The Dos & Don’ts of Sponsorship Activation- Steven Falk

 

Sponsorship Rationale

Effective sponsorship activation is more of an art than a science. Some relationships are crafted as great masterpieces, others appear as a primitive daub. We all know why sports organisations solicit new sponsors – they seek the revenue that profitable relationships can bring. But why do brand owners look to associate themselves with the sports sector? The answer can be found in the 6Es. Sports sponsorship can:-

Expose a sponsor’s brand image to a wider audience or a demographic different to that available from current marketing channels.

Express sponsors’ brand values to this wider audience by capitalising on the increase in reach and scale.

Enhance the relationship between the sponsors and their customers through the association with a credible and popular sports brand.

Energise a sponsor’s promotional campaigns by including offers and benefits to excite existing and prospective new customers alike.

Encourage profitable behaviour in customers through calibrating incentives to reward engagement in ways that meet business goals.

Enrich brand communications by adding an element of glamour and excitement to what may otherwise be perceived by customers as prosaic.

 

Activation Strategy

As with any commercial relationship, value can be delivered through sponsorship activation only by thoroughly researching, analysing, understanding, planning and implementing campaigns designed to meet customer needs. Here are some broad guidelines to help with developing such a strategy:-

Establish and communicate the relationship between the two brands so that both sets of customers understand and can identify the advantages to them personally of the brands coming together.

Develop a compelling and sustainable rewards/benefits hierarchy to be used in promotional campaigns. This may involve money-can’t-buy offers and should be accessible to all customer segments.

Integrate these promotional offers consistently into all marketing campaigns using a creative platform that captures and brings together the values and essence of both brands.

Reserve some of the promotional inventory to incentivise the sponsors’ sales staff. This can be especially effective where it involves rewards with a high perceived value/low cost such as ‘watch the team train’ events.

Consider developing the relationship into non-commercial areas by devising and implementing suitable CSR initiatives consistent with the parties’ brand values.

 

The 4Ds

Having identified some best practice above, here is some well-intended advice of what not to do when implementing a sponsorship programme:-

Don’t use a sponsor’s brand or crest as some sort of official stamp to endorse an existing generic promotional campaign or proposition unless it has some genuine relevance to the offer.

Don’t apply or use a partner’s brand inappropriately or in a manner which devalues its integrity in any way for example by changing its colour, style or presentation without permission.

Don’t forget that sponsorship activation needs investment of finance, time and people like any other effective marketing campaign. Allow at least 50% of the sponsorship fee as a working budget.

Don’t make the mistake of thinking that the work is done once the contract is signed. Effective and successful sponsorship activation is like a good marriage. It needs commitment, hard work and lots of tender care to thrive.


Star Sports Marketing can help you to devise and implement an effective and robust sponsorship relationship management strategy. Visit www.starsportsmarketing.com or email steven.falk@starsportsmarketing.co.uk for an informal discussion on the possibilities for your business

From 2001 to 2009, Steven was Marketing Director at Manchester United Football Club. Steven served as a member of the Executive Committee of Manchester United and a board director of Manchester United Foundation, the club’s charitable trading arm. In January 2010, he launched Star Sports Marketing, a specialist sports marketing consultancy. For more information, please visit www.starsportsmarketing.com

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The Premier League at 20: Facing an Uncertain Middle Age- Ben Wells

By Ben Wells

Last week, I attended a conference organised by the University of Coventry, hosted by Clive Tyldesley and featuring a strong panel of Patrick Barclay of the Times, The Telegraph’s Jim White, Dave Boyle of Supporters Direct and Dan Johnson of FA Premier League fame.

Once we’d got over the shock of Tyldesley’s dress sense in 1992 the panel spent the next two hours debating the subsequent 20 years of the Premier League’s development, exploring the good, the bad and the ugly sides of what has been rightly hailed as major commercial and marketing success, not to mention a much improved spectator experience, whether in the stands or watching at home on TV.

I remember well the start of the FA Premier League. I was at Bramall Lane on August 15th 1992 to see Brian Deane score the first goal of the FAPL era and the eventual champions Manchester United lose 2-1. The game itself didn’t feel any different to previous seasons but the following day we were to get a taste of Sky Sports’ unrivalled ability to hype its product and we all saw Teddy Sheringham score the first live top-flight goal on what was to become Super Sunday.

Last week’s panel discussion (which was far more balanced than you might think) covered most of the topics possible within the alloted time period but sadly didn’t have much time to look into the future. That is what I’d like to do here.

Much has been made of the incredible increases in revenues into top flight football in the intervening period. Most of this has come from TV, but also from sponsorship, merchandising & licensing, improved yield from matchdays and increasingly from leveraged investment and loans from sugar daddy owners. The upshot has left football stuck on a breathless treadmill, anxiously trying to keep up with the Joneses, working from season to season and within that, week to week.

 It’s true that there has been a massive investment into capital projects in England in the past twenty years and as Financial Fair Play (FFP) looms, we can expect continuing investment into the exempt areas of stadium and training ground infrastructure. But, as I have referenced in previous posts, the vast majority of football’s inflationary pressures can be linked to players’ wages. Barclay last week suggested that as much as £5 per FAPL match ticket is spent on agent fees. Even if it is half that sum, it is an outrageous statistic.

FFP is, in my view, an excellent concept, which will live or die by how seriously clubs in their entirety take it, and how strong UEFA is in enforcing it. There has been no recent deflationary pressure on football and so it continues the only path it knows: to keep pushing prices up, to enable it to attract better/more expensive football players. Football as an industry is not mature enough, not joined-up enough nor sufficiently long-termist to recognise its own structural problems, much less address them. When governments the world over is implementing mass austerity drives to address structural debt issues, football seems to believe it is exempt from the laws of economics.

You might point to the crowds that have remained high during the economic downturn (average attendances are higher, as is the percentage of seats sold) but clubs cannot expect this to remain so forever. Manchester United no longer sell out every game. Each week there are swathes of empty seats at the DW stadium, Ewood Park and elsewhere. The topline statistics fail to mask some worrying underlying issues. Whilst Liverpool, Chelsea and the two Manchester clubs boast huge shirt deals, Blackburn have offered theirs to a charity because they couldn’t find a bid over £400,000 per year. Carlos Tevez could earn that sum in 11 days if the figures are to be believed and if he ever tired of playing golf in Argentina.

Johnson rightly pointed to the FAPL’s revenue distribution model being far more equitable than any equivalent football league but it is the UCL which is skewing the gap between the haves (in the UCL) and have nots (everyone else). Broadly speaking it is those same (UCL) clubs leading the FAPL’s international expansion. Manchester United, Arsenal, Liverpool, Manchester City and Chelsea are all bigger brands than the FAPL itself and no matter how much we like to talk about the strength of the league, there is little appetite in the Far East and beyond for the rest. If the bigger clubs do actually break with their previously timid approach and establish actual businesses in key growth markets, then the gap will grow even further. As Boyle rightly pointed out, it was the tiny glimmer of hope for smaller clubs back in 1992 that they could actually win something that made up for the following season of disappointment. In 2012, how many clubs can actually claim to have genuine title hopes?

1992 witnessed the start of a beautiful friendship. The symbiosis between Premier League football and BSkyB has been widely commented upon. However, in 2012 Sky has diversified its business model yet football is as reliant as ever on Sky. Despite the best efforts of government both in London and Brussels there has not yet emerged a credible rival to Sky and I wonder what happens when the satellite broadcaster starts to offer lower bids for its packages. We won’t be seeing player agents calling the club CEOs, offering immediately to take a commensurate cut in his client’s wages, that is for certain.

This time last year, the once-mighty Liverpool were saved from possible administration only by the skin of their teeth and some courageous leadership by their interim Chairman Martin Broughton. Portsmouth have been through the mill in the past few years with repeated failed ownerships. The plight of Darlington has been much publicised of late but how long before we lose a top flight club for ever? Too big to fail? Don’t you believe it.


Ben has fifteen years’ experience in the commercial side of sport. Having spent six years at Chelsea FC, where he was Head of Marketing, Ben launched Ishtar Consulting in 2011 with a view to providing specialist sponsorship and marketing support to brands, rightsholders and agencies. Prior to his time at Chelsea Ben spent nearly four years at Redmandarin, the strategic sponsorship consultancy. Follow Ben on Twitter @ben_wells1 or get in touch via  ben.wells@ishtarconsulting.com. This Blog appears regularly at http://benwells1.blogspot.com

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USD52m Funded Sportivate Initiative Launched by Sport England

It was announced yesterday, June 14, that Sport England has launched a US$52m National Lottery-funded project to get hundreds of thousands of teenagers and young adults into sport as part of a new programme aiming to fulfil the legacy promise made by London 2012 chairman Sebastian Coe to “inspire young people to choose sport”.

Sportivate will give 14-to-25-year-olds a chance to receive six to eight weeks of coaching in a sport of their choice and is aiming to see 300,000 teenagers and young adults completing sports courses over the next four years.

Sport England chief executive Jennie Price stated: “Lots of young people think sport isn’t for them. I would like them to have the chance to discover whether there is a sport they really enjoy, so this programme is all about choice.

“Everyone who takes part will receive high quality coaching – giving them the confidence and skills that will make them want to keep playing in the future.”

Sportivate will be delivered by the network of 49 county sports partnerships who will work with local providers and sports clubs to help the youngsters continue taking part long after they have completed their course.

Sport and the Olympics Minister Hugh Robertson added: “This £32m ($52m) Lottery programme launched by Sport England will give hundreds of thousands of teenagers and young adults across the country the opportunity to try out and get coached in the sport of their choice.

“I’m sure these same young people will also be inspired when the world’s greatest athletes compete here at next summer’s Olympic and Paralympic Games and will then want to stay involved in sport for many years to come.”

William Hill Shares Rise by 9pc Due to Online Betting Growth

Shares in the UK’s leading betting firm William Hill have risen 9 per cent after strong growth in online betting helped to boost its quarterly profits.

The bookmaker said operating profit rose 21 per cent while revenue increased by 11 per cent from the same period in 2010.

With betting also higher in its 2,350 retail shops in the UK and Irish Republic, William Hill revealed last week that it would move into the US for the first time.

Revenue at its betting shops rose by 8 per cent, compared with a 26 per cent growth in online betting and William Hill stated: “The group has seen excellent growth across the business in the first quarter, enabling the board to remain confident in its expectations for the full year.”

Over £2m (US$3.3m) in profits from just two races at the Cheltenham festival in one hour and sizing Europe’s victory over Big Zeb and Master Minded in the Champion Chase meant the group took in more than £1m ($1.65m) on that one race.

Tottenham MP Lammy Blames London Mayor for Stadium Row

Tottenham’s Member of Parliament David Lammy has blamed London Mayor Boris Johnson for the dispute over the Olympic Stadium, which the Premier League soccer club have now taken to the High Court.

Lammy has urged Johnson to get involved to end the row over the future of the Olympic Stadium and claimed that if he had offered more support in helping Spurs redevelop their current stadium at White Hart Lane, then the controversy would have been avoided.

Lammy stated: “Had the Mayor been more forthcoming in providing assistance to Spurs to build a stadium in Tottenham, I doubt we would be in a position where we are discussing the prospect of a judicial review.

“The review will only line the pockets of city lawyers whilst the club, the fans and the Tottenham community are left in limbo.”

Tottenham yesterday revealed that they had sought permission from the High Court to bring a claim against Newham Council for a judicial review of their process in providing a £40 million ($65 million) loan for the conversion of the Stadium after the 2012 Olympics and Paralympics.

“I call on the Mayor and the club to get back around the table to discuss how the club can stay in its Tottenham home and deliver the most important regeneration project in North London for a generation,” said Lammy.

LOCOG Announce G4S as London ’12 Security Services Provider

G4S Secure Solutions Limited has been announced by the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG) as the Official Security Services Provider for London 2012.

Under the terms of the agreement, store G4S has also signed up as a tier three sponsor of the London 2012 Olympic Games and will be responsible for recruiting, anabolics training and managing the 10,000-strong security workforce that will be tasked with securing the Games alongside colleagues from the police and local authorities across all London 2012 competition and non-competition venues. 

LOCOG and G4S will be collaborating with the Bridging the Gap scheme established by the British Security Industry Association, the Security Industry Authority, Skills for Security, and North Hertfordshire College to identify talented people from further education colleges across the UK. 

LOCOG CEO Paul Deighton stated: “This deal represents where we are with our plans for the Games – we’re now looking at operational delivery.  G4S will help us ensure that the security provisions in place are robust and of the highest professionalism and we welcome them to the London 2012 family”.

David Taylor-Smith, Regional CEO of G4S UK & Africa added: “We have worked extremely hard with LOCOG, the Police, central government and the host venues and boroughs to develop a security proposal which will provide excellent security for the Games, whilst ensuring that spectators, competitors and providers of services to the Games can enjoy the spectacle of one of the greatest sporting events in the world”.

Hyundai Oilbank to Title Sponsor South Korea’s K-League

Subsidary of Hyundai Heavy Industries Group, Hyundai Oilbank has agreed to become title sponsors of South Korea’s top-flight soccer league, the K-League, replacing another relation of the multinational South Korean conglomerate, the Hyundai Motor Company.

As of the new season, the league will be officially known as the Hyundai Oilbank K-League 2011, with the title sponsors also holding branding rights for pitchside advertising hoardings at K-League stadiums. Additionally Hyundai Oilbank will be afforded various promotional and public relations opportunities on and off the pitch.

Kwon Oh-Gap, chief executive of Hyundai Oilbank, stated: “Although the amount of the sponsorship is not disclosed it will naturally become known at some point. I’m confident that my company will benefit from the partnership, probably ten times as much as the initial investment.”

The Yonhap News quoted a Hyundai Oilbank official saying: “We’re pleased to be the title sponsor for the K-League, which will make a fresh start in 2011. We will try and help football grow more popular and also raise our brand recognition through marketing.”

Quinn: Sunderland’s Falling Attendances a Concern

Falling attendances are a concern to, English soccer team, Sunderland’s chairman Niall Quinn who has stated that the revenue lost may impact on manager Steve Bruce’s budget.

Last time out Sunderland beat Bolton 1-0 at the club’s home venue, the Stadium of Light, though only 35,000 fans were in attendance, 14,000 below capacity. The crowd would have been effected significantly by the bitterly cold temperatures but the lunch time kick-off hosted 3,000 fewer than the club’s average attendance sparking a concerned reaction.

Quinn told the Sunderland Echo: “It would be a shame to start downsizing.

“I wouldn’t be doing my job if I recommended that we should be paying big sums for players and the people weren’t supporting the club.”

“I thought if we were in the top half of the Premier League, we would be getting crowds well into the 40,000s, but the reality is we are in the mid-30s,” Quinn continued.

“The plan was always to improve and while we are doing that on the pitch, off the pitch the lifeblood of the club is just starting to get to a worrying area.

“I am not having a go at people who are economically challenged, but I know there are friends of mine who say it’s easier to go to the pub and have a few drinks with their mates and walk home afterwards. But these games are shown illegally.

“I don’t want to alarm people but, for me, there are a few question marks.

“I’m not saying we are perfect, but I always thought I could rely on the support of a massive crowd.”

Sochi 2014 agrees to programme for sustainable construction

Alexander Zhukov, abortion The Russian deputy Prime Minister and National Olympic Committee President, has approved a programme looking to enhance the number of environmental projects related to Olympic venue construction.

Sochi is due to host the 2014 Winter Olympic Games, and the programme is set to reward environmentally friendly design and construction methods being used by Olympic venue construction firms. The objective is to inspire new green standards for sports facilities, accommodation centres and infrastructure.

The Supervisory board, chaired by Mr Zhukov, also agreed to develop an ecological purchasing policy for the Sochi Games, which will encourage purchasing from suppliers whose services and goods have limited environmental impact, use waste reducing technology and preserve natural resources.

Sochi 2014 Organising Committee President and CEO, Dmitry Chernyshenko, said: “Today we see the positive changes that have been made possible in our country  as a result of hosting the Olympic and Paralympic Games in Sochi. There are new standards being reached in many fields and construction is one of them.

“The programme agreed today includes a list of environmental requirements for the Organising Committee in purchasing goods and services, allowing us to align our purchasing activities with international best practice.

“I am sure that the green standards will become central to all building projects in Russia and that more companies will follow the principles of sustainability in their activities.”

Ladies European Tour Launches Bidding Process for 2019 Solheim Cup

The Ladies European Tour have announced the launch of the bidding process for The 2019 Solheim Cup and PING Junior Solheim Cup Matches. 

The Solheim Cup sees teams from Europe and USA compete bi-annually in a tournament identical to the highly successful Ryder Cup.

The tournament, prostate which will celebrate its 25th anniversary next year in Germany, medic has become one of the highlights of the golfing calendar. With attendance figures surpassing 100,000 spectators and enormous media and television coverage not only in Europe and the USA but across the globe, The Solheim Cup is fast developing into one of the leading women’s sporting events in the world.

The PING Junior Solheim Cup is an integral part of the tournament week and played between the leading U18 girls from Europe and USA and staged the same week and in close proximity to The Solheim Cup