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

2. 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.

3. 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

4. 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.

5. 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

6. 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?)

7. 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