1. 1.14-B Selling Sponsorships
Matching events and sponsors
Win-win if the match is right
Striking the deal

2. OBJECTIVE – A Explain why to form partnerships.

3. What’s the Deal?
Although ticket sales are a revenue source, they aren’t enough to support a sport/event organization.
a. Sponsorship money is needed to make the sport/event all that it can be.
b. Unfortunately, that sponsorship money has to be sought out—it doesn’t just magically appear.

4. WHY SPONSORS?
Begin the process of selling sponsorships by determine what your organization needs to gain from the partnership.

5. Benefits of Sponsorships
Main benefits of sponsorship are Fees.
Most sport/event organizations want or need
the money from the fees sponsors pay to enter
into the partnership.

6. Value in Kind (VIK) Lower costs on the goods and services they need.
Example:
1) You are working for a baseball team.
2) Before every home game, your team provides visiting coaches, scouts, members of the media, and other important guests a meal in what’s called “the press dining room.”
By offering Subway or the caterer a sponsorship in which it can pay part of or its entire fee by providing food for the press dining room, you create a win-win situation.

7. Value in Kind (VIK)
Adding a sign to the outfield advertising the caterer or renaming the seventh-inning stretch the “Subway Seventh-Inning Stretch” costs you a lot less than buying all of that food.
c. These types of arrangements are known as value in kind (VIK).

8. Exploitation
The sponsor’s investment in advertising and promoting the organization or event above and beyond the basic partnership.
1) Advertising in stores, in newspapers, on the Internet, on the radio, and on television
2) Offering special promotions designed around the sponsorship

9. Why sponsors need sport/event organizations
A. Sponsors enter into partnerships with sport/event organizations for a variety of reasons:
1. Increasing sales
a. Almost every sponsor’s ultimate goal is to sell more of its product.
b. Because of the relationship it forms with a sport/event organization, increased sales are a possibility.

10. Why sponsors need sport/event organizations
Increasing Awareness a. Sponsors are always looking to heighten consumer awareness of their corporate or brand name and their products.

11. Why sponsors need sport/event organizations
Enhancing public relations
Keep in mind that sponsors are looking for sport entities
that display the same characteristics and qualities that
they want consumers to associate with their products.
For example, luxury car makers like to associate with
sports that consumers view as classy,” such as golf or
sailing.

12. For example: Luxury car makers like to associate with
sports that consumers view as classy,” such as
golf.

13. Relationship marketing
A strategy in which businesses spend time with current
and prospective clients outside the office setting to
enhance the partnership.
Product positioning is the sponsor’s privilege of having its goods or services used at the event.
Selling Lay’s Potato Chips at your event is giving the company excellent product positioning as a result of its sponsorship agreement with you.

14. Exclusivity
The sponsor’s privilege of being the only company in its particular category of goods or services.
By being the only bank affiliated with your sport/event
organization, Bank of America is enjoying exclusivity.

15. “Ownership”
The sponsor’s opportunity to “own” part of the event, such as the pre-game show or the MVP award.
Naming the pre-game report the “The Taco Bell Pre-Game Report.” for gives the company “ownership” in your event.

16. Advertising Advertising opportunities abound at games and events.
Signs near the playing area, PA announcements, logos on the scoreboard, promotions during intermission—you name it, and you can turn it into a way to plug your sponsors’ names.

17. Hospitality Sponsors treat clients and guests to premium seating in:
Luxury boxes
Exclusive private parties,
Meet athletes or celebrities

18. Sales and sampling Sponsors are attracted to the benefit of being
able to:
Set-up booths to demonstrate products
pass out coupons
provide samples
Taste tests.

19. Fundraising Sponsorship highlight special causes and raise money for
Many potential sponsors are looking for ways to
connect with and give back to the community.
Sponsorship highlight special
causes and raise money for
charities they support.

20. OBJECTIVE B – Demonstrate procedures for selling sponsorships.
I still work hard to know my business. I'm continuously looking for ways to improve all my companies, and I'm always selling. Always.
Mark Cuban

21. Making the Sale: How to Present Sponsorship Opportunities

22. 1. Research target & potential sponsors
After you’ve done so you can:
Tailor sponsorship packages for specific sponsors
Present sponsorship
Opportunities
Revise proposals

23. 2. Tailor the sponsorship package for each specific prospect.
Title sponsorship—the most expensive level; one sponsor whose name will become part of the event name (such as the Sprint Cup Racing Series)
Presenting sponsorship—similar to title sponsorship, except the sponsor’s name comes after the event name (such as the Grand Ole Opry presented by Cracker Barrel Old Country Store); may have more than one presenting sponsor

24. Exclusive sponsorship
also called “official partners” or “official suppliers”; exclusive only to their specific category (soft drink, credit card, financial services, etc.)

25. Present the sponsorship opportunity.

26. Meet In person
The best way to present your proposal to potential sponsor companies is in person.
Make the initial contact with the company, and ask for a face-to-face meeting with the decision makers you’ll need to convince.
Only send your materials through the mail if you
absolutely cannot get a meeting. Mail, phone, and
teleconference are not good options for making a
sponsorship presentation.