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Lecture The sports event management and marketing playbook (2nd Edition): Chapter 7 - Frank Supovitz

Teaming with Sponsors. In this chapter, the learning objectives are: Understand basic event planning financial and accounting terminology, maintain event financial records, understand and interpret the event balance sheet and income statement,. | Teaming with Sponsors Sports Event Management and Marketing Playbook Play 7 Teaming with Sponsors: Overview Organizers must spend time researching the best sponsor fits for his/her event The right sponsor program must present value to the prospective sponsor and meet budgetary expectations of the event Teaming with Sponsors: Overview Two basic varieties of sponsor benefits: Those that generate expenses against the event budget Those that do not require additional out-of-pocket expenses Be sure to account for “cost of goods sold” when budgeting for sponsorship Key Terms Development costs Fulfillment costs Sponsorship scaling Return on investment (ROI) Development and Fulfillment Costs Among the most overlooked calculations by event organizers during the budgeting process Development costs do not provide any value to the sponsor and should be factored in as “cost of goods sold” for the organizer Fulfillment costs represent the actual out-of-pocket expenses that an event organizer will | Teaming with Sponsors Sports Event Management and Marketing Playbook Play 7 Teaming with Sponsors: Overview Organizers must spend time researching the best sponsor fits for his/her event The right sponsor program must present value to the prospective sponsor and meet budgetary expectations of the event Teaming with Sponsors: Overview Two basic varieties of sponsor benefits: Those that generate expenses against the event budget Those that do not require additional out-of-pocket expenses Be sure to account for “cost of goods sold” when budgeting for sponsorship Key Terms Development costs Fulfillment costs Sponsorship scaling Return on investment (ROI) Development and Fulfillment Costs Among the most overlooked calculations by event organizers during the budgeting process Development costs do not provide any value to the sponsor and should be factored in as “cost of goods sold” for the organizer Fulfillment costs represent the actual out-of-pocket expenses that an event organizer will incur to provide the benefits to which the sponsor is entitled Development Costs Sales commissions Sales expenses Travel and accommodations Business meals Business entertainment (event tickets and hospitality during sales process) Gifts, merchandise, premiums Presentation materials (printing, binders/folders, videos, web pages) Market research Fulfillment Costs Complimentary tickets Event signage and displays Printed and digital event guide and program advertising Pre-event advertising VIP hospitality Sponsor gifts Sampling and giveaways Discounting and couponing The Sponsorship Sales Process © John Wiley & Sons, Inc. Step 1: Qualify Research to identify a well-defined demographic in which to target sponsorship packages for the event “Rifle shot” instead of “shotgun” approach Ideal prospects should share common or similar target markets with the event Find synergy between sponsor brands and event Tailor the package, both sponsor benefits and financial expectations, to each potential .