Blacks Solicitors’ Commercial Law team offer a pragmatic, cost-effective approach to reviewing and advising upon Sponsorship Agreements, whilst addressing any potential issues.
Sponsorship is a form of marketing by which a sponsor contributes funds, products or services to:
- Event organisers
- Rights owners
- Producer of entertainment products
While sponsorship is most frequently encountered in sporting arenas it also extends to charitable and educational activities, the arts, music events, and increasingly in the funding of television programmes or films.
Sponsorship may take various forms such as:
- Broadcast sponsorship
- Venue sponsorship
- Official supplier status
- Product placements
- Advertiser funded programming
- Branded content
Establishing an appropriate sponsorship structure is critical to maximise the income of a party seeking sponsorship in accordance with the commercial value of the event, property, or asset being sponsored.
Frequently Asked Questions
What are the advantages of sponsorship?
- Cost effectiveness – mainstream advertising is often much costlier than sponsorship
- Access to niche markets – sponsorship can enable entry into a niche market where there is a link to a brand that already holds a reputation in that market
- An increase in sales – a positive audience attitude towards a sponsor may well correlate with higher purchase rates
- Brand enhancement – tying up with another individual, event, or organisation that has a strong reputation can enhance a company’s reputation by association
- Raising awareness – a brand name will gain visibility and be included in media coverage
What are the disadvantages of sponsorship?
- Sponsorship clutter – too many sponsors, such as at high-profile events like the World Cup or the Olympics, can mean no particular sponsor stands out
- Negative image association – the inverse of brand enhancement above (e.g. a sponsorship deal can impact negatively where an individual being sponsored is caught cheating)
- Lack of control – many variables that may be critical to the success of an event (e.g. the weather, media coverage, attendances) are uncontrollable.
The key to maximising sponsorship success is to have a clear objective at the outset to ensure that the sponsorship deal you select has the best possible fit to meet your objective/s.
For more information on the above, or to find out how Blacks’ Commercial Law team can assist you with a Sponsorship Agreement, please email or call us today on 0113 207 0000.