Time-Line /Measurement Time-Lines – How close to the time deadline are you? SWOT S = Strength –Things that went well, positive results W = Weakness –Things that went poorly, room for improvement O = Opportunities –Things/areas that can be improved, capitalized T = Threat –Things which could become a problem, area of concern

S. W. O. T. How is SWOT Used? – It should be an ongoing process everything should be evaluated through all phases of the event