3.1 The Sponsor

DEFINED: Investment in a sports entity or property to achieve organizational goals Examples

Using the appeal of an event or Sports Property to market a company and/or it’s products

Sponsor Profit Sponsor Profit – Projected revenue from sports leagues, teams, & events for 2005 with percent change in year. SPORT2005 REVENUE2004 CHANGE NFL$560M23.1 % PGA$900M17.0 % NBA$360M16.1 % MLB$380M11.8 % NHL$230M(strike) --USA TODAY, 10/14/2005, 5B

The idea that the sponsor should match up with the appropriate Target Market of the Sports Property Acquisition Consideration

Company’s capitalizing on a particular event without paying any sponsorship fee

Sometimes called a “Title Sponsor” The main sponsor of an event or arena Pays for the Naming Rights of event Events will separate sponsorship levels Usually named by value invested – Platinum + Gold + Silver + Bronze...

Goals are either: Direct – easily measured “tangible” What can be measured? Indirect – not easily measured “intangible” What can be “felt” but not measured?

Exclusivity in Sponsorship is in “Categories” Example: Fast Food, Non-Alcoholic Beverages, Banking Events – Want Narrow Categories for Exclusivity Sponsors – Want Broad Categories for Exclusivity – “THE OFFICIAL FAST FOOD OF OUR TEAM” Budgeting Considerations

1. Increase Sales 2. Increase Awareness 3. Be Competitive 4. Reach the Target Market 5. Build Customer Relationships 6. Develop Image