Transcript SEM1 1.06 Sponsorship and Naming Rights

SEM1 1.06
• PI – Explain the use of
Sponsorship and Naming Rights
in sport/event marketing
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.
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
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.
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
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?)
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 it’s target market and sign with correct
corporation
• Corporation could go bankrupt, engage in fraudulent activities, or be
purchased