6.01 Explain the concept of sponsorship.

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6.01 Explain the concept of sponsorship.
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Sponsor

• A business, person or organization that finances
  a sports or entertainment entity.

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Sponsee

• The entity (event, sport, athlete, entertainer,
  or venue) that receives money for product from
  the sponsor.

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Sponsorship
The financing of a sports or entertainment entity
by a business in return for recognition
affiliation.
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Sponsorship (continued)

• Involves money, products or services
• Marketing exchange
• With any sport or entertainment entity
• In-kind sponsorship

• Forms
• Teams
• Governing bodies
• Athletes
• Facilities
• Event
• Sport
• Leagues

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Sponsorship (continued)

• Factors used to determine what to sponsor
• Increase in product sales
• Compatibility and image
• Tie-in
• Potential media coverage
• Exclusivity of competitors

• Types or levels
• Title sponsorship
• Presenting sponsorship

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History Growth of Sponsorship

• Roman times gladiators and chariot drivers
  would wear colors representing specific merchants
• 17th 18th centuries pubs in England sponsored
  horse races
• Mid 1800s local companies sponsored Harvard
  Yale rowing teams

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History Growth of Sponsorship (Continued)

• MLB first major league sport sponsored by
  corporations
• 1970s change in sponsorship because of ban of
  tobacco and alcohol ads
• 1984 Corporate sponsors of the LA Olympics
  (limit 30 sponsors)

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Increase in sponsorship

• Athletes as walking advertisements
• Ease of targeting a specific market
• Increase advertising costs
• Lifestyle sports
• Live programming of sporting events
• New media
• Nontraditional sporting activities

• Overcrowding of advertising
• Taxpayers not willing to increase the amount paid
  for sports

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Event Triangle
Audience the potential market
Sponsorship is an ongoing partnership.
Sponsors need the entity for public recognition
Entity needs the sponsor for financial assistance
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Why companies sponsor entities

• Help businesses reach their target market
• Increase sales
• Increase market share
• Inform potential customers about their product
• Enhance overall goals and objectives
• Give sponsors the right partner

• A way to introduce new products
• Increase public awareness or perception
• Prevent direct competition through exclusivity
• Repositioning
• Psychographics
• Networking opportunities
• Exposure and visibility
• Promote goodwill

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Why entities utilize sponsors

• Financial support
• In-kind support

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How the audience benefits from sponsorships

• Lower ticket prices
• Exposure to new products
• Free samples and give-aways
• Non-evasive advertising