Ystrad Mynach College

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Sponsorship

• by
• Ystrad Mynach College

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What is Sponsorship?

• Sponsorship is a process by which a company,
  organisation or individual provides an individual
  organisation with funds, products or services for
  commercial advantage.
• Sponsorship is a business relationship and should
  be mutually beneficial to the sponsored
  individual and the sponsoring company.
• Most companies seek a return to their support or
  investment, ranging from goodwill within the
  community to more complex benefits such as media
  exposure, increased sales and brand awareness.
• Sponsorship is about building a long term
  relationship. The longer it lasts, the more its
  worth.

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Why Sponsorship?

• There are many different reasons why companies
  enter the sponsorship marketplace, ranging from
  brand awareness to satisfying a Chief Executives
  personal passion!
• Here are a few of the most common objectives that
  companies seek from sponsorship programme
• To increase sales
• Develop customer loyalty
• Heighten brand awareness
• Develop new market
• Develop business to business relationships
• Launch new brands
• Broaden customer base
• To develop community relations
• To change or revitalise brand image.

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The Sponsorship Market

• The bulk of major sports sponsorship deals in the
  UK and Europe are shared amongst the following
  industry sectors
• Automotive
• Consumer Electronics
• Clothing
• Information Technology
• Fast Moving Consumer Goods (FMCG)
• Tobacco
• Alcohol
• Financial Services
• These are not the only industries and athletes
  may have to think outside the box for companies
  to approach.

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• ADDED VALUE - Sponsors look to sport to add value
  to the brand proposition. In almost all sectors
  of all markets there is intense competition among
  companies and brands. Often there is little to
  choose from in terms of quality, content or
  price. In order to make a brand stand out from
  the crowd a sponsor will use sport to create a
  unique position in the mind of the consumer.
• At the highest levels, sport involves gold
  medals, world records, championship cups and
  global awareness. A world-wide, leading brand
  such as Coca-Cola wants to associate itself with
  such excellence and ubiquity so has chosen the
  Olympics and football World Cups for its
  sponsorships. But in order to personalise and
  localise its image and activity, Coca-Cola also
  supports grass roots sport to reinforce its
  global message.
• Smaller companies can also benefit from improved,
  awareness images and sales through sponsorship at
  a local or regional level the principles are the
  same, the only difference is scale. Companies use
  sports sponsorship for a variety of reasons, and
  to attract sponsorship it is important to
  understand which objective a company is
  addressing

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Relationship

• Brand/Corporate image attempts to create a
  personality and style which distinguishes a
  product from another in the market and allows,
  for example, premium pricing.
• Customer relations sports sponsorship can open
  dialogue between companies, showing the sponsor
  as a global player worthy of recognition and
  suitable to do business with. Sponsorship can
  also provide suitable hospitality vehicles to
  meet and do business with clients.
• Employee relations sports sponsorship can
  encourage company pride and loyalty to help
  attract and retain staff.
• Community relations sponsorship can show that a
  company cares about it community and is prepared
  to invest in its future and the welfare of its
  citizens.
• Brand/Corporate awareness seeks to put a name in
  front of the consumer so that he will give it
  favourable recognition when exposed to other,
  specific marketing messages.

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What a company looks for

• A UNIQUE PROPERTY - Sponsors are looking for
  sports properties that can make a valuable and
  quantifiable contribution to existing or planned
  brand communications. To do so the sponsorship
  must have a good fit with the brands personality
  and, ideally, be unique to that brand so that
  there is no consumer confusion.
• A sponsor wants to create activities that are
  enjoyable and memorable for audiences and
  participants and provide them occasions to build
  the brand values and to develop sales
  opportunities and volumes. A beer company, for
  example, will gain national television awareness
  through sponsoring a rugby international but will
  also have the chance for thousands of spectators
  to sample its products in a favoured environment
  leading, hopefully, to repeat purchase away from
  the match.
• Top of the list of most sponsors requirements is
  media coverage. Sporting events create thousands
  of opportunities for exciting and interesting
  newspaper photographs and television images
  showing sponsor logos on shirts or banners. Such
  exposure creates brand familiarity for consumers
  making the logo stand out from competitors when
  consumers are in the supermarket or high street
  looking to spend money.

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Sponsorship deals in football

• The biggest sponsorship deal in football belongs
  to Juventus.
• They get 15m a year.

• Manchester United now have the second largest
  sponsorship in the world behind that of Italian
  side Juventus, who have a deal with Tamoil worth
  in excess of 15 million per year.

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Manchester United Sponsorship

• AIG - Official kit sponsor
• Nike - Official kit manufacturer
• AirAsia - Official airline
• Audi - Official automobile and dugout seat
  provider
• Betfred - Official gambling partner
• Budweiser - Official beer
• Tourism Malaysia
• On 23 November 2005 Vodafone ended their 36
  million, four year shirt sponsorship deal with
  Manchester United.
• Manchester United now have the second largest
  sponsorship in the world behind that of Italian
  side Juventus, who have a deal with Tamoil worth
  in excess of 15 million per year.

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Evaluating your sponsorship

• OBJECTIVE ASSESSMENT - Self evaluation of a
  project is an essential tool to measure
  performance against objectives and to provide a
  reporting process for the sponsor. It
  demonstrates to a sponsor that their investment
  is valued, what return they have achieved and
  provides data to help sell future sponsorships.
• KEY PRINCIPLES
• Measuring participation - A sponsor wants to
  reach a specific sector of the market so data on
  participants that details age, sex, ethnic origin
  or socio-economic groups can help measure
  success.
• Measuring skills - Achievement of sporting
  objectives can be measured by noting before and
  after performance levels of participants. Sports
  match needs to know this and the data will aid
  the search for future sponsorships.
• Photographic record - One of the best ways of
  showing the impact of a sponsorship is
  photographs participants, spectators, sponsor
  branding will all help tell the story of your
  success.
• Media Monitoring - Collect press clippings, count
  column centimetres of coverage and the number of
  photographs and sponsor mentions. Record or note
  broadcast mentions and keep copies of
  advertisements and other branded materials.

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Sponsorship

• Sponsorship is a commercial agreement between a
  company and a sport to enter into a joint venture
  to promote their mutual interests. In return for
  a financial contribution a sports organisation
  will allow the use of its name in commercial
  activities. These activities can be as varied as
  the imaginations of the participants. Some of the
  most obvious are
• Display of the brand name on kit, banners around
  the venue, advertisements in programmes, and on
  other merchandise.
• Use of the club, event, team or individual in
  advertisements and other promotions undertaken by
  the brand.
• Personal endorsement of the sponsors products by
  teams or individuals by use of their products,
  kit or equipment
• Production of joint websites or developing close
  links between separate websites. For examples of
  this in action you only have to think of the
  Vodafone sponsorship of Manchester United, Tiger
  Woods endorsement of Nike products or the website
  work done by Guinness as a sponsor of the Rugby
  World Cup.

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• Most sponsorships are paid for in cash, but
  in-kind sponsorship can be useful and effective.
  Instead of money, the sponsor provides equipment,
  services or management expertise as all or part
  of its fee for the rights to a sporting activity.
  Companies may also provide money to sporting
  organisations in other ways.
• Charitable donations - No commercial return is
  expected although a company make use donations to
  be seen as a good corporate citizen.
• Corporate patronage - A half-way house between
  donations and sponsorship, patronage generally
  provides only some recognition of a companys
  activity among a relatively small, though
  influential, group. It is more common in the arts
  than sport.
• Corporate hospitality - The opportunity to meet
  customers and contacts in informal enjoyable
  circumstances to pursue business objectives. It
  is often part of a sponsorship package.
• Public/community relations - Sponsorship of sport
  can be used to meet objectives on a companys
  social or political agenda. The aim is not to
  sell products but to improve a companys image as
  an employer, corporate citizen or contributor to
  the economy.

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Sponsorship is very wide ranging. It can be
sponsorship of one-off events such as a tennis of
golf tournament, or it can be a long-term three
year sponsorship of a league such as the football
league. Sponsorship can be of individuals such
as the Adidas sponsorship of tennis player Ivan
Lendl. Finally, sponsorship can be of a group of
individuals forming a team or club, such as the
02 sponsorship of Arsenal Football
Team. SPONSORS pay all the costs of the
administration of the scheme as well as providing
the badges and certificates. The sponsor gets
publicity when the certificates and badges go
home to parents with sponsor's name prominent.
The SPONSORS also hope to get credit from the
public for encouraging young people to take part
in sport and to improve their ability. SPONSORS
sometimes pay for running coaching and teaching
courses which lead to official recognition. These
awards are for adults in clubs, schools or sports
organisations
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Advantages of Sponsorship

• For the Sponsor
• PUBLICITY The sponsor's name will be brought to
  the attention of the public. An event may be
  named after the sponsor, or the sponsor's name
  will be prominently displayed on advertising
  boards or on the shirts of the players. The
  sponsor's name will be seen on the TV and in
  newspapers, and will be heard on the radio and in
  everyday conversation.
• FINANCIAL - Companies who put money into
  sponsorship are able to reduce their tax bill.
• IMAGE - It is good for a sponsor's image to be
  linked with a popular, healthy pastime like
  sport. It is also good to be associated with
  success (e.g. if a great athlete like Steve Cram
  is seen to be wearing Nike running shoes, then
  people will assume that Nike shoes are the best
  and will buy them). Companies will pay the top
  athletes many thousands of pounds to wear their
  goods.

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Advantages of Sponsorship

• FOR THE SPORT
• EXTRA INCOME - In professional sport, sponsorship
  means that big prize money can be paid and events
  can be organised on a very large scale without
  the spectators having to pay huge admission
  prices. In amateur sport, sponsorship often means
  the difference between an event or team surviving
  or having to fold. The extra income can be used
  to pay for new kit, or for transport costs which
  otherwise would be too expensive for the players
  to afford. Other expensive items are league entry
  fees and registrations, hire of facilities and
  payment of referees. Some or even all of these
  items may be paid for by the sponsor.
• RAISES STANDARDS - If a team is sponsored it may
  attract more or better players, thus raising the
  quality of the team. If an event is sponsored it
  will be better organised and may be able to
  expand to allow more teams/players to take part.
  Sponsorship often means a team or athlete can
  receive high quality coaching. In some cases
  sponsorship has allowed athletes to give up
  full-time work and concentrate on their sport.
  The top track and field stars are able to do
  this. Skaters torvill and dean were able to
  become world champions after Notts County
  Council's sponsorship enabled them to give up
  work.
• STATUS - Being sponsored gives a team status. If
  a company is prepared to give money to a team,
  then people will tend to think that the team must
  be a

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Disadvantages of Sponsorship

• FOR THE SPONSOR
• POOR VALUE - The sponsor may feel they have not
  received enough publicity for the amount of money
  they have given. There are many ways a company
  can publicise itself, and doing it through sports
  sponsorship is fairly risky. If a team or event
  is a massive success and attracts media
  attention, then the sponsor has had good value.
  If the team or even was a failure with little or
  no media coverage, then the sponsor will have had
  poor value for money.
• BAD IMAGE - During the time a sponsor is under
  contract with a sport, the image of the sport may
  suffer and thus damage the image of the sponsor.
  (Canon Electronics who sponsored the Football
  League for 1984-86 were rumoured to have pulled
  out of their sponsorship because of the very bad
  image of football caused by the Bradford and
  Brussels disasters).
• ONLY 1 WINNER - It is important to the sponsor to
  be associated with a team or individual that is
  successful. Sponsors associated with teams who
  are failures will not get the right kind of
  publicity. (E.g. if team is relegated from the
  Premiership this is not the right kind of
  publicity, but if a team is champion this is a
  different matter).

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Disadvantages of Sponsorship

• FOR THE SPORT
• DEPENDENCE ON SPONSOR - Many sports become too
  dependent on sponsorship. when National League
  Basketball was televised by Channel 4, the sport
  was inundated with sponsors and a lot of money,
  but when Channel 4 pulled out so did most of the
  sponsors and almost caused a collapse in the
  League.
• MAJOR-MINOR GAP - The difference between the
  heavily sponsored major sports (Football,
  Cricket, Motor Racing, etc.) and the minor sports
  who attract little or no sponsorship, has grown
  enormously in the last two or three decades. this
  over-emphasis on a few big sports is bad for
  sport generally.
• NO CONSULTATION - When there is an agreement
  between a large sporting body and a sponsor, the
  sports players may have to wear or use their
  equipment whether they, as individuals, approve
  of the sponsor of not. There is often no
  consultation of the people who have to wear the
  sponsor's name.

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By Ystrad Mynach College