Process of Defining the package
• Need to know what is your sponsorship
target?
– Balance Sheet - Analysis of cost vs. revenue
stream
– What Sponsorship assets you have to market
with?
• Define strategy for sponsorship acquisition
What is my cost base?• Costs of Participating artists/performers + agents fee
• Transport
– International
– Local
• Venue cost
– Renting existing venues
– Constructing purpose built venues
– Tax
• Advertising and promotion cost
– Media
– Printed material
– Agency fees
• VIP cost
– Food & Beverage
• Incidental Costs
– Security
– Toilets
– Trophies
Cost AnalysisItem Qty Cost
Performing Artist Fees 1 250,000
Agent Fees 1 25,000
Accomodation 20 peolple 35,000
Transport
- Air Fares 20 people 200,000
- Car Hire 6,000
Venue Costs
- Staging + stand cons. 4 Stands pls stage 450,000
- Lighting/Audio-visual 60,000
Advertising & Promotion
- Media TV/Radio/Print 250,000
- Printing Ticket/flyers/posters 10,000
VIP Costs
- F & B 1000 50,000
Incidentals
- Security 40 4,000
- Toilets 10 13,000
Total Cost 1,353,000
Are there any Value in Kind
Requirements?
• Hotel Accommodation
• Air transport
• Local Transport
• Facilities
• Advertising and promotion
Revised Cost AnalysisItem Qty Cost Cost
Performing Artist Fees 1 250,000
Agent Fees 1 25,000
Accomodation 20 people 0 Official Hotel
Transport
- Air Fares 20 people 0 Official Carrier
- Car Hire 0 Official Car rental
Venue Costs
- Staging + stand cons. 4 Stands pls stage 450,000
- Lighting/Audio-visual 60,000
Advertising & Promotion
- Media TV/Radio/Print 0 Media Partners
- Printing Ticket/flyers/posters 0 Official Printer
VIP Costs
- F & B 1000 0 Official VIP Sponsor
Incidentals
- Security 40 4,000
- Toilets 10 13,000
Total Cost 802,000
Revenue Streams
• Ticket Sales
– Entry/Standing
– Seating
– VIP
• Considerations
– Ticket sale channels need an incentive (Another logo on the poster)
– 500 tickets allocated to sponsors/VIK providers
• Food & Beverage Sales
– (License permitting)
• Merchandising Revenues
– Royalties from sale (Taxable)
Revenue Streams (Best Case)
Item Qty Price (USD) Takings (USD)
Normal Ticket 4,000 50 200,000
Seating Fees 2,000 80 160,000
VIP Costs 1,000 155 155,000
Total Cost 515,000
More Considerations….
• Best guess Projections
– Adjust target upwards
• You are in it to make a profit
– Adjust target upwards
Sponsorship Target
Cost Shortfall (Cost-Revenue) 287,500
Provison for potential shartfall (20%) 57,500
Profit 69,000
Total Target 414,000
Assets
• Rights
– Branding Rights
– Naming Rights
– Imagery Rights
– Marketing Rights
– On-Line Rights
– Merchandising Rights
– Products and Services
Rights
– Hospitality Rights
Rights Explained• Branding Rights
– Logo placement on ATL media ads
– Logo Placement on printed material
– Venue Branding
– Other branding
• Naming rights
– Dependent on level of sponsorship
– Generally VIK providers are know as “Official Suppliers”
– Sponsors can either be given a specific category title E.g.
“Official telecoms Provider”, or
– Sponsor category, E.g “Diamond Sponsor”, etc
Rights• Imagery
– Right to use official imagery of the performer (s)
– Right to use past event footage
• Products & Services Rights
– Product display
– Product showcasing
– On-going commercial rights
– Sales
• Marketing Rights
– Ability to use event assets (Logos, etc.) in leveraging
communications
Rights
• Merchandising Rights
– Right to be present on merchandising, or
– Produce and sell merchandising – usually fee and
royalty based
• Hospitality Rights
– Ticket allocations
– Lifetime Experience allocations
– VIP
3 Main Acquisition Strategies
• Tiered Sponsorship
– Share of rights are give more prominence to those
who invest more
• Partnership Strategy
– Multiple partners - equal share of rights to each
partner
• Combination
– Title sponsor with partners
Silver
Sponsor
Gold Sponsor Gold Sponsor Gold Sponsor
Silver
Sponsor
Silver
Sponsor
Silver
Sponsor
Silver
Sponsor
Silver
Sponsor
Platinum Sponsor Platinum Sponsor
Gold Sponsor
Title Sponsor
Tiered Structure
Share of Rights
How Do You Choose?
• Size of sponsorship requirement
• Profile of event
• Timing of event
• Market environment
Sharing your bag of Standard Assets
• Finite number of asset
• The strategy you choose will determine
how you divide your rights
• E.g. for our requirement of USD 415k,
there are 2 ways to slice it
Silver
Sponsor
Gold Sponsor
USD 30
Silver
Sponsor
Silver
Sponsor
Silver
Sponsor
Silver
Sponsor
Platinum Sponsor – USD 50,000 Platinum Sponsor – USD 50,000
Title Sponsor – USD 200,000
Tiered Structure
Share of Rights
Gold Sponsor
USD 30
Gold Sponsor
USD 30
Gold Sponsor
USD 30
10%
20%
40%
30%
Title Sponsor Branding Benefits• Naming Rights
– Right to use E.g. “Brand X Dubai Calibre 2005 World Cup Final” in any activation or leveraging activity conducted by the title sponsor
• Branding Proportion: 40% prominence
– ATL (Above The Line) Campaign
– Online
• Official Website
– Logo
– link,
– Short Company Profile & Acknowledgement (5 lines)
• Ad Campaign
– Logo on back drops and other signage in
• Press conferences,
• Opening and Closing Ceremony Signage/back drop
– Printed Material
– Advertising Event programme
– Venue Branding
• Product Rights Opportunities:
– Possibility of Product Sampling/ Handing of sales brochures
– On-Site Sales
• Experience and Hospitality Opportunities
Exclusive opportunity to meet HH. Sheikh Mohammed Bin Rashid Al
Maktoum and hand shakes
1 Corporate Event – PR days
VIP Parking
Plat. Sponsor Branding Benefits• Naming Rights
– Right to use E.g. “Platinum Sponsor - Dubai Calibre 2005 World Cup Final” in any activation or leveraging activity conducted
• Branding Proportion: 30% prominence
– ATL (Above The Line) Campaign
– Online
• Official Website
– Logo
– link,
– Short Company Profile & Acknowledgement (5 lines)
• Ad Campaign
– Logo on back drops and other signage in
• Press conferences,
• Opening and Closing Ceremony Signage/back drop
– Printed Material
– Advertising Event programme
– Venue Branding
• Product Rights Opportunities:
– Possibility of Product Sampling/ Handing of sales brochures
– On-Site Sales
• Experience and Hospitality Opportunities
1 Corporate Event – PR days
VIP
Partnership Structure
6 Official Partners – USD 105,000 each
Official Suppliers
Share of Rights
BRAND
10%
90%
Combined Structure
4 Official/Hosting Partners – USD 30,000 each
Official Suppliers
Share of Rights
Title Sponsor – USD 200,000
10%
40%
40%
Rights Unique
• Must be relevant to the prospect’s industry
• Must be unique and not offered to another sponsor
• May be differentiated by
– Activity
– Time
– Category
– Geography
Paris Gallery Partnership Rights Unique
• Diana Krall to make 1 appearance in
Dubai and Abu Dhabi at Paris Gallery
outlets.
• Data Capture
• Photo Opportunity with Group CEO
• Product Showcasing/sampling at the
venue
Gitanes Official Supplier Rights Unique
• Product Showcasing/sampling at the
venue – space to construct direct
promotion stand.
Etihad Partnership Rights Unique
• Route Endorsement
– E.g. Diana Krall flies with Etihad to Toronto
• 1 appearance at press conference announcing• The concerts
• The new route
• The experience
• The benefits
Sony Partnership Rights Unique
• Bluetooth broadcasting on to all bluetooth
phones
– Exclusive Diana Krall ringtone download courtesy of
Sony
– Performer announcement to open bluetooth facility to
allow Sony Courtesy download
• Have an A/V screen live broadcast courtesy of
Sony
• Handset Content
Sponsorship Acquisition
Process• Define the Brand Characteristics of the Event/person
• Identify categories which share similar brand attributes
• Shortlist companies within each category
• Adapt sales decks, individualising them for each
prospect
Defining the Sponsorship
Landscape• The Sponsorship Landscape is a simple, but important process, and
it defines which categories will be most receptive to the sponsorship
proposal.
Event
Product
Attributes
Political/
NetworkingBrand Attributes
Lifestyle
Attributes
The Landscape an example
Achieve-ment driven
Commu-nity Spirit
Compassionate
Youthful
Energetic
Adven-turous
Healthy
Fun
Sponsorship Landscape Examples
IT
Telecoms
Tyres
Lubricants
Imaging
Logistics Hospitality
Timing
Airlines
Automotive
Short-listing Companies
• Research the Market and attempt to profile active
sponsors
• Match them against your sponsorship target
• Take out companies that are totally inactive
• Choose companies that have similar brand
characteristics to the event
SportZ – Motorsport Property AnalysisEquity comparison – German Motorsport Properties
F1 Team Equity
Event attendance in Germany
The Live Values of F1 Fans in the UK
Presence
Relevance
Performance
Advantage
Bonding
45%
61%
65%
77%
22%
30%
32%
14%
42%
3%
33%
57%
63%
90%
9%
%
503231302928
252322
107
Bundesliga
Tour de France
Winter Olympics
Summer Olympics
UEFA Cup
Champions League
Germany F1 Grand Prix
FIFA World Cup
Deutsch Touring Master
Berlin Marathon
Porsche Super Cup
% Adventure & Exploration
Safety & Conservatism
Conscience & Spirituality
Self-Interest & Image
83%
68%
41%
37%
3%
90%
79%
64%
60%
7%
98%
86%
77%
77%
42%
80%
76%
63%
59%
9%
Ferrari Williams McLaren Toyota
Source: SportZ 2004 Europe/China/Japan
Company Shortlisting
IT
Acer, IBM,
Cisco
(Tele)coms
Etisalat,
Inmarsat
Tyres
BF Goodrich,
Goodyear
Lubricants
Castrol, Enoc
Mobil
Imaging
Kodak, Fuji
Logistics
Aramex, UPS
DHL
Hospitality
Le Meridien
Timing
Seiko, Tag
Airlines
Emirates,
Etihad, BA
Automotive
Nissan, VW
BMW
The Sales Deck• Should contain
– A brief background/history of the event/property
– Should have it’s target audience profile
– Should have its SMP
– Should have the specific benefits for the chosen company (E.g. if it was a presentation to Emaar, no point in going with a VIK benefit proposal)
– Should have rights unique that demonstrate 1-2 leveraging opportunities
– Should have a cost section that conveys demonstration of relevant value
• It should be personalised to the company as much as possible
• It should demonstrate
– Relevant value, and
– 1-2 Leveraging Opportunities