6.01 Explain the concept of sponsorship.

Sponsor

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

Sponsee

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

Sponsorship

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

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

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

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

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)

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

Event Triangle

Audience: the potential market

Entity: needs the

sponsor for financial

assistance

Sponsors: need the entity for

public recognition

Sponsorship is an

ongoing partnershi

p.

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

Why entities utilize sponsors

• Financial support• In-kind support

How the audience benefits from sponsorships

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