Sponsorship
Sponsorship is a business deal between two parties where both parties benefit from the arrangement. It is an agreement or contract with terms that are quite specific. Value must be given by both sides.
It is no longer acceptable for any club or organisation to approach a company and ask for something without something being given in return. If you try that approach you will very quickly be shown the door.
There are hundreds of groups or individuals searching for sponsorship monies at any one time, so there are an incredible variety of sponsorship requests for potential sponsors to consider. Your chances of securing sponsorship will be much better if your proposal is prepared and presented in a professional manner.
Generally a club will be seeking funding, equipment or specific goods and resources. In return, the sponsor will expect to obtain company or brand name exposure which enhances their name and encourages people to buy their products.
Often the money spent on sponsorship comes from the advertising or public relations budget so be prepared to argue that $1000 spent putting a company logo on your jumpers is a better investment than money spent on an advertisement in the local paper, on radio or on television.
The Ground Work
Before launching a sponsorship drive, it's wise to gather all club members to discuss what direction should be taken. This has two benefits. First, it gets all the club involved in the sponsorship drive. And secondly, it gives officials an opportunity to explain why the money is needed at all.
For officials, this is a valuable sounding board. Members should be encouraged to ask as many questions as they like - after all, that's what the potential sponsors will do. If you fail to convince your own members, you will stand no hope when confronted by a potential sponsor.
Then split the meeting into small groups for some brainstorming. Ask them to come up with broad brush ideas, looking at the big picture, rather than wasting time on how the nuts and bolts are going to be put together. Make sure members are aware of the following key points before they go into groups:
- Planning - the club must be clear about what product it has to offer a sponsor. If they are offering naming rights to a major event (for example a tournament) they must be able to convince a sponsor they have the ability to run that event efficiently. Give the sponsor examples of previous well run events, media coverage given etc. A poorly run event would reflect badly on the sponsor.
- Budgeting and cash flow - it is vital that an accurate assessment of income and expenditure is made.
- Identify funding requirements - what is the best form of fundraising? If it is sponsorship, what form might it take? For example, if you need money to extend the clubrooms then perhaps the best form of sponsorship could be the supply of building materials at cost price.
- Identify possible benefits for the sponsors.
- Establish the value of the sponsorship to a sponsor - be specific. How much publicity can the club offer a sponsor? To a company, positive publicity = sales = money. This process starts with how many members the club has and extends to the public and media interest in the activity to be sponsored. Sponsorship of the World Cup offers international exposure; sponsorship of the National Championships offers national exposure; whereas sponsorship of a new football for a local football club has limited opportunity!
Consider the direct sales of the sponsor's products to members; promotional material that can bear the sponsor's name - club programs, entry foms; the value of signage at the club or on club facilities; the value of guaranteed media coverage. All of these things can be priced with some accuracy.
- Establish the benefit of the sponsorship to the club - what will happen if sponsorship is gained.
- Identify potential sponsors.
- Discuss whether more than one sponsor should be approached, and whether you want one sponsor or several smaller ones. If only one is selected they should be made aware that they have been especially chosen and that an early indication of their interest would be appreciated.
- Write the proposal.
- The approach.
- The follow-up.
Preparing a Sponsorship Proposal
Whether your proposal is:
- written
- verbally presented with the written proposal
- produced on a video
The first thing you should do is find out who to send your proposal to (make sure you spell the name and address correctly). Make an appointment to "sell" your proposal in person.
Find out the company's sponsorship criteria - what they want out of a sponsorship relationship - and when they do budgets and allocate sponsorship dollars.
Once all the preparation has been completed, make sure the proposal contains the following information:
- what you want
- the benefits for the sponsor
- the benefits for the club
- what you will be offering
- details about the program
- the program budget
- background of your club
- future goals for the club
Plus other relevant information such as annual reports, financial statements, booklets, demographic figures on your prospective audience, press coverage, etc.
The order of your presentation is critical. Some companies want to see the proposal first, then examine the detail. Others like to build up to what is being proposed. Find out before you put your information together by contacting the potential sponsor.
Presenting a Sponsorship Proposal
Always type your proposal and take care with the layout.
Be accurate and precise with your information - companies do not want to spend hours reading your proposal to try to find out what you are asking for and what you are offering. Many "obvious" companies are receiving at least six proposals per week.
Be well prepared when making your presentation. Have relevant supplementary information to support your proposal.
Remember, you must present your proposal well in advance, bearing in mind that businesses budget for sponsorship grants on an annual basis.
Securing the Sponsorship
You have now done your "homework" and all the preparation. However your proposal may still be turned down. Be realistic, there is a lot of competition for the sponsorship dollar and another organization may be a better match with that particular company's image. Through perseverance you will be successful.
Be sure to write to each sponsor who refuses, thanking them for their time, they may be worth a try for another occasion.
At last, you secure the sponsor. Do not blow it.
LOOK AFTER YOUR SPONSOR. Make sure you have delegated a person from your club to look after the sponsor, keep them up-to-date, invite them to events, functions etc. Keep a file of all newspaper references to show them. They may decide to stay with you and continue sponsoring your club in other areas.
Remember sponsorship is a business deal and the company wants to get value for its investment. Continually look for further avenues to promote your sponsor. Always remember the thank you's and the personal invitations to special events, the memorabilia, photographs and media coverage.
30 ideas for servicing your sponsor and winning that sponsorship
1. Be realistic in your offer to the sponsor. Do what you promise to do.
2. In your thank you letter, write down what you agree to do. Make sure it's done.
3. Your sponsor is in business. Help the business to be successful, especially if you want sponsorship for years to come.
4. Servicing your sponsor - try these ideas:
- use the sponsor's name as the team name
- get a photo of the team, frame it and present it to the sponsor
- photograph your team using the sponsor's products (frame and present)
- organize a black and white photo and media release announcing the sponsorship. Forward it to your local community newspaper
6. Print vouchers for all the team offering a special deal on your sponsor's products.
7. Serve, all at once or in a roster (in team shirts or jumpers) behind the counter of your sponsor's business.
8. Baby-sit the sponsor's children.
9. Do some work for your sponsor's favourite charity.
10. Organise a game with your sponsor's staff and friends. Alternatively offer a coaching session and advise on the game.
11. Invite the sponsor's family to all games/events and provide them with hospitality.
12. Mow the sponsor's lawn.
13. Make sure the sponsor's name appears in all programs.
14. Let your sponsor know the results and how your team is going.
15. Have someone take pictures at every game, then put them in an album as a birthday/Christmas present for the sponsor.
16. Place an ad in the local paper as a thank you.
17. Get a spot on community radio.
18. Name your team mascot after the sponsor.
19. Print some bumper stickers for your sponsor.
20. Cross promote your sponsor's product at the finals.
21. Organise a weekly raffle of your sponsor's product.
22. Print some funny money for your sponsor's business.
23. An end-of-year newsletter mentioning your sponsor.
24. Co-advertise your events calendar on sponsor's advertising.
25. Identify the team - display photos of team members in your sponsor's business. Anyone who can match names and photos wins a prize.
26. Send a birthday card to your sponsor from "the team".
27. Organise a display of your sport at the local supermarket or mall, wear team shirts.
28. Present a special certificate to your sponsor with their name written in the style of calligraphy.
29. Organise someone to do a video of a major club event and present the video to the sponsor.
30. Organise a novelty competition with relay events.
