advanced theory and practice in sport marketing - Marshalls University

SPORT SPONSORSHIP ETHICS: TOBACCO,
ALCOHOL, AND NOW … DRUGS – Continued
This brings up an ethical question – do sports in general believe that there
is no safe use of tobacco, whereas the use of alcohol (whether it be beer or
liquor) is acceptable? Answer this question in terms of:
■ The influence of alcohol sponsorship on children.
■ Does beer and alcohol sponsorship of auto racing have an association with
drinking and driving?
■ Does it increase the association of getting drunk and watching/playing
sports?
SPORT SPONSORSHIP AGREEMENTS
Sport sponsorship relationships offer the corporate sponsor and the sport
brand to project their image, increase their audience, and amplify the number
and quality of media opportunities. With this in mind, the potential corporate
sponsor and the sport organization should have similar target markets, and have
a mutual understanding about the mission, goals, objectives, and vision for each
other. This information is then utilized to develop sport sponsorship proposals
and negotiate sport sponsorship agreements. Sport sponsorships are designed to
articulate the benefits derived from the agreement for all parties involved.
In a sport sponsorship, the corporation is referred to as the “sponsor,” and
the sport brand is called the “sponsee.” One of the main benefits that a sponsor
will often pay a premium for in exclusivity, to guarantee that all other competitors,
their products, and their services will be prohibited from entering into
sponsorship agreement with the sponsee. Other benefits derived from the sponsorship
usually will include the right to use the logo of the sponsee, advertising
support, signage and announcements at events, and tickets to events. Other
than the rights fee, the sponsee benefits from an agreement with a corporate
sponsor due to the guaranteed advertising and promotional commitments that
are a part of the sponsorship. In addition, sponsees seek to have multiple year
commitment to ensure continuity in those advertising and promotional efforts.
Identifying Components Available for Sponsorship
The process of developing sponsorship agreements involves a number of
stages. The initial stage is for a sport organization to identify every element that
could be available for sponsorship. While a sport organization could maximize
revenue by putting sponsorship on everything they own, this would be unwise
as the organization will become a walking billboard for other corporations,
SPORT SPONSORSHIP 259