advanced theory and practice in sport marketing - Marshalls University

■ The first offer: This is the offer made by the sport organization, and is usually
fairly close to what they want to get for the sponsorship agreement.
■ Consideration: The sponsor mulls over the offer, asks additional questions,
and considers tactics to discuss modifications.
■ Counter offer: This is where the potential sponsor articulates what they want
and/or are willing to pay for the sponsorship.
■ Persuasion stage: Each side is seeking to gain some ground on issues, answer
questions, clarify positions, and often argue over points.
■ Making concessions: Each side will make concessions in order to reach
a mutually beneficial and agreeable point. It is important to realize that this
point is not always reached, and without agreement, the partnership opportunity
may terminate at this point.
■ Reaching an agreement: However, should there be agreement on the terms of
the proposal, they are laid out in contracts. The contracts will spell out the
terms of the contract including the rights of each party, the parameters of
the sponsorship (broadcasting, signage, advertising, promotions, collaterals,
merchandise, hospitality, public relations, community relations, etc.), the
price to be paid and over what time period, whether this is a contract of
exclusivity, the liability of all parties, the protection of intellectual properties
for both parties, confidentiality statements, contingencies, termination
clauses, and any additional errors and omissions. These contracts are then
read over by legal counsels, and signed by the proper authorities for each
organization.
Managing the Sponsorship
In addition to ensuring that the terms and conditions of the sponsorship contract
have been met, the sport marketing professional has additional responsibilities
regarding the management of the sponsorship. First and foremost is the
creation of a yearly sponsorship report. This document is effectively an annual
report on how the sponsorship was implemented, and details the tangible and
intangible benefits that the sponsor received. This report often includes a sample
of advertising and promotional materials, PowerPoint slides with pictures
and/or CDs/DVDs with videos showing commercials, broadcasts, and game
action which incorporated elements of the sponsorship agreement. The goal is
to list all of the contractual elements, describe how they were fulfilled, and provide
a measure for the sponsor to determine whether they received value and a
result on investment for their sponsorship dollars.
Evaluation of the Effectiveness of Sport Sponsorships
The evaluation process involves investigating the performance of the sponsorship
and determining whether the marketing efforts associated with the
sponsorship are working. This evaluation process is also crucial as a part of the
sport marketing professional’s responsibility for entering into renegotiations
and renewals of sponsorship agreements.
266 ADVANCED THEORY AND PRACTICE IN SPORT MARKETING