SEM II-Unit2.01Negotiate Sport/Event Contract

2.02 Prepare sponsorship agreement2.04 Service Sponsors

2.07 Obtain endorsements for ports/events

2.01Negotiate Sport/Event

Contract

Goal of Sport/Event Contract Negotiations

Ultimate goal is gain the sponsorship contract!

Build Trust with the sponsor Make sure both parties are “winners”

Ground Rules for Effective Negotiations

Do your homework• Know your alternatives or BATNA (best

alternative to a negotiated agreement) in case the deal does not happen.

• Know your counterpart• Know the Standards

Double and Triple Think-anticipate what the other party wants (double) and anticipate what the other party thinks you want (triple).

Ground Rules -Con’t. External listening-actually listen to

the other party. Make an aggressive first offer.

› Present multiple, equivalent, simultaneous offers.

› But NO more than 3 offers at once!

Negotiation Fear Move beyond “positions”

› Not be intimidated or intimidating› Own you Power-”position power” never

assume because someone has titled position that he/she is the “all power”

Factors to Research before Negotiating

Always know the BATNA, (best alternative to a negotiated agreement) in case you aren’t successful.

Trademarks Merchandising Company status Terms of contracts Past sponsorships

Items to be Included in Negotiations

Fee and Payment Schedules Exclusivity Lead time Reach Brand Positioning On-site sales Signage Product Placement Ticket Discounts or Premium Tickets Etc.

sponsorship agreement

An important part of negotiating a sport/event sponsorship contract involves both the sport/event and the sponsor agreeing on the fee and payment schedule. 

2.02Prepare sponsorship

agreement

Prepare sponsorship agreement

A sponsorship agreement between a sport team and a local business should benefit both parties.

sponsorship agreement

When preparing a sponsorship agreement, it is important for the sport/event to include detailed information concerning the sponsor's marketing rights

Benefits included in the sponsorship agreement:

Exclusivity. Are companies willing to pay a higher fee to keep competitors from participating?

Can the sponsee use phrases such as “official sponsor” or “presented by”?

Benefits included in the sponsorship agreement:

Media package. Exactly what type of coverage will be provided? How much airtime will be provided? Will sponsors need to purchase additional media

coverage? Will there be vignettes (short story, video or

musical compellation)? What type of signage will appear on television? Will ad space be provided? Will the sponsor’s name and logo be included on

information sent out about the event? Will the sponsor be able to conduct contests or

advertising campaigns?

Benefits included in the sponsorship agreement:

Signage. What type of signage will be available? Will rotational and virtual signage be used? Will banners be allowed or provided?

Benefits included in the sponsorship agreement:

Entertainment. Will luxury boxes, hotel rooms and VIP passes be

provided? Will the sponsor have access to the

athletes or stars?

Benefits included in the sponsorship agreement:

Merchandise rights. Will there be an area to sell merchandise? Will logos and trademarks be used?

Benefits included in the sponsorship agreement:

In-Kind. Are sponsors willing to provide products? How much non-cash sponsorship will be provided?

Benefits included in the sponsorship agreement:

Internet. Will the entity provide links to corporate websites? Will possible banner advertisements be provided?

2.04Service Sponsors

2.04 Service Sponsors By assigning a staff member to

communicate and coordinate activities with each of its sponsors, a sport/event organization facilitates goodwill by servicing their sponsors. (making sure that they are well taken care of from start to finish

2.07Obtain

endorsements for sports/event

2.07 Obtain endorsements for sports/events

When an event planner seeks celebrity endorsements for an upcoming event, she/he should make sure they are credible and trustworthy.

Obtain endorsements for sports/events

The selection of a particular entertainer to endorse a new product should be directly linked to the company's image

Obtain endorsements for sports/events

What portion of the license agreement specifies the exact begin and end dates of the contract term

Obtain endorsements for sports/events

What does the license grant portion of the license agreement specify Which properties are being licensed and what types of merchandise will be produced

Obtain endorsements for sports/events

What should every sport organization do before registering a trademark Conduct a trademark search for conflicting/similar marks

Obtain endorsements for sports/events

Professional sport franchises' marks are considered service marks because of the entertainment value of sporting events.

Obtain endorsements for sports/events

Trade Dress - product's physical appearance, including its size, shape, color, design, and texture. In addition to a product's physical appearance, trade dress may also refer to the manner in which a product is packaged, wrapped, labeled, presented, promoted, or advertised, including the use of distinctive graphics, configurations, and marketing strategies

It protects the distinctive appearance/image of a good or service.

The End

Any Questions????