IMG & Sponsorship Sales

IMG & Sponsorship SalesPresented to: York University

November 3, 2009

York UniversityNovember 3, 2009

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Company background

1960 today

~50 YEARS OF LEADERSHIP AND INNOVATION


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» IMG is the global leader in sports and, entertainment management and marketing, and represents the world’s most prominent athletes, artists, models, celebrities, speakers, literary figures and events.

» Pioneered by Mark H. McCormack, its Founder, IMG was created in 1960 and currently employs a global staff of more than 3,000.

» IMG Worldwide -- offices, sports academies and IMG managed real estate facilities -- is represented by more than 66 offices in 33 countries.

» IMG Media produces and distributes over 22,000 hours of programming to more than 200 countries worldwide.

» Every day of the year, IMG is involved in an average of eleven major events around the world.

IMG Worldwide Overview


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A truly global company

AMERICAS30 offices/ ~1,200

employees

New York

London

Hong Kong

EUROPE/MIDDLE EAST33 offices/ ~1,300

employees

ASIA-PACIFIC15 offices/ 250 employees


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Productiontelevision-film-

broadband-mobile

Productiontelevision-film-

broadband-mobile

Global cross-platform sales &

distribution

Global cross-platform sales &

distribution

Rights consulting & representation

Rights consulting & representation

Media venturesMedia ventures

MediaMedia

Brand licensingBrand licensing

ConsultingConsulting

Sponsorship salesSponsorship sales

Event management and hospitality

Event management and hospitality

Global services Global services Talent brands Talent brands Event properties Event properties

GolfGolf

TennisTennis

FashionFashion

US CollegeUS College

Professional Sports & Cultural Properties

Professional Sports & Cultural Properties

IMG Worldwide Overview


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Men Women Young adult

Young male

Ethnic groups C-Suite Beauty-

consciousFashion forward

Sports fans

IMG talent management - highlights

Diverse segment appeal - demographic, mindset, category, affinities, e.g.Diverse segment appeal - demographic, mindset, category, affinities, e.g.

Adam ScottAnthony KimArnold PalmerCamilo VillegasColin MontgomerieJack NicklausLuke DonaldPaul CaseySergio GarciaTiger WoodsTrevor ImmelmanStephen AmesMike WeirSteve Stricker

Annika SorenstamMorgan PresselNatalie GulbisLorie KanePaula CreamerMichelle Wie

GolfersCarlos MoyaJames BlakeJohn McEnroePete SamprasRoger FedererRafael NadalTommy Haas

Billie Jean KingChris EvertLindsay DavenportJelena JankovicMaria SharapovaMonica SelesNicole VaidisovaVenus Williams

Tennis players Alek Wek

Carolyn MurphyDaria WerbowyGemma WardGisele BündchenHeidi KlumJaquetta WheelerKate MossLauren HuttonLiya KebedeNaomi CampbellShalom HarloweStephanie SeymourJessica StamShalom Harlowe

Models CelebritiesBroadcasters

Bob CostasCharles BarkleyTom BergeronPhil KeoghanJohn MaddenJim Nantz

Film/TV actorsAngie HarmonBilly BushDrew BarrymoreGeorge LopezHilary DuffLiv TylerMischa Barton Justin Timberlake

FootballEli ManningJoe MontanaL. TomlinsonPeyton ManningEmmitt Smith

Action SportsShaun White

Other SportsCarly PattersonJeff GordonDanika PatrickJonny MoseleySteve NashKristi YamaguchiAlex OvechkinPicabo StreetBrian OrserSale & PelletierJeffrey Buttle

Other athletes

Client Representation


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Client Representation


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» Highlights of IMG owned/managed events:

Men Women Young adult

Young male

Ethnic groups C-Suite Beauty-

consciousFashion forward

Sports fans

Diverse segment appeal - demographic, mindset, category, affinities, e.g.Diverse segment appeal - demographic, mindset, category, affinities, e.g.

ADT Championship (LPGA)

Del Webb Father/Son Challenge

Deutsche Bank Championship

HSBC Champions (Shanghai)

HSBC Women’s World Match

HSBC Match Play Championship

Johnny Walker Classic

The Open Championship)

Samsung World Championship (LPGA)

The Wendy’s Skins Game

Golf

Australian Open

ATP Barcelona

Bank of the West Classic

BlackRock (Merrill Lynch) Tour of Champions

Chennai Open

China Open

Mediabank Open

Gaz de Paris

Sony Ericsson Open

Wimbledon)

Tennis

Beach Games

Internatl. Skating Union

Formula D racing

Lexmark Indy 300 (Australia)

NHRA

NCAA

Rugby World Cup(s

Stars on Ice

U.S. Open of Surfing

Tour de Suisse

UEFA Cup

Williams F1 Team

World Series of Poker

Other sports

Eco Style (Kuala Lumpur)

Fashion Fringe (London)

Fashion Week in Moscow

Hong Kong Luxury Week

Lakmé Fashion Week (Mumbai)

LG Fashion Week (Toronto)

London Fashion Week

Mercedes-Benz Fashion WeekNY-Miami-Berlin

Milan Fashion Week

Rosemount AustralianFashion Week

Singapore Fashion Festival

Sydney Fashion Festival

Fashion

Corporate Sales and Marketing


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» Sponsorship is a significant portion of IMG’s annual revenue - $1,200,000,000+ annually

» IMG has division based sales team, regional based teams (as in Canada) and property specific teams that are responsibility for selling sponsorship.

» In the world of IMG – Sponsorship and Endorsements are very similar – building associative platforms with personalities are built on the same principles as sponsorships.

» IMG – We build strategic platforms we do not sell sponsorship

» Examples:

» Fashion – Mercedes Benz, Amex & DHL

» Golf - Accenture, Bank of Scotland, Ricoh

» Tennis – Sony Ericsson, Evian & Rolex

Sponsorship - IMG


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» Creating an association between a company or a brand with a property or a personality

» Also known as Associative Marketing

» Sponsorship is a 360 degree marketing tactic whereby other forms of media i.e. television, print, radio are one dimensional

» Sponsorship allows a brand to build equity through a transference of brand attributes.

What is Sponsorship


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» Properties

» Agencies – on behalf of properties

» In Toronto – examples of properties include:» Maple Leaf Sports & Entertainment» Tennis Canada» Royal Canadian Golf Association» Toronto Blue Jays» Toronto Argonauts» National Hockey League

» Examples of Agencies include:» CCMC – Canadian Hockey League» Wakeham & Associates» XMC Sports & Entertainment

Who Sells Sponsorship

» NBA Canada» NFL Canada» Canadian Football League» Honda Indy (Andretti Green Racing)» Toronto International Film Festival

» IMG is a hybrid as it owns its own properties i.e. TELUS Skins Game, Wakefest & Sears Stars on Ice and also represents properties as a 3rd party.


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Sponsorship Sales Process

» Segmenting & Research on Property

» Understanding the Property’s Brand Attributes

» Prospecting based on the above 2 points

» Identifying Decision Maker in Prospect Company

» Engagement – Cold Calling or Cold Emailing

» Secure First Meeting

» Education and Understanding Prospect’s Needs & Objectives

» Customization of Sponsorship Program

» Secure Second Meeting to Present

» Tweak Program

» Negotiate

» Contract


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Two things determine pricing:

1) What the sponsorship is worth = the value

2) What the market will bare!

Pricing


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» There is no hard and fast rule to pricing

» In a buyer’s market – the buyer is looking for as many benefits for as little $ (NOW)• You need to convince the buyer – CFL 2001

» In a seller’s market – the seller is looking to maximize the $ from the category• VANOC, NFL, Toronto Maple Leafs, etc.• Hot categories – Beer, Soft Drink and Telecom

Pricing


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» Synergy and Efficiency

» In sponsorship – the sum of the parts are worth more than the overall sponsorship

» You buy efficiency when you buy sponsorship

» 3:1 – $3 dollars in value for every $1 dollar spent on sponsorship

Cost vs. Value


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» Two things make up a sponsorship proposal:• Tangible Benefits• Intangible Benefits

» Tangible – tickets, signage, television ads, pa announcements

» Intangible – Associative Rights

Cost vs. Value


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»Much easier to measure tangible benefits vs. intangible benefits

»Every asset in a proposal has a value

»VANOC and NFL – Intangible

Measurement


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1. Determine the right mix of benefits with each sponsor - will vary depending on objectives

2. Customize

3. Provide 3:1 or better value

4. Adjust asset mix with negotiations

5. Win/Win Scenario with buyer – developing a long term partnership

6. Adjust pricing depending on market

Negotiations


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1. Multiple parties

2. Develop base of category leading sponsors

3. Engaging and attractive sales material

4. Customized programs

5. Research on company

How to Get More?


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»What if the sponsor doesn’t want to pay for the full price?

• Multi-year commitment

• Provide deep discount on first year or first year free

• Look at first year as a trial

• Backload investment

Maximizing Value


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» 10 Skills/Traits that make someone a good sponsorship seller:1. Creativity 2. Communication – Listening and Writing3. Integrity4. Assertive5. Dynamic6. Market Educated7. Experience8. Strategic9. Consultative10.Focused

Sponsorship Sellers


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Questions

Documents

IMG & Sponsorship Sales