SEM1 1.06

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SEM1 1.06

• PI Explain the use of Sponsorship and Naming
  Rights in sport/event marketing

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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.

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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

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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.

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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

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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?)

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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 its target market and sign
  with correct corporation
• Corporation could go bankrupt, engage in
  fraudulent activities, or be purchased