1. Sports & Entertainment Marketing Mrs. Wilson
Licensing
Sports & Entertainment Marketing
Mrs. Wilson

2. LICENSING: What DOES it mean?
An agreement that give a company the right to use another’s brand name, patent, or other intellectual property for a royalty or a fee
Licensor
Is the company or individual granting the license for a fee in this legally binding contract
Licensee
Is the company or individual paying for the rights to sue the licensor’s name or property

3. Licensed Products
In sports marketing, a company may pay a fee to use a league’s, team’s or individual’s name, image, or logo on a product or on its packaging
Sports figures on a box of cereal or T-shirt, you know that a company is paying a fee to that sports figure or team (licensor)
Ex: NHL web site will show the types of licensing deals

4. Mutual Advantages

5. The Products
Licensing agreements can apply to just about any product imaginable.
Apparel, key chains, toys, sports equipment, food products, credit cards, video games, and household items

6. Merchandising Licensed Goods
It is available through many channels of distribution
Department stores, chain stores, league-sponsored retail outlets, Internet
Some own their own retail stores
Sweepstakes and contests are run by a sponsor, with the prize being tickets to the sporting event

7. Merchandising Licensed Goods
Sponsors provide promotional support
Some licensed products are used as promo incentives for buying a product
Sports Illustrated:
You may receive a free video of that year’s most celebrated athlete.
The video is the licensed product.

8. Two Forms of Licensing: Sponsorships & Endorsements
What is the world’s most recognized logo?

9. Olympic’s Five Rings….

10. Companies Pay Top $$$
They pay for the right to be identified as one of the sponsors
Agreements are made called sponsorships or endorsements

11. Sponsorships
Promotional vehicles that financially support sports events
All major sports organizations use sponsorships

12. Importance of Sponsorships
Exposure & Free Publicity
Olympics—exposure is international
Research is done to measure the impact of sponsorship programs
Can you name a product or service that you associate with a sports figure?

13. Sponsorship Types Can be flexible
Can sponsor a team for a length of time or just an event
Just portions of an event—halftime sponsor
Signage--signs at a stadium
Hoods / Uniforms--NASCAR
Virtual Boards
Floorboards
Scoreboards

14. Premium Sponsorship
Two examples are entitlements and product exclusivity
Entitlement: Occurs when there is one major sponsor for an event
Ex: NASCAR signed a 10-year contract with Nextel (replacing who?? And why?)
Ex: PGA grants entitlement sponsorships for almost all of its schedule of its tour events (Buick Invitational, Sony Open, AT&T National Pro-Am)
Product Exclusivity: Only one product in a product category is granted sponsorship.
Ex: Coca-Cola sponsors the Olympics, therefore only Coke can be sold at the Games.

15. Evaluating Sponsorship Effectiveness
Why sponsorship works
affinity marketing
Define affinity—
An attraction to or liking for something
Relationship/Kinship
Why it sometimes doesn’t work
ambush marketing
Define ambush—
To attack

16. Ambush Marketing

17. Examples of Ambush Marketing
1984 Olympics: Kodak sponsors TV broadcasts of the games as well as the US track team despite Fuji being the official sponsor. Fuji returns the favor in kind during the Seoul 1988 games of which Kodak is the official sponsor.
At the 1992 Barcelona Olympics Nike sponsors press conferences with the US basketball team despite Reebok being the games’ official sponsor.
In the greatest ambush marketing feat of all time Nike’s man Michael Jordan, Air Sponsorship himself, accepts the gold medal for basketball and covers up the Reebok logo on his kit.

18. Nike’s Ambush
The 1996 Atlanta Olympics is still seen as the ambush of all ambushes.
Saving the US$ 50 million that an official sponsorship would have cost, Nike plastered the city in billboards, handed out swoosh banners to wave at the competitions and erected an enormous Nike center overlooking the stadium.
The tactics devastated the International Olympic Committee’s credibility and spooked other organizations such as FIFA into adopting more assertive anti-ambushing strategies.

19. Endorsements
This is a statement of approval of a product, service, or idea made by an individual or organization speaking on behalf of the advertiser
Usually involve celebrity figures or a public figure

20. Entitlements
Occurs when there is one major sponsor for an event. NASCAR signed a 10-year contract with Nextel to be its sponsor. Benefit is exposure to the 75 million fans in over 100 countries.
Also facility entitlements through which a company purchased the promotional rights to an entire stadium.

21. Product Exclusivity
Another premium sponsorship whereby only one product in a product category is granted sponsorship.
No other competitor’s products can be sold or promoted. “Pouring rights” at our school is an example.

22. Assignment (if time permits)
Name two forms of licensing and briefly describe them.
How do sponsorships benefit the sports organization and the sponsor?