SPORTS AND ENTERTAINMENT Sponsorship

What Is Sponsorship? A sponsor is a person, organization or business that gives money or donates products and services to another person, organization, or event in exchange for public recognition

Reasons For Business Sponsorship To increase sales To introduce a new product to a large audience To compete where many potential customers are in one place To earn goodwill To be identified with an event that the target market likes To enter new markets To entertain clients, employees or potential customers To enhance the company’s image

Why Become a Sponsor? Businesses become sponsors to: Receive guaranteed exposure, recognition and acknowledgement Sponsors monitor their ROI (Return on Investment) and want it to be high

Niche Marketing Involves researching a target market to determine specific items or services a small group will buy Must understand the larger target market as well as the niche market for every event they sponsor

Auto Racing and Sponsorship NASCAR = #1 sport in fan loyalty and loyalty to sponsors Sponsors put logos on drivers’ uniforms, helmet, and car Receive extra PR when they win One of the most sought after target markets is men 12-34

Less Expensive Options Affinity Sports Niche markets whose participants are passionate about their sports but those sports aren’t traditional Bass fishing Rope jumping

Sponsorship and Your Career Many companies that want to advertise their products through sports hire outside consulting firms Many companies have their own special sports marketing groups within their marketing departments

Sports Agents Legal representative of a celebrity The celebrity pays the agent to manage their career including contract negotiations and endorsements Most are attorneys or accountants The complexity of contracts requires legal knowledge and negotiation skills The agent is paid a percentage of earnings to protect the client’s financial resources

Image Is Everything Celebrities can pay to have people look out for them professionally and personally, but ultimately they need to be responsible for their own behavior Character development takes time, but it can make the difference between a star and a wanna-be

Image Is Everything The number of crimes committed by pro sports players disturbs the general public Arrests hurt your ability to attract sponsors While teams, leagues and commissioners tend to overlook or forgive transgressions by highly skilled athletes, sponsors may not

Handlers Sponsors are now paying handlers to work closely with athletes who are unwilling or unable to police themselves

Handlers Henry Gaskins serves Allen Iverson as almost a foster parent. Gaskins (NBA) was employed to act as a full-time mentor, companion and off-court coach Iverson’s agent, knows that preventing problems is in the best financial interest of both Iverson and Reebok