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WE ARE REPUCOM

GLOBAL LEADERS IN SPONSORSHIP METRICS

EXPERTISE BY REPUCOM YOUR CONTACT PERSON: ANNALIE WATT

JOHANNESBURG I 28.11.2014

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SPONSORSHIP RIGHTS VALUATION

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WE ARE REPUCOM

ANNALIE WATT JOHANNESBURG

SPONSORSHIP VALUE DELIVERY

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SPONSORSHIP VALUES

COMMUNITIES

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SPONSORSHIP VALUES

PASSION

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SPONSORSHIP VALUES

BUILD, ENGAGE, EXPERIENCE

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SPONSORSHIP RIGHTS VALUATION is a combination of the quantities pertained in the rights:

QUANTITY to a point of diminishing returns

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SPONSORSHIP RIGHTS VALUATION also considers the quality of the rights included:

QUALITY the right itself, the audience/s, the access, the promotional content

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SPONSORSHIP RIGHTS VALUATION also looks at the quality of execution :

EXECUTION by the RIGHTS OWNER

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SPONSORSHIP RIGHTS VALUATION takes into consideration:

GEOGRAPHIC REACH/IMPACT

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SPONSORSHIP RIGHTS VALUATION takes into consideration:

SPECIFIC DEAL TERMS

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SPONSORSHIP RIGHTS VALUATION takes into consideration:

EXCLUSIVITY

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SPONSORSHIP RIGHTS VALUATION takes into consideration:

INTANGIBLE BENEFITS

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SPONSORSHIP RIGHTS VALUATION CALCULATION

‘STOCK’  ‘PACKAGED’ stock items (i.e. quantity x quality of rights) ‘packaged’, have a marketing value

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SPONSORSHIP RIGHTS VALUATION

Valuation of Sponsorship Rights Packages » The valuation of sponsorship rights needs to go way beyond simply valuing media

impressions

» Value  the  sponsorship  rights  ‘quality’  and  not  the  medium  or  exposure  only

» Value tangible benefits

» Value intangible benefits

» Take into consideration multipliers for geographic reach/impact

» Multipliers for specified deal terms

» Scope of exclusivity

» Cost/benefit ratios

» Price adjusters to rights fee – potential factors

» Desirability of the property to sponsors and specific sponsor categories, geographic

concentration or reach/impact, inclusion of specific rights i.e. concession rights, unique and

exclusive promotional content or items, consider the value of the clients promotional

commitment, multi-term contract discounts, introduction of new sponsors

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SPONSORSHIP RIGHTS VALUATION

Sponsorship Rights Valuation Methodology

» Industry standards are used to determine tangible and intangible benefits, cost/benefit

ratios and multipliers for geographic reach

» Calculated by analyzing patterns between

» The Rights Fees sponsors pay

» and the Benefits they receive

» Primary research includes

» Surveys of sponsorship opportunities

» Audits of sponsorship contracts each year

» Valuations of multiple sponsored properties

» Benchmarking against international properties

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SPONSORSHIP RIGHTS PACKAGE VALUATIONS DONE TO DATE

RUGBY FOOTBALL OTHER SPORT ARTS & CULTURE

Springbok Team ABSA Premiership Comrades Marathon Lion King, CATS

Springbok Sevens Team Bafana Bafana Two Oceans Marathon Beauty & the Beast

IRB Seven Series Event in SA Kaizer Chiefs FC Moses Mabhida Stadium High School Musical

ABSA Currie Cup Mamelodi Sundowns FC Cape Town Stadium SA Fashion Week

SA Rugby Youth Weeks Platinum Stars FC Ironman SA Elle Style Awards

Griqua’s  Rugby  Union Amazulu FC ABSA Off Road Championship Cape Town Book Fair

Puma’s  Rugby  Union Santos FC Toyota Dakar Team EAT OUT Awards

Toyota Cheetahs Ajax Cape Town FC Virgin Active adidas partnership KKNK, Aardklop

Tri-Nations Maritzburg United FC SA Women's Hockey team VryFees, SuidOoster

Incoming & Outgoing Tours Bay United FC JP Morgan Corporate Challenge, Jhb SAFTA’s,  MK  Awards

The Sharks Manchester United local partner

package Kings Park Stadium SA State Theatre

Metropolitan SASFA u.16 Cup Royal Bafokeng & The Campus Flux Trend Review

Metropolitan Bayhill u.19 Cup Coca Cola Dome Spier Arts Festival

ABSA Cape Epic Somerset College

T20 International Team & Series Wedding Expo

Titans & SuperSport Park KZN PO

Nelson Mandela Golf Championship CT Int Jazz Festival

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BOTSWANA PREMIER LEAGUE

BOTSWANA PREMIER LEAGUE VALUATION OF THE SPONSORSHIP RIGHTS INCLUDED IN THE TITLE SPONSORS' – SPONSORSHIP RIGHTS PACKAGE

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BOTSWANA PREMIER LEAGUE

BOTSWANA PREMIER LEAGUE The Botswana Premier League is the commercial wing of the Botswana Football Association. The league has existed since 1966. The championship was initially called the MLO Cup. The first edition in 1966, included teams such as Tlokweng Pirates, Notwane, Black Peril, Queens Park Rangers and a team from Ngwaketse district. The league is contested by 16 teams and played over a period of +- 38 weeks. The league runs from early August to mid May. This valuation looks at the 2013/2014 season played from 8th Aug 2013 to 17 May 2014 and broadcast on BTV (Botswana Television)

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BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

Tangible Benefits » Guaranteed Sponsor ID and/or editorial in Non Measured Media – collateral and

publications

» Match day tickets

» Season tickets

» Envelopes

» Match day programmes – front cover

» Invitations – e-mailed

» BPL twitter account – sponsor specific & generic

» BPL face book page – sponsor specific & generic

» Value : P 1 505 377

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Tangible Benefits » Guaranteed Sponsor ID in Non Measured Media – on-site signage, announcements and

clothing

» Advertising perimeter boards –

» Player entrance branding

» A-frames

» Flags & billboards

» Substitute boards

» Parking areas

» Branding on cheques

» Branding at BPL Awards Evening

» Branding at monthly press briefings

» Branding rights – Annual General Assembly

» PA announcements –

» Ball boys

» Value : P 1 275 430

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Tangible Benefits » Guaranteed Sponsor ID in Non Measured Media – player and official clothing

» Player clothing – match shorts and shirts

» BPL Club officials golf shirts and Premier League clothing for BFA staff, BPL staff, standing

committee members, and promotional clothing/gifts for BPL guests

» Value : P 1 140 155

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Tangible Benefits » Guaranteed Sponsor ID in Measured Media – television coverage; BTV broadcasts

» Television – based on all, primary broadcasts on Botswana TV; *Repucom QI values

» BeMobile Premier League

» BeMobile

» BTC

» Value : P 5 633 370

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 24

BOTSWANA PREMIER LEAGUE 2013/2014

November 2014

Expertise by REPUCOM

Your contact person: Shaun Custers

Primary broadcasts

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 25

TV BRAND EXPOSURE

BOTSWANA PREMIER LEAGUE 2013/2014

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 26

Property Exposures Duration 100% Media Equivalency QI Media Value QI Score

Static Dugout Wall 122 558 R 109 452 R 23 504 21.47

Static Dugout Roof 98 451 R 88 464 R 16 707 18.89

Total 220 1 009 R 197 915 R 40 211

EXPOSURES Total number of times each

brand appears during broadcast

DURATION Total time brand appears on

screen, measured in seconds

100% MEDIA EQUIVALENCY Gross media value of brand

exposure during broadcast

QI MEDIA VALUE Adjusted value of brand exposure

during broadcast (see QI definition)

QI SCORE Quality score for each brand exposure

during broadcast, based on four factors:

Property Property represents the source

location where the brand

exposure was recorded

1. SIZE OF THE LOGO

QI methodology provides a

higher valuation weighting for

brand exposures that appear

larger on screen and have a

greater level of impact on the

viewer.

2. LOCATION OF THE LOGO

QI methodology provides a

higher valuation weighting for

brand exposures that occur in

the middle 50% of the screen

where the broadcast is

focused.

3. DURATION OF EXPOSURE

QI methodology provides a

higher valuation weighting for

brands that appear on screen

for longer periods of time.

4. MULTIPLE BRAND HITS

QI methodology provides a

higher valuation weighting for

brand exposures where

multiple brand hits occur.

HOW TO INTERPRET REPUCOM DATA

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 27

Primary Coverage

P 20 814 233

P 4 311 927

Secondary Coverage

No Secondary

No Secondary

Static Board Substitute Board

Total Primary & Secondary Coverage

P 20 814 233

P 4 311 927

100% Media Equivalency

QI Media Value

BOTSWANA PREMIER LEAGUE 2013/2014 – BEMOBILE Primary TV coverage on

Static Board 45 933 159 195 P 16 301 568 P 3 140 561 19.27

Media Backdrop 1 337 33 648 P 3 445 555 P 913 091 26.50

General Signage 1 658 5 180 P 530 432 P 122 579 23.11

Bench 1 765 3 905 P 399 872 P 97 443 24.37

Shirt Sleeve 430 862 P 88 268 P 26 813 30.38

Substitute Board 241 359 P 36 761 P 8 155 22.18

Player Warmup 37 104 P 10 649 P 3 021 28.38

Shorts 3 7 P 716 P 159 22.20

Team Staff Apparel 1 4 P 409 P 100 24.65

TOTAL 51 405 203 264 P 20 814 233 P 4 311 927 20.72

beMobile

Location Exposures Duration100% Media Equivalency

QI Media Value QI

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 28

Bench Static Board

BOTSWANA PREMIER LEAGUE 2013/2014 – BEMOBILE

Shirt Sleeve

Trousers General Signage Media Backdrop

Primary TV coverage on

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General Signage TVGI On Screen Info Text

100% Media Equivalency

QI Media Value

BOTSWANA PREMIER LEAGUE 2013/2014 – BEMOBILE PREMIER LEAGUE Primary TV coverage on

Primary Coverage

P 668 262

P 189 086

Secondary Coverage

No Secondary

No Secondary

Total Primary & Secondary Coverage

P 668 262

P 189 086

Static Board 1 649 3 825 P 391 680 P 85 142 21.74

TVGI On Screen Info Text 120 1 709 P 175 001 P 78 522 44.87

General Signage 132 992 P 101 580 P 25 421 25.03

TOTAL 1 901 6 526 P 668 262 P 189 086 28.30

beMobile Premier League

Location Exposures Duration100% Media Equivalency

QI Media Value QI

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 30

Static Board Media Backdrop

100% Media Equivalency

QI Media Value

BOTSWANA PREMIER LEAGUE 2013/2014 – BOTSWANA PREMIER LEAGUE Primary TV coverage on

Primary Coverage

P 3 922 636

P 1 366 341

Secondary Coverage

No Secondary

No Secondary

Total Primary & Secondary Coverage

P 3 922 636

P 1 366 341

Media Backdrop 1 452 32 385 P 3 316 224 P 1 223 011 36.88

Static Board 2 396 5 922 P 606 412 P 143 329 23.64

TOTAL 3 848 38 307 P 3 922 636 P 1 366 341 34.83

Botswana Premier League

Location Exposures Duration100% Media Equivalency

QI Media Value QI

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 31

Static Board

100% Media Equivalency

QI Media Value

BOTSWANA PREMIER LEAGUE 2013/2014 – BOTSWANA TELECOMMUNICATIONS COMMUNITY Primary TV coverage on

Primary Coverage

P 6 218 137

P 1 132 357

Secondary Coverage

No Secondary

No Secondary

Total Primary & Secondary Coverage

P 6 218 137

P 1 132 357

Static Board 22 509 60 724 P 6 218 137 P 1 132 357 18.21

TOTAL 22 509 60 724 P 6 218 137 P 1 132 357 18.21

Botswana Telecommunications Corporations Limited

Location Exposures Duration100% Media Equivalency

QI Media Value QI

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Tangible Benefits » Tickets & Hospitality, Interactive Opportunities on-site & Additional Services –

» Premier League Awards Night

» Press conferences

» VIP area

» VIP tickets

» Grandstand tickets

» Matchday tickets

» Product display

» In-stadia activations

» Sampling, goodie bag, promotional hand-outs

» Concession rights

» Right to conduct research/collect data

» Care & erection of billboards, ad boards, flags – stores and erects all branding

» Value : P 1 111 200 + P 575 844 + P 198 034 = P 1 885 078

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Intangible benefit rating

» Prestige of property 8

» Recognisability & Awareness 9

» Audience loyalty 6

» Category exclusivity 10

» Protection from Ambush 6

» Degree of sponsor clutter 6

» Ability to activate 3

» Networking opportunities 8

» Media coverage potential 8

» Established track record 7

» Rating 71/100

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Specific Deal Terms » Designation  :  ‘Official  Telecommunications  Solutions  Partner,  title  sponsor,  naming  rights  to  

end of Season Awards and sponsor ID included in the BPL logo

» Use  of  BPL  marks,  logo’s  and  slogan  in  advertising/promotions,  on-line promotions,

packaging

» Access & usage rights to BPLeague and League player imagery

» Exclusivity – advertising at match venue, match day programme/pamphlet, promotions at all

Premier League match days; sector exclusivity » Right to request additional rights

» Right to create product - airtime vouchers and sim card with club logo's or club insignia or

pictorial representations of club players

» Premier League product - innovative services on the Premier League product inclusive of all

content related to the Premier League

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Specific Deal Terms continued » VIP Suite - first right of refusal to VIP suite and sector exclusivity to the VIP suite

» Exclusive promotional content - Community Outreach Programmes - 1 event per quarter

» Promotional activity - BTCL Fanfare - 1 day carnival for fans and public subject to negotiation

and agreement with BFA and Premier League

» Pass through rights - other brands may be used in other branding material at the venue for

the games + use any of it's brands within its company for other events i.e. seminars

» Club merchandising - club merchandising subject to negotiation and agreement with

respective clubs

» Post match conference at the venue - have rights to an accredited photographer

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Global Reach & Impact » Global - leveraged in more than 150 countries

» International - in more than 75 countries

» Multi-regional - in 15 – 74 countries in multiple regions

» Multi-country - in 2 – 14 countries

» National - relevant in at least 7/9 provinces

» Regional - leveraged in multiple markets within a province

» Municipal - leverage in multiple markets within a municipality

» Local : Major Market - in A market

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Fair Market Value » Tangible benefits & Intangible benefits plus association rights/specific deal terms =

» P 30 085 649

» Standard cost benefit ratio (2:1 for proximity, low media properties, high cost execution)

» /2

» Fair Market Value =

» P 15 042 824

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Key Numbers

Rights content Quantity/value

Attendance – match tickets sold – based  on  5%  gate  taking  no.’s  +  5% 141 889

No. of teams competing in the BPL 16 teams

No. of matches per season – 10 month period 240 games

Season tickets 100 per match

BPL envelopes 1000 per season

Match day programmes/pamphlets – planned distribution quantity 120 000 per season

BPL website 281 users

E-mailed invitations 220 per match

BPL twitter account followers 108 followers

BPL facebook page – friends 8713 likes

Perimeter boards 60% presence

BPL Awards Night – attendance 800 people

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Key Numbers

Rights content Quantity/value

Branding rights – monthly press briefings 100 media, 10 months

Public announcements per match 10 per match day

Ball boys – branded clothing 6 per match

Premier League clothing 1300 golf shirts

ID on player clothing – left hand shirt sleeve & front of shorts 30 players per match

VIP tickets – P350 10 per match

Grandstand tickets – P50 20 per match

Other match tickets – P30 20 per match

League stores and erects branding at all BPL matches 240 games

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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Cost Benefit Ratio » In keeping with all marketing campaigns, sponsorship engagements are expected to produce a

return-on-investment (ROI) for the sponsoring company

» This issue has been addressed over the years by a number of research studies among sponsors in

Europe, the US and SA. Typically, the studies have sampled the views of a wide range of sponsoring

companies, both in terms of size and/or product/service categories, and also in terms of their

sponsorship portfolio (i.e. across a wide range of sponsorship property types)

» The  research  has  shown  that  sponsors’  aspirations  for  the  level  of  ROI  – the ratio of the sponsorship

marketing value to the rights fee paid – mostly fall in the range of 2 to 5.

» The  lower  ratio  tends  to  apply  to  properties  with  no  or  ‘low’  media  content,  and/or  those  that  are  relatively local in geographic terms, or community orientated and highly interactive, in close proximity.

» The higher ratio generally applies where the sponsorship has a high media or logo/brand exposure

orientation, and especially in the case of larger national and international properties.

» The ratio suggests that for every R1 invested in the rights, a sponsor would expect to receive

marketing benefits worth R2 and up to R5 in return

» The  more  it  is  a  ‘media-buy/logo-exposure  property’  the  higher  the  ROI  ratio  is  expected  to  be  i.e.  access, proximity and interactive rights are more valuable – ratio is closer to 1:2

BOTSWANA PREMIER LEAGUE TITLE SPONSOR - SPONSORSHIP RIGHTS PACKAGE VALUATION

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THANK YOU

THANK YOU

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ANNALIE WATT Strategic Director

ROBYN GRAY Managing Director

Phone +27 (0)11 303 7000 Fax +27 (0)11 303 7029 Mobile +27 (0)82 784 2842 Email awatt@repucom.net

CONTACT DETAILS

REPUCOM AFRICA TRANSAFRICA HOUSE 10 BENMORE RD (CORNER LOWER RD) SANDTON, JOHANNESBURG SOUTH AFRICA WWW.REPUCOM.NET

Phone Phone +27 (0)11 303 7000 Fax +27 (0)11 303 7029 Mobile +27 (0)82 872 8139 Email rgray@repucom.net Skype robyngray2012

© REPUCOM | BOTSWANA PREMIER LEAGUE 2013/2014 | NOVEMBER 2014 46

CONTACT DETAILS

REPUCOM AFRICA TransAfrica House, 10 Benmore Road – Corner Lower Road Sandton Johannesburg 2146 WWW.REPUCOM.NET

Account Manager – Media Evaluation

MICHELLE VAN DER TOORN

Phone +27 (0)11 303 7000 Mobile +27 (0)82 625 7729 Email mvdtoorn@repucom.net Skype mtvdt18

Senior Account Manager Media Evaluation

SHAUN CUSTERS

Phone +27 (0)11 303 7018 Mobile +27 (0) 83 390 7441 Email scusters@repucom.net Skype shaun.custers