Play 7
Teaming with Sponsors
Sports Event Management and
Marketing Playbook
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Teaming with Sponsors: Overview
• Organizers must spend time researching
the best sponsor fits for his/her event
• The right sponsor program must present
value to the prospective sponsor and meet
budgetary expectations of the event
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Teaming with Sponsors: Overview
• Two basic varieties of sponsor benefits:
– Those that generate expenses against the
event budget
– Those that do not require additional out-ofpocket expenses
• Be sure to account for “cost of goods sold”
when budgeting for sponsorship
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Key Terms
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•
•
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Development costs
Fulfillment costs
Sponsorship scaling
Return on investment (ROI)
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Development and Fulfillment Costs
• Among the most overlooked calculations by
event organizers during the budgeting
process
• Development costs do not provide any value
to the sponsor and should be factored in as
“cost of goods sold” for the organizer
• Fulfillment costs represent the actual out-ofpocket expenses that an event organizer will
incur to provide the benefits to which the
sponsor is entitled
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Development Costs
• Sales commissions
• Sales expenses
– Travel and accommodations
– Business meals
– Business entertainment (event tickets and
hospitality during sales process)
– Gifts, merchandise, premiums
– Presentation materials (printing, binders/folders,
videos, web pages)
• Market research
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Fulfillment Costs
• Complimentary tickets
• Event signage and displays
• Printed and digital event guide and
program advertising
• Pre-event advertising
• VIP hospitality
• Sponsor gifts
• Sampling and giveaways
• Discounting and couponing
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
© John Wiley & Sons, Inc.
The Sponsorship Sales Process
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 1: Qualify
• Research to identify a well-defined
demographic in which to target
sponsorship packages for the event
– “Rifle shot” instead of “shotgun” approach
• Ideal prospects should share common or
similar target markets with the event
– Find synergy between sponsor brands and event
• Tailor the package, both sponsor benefits
and financial expectations, to each
potential sponsor
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 2: Design
• Scale the sponsorship categories in price and
availability based on the event budget
• Packages will vary in exclusivity, ownership, and
benefits, based on the budgetary needs and
organizer’s discretion
– Sponsorship Pyramid (Figure 7.4) provides a scaling
example
– Each level of the pyramid represents ascending
sponsor benefits, responsibilities, and prices
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
© John Wiley & Sons, Inc.
Step 2: Design
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 2: Design
• Customizing packages to fit the sponsors’
needs may increase sales and diversify
the returned value to the event organizer
• Evaluate the value of a package based on
factors such as cost to the organizer,
budgetary needs, and how many people
are engaged, for how long, and how
deeply
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 3: Test
• Research does not tell the whole story on
a sponsorship package’s effectiveness
• Testing the sponsor package on potential
sponsors allows organizers to prepare a
final pitch for potential sponsors
• Be concise when testing a package with
targets
– Stick strictly to trial assumptions and prepared
questions
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 4: Revise
• Use all collected intelligence to adjust to
pitch for maximum success
• A proposal customized to the needs of the
target sponsors will have the greatest
chance for acceptance
• Revise budget for changes in development
and fulfillment costs
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 5: Present
• Every presentation has two elements:
personal, verbal demonstration and
physical leave behind
– Verbal must be compelling and engaging
– Sponsorship deck should contain
comprehensive information that supports the
promoter’s arguments in a logical, easy-todigest format
• The presentation should always be
delivered in person
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 5: Present
• Basic components of a winning proposal:
1. Overview—Capture the tone and significance of the
event. Establish the legitimacy of the event and the
credentials of the organizer.
2. Introduction—Summarize the opportunities
presented by the event and objectives of the
presentation.
3. The Event—Present a more complete (but concise)
description of the property.
4. The Opportunity—Provide details on how the
company can get involved.
5. Next Steps—Conclude with a call to action.
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Step 6: Close
• Present the newly fashioned opportunity
and, again, ask for questions, comments,
and areas of concern
• Be prepared to negotiate on the spot if
further revisions are requested or required
• Respond immediately with solutions to the
company’s challenges
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Sponsor Perspective
• Always consider the prospective sponsor’s
point-of-view
• Return on investment (ROI) is the key
factor, but it is not always strictly financial
• Other factors include:
– Target audience alignment
– Mass appeal and reach
– Brand fit
– Pass-through rights
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.
Summary
• Meet the objectives of prospective
sponsors by designing a program of
benefits that suits their business wants
and needs
• Organizers must account for the fulfillment
costs of delivering each benefit to ensure
their net sponsor revenue goals
• Formalize the deal with a contract or letter
agreement that outlines the obligations of
each party, sponsor benefits, and all
financial and legal commitments
Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved.