CHAPTER	11

Sponsorship programs

Growth of sponsorship

The opening scenario is just one example of Scheuring Speed Sports and Ford using sponsorship to help achieve their marketing objectives. A wide variety of organizations are realizing that sports sponsorships are a valuable way to reach new markets and retain an existing customer base. Sponsorships can increase sales, change attitudes, heighten awareness, and build and maintain relationships with consumers. It is no wonder that sponsorships became the promotional tool of choice for sport marketers and continue to grow in importance. Before we turn to the growth of sponsorship as a promotional tool, let us define sponsorship.

In Chapter 9, sponsorships were described as one of the elements in the promotional mix. More specifically, sponsorship was defined as investing in a sports entity (athlete, league, team, or event) to support overall organizational objectives, marketing goals, and promotional strategies. The sponsorship investment may come in the form of monetary support and trade. For example, nonrevenue sports have been the biggest winners in the University of Kansas Athletics Department’s six-year, $26-million sponsorship deal with Adidas.¹ Adidas is sponsoring the university’s athletics program to support their marketing objective of increasing awareness of their brand and to associate with a winning NCAA program. Understanding how sponsorship can help achieve marketing goals and organizational objectives is discussed when we look at the construction of a sponsorship plan or program. For now, let us turn our attention to the dramatic growth of sponsorship as a promotional tool.

In our brief discussion of sponsorship, we have alluded to the “dramatic growth” of sponsorship, but just how quickly is sponsorship growing? Review the following facts and figures regarding sponsorship activities:²

  North American sponsorship spending is projected to reach $20.6 billion in 2014, a 4.3 percent increase from 2013, according to sponsorship-research company IEG. In contrast, IEG projected in North America for ad spending to rise 2.8 percent while spending on other forms of marketing – including public relations, direct marketing and promotion – would garner a 4.4 percent growth rate in 2014.

  In 2014, global sponsorship spending is projected to reach $55.3 billion with a 4.1 percent growth rate. Comparing global spending forecasts for media and other marketing expenditures, advertising would see the largest growth, 4.6 percent compared with 4.4 percent for marketing/promotions and 4.1 percent for sponsorship.

  According to IEG, of the projected $20.6 billion North American companies would spend on sponsorship in 2014, 70 percent of it would be on sports, 10 percent entertainment, 9 percent causes, 4 percent for arts and festivals, fairs and annual events, and 3 percent for associations and membership organizations.

  IEG noted as it has in most years over the past two-plus decades that sponsorship’s growth rate will be ahead of the growth rate experienced by advertising and sales promotion in North America but not globally, for corporate interest in other marketing activities, particularly digital platforms, has dampened enthusiasm of sponsorship spending.³ Overall, continued interest in major sports properties should make it the fastest growing segment. For example, the NHL is expected to show the largest increase among the big four sports, with spending on the league and its member clubs rising 9.4 percent to $327 million. However, the NFL has the largest sponsorship pot (up 7 percent to $870 million), followed by MLB (up 6.6 percent to $548 million), and the NBA (up 8.5 percent to $536 million).⁴ Though Europe will remain the largest source of sponsorship spending ($14.8 billion) apart from North America, growth in Asia ($13.3 billion) and Central/South America ($4.2 billion) are expected to heat up with a forecasted growth of 5.6 percent and 5 percent, respectively.

Much of the initial impetus behind surging sponsorship growth in Asia was associated with the Beijing Olympics; however, with the advent of the Sochi Winter Games and introduction of programs such as Crickets IPL and Twenty20 (T20) campaigns, sponsorship in the Asian regions continues to grow.

(Twenty20 cricket, often abbreviated to T20, is a form of cricket originally introduced in England and Wales for professional intercounty competition. A Twenty20 game involves two teams; each has a single innings, batting for a maximum of 20 overs.⁵ A Twenty20 game is completed in about three hours, with each innings lasting around 75–90 minutes (with a 10–20-minute interval), thus bringing the game closer to the timespan of other popular team sports. Shortening the game affords matches to be completed in a single evening and the method of play is to score runs quickly rather than eke out a large score over a much larger period of time. The format provides a host of benefits for the game, drawing in broader audiences and securing better and more lucrative TV cricket coverage.)⁶ Global cricket sponsorship, which according to a Sponsorship Today report is now worth $405 million a year, has come about mainly because of the introduction of these expedited formats.⁷ In fact, according to Sponsorship Today report editor Simon Rines, the profile of industries sponsoring in developing countries is, in many cases, more healthy for the sport than in developed countries.⁸ The report, which analyzed data from 788 deals from all of the major cricket playing nations, found Asia’s India account for $165 million of the spending.⁹

Similar to Asia, much of the stimulus for growth in South America may be attributed to the procurement and implementation of the 2014 World Cup and the 2016 Olympic Games. South America provides an opportunity for sponsors, sponsees, and the host country to begin to link and identify long-term benefits. A variety of synergies exist in hosting the two events. These relate to development (i.e., hotels, stadiums and living communities); infrastructure (i.e., telecommunication and transportation), and the use of human resources. Brazil has the world’s 6th largest economy; however, growth as of late has been less than 1 percent – a cause for concern. Traditionally, Brazil has not been an everyday stop but an exotic tourism destination. The 2016 Olympics and 2014 World Cup serve as a catalyst to ignite and promote long-term development of sponsorship platforms.¹⁰

Not unlike other forms of promotion, sponsorship marketing is also reaching its saturation point in the marketplace (see Table 11.1 for the official sponsors of NASCAR). Consumers are paying less attention to sports sponsorships as they become more the rule than the exception and although sponsorship is still seeing steady growth, corporate interest in other marketing alternatives, particularly digital (including social and mobile) media, have altered spending habits. Sponsorship clutter is causing businesses to design more systematic sponsorship programs that stand out in the sea of sponsorships. In addition, businesses are fighting the clutter of sponsoring mainstream sports by exploring new sponsorship opportunities (e.g., X-Games, women’s sports, and Paralympics) and by becoming more creative with existing sponsorship opportunities. As IEG noted, instead of viewing “new media” as competition, sponsorship properties would be wise to emphasize their role as catalysts in driving interest, engagement and enthusiasm for these digital, social, and mobile platforms.¹¹

One example of a creative sponsorship approach trying to help distinguish their brand in the minds of the consumers and offset the clutter of many traditional sports mediums is shown the accompanying article.

Table 11.1 Official sponsors of NASCAR

3M – Official Partner

Bank of America – Official Bank

Camping World – Official Outdoor and RV Retail Partner

Canadian Tire – Official Automotive Retailer of NASCAR in Canada

Chevrolet – An Official Passenger Car

Coca-Cola – Official Non-Alcoholic Beverage, Official Soft Drink, Official Sport Drink, Official Energy Drink

Coors Light – Official Beer

DRIVE4COPD – Official Health Initiative

Exide – Official Auto Batteries

FDP Friction Science – Official Partner

Featherlite Trailers – Official Trailer

Ford – Official Truck

Freescale – Official Partner

Freightliner Trucks – Official Hauler

Growth Energy – Official Partner

Goodyear – Official Tire

Hellman’s – Official Mayonnaise

K&N – Official Partner

Klondike – Official Ice Cream

Mars – Official Chocolate

Mobil 1 – Official Partner

McLaren – Official Partner

Nabisco (Kraft) – Official Cookies and Crackers

National Corn Growers Assoc. – Official Partner

Nationwide Insurance – Official Auto, Home and Life Insurance

New Holland Agriculture – Official Agriculture Equipment

Prevost – Official Partner

Ragu – Official Sauce

Safety-Kleen – Official Supplier

Sherwin Williams – Official Paint

SIRIUS XM Radio – Official Satellite Radio Partner

Sprint – Official Series Sponsor

Sunoco – Official Fuel and Official Convenience Store

Toyota – An Official Passenger Car

Unilever – Official Partner

UPS – Official Delivery Service

UTI – Official Partner

Visa – Official Card

Whelen Engineering Inc. – Official Development Series Partner of NASCAR

Source: http://www.nascar.com/en_us/sponsors.html.

In essence, a sports sponsorship program is just another promotion mix element to be considered along with advertising, personal selling, sales promotions, and public relations. One difference, however, between sponsorship and the other promotion mix elements is that sports marketing relies heavily on developing successful sponsorship programs. In fact, sponsorship programs are so prevalent in sports marketing that the field is sometimes defined in these terms. Since sponsorship is so critical, let’s better understand how to develop the most effective sponsorship program.

Designing a sports sponsorship program

Sports sponsorship programs come in all shapes and sizes. The following are just a few examples:

  High schools are now looking to sponsors to help with funding. For example, Farmers Insurance is in its sixth year of high school sponsorship, and currently has deals with 18 state high school athletic associations, which gives Farmers the rights to activate around state championships. Each of the state deals is worth US$250,000 to US$500,000 annually, while sport-specific partnerships begin around US$20,000. Deals with single schools range from US$2,000 to US$3,500 per athletic season.¹²

  Adidas signed an 11-year, $400 million partnership as the official uniform and apparel supplier of the NBA with 15 team sponsorship deals, some of which will include a new “store-within-a-store” concept that will sell both NBA-licensed merchandise and other company apparel.¹³

  FIFA and Adidas formally announced an extension of their long-term partnership agreement granting Adidas the Official Partner, Supplier and Licensee rights for the FIFA World Cup™ and all FIFA events until 2030. Already one of the longest and most successful partnerships in modern history, the sponsorship will extend their partnership beyond 60 years and provide an estimated $100 million per four year World Cup cycle.¹⁴

  The Kansas City Chiefs are joining with Hy-Vee, Procter & Gamble and Kansas City Public Schools for the RED Zone Reading Challenge, a collaborative effort designed to encourage the healthy habits of reading and classroom attendance among all elementary school students in Kansas City Public Schools.¹⁵ All elementary school students, kindergarten through sixth grade, in Kansas City Public Schools are eligible to participate. A total of 25 elementary schools will be taking part in the program.¹⁶

  Weston FC/AYSO 644 soccer club is a 501(C)-(3) non-profit organization located in southern Florida. Weston FC/AYSO 644 is Florida’s largest soccer club. Weston FC/AYSO 644 provides both recreational and competitive soccer programs for the Elite, Travel, and Beginner soccer players between the ages of 4 and 19. Weston offers a year-long title sponsorship estimated at $50,000, a Weston Cup, and Showcase Title Sponsorship seeking $15,000 yearly web sponsorships at $350 apiece, Weston Cup & Showcase web sponsorship valued at $150 apiece, practice T-shirt sponsorships at $450, as well as AYSO Team and Team Plus packages.¹⁷

  The PGA Tour and Tiffany & Co. have a multiyear sponsorship deal. The company will serve as the official awards and gift provider for the PGA Tour and Champions Tour. Tiffany will also “design and craft the FedEx Cup Trophy.”¹⁸

  GE has renewed its sponsorship contract for the Olympic Games until 2020. As for the Rio Olympics in 2016, GE has a large portfolio of solutions that can help build the infrastructure required for the city to be able to host the event, among which: energy generation and distribution systems, image diagnostics, monitoring technology and electronic medical records, lighting systems, aircraft engines, water and sewerage treatment installations and services, equipment and transport management, and others.¹⁹

  U.S. gold medal-winning skier Lindsey Vonn signed a sponsorship deal in 2009–2014 to compete with HEAD Ski’s boots, bindings, and poles.

Figure 11.1 The sponsorship process

Source: Hawkins et al., Consumer Behavior: Implications for Marketing Strategy, 6/e © 1994 © The McGraw-Hill Companies, Inc.

What do each of these sponsorship examples have in common? First, they were developed as part of an integrated marketing communications approach in which sponsorship is but one element of the promotion mix. In addition, each of the sponsors has carefully chosen the best sponsorship opportunity (with individual athletes, teams, conferences, events, and/or leagues) to meet organizational objectives and marketing goals.

To carefully plan sponsorship programs, a systematic process is being used by an increasing number of organizations. The process for designing a sports sponsorship program is presented in Figure 11.1. Before explaining the process, it is important to remember that sponsorship involves a marketing exchange. The sponsor benefits by receiving the right to associate with the sports entity (e.g., team or event), and the sports entity benefits from either monetary support or product being supplied by the sponsor. Because the marketing exchange involves two parties, the sponsorship process can be explored from the perspective of the sponsor (e.g., Allstate) or the sports entity (e.g., Sugar Bowl). We look at the process from the viewpoint of the sponsor rather than the entity sponsored.

As shown in the model, decisions regarding the sponsorship program are not made in isolation. Rather, the sponsorship program is just one element of the broader promotional strategy. It was suggested earlier that all the elements in the promotional mix must be integrated to have the greatest and most effective promotional impact. However, sponsorship decisions influence much more than just promotion. Sponsorship decisions can affect the entire marketing mix, as the accompanying article shows.

There are two important things to consider before signing a sponsorship agreement:

(1) All your organization is getting is the right to be called a sponsor, not a completed sponsorship plan; and (2) you should spend two to three times your sponsorship fee to leverage your relationship as a sponsor – if you do not have the funds to promote, do not buy the sponsorship.

When designing the sponsorship program, the initial decisions are based on sponsorship objectives and budgets. These two elements go hand in hand. Without the money, the most meaningful objectives will never be reached. Alternatively, appropriate objectives must be considered without total regard to cost. If the objectives are sound, senior-level managers will find a way to allocate the necessary monies to sponsorship.

After the objectives and budget have been agreed upon, the specific sports sponsorship opportunity is chosen from the hundreds available. For example, Pepsi receives approximately 500 sponsorship proposals each year, and Pennzoil reports that they receive 200 proposals annually. Others estimate that several corporations receive over 100 sponsorship proposals each week (for an example of proposal guidelines, see Table 11.2). Regardless of the exact number, there are a wealth of sponsorship opportunities available to potential sponsors. Table 11.3 illustrates how the Wyndham Golf Championship presents various tiers of information to potential sponsors.²⁰

Table 11.2 Castrol North America – sponsorship criteria requirements

As you might imagine, we receive a number of requests for a variety of sponsorships from across North America. In order for us to most effectively evaluate each proposal we receive, we have established criteria that will provide us with the pertinent information we need. Including all of the data requested below will improve your chances of a prompt response.

Timeframe:

1.  Submitting a proposal to Castrol North America: To allow us enough lead-time to line up appropriate resources, your proposal must be submitted at least 6 months prior to the start date of the event/project. We will not consider proposals submitted outside of this timeframe.

2.  Castrol North America Response: You should expect a reply within 3 months.

What to send and where to send it:

1.  Brief detailed description of sponsorship

2.  Contract Information

3.  Fees and Payment Terms/Schedule: All costs Castrol is expected to pay, including sponsorship fee, Value In Kind, promotional fees, signage, literature, printing costs, creative/production costs, equipment, merchandising, etc.

4.  Direct On-site Sales Opportunities: Include a three-year history of Castrol or non-Castrol motor oil product sales as well as projected motor oil product sales over the next three years. If this is a new venue with no previous motor oil related sales, please explain why this is an ideal Do-it-Yourself (DIY) automotive demographic.

5.  Castrol Benefits: Include items such as TV, radio, and newspaper exposure, Website visits, complimentary tickets, hospitality, and access to special events at the property and quantity as appropriate.

6.  Product/Category Exclusivity

7.  Marketing Opportunities: On-site and off-site, such as co-sponsor promotional activities, Consumer and Trade promotions available to Castrol, etc.

8.  List of Other Sponsors: Indicate whether they are potential or committed. Also please indicate historical sponsors and length of association.

9.  Term: (Annual, two-year, three-year, etc.)

10.  Number of Events per annum

11.  Attendance: Annual ticket sales, paid and unpaid, trend history for the last three years, future projections for three years

12.  Demographics: Include where applicable (i.e., if noticeably different), the following demographics for both attendees and the media audience.

a.  age;

b.  gender;

c.  % do it yourself (i.e., change their own oil);

d.  ethnic origin;

e.  income profile; and

f.  any other applicable information

13.  Any Other Pertinent Information

Please include as much of this information as possible when sending your proposal to Castrol. Once your proposal is complete, please forward by mail to the address below:

Sponsorship Department

Castrol Consumer North America

1500 Valley Road

Wayne, NJ, 07470

USA

We appreciate your interest in Castrol North America as a potential sponsor and look forward to receiving your sponsorship proposal.

Source: www.refresh.castrolusa.com/sponsors. Credit: BP Lubricants USA Inc.

Table 11.3 Sponsorship opportunities for the Wyndham Championship: sponsorship levels

18th Green Luxury Suite

18th Green Luxury Suite – $80,000

Entertain guests in your private Luxury Suite at one of golf’s most historic locations – Sedgefield Country Club.

1 Suite on the 18th Green at Sedgefield Country Club

Includes Lunch, Appetizers and Full, Open Bar Thursday–Sunday

70 Luxury Suite Tickets each day Thursday–Sunday

70 Clubhouse Tickets each day Monday–Wednesday

4 VIP Parking Permits & 10 Sponsors Event Invitations

Exclusive opportunity to purchase dual-logoed merchandise bearing your company logo and the Wyndham Championship Logo

17th Green Luxury Suite

17th Green Luxury Suite – $70,000

Entertain guests in your private Luxury Suite at one of golf’s most historic locations – Sedgefield Country Club.

1 Suite on the17th Green at Sedgefield Country Club

Includes Lunch, Appetizers and Full, Open Bar Thursday-Sunday

70 Luxury Suite Tickets each day Thursday–Sunday

70 Clubhouse Tickets each day Monday–Wednesday

4 VIP Parking Permits & 10 Sponsors Event Invitations

Exclusive opportunity to purchase dual-logoed merchandise bearing your company logo and the Wyndham Championship Logo

18th Green Skybox

18th Green Skybox – $50,000

Entertain guests in an air-conditioned Skybox with open-air seating at one of golf’s most historic locations – Sedgefield Country Club.

1 Skybox on the 18th Green at Sedgefield Country Club

Includes Lunch and Full, Open Bar Thursday–Sunday

40 Skybox Tickets each day Thursday–Sunday

40 Clubhouse Tickets each day Monday–Wednesday

4 VIP Parking Permits & 4 Sponsors Event Invitations

Exclusive opportunity to purchase dual-logoed merchandise bearing your company logo and the Wyndham Championship Logo

16th Green Skybox

16th Green Skybox – $50,000

Entertain guests in an air-conditioned Skybox with open-air seating at one of golf’s most historic locations – Sedgefield Country Club.

1 Skybox on the 16th Green at Sedgefield Country Club

Includes Lunch and Full, Open Bar Thursday–Sunday

40 Skybox Tickets each day Thursday–Sunday

40 Clubhouse Tickets each day Monday–Wednesday

4 VIP Parking Permits & 4 Sponsors Event Invitations

Exclusive opportunity to purchase dual-logoed merchandise bearing your company logo and the Wyndham Championship Logo

15th Green Skybox

15th Green Skybox – $50,000

Entertain guests in an air-conditioned Skybox with open-air seating at one of golf’s most historic locations – Sedgefield Country Club.

1 Skybox on the 15th Green at Sedgefield Country Club

Includes Lunch and Full, Open Bar Thursday-Sunday

40 Skybox Tickets each day Thursday-Sunday

40 Clubhouse Tickets each day Monday-Wednesday

4 VIP Parking Permits & 4 Sponsors Event Invitations

Exclusive opportunity to purchase dual-logoed merchandise bearing your company logo and the Wyndham Championship Logo

Champions Club

Champions Club – $12,000

Located in the historic Sedgefield Clubhouse overlooking the 9th Green, this package features an upscale buffet lunch, afternoon appetizers, and access to on-course viewing platforms with complimentary beverage service Thursday–Sunday.

15 Champions Club Tickets Each Day Thursday–Sunday

15 Clubhouse Tickets Each Day Monday–Wednesday

2 VIP Parking Permits & 2 Sponsors Event Invitations

Exclusive opportunity to purchase dual-logoed merchandise bearing your company logo and the Wyndham Championship Logo

Viewing Platform Package

Viewing Platform – $400/week or $125/day

Watch all the action from private, greenside elevated platforms around the historic Sedgefield golf course. Complimentary open bar is included.

1 Daily or Weekly Access to Multiple On-Course Viewing Platforms Thursday–Sunday

Open Bar Thursday–Sunday

View as a PDF: Viewing Platform Package

Source: Courtesy of PGA TOUR.

When choosing from among many sponsorship opportunities, three decisions must be addressed. The first decision is whether to sponsor a local, regional, national, or global event. Second, the organization must choose an athletic platform. For instance, will the organization sponsor an individual athlete, team, league, or stadium? Third, once the broad athletic platform is chosen, the organization must decide on a specific sports entity. For example, if a league is selected as the athletic platform, will the organization sponsor the WNBA, MLS, or the NFL?

The final stage of the sports sponsorship process involves implementation and evaluation. Typically, the organization wants to determine whether their desired sponsorship objectives have been achieved. Measuring the impact of sponsorship on awareness levels within a targeted audience is a relatively easy marketing research task. However, as the costs of sponsorships continue to increase, there is a heightened sense of accountability. In other words, organizations want to assess the impact of sponsorship on the bottom line – sales. The shift from philanthropy to evaluating sponsorship return on investment (ROI) is also documented in the academic sport sponsorship literature, and new models are emerging to understand the complexities of sponsorship evaluation.²¹ Now that we have a rough idea of how the sponsorship process works, let us explore each stage of the sports sponsorship model in greater detail.

Sponsorship objectives

The first stage in designing a sponsorship program is to carefully consider the sponsorship objectives. Because sponsorship is just one form of promotion, the sponsorship objectives should be linked to the broader promotional planning process and its objectives. The promotional objectives will, in turn, help achieve the marketing goals, which should stem from the objectives of the organization. These important linkages were stated in our definition of sponsorship.

Not unlike advertising objectives, sponsorship objectives can be categorized as either direct or indirect. Direct sponsorship objectives have a short-term impact on consumption behavior and focus on increasing sales. Indirect sponsorship objectives are those that ultimately lead to the desired goal of enhancing sales. In other words, the sponsor has to generate awareness and create the desired image of the product before consumers purchase the product. The indirect sponsorship objectives include generating awareness, meeting and beating competition, reaching new target markets, building relationships, and improving image.²² One of the reasons that sponsoring sporting events has risen in popularity is that sponsorship provides so many benefits to those involved in the partnership. In other words, both the sponsor and the sports entity (event, athlete, or league) gain from this win–win partnership. Let us look at some of the primary objectives of sponsorship from the sponsor’s perspective.

Awareness

One of the most basic objectives of any sponsor is to generate awareness or raise levels of awareness of its products and services, product lines, or corporate name. Sponsors must understand which level to target (i.e., individual product versus company name) based on the broader promotional or marketing strategy. For a new company or product, sponsorship is an important way to generate widespread awareness in a short period of time.

From the event or sports entity’s perspective, having a large corporate sponsor will certainly heighten the awareness of the event. The corporate sponsor will design a promotional program around the event to make consumers aware of the sponsor’s relationship with the event. The corporate sponsor will also want to ensure their promotional mix elements are integrated. In other words, advertising, sponsorship of the event, and sales promotion will all work in concert to achieve the desired promotional objectives. However, a study conducted by Hoek, Gendall, Jeffcoat, and Orsman²³ found that sponsorship generated higher levels of awareness than did advertising. In addition, sponsorship led to the association of a wider range of attributes with the brand being promoted than did advertising.

Competition

Another primary objective of sponsorship is to stamp out or meet any competitive threats or competition. Many corporate sponsors claim they are not that interested in sponsorship opportunities, but they cannot afford not to do so. In other words, if they do not make the sponsorship investment, their competitors will. Sponsorship is thought of as a preemptive tactic that will reduce competitive threat. For instance, Texaco sponsors virtually every national governing body of U.S. Olympic sports. They promote only a handful of these sports, but their sponsorship of the others effectively keeps other competitors out of any chance of ambushing their Olympic efforts. Another example of competitive threat comes from the fierce rivalry between Pepsi and Coke, including Pepsi’s deal with the NFL, snatching that relationship away from Coke, and Coke’s turnabout in securing the NCAA, which had been rival Mountain Dew’s domain. More recently, Coke’s Sprite renewed its long-term deal with the NBA.

In an attempt to gain a competitive edge in the insurance industry, State Farm Insurance has a multi-year deal as Major League Baseball’s official insurer and garner the title sponsorship to the annual Home Run Derby competition on ESPN – one of the highest-rated sports broadcasts of the summer. While State Farm has long had a presence in women’s golf and skating, the MLB deal continues an aggressive spend in sports for the company, which is trying to grow in the intensely competitive insurance industry.²⁴

Unfortunately, a sponsoring company, such as State Farm Insurance, can still be harmed by competitors who use ambush marketing tactics. Ambush marketing is a planned effort (campaign by an organization) to associate themselves indirectly with an event to gain at least some of the recognition and benefits that are associated with being an official sponsor.²⁵ Ambushing may occur in a variety of ways. Corporations may buy commercial time prior to and during event broadcasts (e.g., Amex ’92 and ’94 Winter Olympics), sponsor broadcasts of events rather than directly sponsoring the event, (e.g., Wendy’s on ABC at ’88 Calgary), sponsor individual teams and athletes (e.g., Pepsi and Magic in ’92 Barcelona), or use sport event tickets in consumer giveaways, sweepstakes, or contests.²⁶ One of the earliest examples of ambush marketing at its finest was Nike’s 1984 “I Love LA” marketing campaign.²⁷ Although the company was not an official Olympic sponsor, this campaign inextricably tied Nike to the city and event. Most sports marketers consider this ambush campaign the catalyst for the steady rise in ambush marketing practices and although marketers continue to employ more stringent legislation to combat ambushing tactics, ambushers seem more interested in circumventing the rule.²⁸

Today, many examples of ambush marketing exist. However, the Olympic Games seems to be the “sporting event of choice” for ambush marketers. In the 1984 Olympics, Fuji was the official program sponsor of the Games at considerable cost of $40 million. Their competitors, Kodak, became the ‘sponsor’ of the U.S. track team and of ABC television’s broadcast of the Games. Its film thereby became the official film of the U.S. track team, and it also proceeded to use the network’s own set of symbols to advertise its merchandise. Arguably one of the greatest ambush moments in the Olympic history occurred in 1992 when Michael Jordan (a Nike icon) covered the Reebok logo with the American flag. Likewise the 1996 Atlanta Games are remembered for Nike’s aggressive ambush marketing campaign against Reebok, the official Olympic sportswear partner. Nike bought up advertising billboards throughout the city and established “Nike Town” on the edge of the Olympic park

Other notable Olympic campaigns include American Express’s cat-fight of a sort with VISA over two Winter Olympics: “The Olympics only take VISA …” (VISA – the official sponsor) vs. “You don’t need a visa to travel To Norway …” (AMEX). Additionally, the following Olympic ambush moment occurred in Vancouver where the chief executive of the Vancouver Organizing Committee for the 2010 Winter Olympic Games used public pressure in order to get Imperial Oil/Esso, a Canadian petroleum company, to modify a marketing campaign which was accused of constituting ambush marketing. Imperial Oil/Esso formulated a “Cheer on Canada/Torino, Italy” campaign which involved a competition with prizes of tickets to attend men’s and women’s Olympic ice hockey games in Turin. Although the competition did not use any Olympic symbols, by referring to the Olympic Games it created an unauthorized association with the Olympic Games in Turin and with the Canadian Olympic team. Although Imperial Oil/Esso is a sponsor of the national governing body (Hockey Canada) and the national team, it is not a sponsor of either the Olympic Games or the Canadian Olympic team. Finally, there is the more recent Nike campaign surrounding the London Games where Nike, not an official sponsor, ran a television advertising campaign “Find your greatness” celebrating athletes of all abilities competing in places called London, but, again, they were “Londons” outside of the UK, so London in Nigeria and London, USA.²⁹

Other notable ambushing examples in the realm of sport and entertainment include:³⁰

  Bavaria beer – Budweiser was the official beer of the 2010 World Cup, but during the Holland vs. Denmark match, 36 attractive women in bright orange mini-skirts descended upon the crowd and stole the show by standing, dancing, and waving their arms in the air. What’s the problem you might be asking? Well, they weren’t exactly there for the party atmosphere. Allegedly sent by the Dutch beer company, Bavaria, they ambushed the match to subtly promote the Bavaria brand. The dresses only featured a tiny outer label with the Bavaria name but just before the World Cup, the Dutch beer company made sure the dresses had instant brand association by arranging to have one modelled by the well-known wife of Dutch midfielder, Rafael van der Vaart in advertising spots.³¹ Budweiser, as official beer sponsor and with tens of millions less in their coffers for the privilege, complained to FIFA and the ladies were swiftly escorted out of the stadium. The two “alleged organizers” were arrested by South African police and football pundit Robbie Earle, to whom the seats were originally allocated, was fired by ITV.

  Lufthansa – at the 2006 World Cup, Lufthansa painted a soccer ball on the nose of many of its planes to the annoyance of FIFA and Emirates Air which paid a substantial sum to FIFA to be an official sponsor.

  Pringles not only mirrored their product to look like a tennis ball canister but conveniently placed around 24,000 of these cans outside Wimbledon, and the imaginative ambush marketing stunt certainly caught a lot of attention.

  Vodafone, noting that the publicity may be utilized to create sales, enlisted a streaker with Vodafone logo printed across their backside to run across the field prior to an All Blacks, (New Zealand Rugby) game. The game was sponsored by Telecome.

  BMW’s recent response to an Audi billboard advertisement in Santa Monica, California where Audi noted “your move BMW”; their response Checkmate with a billboard three times the size.

Do most ambush marketing tactics work for organizations that do not want to pay the cost for official Olympic sponsorship? The answer to this question seems to be an overwhelming yes. Studies have shown that most consumers cannot correctly identify the true Olympic sponsors. Research from the Chartered Institute of Marketing (CIM) revealed that brands that adopted ambush marketing strategies enjoyed more public recognition than the official Olympic sponsors.³² The study, which questioned 1,000 adults regarding brands associated with the Olympics in an official or nonofficial capacity, found that 33 percent of consumers linked either Adidas or Reebok with the Sydney Games despite the fact that neither were official Olympic partners.

On the positive side, Coca-Cola, an official partner of the Games, achieved the most recognition, with 22 percent of respondents associating the soft drinks brand with the Olympics. However, other sponsors fared less well, with Visa International, Samsung, Panasonic, and IBM all scoring less than 5 percent in terms of public recognition. In the case of Visa, this lack of awareness was put into even more perspective by the fact that its main rival, American Express, scored higher recognition despite not being an official sponsor.

Because ambush marketing tactics are effective and consumers do not really care (only 20 percent of consumers said that they were angered by corporations engaging in ambush marketing), it appears that there is no end in sight for this highly competitive tactic. However, harsh preventive measures are taking place to protect the investments of the actual sponsors of the Olympic Games. As the accompanying article indicates, the IOC continually enacts measures to protect its sponsors.

Arguably the most effective means for organizers of sporting events to block out unauthorized advertising is to negotiate deals with stadium owners (which may be, for example, cities, sports clubs, or operating companies), which allow organizers to fully control advertising on the premises. For example, the organizer may demand the stadium to be handed over as a clean site, so that the stadium would have to be cleared of all advertising by unofficial sponsors. The organizer may also require the stadium to be renamed for the time of the event and control access to the stadium grounds, including the airspace above. By cleverly designing the general terms and conditions of ticket sales, organizers can even impose dress codes on the spectators, enabling the exclusion of those wearing shirts or caps which display the logos of nonsponsors.

For example,³³ even though Burger King was an official sponsor of the Olympic Games of London they launched a campaign with focus on the competition. In his official Twitter profile, Brazilian fighter Anderson Silva, who’s the poster boy of the fast food chain, anticipated that for each medal that Brazil conquers in London, Burger King will pay double french fries in the company’s restaurants the next day. The promotion is available only for the combos.

Reaching target markets

Reaching new target markets is another primary objective of sponsorship programs. One of the unique features and benefits of sponsorship as a promotional medium is its ability to reach people who are attracted to sports entities because they share a common interest. Therefore, sporting events represent a natural forum for psychographic segmentation of consumers, that is, reaching consumers with similar activities, interests, and opinions (AlOs). Stephen Cannon, Vice President of Marketing for Mercedes-Benz USA sums up their four-year sponsorship deal with the U.S. Open Tennis, replacing Lexus as the Official Vehicle of the U.S. Open by saying, “The partnership with the USTA aligns with our strategy to place Mercedes-Benz at the forefront of marquee events. The Open takes place in one of our most important markets and is an unrivaled opportunity to uniquely connect with fans and attendees.”³⁴ Recognizing the growth of global markets, Mercedes-Benz announced a ten-year agreement for the newly rebranded Mercedes-Benz arena in Shanghai, China. The 18,000 seat arena is the first naming rights deal for Mercedes-Benz outside of Germany and creates a powerful precedent in the global sports marketplace.

Lauded as the world’s premier big-wave surf event, the 2010 Mavericks Surf Contest presented by Sony Ericsson was earmarked as the season’s most anticipated big-wave surf occurrence. “Sony Ericsson is an incredibly innovative company, and they will capture all of the breathtaking and spectacular action using their mobile devices on Contest Day. And as an environmentally responsible organization, we really appreciate Sony Ericsson’s strong efforts toward conservation and recycling,” said Mavericks CEO Keir J. Beadling. On Contest Day, spectators are encouraged to bring their old mobile phones to the Sony Ericsson tent to be recycled or take a minute and recharge their current mobile phones. All proceeds from the recycling program will be donated to helping the coastline.³⁵

Jetsetter launched a series of NCAA Men’s Basketball themed ticket and hotel packages for the 2012 “March Madness” championship series. The flash sale travel site often offered one-of-a-kind ticket and experience packages for events like the Superbowl and Kentucky Derby with deals including but not limited to:

  Packages to each of the Second, Third, Sweet Sixteen and Elite Eight rounds. Each package includes two game tickets and a two-night hotel stay in the city of play. Prices vary by city and date and range from $800–$1,350.

  Four VIP Packs to the Final Four and Championship games, each of which includes two tickets to each of the games in New Orleans (total of three games), a four-night stay at The Ritz Carlton, dinners by acclaimed Chef John Besh and Iron Chef Marc Forgione, drinks from a top mixologist at Club 44, and a meal with a coaching legend. Package is $2,995.

  Two Final Four Ultimate VIP Packs with lower, 100-level seating at the Tournament. Also includes a $100 Jetsetter credit. Package is $3,500.³⁶

Web 11.1 Disabled athletes compete in Paralympic games

Source: U.S. Paralympics/U.S. Olympic Committee

Consider the following examples of how sponsors have attempted to reach new and sometimes difficult-to-capture audiences: The X-Games represent a perfect opportunity to reach Generation Xers, a target market that is “difficult to reach through traditional media.” Another target market that has been neglected includes the millions of disabled Americans. With the growth of the Paralympic Games and programs such as A Sporting Chance, which provide opportunities for people with disabilities to participate in sports, marketers are now addressing this market. Begun in 1960 as an event “parallel” to the Olympics, the Paralympics have blossomed into a major competition of their own. The Paralympic Games are a multisport, multidisability competition of elite, world-class athletes held approximately two weeks after the regular Olympics in the same host city. “The Paralympic Games have truly come home and found their pathway to the future here in London,” Sir Philip Craven declared to the 80,000 in attendance. Just consider some of the impressive numbers. More than 4,000 athletes from 164 teams competed. The London Paralympics have sold more tickets than any previous Games and been broadcast to more people in more countries. More than 2.7 million tickets were sold for the London Games, which is 900,000 more than in Beijing.³⁷ Perhaps the fastest growing target market for many marketers interested in sports sponsorship opportunities is women, and the growth of women’s sports is taking place at all levels. More and more women are participating in sports and watching sports, which has created opportunities for equipment and apparel manufacturers as well as for broadcast media. In addition, marketing to women through the athletic medium has become an interesting and valuable tool for corporate America. In short, women are becoming the target market of choice for sports marketers.

Although women are growing in importance to sports marketers, relatively little is known about the sponsorship decisions relative to women’s sport. What are the women’s sports that are experiencing the most sponsorship growth? As seen in Table 11.4, at the collegiate level, soccer, golf, lacrosse, cross country, and softball have all grown in sponsorship spending at a rate of over 100 percent in the last 25 years. Additionally, only two sports (field hockey and gymnastics) have shown a decrease in spending. A study by Nancy Lough and Richard Irwin was designed to better understand corporate sponsorship of women’s sport.³⁸ The study questioned whether corporate sport sponsorship decision makers differ with respect to why they sponsor women’s sport versus more “traditional” sponsorship opportunities. The authors found that corporate decision makers are more concerned with meeting objectives related to image building and increasing target market awareness, as opposed to building sales and market share. Summarized results of the research are shown in Table 11.5.

Table 11.4 NCAA women’s sports sponsorship growth

Sport	% Growth over 25 years
Soccer	1041%
Golf	286%
Lacrosse	151%
Cross Country	125%
Softball	119%
Outdoor Track	65%
Volleyball	63%
Basketball	45%
Tennis	44%
Swimming	41%
Field Hockey	−4%
Gymnastics	−35%

Table 11.5 Importance of corporate sports sponsorship objectives by sports sponsorship type

Mean ratings (1 – 7) Objective	General	Women’s
Increase sales/market share	5.94	5.72
Increase target market awareness	5.88	5.89
Enhance general company image	5.81	5.94
Increase public awareness of company	5.56	5.53
Demonstrate community involvement	4.75	4.88
Build trade relations	4.50	4.29
Build trade goodwill	4.31	4.24
Demonstrate social responsibility	4.19	4.57
Block/preempt the competition	4.19	4.00
Enhance employee relations	3.76	3.78
Demonstrate corporate philanthropy	3.13	3.71

Relationship marketing

As discussed in Chapter 10, relationship marketing, building long-term relationships with customers, is one of the most important issues for sports marketers in today’s competitive marketing environment. Building relationships with clients or putting the principles of relationship marketing to work is another sponsorship objective. Corporate hospitality managers see to it that sponsors are given ample space to “wine and dine” current or perspective clients.

Companies began throwing more lavish sports-related parties at the Super Bowl during the mid-1980s. David M. Carter of The Sports Business Group, a Los Angeles-based sports consulting firm, says the demand for corporate sports hospitality has grown “exponentially” since then. “As sports’ fan base has shifted from the everyday fan to the corporate fan, these events have increasingly catered to fans who are there to conduct business-to-business marketing,” Carter says. These companies are trying to generate new business and keep current clients as well.

When Bank of America became the sponsor of the BAC Colonial Tournament, the company wanted to create a touring hospitality program that would further enhance the bank’s “Higher Standards” brand statement and give them a fitting opportunity to socialize with a large number of current and prospective customers.

“Banking is done at the local level so we use hospitality as a one-to-one relationship building opportunity and a very key part of our marketing mix,” said David Jessey, former senior vice president of sponsorship marketing for Bank of America. “Hospitality is more than a sign or a commercial. It is a higher standards experience that the guest actively takes part in.”

The result was Hogan’s Alley, an environment that resembled more of a leather-clad country club than simply a tent serving hot dogs and cold beverages. The area included a library filled with golf magazines and books on legendary golfer Ben Hogan, a conversation area, a large bar and dining area and cocktail tables.

To measure the business impact of Hogan’s Alley and determine the tangible results of its investment from their attendees after their experience, Bank of America established a database for all their guests. The company offered high-end door prizes for guests who completed detailed surveys querying them about the event and their banking activities. According to company research,³⁹ Bank of America determined that 96 percent of attendees were satisfied with the experience, 73 percent said it was the best corporate hospitality they had ever experienced, and 84 percent said it strengthened their relationship with the bank. More than 88 percent of attendees stated that they were more likely to consider using the bank because of the experience.

Very few academic studies have explored company attitudes toward corporate hospitality or the effectiveness of this activity, but recently Bennett looked at this growing sports marketing function. He found that two-thirds of the companies he surveyed believed that “highly formal” procedures were applied to the management of corporate hospitality and that one-third of the expenses were incorporated into marketing budgets. Additionally, two-thirds of the companies responding to the survey said that the decision on choice of events for corporate hospitality was based on “the in-house assessment of the goodness of the match between corporate hospitality activities and specific clients.” Two-thirds of the companies felt that corporate hospitality was a vital element of the marketing mix and even if faced with a recession would not cut their budget in this area. Finally, companies stated that the greatest benefit of corporate hospitality activities was retaining profitable customers.⁴⁰ How much are organizations willing to pay to retain and gain customers? Here’s just a glimpse at the prices for hospitality areas at the U.S. Open, hosted at Congressional Golf Course in Bethesda, Maryland. Incidentally, all of these areas sold out:⁴¹

Where: Founders Pub – located in the Congressional Club House

Highlights: Exclusive use with seating of 120 guests; 200 weekly ticket packages; 8 weekly staff ticket packages; access to a preferred grandstand; 50 preferred parking passes; pre-open golf outing for 8 executives

Cost: $475,000, not including food and beverage

Where: Pro Shop – located in the Congressional Clubhouse

Highlights: Exclusive use of pro shop with seating for 50 guests; 100 weekly ticket packages; 6 weekly staff ticket packages; 40 preferred parking passes; pre-open outing for 4 executives

Cost: $225,000, not including food and beverage

Where: Presidential Village – located on the 1st hole of the Gold course, left of the 18th green of the Championships course

Highlights: Exclusive use of 40 × 40 tent for seating of 80 guests; 100 weekly ticket packages; 6 weekly staff ticket packages; 40 preferred parking passes; pre-open outing for 4 executives

Cost: $195, 000, not including food and beverage

Where: Capitol Club – located in the main ballroom of the Congressional Clubhouse

Highlights: Includes 15 weekly ticket packages; 1 weekly staff ticket package; 5 preferred parking passes; reserve table for the week with seating for 10

Cost: $45,000 ($35,000 – table and admission + $10,000 food and beverage fee)

Although corporate sponsors and their clients live and die by the relationships they forge, the community is another public with which sponsors want to build relationships. Many corporate sponsors believe returning something to the community is an important part of sponsoring a sporting event. With the 2012 Shell Houston Open raising 2.2 million alone, the PGA Tour regular golf tournaments passed $130 million in total charity contributions since 1974. Combined with charitable donations from the Champions and Nationwide events, more than $1.4 billion has been generated for charities over the history of the PGA Tour.⁴², ⁴³

“The outstanding work that is done by our tournaments, players, volunteers and sponsors is an integral part of what the PGA TOUR is all about, and our ‘Together, anything’s possible’ platform will enable us to tell that story in a more compelling way,” PGA TOUR Commissioner Tim Finchem said. “Their charitable efforts too often are underappreciated on a national scale, so we want to tell the stories of how they are changing people’s lives and provide a means by which individuals can support their favorite causes through ‘Together, anything’s possible.’”⁴⁴

Image building

Perhaps the most important reason for sponsorship of a sports entity at any level is to maintain or build an image. Image building is a two-way street for both the sponsoring organization and the sports entity. The sponsoring organization associates itself and/or its brands with the positive images generated by the unique personality of the sporting event. Ferrand and Pages describe the process of finding a congruence between event and sponsor as “looking for the perfect wedding.”⁴⁵ The researchers also point out that “any action toward sponsoring an event should begin with an analysis of the common and unique attributes of the event and the brand or product.” Waste Management showcased their “green” initiatives through title sponsorship of the Waste Management Phoenix Open. As the following article illustrates, Waste Management utilizes the sponsorship platform to show people ways to better understand and “green up” their businesses.

Gillette and Major League Baseball have had an historic sponsorship agreement for the past 72 years, extending the longest running sponsorship association of any U.S. sports league into its ninth decade, since 1939. “The MLB relationship serves as a venue for Gillette to reach the oft-elusive male target. Gillette is a sports marketing pioneer that paved the way for modern day sports sponsorship and endorsements,” said Tim Brosnan, Executive Vice President, Business, Major League Baseball. “Baseball is a sport steeped in history and tradition, and Gillette’s integral role in our game will continue into the next decade.” “Major League Baseball has been an important partner for Gillette for more than 80 years,” said Gene Barbato, Marketing Director, Gillette. “We look forward to working together as we strengthen the natural link between Gillette, baseball and men.”⁴⁶

Consider an event like the Summer Extreme Games (X-Games), which possess a well-defined image that includes characteristics such as aggressiveness, hip, cool, no fear, and no rules. The image of extreme sports such as skysurfing, street luge, or the adventure race will certainly “rub off” or become associated with the sponsoring organization. Taco Bell, Nike, and Mountain Dew will take on the characteristics of the extreme sports, and the image of their products will be maintained or enhanced. “Sponsorship is an opportunity to directly touch consumers and be true to the lifestyle of the brand,” explains Chris Fuentes, former VP-marketing at Nautica. “It lets you have a conversation with consumers.”

In Chapter 9, the match-up hypothesis was described as the more congruent the image of the endorser with the image of the product being promoted, the more effective the message. This simple principle also holds true for sponsorship. However, the image of the sports entity (remember, this may be an event, individual athlete, group of athletes, or team) should be congruent with the actual or desired image of the sponsor’s organization or the product being sponsored. In Figure 11.2, we can see how the image of Taco Bell has shifted toward the X-Games and how the image of the X-Games also shifts toward the sponsor.

Figure 11.2 Sponsorship match-up

Sometimes the “match-up” between sponsor and sports entity is not seen as appropriate. Gatorade joined AT&T and Accenture in denouncing its relationship with Tiger Woods following his extra-marital affairs and, as the accompanying article illustrates, Nike broke ties with Lance Armstrong after his recent debacle regarding the use of illegal supplements.

In another alcohol-related example, full-page ads in college newspapers called on university leaders, athletic conferences, and the NCAA to “stop the madness” by banning alcohol marketing from college sports. The ads, tied to March Madness and sponsored by the American Medical Association (AMA), ran in college papers in six cities in advance of the NCAA men’s basketball tournament: in the Chronicle of Higher Education and student newspapers at Georgia Tech, University of Iowa, University of Wisconsin, Indiana University, University of Mississippi, and DePaul University. “The truly insane thing about March basketball is all the money universities get from alcohol advertising,” the ads read. An illustration showed cheering sports fans holding signs reading: “Stop the Madness.” The ad claimed that the alcohol industry spent more than $52 million to advertise its products during televised college sports in a recent year. Spokesman Bob Williams said the NCAA limits alcohol ads to one minute per hour of broadcast, won’t allow ads for hard liquor, and encourages “responsibility themes and messages” in the ads.⁴⁷ The AMA has campaigned to the NCAA for years to ban alcohol-related ads.

Philip Morris USA and Philip Morris International (both subsidiaries of Altria) claim they are changed, responsible companies that do not market to kids and are concerned about the health risks of their products. But the companies’ actions tell a different story. In the latest example, Philip Morris International is the only tobacco company that continues to sponsor Formula One auto races, which exposes spectators and tens of millions of television viewers worldwide – including millions of children – to the name, logo, and red-and-white colors of the company’s best-selling Marlboro cigarettes. Arguably, no responsible company would continue to associate deadly and addictive cigarettes with the excitement and glamour of auto racing, thereby increasing their appeal to children.

Sales increases

The eventual objective for nearly all organizations involved in sponsorship programs is sales increases. Although sometimes there is an indirect route to sales (i.e., the hierarchy of effects model of promotional objectives, which states that awareness must come before action or sales), the major objective of sponsorship is to increase the bottom line. Organizations certainly would not spend millions of dollars to lend their names to stadiums or events if they did not feel comfortable about the return on investment. Likewise, the events are developed, in some cases (e.g., the Skins Game and the World’s Strongest Man Competition), for the sole purpose of making a profit. Without sponsorship, the event would lose the ability to do so.

It is clear that when organizations are considering a sponsorship program, the first step is to determine the organizational objectives and marketing goals that might be achieved most effectively through sponsorship. However, the primary motivation for organizations participating in sports sponsorships is still unclear. Historically, organizations entered into sponsorships to create awareness and enhance the image of their brands, product lines, or corporations. Numerous studies examining the primary reasons for engaging in sponsorship found increasing awareness and enhancing company image to be the most important objectives.⁴⁸ More recently, studies have shown that increasing sales and market share are the primary motives of sponsorship (see Table 11.6).

Regardless of the relative importance of the various sponsorship objectives, organizations must carefully evaluate how the sponsorship will help them achieve their own unique marketing objectives. Along with examining the sponsorship objectives, the organization must find a sponsorship opportunity that fits within the existing promotion budget. Let us look briefly at the basic budgeting considerations, the next step in the sponsorship model.

Table 11.6 Importance of sponsorship objectives

Objectives	Mean Importance Rating
Increase sales and market share	6.14
Increase target market awareness	6.07
Enhance general public awareness	5.88
Enhance general company image	5.47
Enhance trade relations	4.60
Enhance trade goodwill	4.55
Involve community	4.48
Alter public perception	4.15
Enhance employee relations	3.84
Block competition	3.68
Develop social responsibility	3.13
Develop corporate philanthropy	3.12

Source: Doug Morris and Richard L. Irwin, “The Data-Driven Approach to Sponsorship Acquisition, Sport Marketing Quarterly, vol. 5, no. 2 (1996), 9.

Sponsorship budgeting

As with the promotional budget, determining the sponsorship budgeting methods includes competitive parity, arbitrary allocation, percentage of sales, and the objective and task method. Because the fundamentals of these budgeting methods have already been discussed, let us examine the sponsorship budgeting process at several organizations.

The only generality to be made about the budgeting process is that decision making varies widely based on the size of the company and its history and commitment to the practice of sponsorship.⁴⁹ Larger organizations that have used sponsorship as a form of communication for many years tend to have highly complex structures and those new to sponsorship tend to keep it simpler.

Consider, for example, the budgeting process at Anheuser-Busch. Anheuser-Busch’s budgeting process begins with determining the corporate-wide marketing budget. This is usually anywhere from 3 to 5 percent of the previous year’s sales (percentage of sales method discussed in Chapter 10). The total budget is then divided among the company’s more than 30 brands with Budweiser, the flagship brand, receiving the largest share of the budget. The final decision on budget allocation is made by two high-level management teams, who receive and review potential sponsorships. The first team looks at how the managers plan on supporting their sponsorships with additional promotional mix elements such as point-of-sale merchandising. The second team hears the brand managers present their case and defend their budget.

Although Anheuser-Busch’s budgeting process represents a more complex and structured approach, Marriott uses a simpler technique. Marriott, a relative newcomer to sports sponsorship, leaves the whole business to its corporation’s hotel and timeshare properties. The same practice holds true for Proctor & Gamble, where managers of individual brands like Tide decide which sponsorship opportunities to pursue and how much money to allocate.

Once specific budgets are allocated, the organization must look for sponsorship opportunities that will meet objectives and still be affordable. To accommodate budgetary constraints, most sports entities offer different levels of sponsorship over a range of sponsorship fees. One example of the cost of sponsorship and the tangible benefits received by the sponsor is the Wegman’s title sponsor of the LPGA Championship (see Table 11.7). The professional golf tournament attracts slightly more men (60 percent) than women (40 percent), with more than half of the spectators between 45–64 years old and over half having an average household income of over $100,000. Sponsorship packages are presented in the following areas: hospitality, branding, pro-am, advertising, and tickets. Table 11.7 highlights a few of the sponsorship opportunities within each of these categories.

It is important to note that the sponsorship fee is not the only expense that should be considered. As Brant Wansley of BrandMarketing Services, Ltd., points out, “Buying the rights [to the sponsorship] is one thing, capitalizing on them to get a good return on investment is another …. Purchasing a sponsorship is like buying an expensive sports car. In addition to the initial cost, you must invest in the maintenance of the car to ensure its performance.”⁵⁰ Sponsorship must be integrated with other forms of promotion to maximize its effectiveness. Rod Taylor, senior vice president of the CoActive Marketing Group, adds, “The only thing that you get as a sponsor is a piece of paper saying you’ve paid to belong. It is up to you as the marketer to convince consumers that you do, in fact, belong!” Bill Chipps, of the IEG Sponsorship Report, says that “the rule of thumb is that for every dollar a company spends on a rights fee, to maximize the sponsorship, they spend another $2 to $3 on leverage.”

The average sponsor spends $1.60 to leverage its deals for every $1 it pays in rights fees, according to the IEG/Performance Research Sponsorship Decision-Makers Survey. According to IEG, the survey’s high watermark for activation spending was 1.9-to-1. Thirty-five percent of the sponsors said they would increase activation spending over the previous year. Forty-eight percent of these respondents said they would retain the same levels of expenditure, while only 18 percent projected a decrease in their expenditures. Over the past few years, 50 percent of the respondents identified an increase in their return on investment from sponsorship, while only 6 percent identified a decrease on their return on investment.⁵¹

An excellent example of an organization leveraging its Olympic sponsorship is Coca-Cola. In addition to print and broadcast advertisements, Coca-Cola produced themed collectible Olympic cans and accompanying P-O-P displays to stimulate sales at the retail level. According to Katie Bayne, chief marketing officer of Coca-Cola North America, “The dedication to active living and amazing athletic performances of our Six-Pack of athletes served as an inspiration for these Coca-Cola Olympic Games-themed collectible cans. Our special packaging and overall Coca-Cola Olympic Games program are a great way to celebrate the Games and open a little happiness while enjoying the exciting competition with your friends and family.”⁵²

Choosing the sponsorship opportunity

Once sponsorship objectives have been carefully studied and financial resources have been allocated, organizations must make decisions regarding the appropriate sponsorship opportunity. Whatever the choices, thoughtful consideration must be given to the potential opportunities.

Choosing the most effective sponsorship opportunity for your organization necessitates a detailed decision-making process. Several researchers have examined the organizational decision-making process in attempts to understand the evaluation and selection of sponsorship opportunities. A conceptual model of the corporate decision-making process of sport sponsorship acquisition developed by Arthur, Scott, and Woods is shown in Figure 11.3.

Table 11.7 Wegmans LPGA Championship sponsorship levels

Source: http://www.wegmanslpga.org/sponsorship-opps.aspx, accessed December 13, 2013.

Figure 11.3 Sports sponsorship acquisition model

Source: Reprinted by permission from D. Arthur, D. Scott, and T. Woods. “A Conceptual Model of the Corporate Decision-Making Process of Sport Sponsorship Acquisition, Journal of Sport Management, vol. 11, no. 3 (1997), 229.

The process begins with the acquisition of sponsorship proposals. Generally, this is a reactive process in which organizations receive a multitude of sponsorship possibilities from sports entities wanting to secure sponsors. Within the sponsorship proposal, potential sponsors commonly look for the following information to assist in decision making:

  Fan attendance and demographic profile of fans at the event

  Cost or cost per number of people reached

  Length of contract

  Media coverage

  Value-added promotions

  Sponsorship benefits

After the proposals have been acquired, the next step is to form the buying center. The buying center is the group of individuals within the organization responsible for sponsorship evaluation and choice. The buying center usually consists of four to five individuals who each play a unique role in the purchase. Typically, these roles are described as gatekeepers, influencers, decision makers, and purchasers. These roles were previously discussed in the context of personal selling. You will recall that one of the sales activities was to identify the individuals within the organization who performed these roles. Similarly, the sponsorship requester must learn who these individuals are before submitting the proposal. Hopefully, the proposal can then be tailored to meet the unique needs of the individuals who comprise the buying center.

Gatekeepers control the flow of information to the other members of the buying center. They are able to pass on the relevant proposals to other group members and act as an initial filtering device. The influencers are individuals who can impact the decision-making process. These individuals often have information regarding the sports entity that is requesting the sponsorship. The influencers have acquired this information through contacts they have in the community or industry. The decision maker is the individual within the buying center who has the ultimate responsibility to accept or reject proposals. In our earlier examples, describing the budgeting process for Proctor & Gamble, the brand managers were the ultimate decision makers in the sponsorship acquisition process. Finally, the purchasers are responsible for negotiating contracts and formally carrying out the terms of the sponsorship.

The composition of the buying center, in terms of the number of individuals and the interaction between these individuals, is a function of the type of sponsorship decision. The buying grid refers to the organization’s previous experience and involvement in sponsorship purchases. If this is the first time the organization has engaged in sport sponsorship, then more information will be needed from the sponsorship requester. In addition, the buying center will have additional members with greater interaction. However, if the sponsorship is simply being renewed (also known as a straight sponsorship rebuy), the buying center will play a less significant role in the decision-making process.

The next step in the sponsorship acquisition model is to make the purchase decision. Typically, it takes an organization three to six weeks to make a final sponsorship decision. While this may seem slow, purchasing a sponsorship is a complex decision that requires the coordination and interaction of all the members in the buying center. The purchase decision consists of three interrelated steps. In the first step, the organization must consider the desired scope of the sponsorship (e.g., international versus local). To do this, a simple scheme for categorizing sponsorship opportunities has been developed, called the Sport Event Pyramid. The second interrelated step requires the organization to select the appropriate athletic platform for the sponsorship. Does the organization want to sponsor an event, a team, a league, or an individual athlete? Finally, after the organization has chosen the scope of sponsorship and the athletic platform, it specifies the particular sports entity. After the final decision is made, a quick audit can be conducted to determine whether the organization has made the appropriate choice of sponsorship. Let us examine the three steps in the purchase decision-making process in greater detail.

Determining the scope of the sponsorship

The first step in the purchase decision phase of sponsorship acquisition is to determine the desired scope of the sponsorship. David Shani and Dennis Sandler have developed a way to categorize various sponsorship opportunities called the Sports Event Pyramid.⁵³

The Sports Event Pyramid is an excellent first step in reducing the number of sponsorship proposals to a smaller subset.

The Sports Event Pyramid consists of five levels: global events, international events, national events, regional events, and local events. Each level of the Sports Event Pyramid classifies events on the basis of the width and depth of interest in the event. Shani and Sandler describe the width as the geographic reach of the event via the various communications media, and the depth of the event refers to the level of interest among consumers.

Global events are at the apex of the pyramid. As the name implies, global events have the broadest coverage and are covered extensively around the world. In addition to their wide coverage, global events generate a great deal of interest among consumers. Shani and Sandler suggest that the World Cup and the Olympic Games are the only examples of truly global events. Corporations that want to position themselves in the global market should be prepared to pay top dollar for sponsorship of these events due to the tremendous reach and interest in the events.

International events are the next level in the hierarchy. For any event to be considered international in scope, it might (1) have a high level of interest in a broad, but not global, geographic region, or (2) be truly global in scope but have a lower level of interest in some of the countries reached. Examples of international events include Wimbledon, European Cup Soccer, America’s Cup (yachting), the Rugby Union World Cup, and the Pan-American Games. Sponsoring these types of events is useful for corporations that have more narrowly targeted global markets.

Extremely high interest levels among consumers in a single country or two countries is categorized in the Sports Event Pyramid as a national event. National events, such as the World Series, the NCAA Final Four, and the Super Bowl, attract huge audiences in the United States. Although many of these events attract an international media audience, the focus is still on national consumers.

Photo 11.1 Little League (Youth Baseball League)

Source: Shutterstock.com

Regional events have a narrow geographic focus and are also characterized by high interest levels within the region. The Big East conference tournament in basketball and the Boston Marathon are considered good examples of regional events.

In the lowest level of the pyramid are local events. Local events have the narrowest geographic focus, such as a city or community, and attract a small segment of consumers that have a high level of interest in the event. High school sports, local races, and golf scrambles are examples of local events.

The primary purpose of the pyramid is to have marketers first develop an understanding of what level of sponsorship is consistent with corporate sponsorship objectives and budgets. Next, the corporation can decide which specific sporting events at the correct level present the best match. The organization may start small and choose to sponsor local events at the beginning. The larger the organization gets, the more likely it will be involved in sponsorship at each of the five levels of the pyramid. For example, Coca-Cola is deeply involved in sponsorships at all five levels.

Although the Sports Event Pyramid is a great tool for marketers developing a sponsorship program, it does have some potential flaws. First, the local events are shown at the base of the pyramid. To some, this may imply the broadest geographic focus whereas, in fact, the local events have the most narrow focus. Second, it may be extremely difficult to categorize certain events. For example, the Super Bowl is cited as a national event that, by definition, has a one- or two-country focus with a high level of interest. The Super Bowl, of course, is broadcast in hundreds of countries, but may have limited interest levels in most. Therefore, it is uncertain as to whether the event should be categorized as a national event, an international event, or both.

Determining the athletic platform

After the general level of sponsorship reach is considered via the sponsorship pyramid, a more specific sponsorship issue must be considered, namely, choosing the appropriate athletic platform. Professor Christine Brooks defines the athletic platform for sponsorship as being either the team, the sport, the event, or the athlete.⁵⁴ In addition, choice of athletic platform could be further subdivided on the basis of level of competition. For instance, common levels of competition include professional, collegiate, high school, and recreational.

The choice of athletic platform (or, in some instances, platforms) is based on sponsorship objectives, budget, and geographic scope. More specifically, when selecting the athletic platform, several factors should be considered.

  What is the sponsorship budget? What type of athletic platform is feasible given the budget?

  What is the desired geographic scope? How does the athletic platform complement the choice made in the sports sponsorship pyramid?

  How does the athletic platform complement the sponsorship objectives?

Let us take a closer look at each of the broad choices of athletic platform for sponsorship. These include athletes, teams, sports/leagues, and events.

Athletes

We have previously examined the opportunities and risks of athletes as endorsers in Chapters 9 and 10. To summarize, athletes can have tremendous credibility with the target audience and can create an immediate association with a product in the consumer’s mind. For example, NASCAR fans talk about Danica Patrick driving the “GoDaddy” car or Kasey Kahne driving the “Budweiser” car. Interestingly, when it comes to athletes as sponsors, golfers have always been at the head of the pack. In fact, most believe the entire sports marketing industry was built on the backs of professional golfers, such as Arnold Palmer, Jack Nicholas, and Gary Player. While Tiger Woods’ fall from global sports icon to tabloid fodder was stunning, losing Accenture, AT&T, Gatorade, and Pepsi as sponsors, he still carries the flag and remains one of the highest-paid athletes in the world thanks to huge deals with Nike, Electronic Arts and Upper Deck, earning an estimated $105 million.

One athlete that is always surrounded by controversy and seems to exemplify the bad boy image is former Philadelphia Eagles QB and present New York Jets QB Michael Vick. In March 2005 a woman named Sonya Elliot filed a civil lawsuit against Vick alleging that she contracted genital herpes from Vick and that he failed to inform her that he had the disease. Elliot further alleged that Vick had visited clinics under the alias “Ron Mexico” to get treatments and thus he knew of his condition. In another incident with a former team, the Atlanta Falcons, Vick made an obscene gesture at Atlanta fans, holding up two middle fingers during a game against the New Orleans Saints in the Georgia Dome on November 26, 2006. To add further fuel to the fire, Vick surrendered a water bottle to security at Miami International Airport. Due to Vick’s reluctance to leave the bottle behind, it was later retrieved from a trash receptacle. The bottle was found to have a hidden compartment that contained a small amount of dark particulate and a pungent aroma closely associated with marijuana. On April 24, 2007, Vick was scheduled to lobby on Capitol Hill, hoping to persuade lawmakers to increase funding for after-school programs. Vick missed a connecting flight in Atlanta and failed to show for his morning appearance.⁵⁵ In his most publicized and scandalous act yet, Vick pleaded guilty to a federal dogfighting conspiracy charge on August 27, 2007, in U.S. District Court and served 21 months in prison, followed by two months in home confinement. With the loss of his NFL salary and product endorsement deals, combined with previous financial mismanagement, Vick filed for Chapter 11 bankruptcy in July 2008. Most recently, Vick has been accused of using steroids, but he denies these allegations. Currently, Vick continues to rebuild his broken reputation and regain the trust of the public.

Teams

Teams at any level of competition (Little League, high school, college, and professional) can serve as the athletic platform. Boeing and Starbucks present an excellent example of organizations that have chosen to focus on professional sports teams as their athletic platform.

The accompanying Boeing and Starbucks example illustrates that sponsorship is typically associated with professional teams, but college athletic departments also rely heavily on sponsorship partnerships.

The marketing of collegiate sports has skyrocketed in recent years. For example, advertisers are lining up to take their shots during the National Collegiate Athletic Association’s March basketball tournament. According to Kantar Media (2014) over the past decade (2004–2013), the NCAA men’s basketball tournament has triggered more than $6.88 billion of national TV ad spending from 269 different marketers.⁵⁶ Ad revenue in 2013 was $1.15 billion, up 3.8 percent from the prior year. Since 2011, every tournament game has been aired nationally, producing more advertising inventory for sale – and sharply higher revenue. Over that time, the average cost of an ad during the championship game has been $1.24 million – more than a 30-second spot during the World Series or the NBA finals. The Collegiate Licensing Company, which represents more than 200 colleges, universities, bowl games, athletic conferences, the Heisman Trophy, and the NCAA, including the Men’s and Women’s Final Four, the College World Series, and all NCAA championships, estimates the licensed collegiate market at around $3 billion in retail sales annually, including both apparel and non-apparel sales.⁵⁷ Add to that the multimillion-dollar television contracts and deals that most university coaches have with Nike, Reebok, and Adidas, and college athletics is a huge business (see Table 11.8 for a list of universities with the highest revenues from licensed merchandise sales).

Becoming the official outfitter for a university’s athletic teams has become especially lucrative for colleges and has given sponsors great exposure. For instance, the University of North Carolina recently extended a ten-year, $37.7 million contract with Nike to fuel the growth of the university’s athletic program.⁵⁸ Nike will provide North Carolina’s athletic department with the following: (1) Millions in footwear, apparel, and equipment; (2) $2 million to the Chancellor’s Academic Enhancement Fund, directed to fund faculty support; (3) $1 million to the athletic department for signing the contract, with those funds being used to overhaul lighting and sound at the Smith Center (http://alumniclefs.alumni.unc.edu/article.aspx?sid=6840).

Table 11.8 University merchandise sales leaders in 2013

Rank	University
1	The University of Texas at Austin
2	The University of Alabama
3	University of Michigan
4	The University of Notre Dame
5	Louisiana State University
6	University of Kentucky
7	The University of Georgia
8	University of Florida
9	The University of Arkansas
10	University of North Carolina

Note: Schools not under contract with the CLC (Collegiate Licensing Company) were not included on the list. This includes such as Ohio State, Southern California, and Iowa, many of which handle licensing in-house.

Source: http://www.clc.com/News/Archived-Rankings/Rankings-Q4-2012.aspx.

Sport or league

In addition to sponsoring teams, some companies choose to sponsor sports or leagues. For example, the smoothie retailer Jamba Juice made its first investment in a national sports league by signing a multi-year deal to sponsor the WNBA. The deal will be part of a national marketing campaign promoting health and wellness as well as promotional materials for Jamba Juice stores in WNBA markets. The league will also work with the retailer to promote a program known as Jamba Jump, a fitness routine that uses jump ropes. The goal is to reach 1 million children through the partnership.⁵⁹ One advantage to sponsoring women’s sports and the WNBA is that there is less sponsorship clutter. Fewer companies are sponsoring women’s sports or leagues, and those that do are creating a unique position and differentiating themselves.

For example, cosmetics brand CoverGirl is the presenting sponsor of the WNBA’s new marketing campaign WNBA Pride, aimed at the lesbian, gay, bisexual, and transgender community. WNBA Pride is the league’s platform celebrating inclusion and equality, while combating anti-LGBT bias. The global consumer products company Procter & Gamble owns CoverGirl. The program would not have seen the light of day without the support and acceptance of other league marketing partners, which include Boost Mobile, Adidas, American Express, BBVA, Anheuser-Busch, Coca-Cola, EA Sports, Gatorade, Nike, Spalding, and State Farm. While the WNBA welcomes all fans, athletes, and partners to our game, the value of marketing partners should not be underestimated in matters where social responsibility conforms or conflicts with business strategies, especially when those conflicts become public knowledge.⁶⁰

Anheuser-Busch is a corporation that has chosen an integrated approach in sponsoring a number of sports or leagues. Anheuser-Busch became the official beer of Major League Baseball in 1996, and became the official beer of the NBA in 1998. Bud Light began its sponsorship of Team Seebold in 1982, sponsors the ChampBoat Racing Series team, and became a founding partner of the Professional Bull Riders in 1993. Anheuser-Busch’s sports sponsorship portfolio includes beer sponsorships with the NFL and UFC (Bud Light); MLB and NBA (Budweiser); PGA, LPGA, and Champion’s Tours (Michelob ULTRA); and the Kentucky Derby (Stella Artois). The makers of Budweiser and Bud Light are the official beer sponsors of 28 NFL teams; the exclusive alcohol and non-alcohol malt-based beverage sponsor of the Super Bowl, and is the official beer of the entire NFL. In addition, they sponsor 26 MLB teams, 25 NBA teams and Bud Light also signed on as the official beer of the NHL in 1988 and currently sponsors 20 domestic teams.⁶¹ In total, Anheuser-Busch sponsorships include 95 local teams across the four major sports leagues and dozens of local running and cycling events nationwide as well as the No. 29 Budweiser Chevrolet SS driven by Kevin Harvick.⁶²

Web 11.2 University of Texas’ Corporate partner program

Source: www.texassports.com/UTAthletics

It has been the official alcoholic beverage of Major League Lacrosse since the league started in 2001, and has sponsored the sport since 2004. Current surfer sponsorships include Serena Brooke, Freddy P, Sean Moody, and Benji Weatherly. The AVP Tour named Bud Light its official beer of the tour in 2000. In 2013, Anheuser-Busch was named Sports Sponsor of the Year. Blaise D’Sylva, vice president of media, sports and entertainment marketing for Anheuser-Busch noted “Successful sports marketing execution at Anheuser-Busch is more than purchasing a 30-second spot or signage in a stadium, it is the collective effort of hundreds of people inside the organization, our partners and our wholesalers, working together every day to leverage sports and beer in exciting and innovative ways to connect with our consumers.”⁶³

The “Ben Hogan Tour” was established in 1990 as a breeding ground for golf professionals who have not cracked the PGA. In 1993, Nike sponsored the tour, followed by Buy.com, which ended its sponsorship in 2002. In 2014, Web.com became the fifth title sponsor in the history of the PGA Tour’s developmental circuit, replacing Nationwide. According to the PGA, the 10-year agreement comes four months after the tour also renewed its deal for the FedExCup, a $35 million bonus series.⁶⁴ In 2013, the tour negotiated a nine-year television deal with NBC Sports and CBS Sports, establishing television contracts through 2021. The Web.com Tour serves to become the primary path for players to reach the PGA Tour. Starting in September 2013, the top 75 players from the both Web.com and the top 75 PGA Tour players who failed to qualify for the FedExCup playoffs will meet in a three-tournament series that effectively replaces Q-School.⁶⁵ A total of fifty PGA Tour cards will be awarded after those three events.

Nike elevated its sponsorship with the addition as a title sponsor of the Winter Dew Tour’s season opener, the Nike 6.0 Open. The event hosted at Breckenridge Ski Resort provides a platform for Nike to engage in the growing winter action sports scene. Nike, originally an associate level partner, will receive tour-wide exclusivity in the footwear, athletic and casual apparel, and outerwear categories as well as receive fully integrated marketing benefits that include television ads and online exposure. Nike’s linkage with an event such as the Winter Dew Tour illustrates the strength of the property and their brand’s commitment to the industry. Lately, a variety of action sports properties have been trying to organize themselves to become more attractive to sponsors. Partnerships across these platforms provide benefits to enhance the involvement and further leverage sponsorship offerings thereby enhancing the procurement of the ultimate dollar.⁶⁶

Action sports were not the first property to think about how best to serve the interests of sponsors. NFL Properties was designed in 1963 primarily to meet and beat the competition posed by Major League Baseball. The league, in attempting to offer a competitive advantage to sponsors, built a system whereby potential sponsors receive collective and individual team rights. That is, sponsors can create opportunities or promotions that feature all NFL teams and local teams in a local market.⁶⁷

Sponsors choose to use the power of the league and its recognizable league logo and, therefore, support all the teams. From the sponsors’ perspective, this represents easy and less expensive one-stop shopping. As Burton points out, “If an NFL corporate partner had to design individual local contracts to secure key markets, the collective local team fees would quickly surpass the single sponsorship fee.” By allowing sponsors the opportunity to receive collective team rights, the league gains enhanced exposure. As an example, Bose, Inc. (already the official home audio sponsor of the NFL) and the National Football League announced an extension for Bose to replace Motorola to put its corporate logo on the headsets worn by coaches during games. Bose will design, engineer and manufacture new headsets for all NFL coaches to use in-game, enhancing sideline and booth communications in a variety of areas, including play-calling and instant replay. Bose, one of two sponsors to have an on-field presence, will work with the NFL to develop and implement game-changing communication innovations.

Events

An athletic platform that is most commonly associated with sports marketing is the event. Examples of sporting events sponsorship are plentiful, as are the opportunities to sponsor sporting events. In fact, sometimes the number of events far outweighs the number of potential corporate sponsors. For example, the city of Winnipeg staged two national and international sporting events over the space of 16 months. In a city that ranks as the eighth largest in Canada and has a population of only around 680,000, the challenge was to find enough corporate sponsors. In response to this challenge, event organizers were forced to be more creative in designing sponsorship packages that appeal to organizations of all sizes.⁶⁸

The advantages of using an event as an athletic platform are similar to those benefits gained by using other athletic platforms. For instance, the event will hopefully increase awareness and enhance the image of the sponsor. In addition, consumers have a forum in which to use and purchase the sponsor’s products. Lexus offered a swing simulator at its vehicle display tent that lets fans take shots on a computer-generated Oakmont course, while AmEx hosted an interactive area open to all ticket holders at the U.S. Open.

In another example, Cincinnati Reds fans received refrigerator and car magnet season schedules courtesy of PNC, who also sponsors many other promotions at the ballpark.

As with the other athletic platforms, one of the primary disadvantages of using events as the athletic platform is sponsorship clutter. In other words, sponsors are competing with other sponsors for the attention of the target audience. One popular way to combat this clutter is to become the title sponsor of an event. Every college football bowl game now has a title sponsor, with the exception of the Rose Bowl – and this too has changed. In 1999 the Rose Bowl added a sponsor’s tag line. More formally, this is called a presenting sponsor (i.e., the Rose Bowl presented by VIZIO).

Choosing the specific athletic platform

The choice of a particular athletic platform follows the selection of the general platform. At this stage of the sponsorship process, the organization makes a decision regarding the exact athlete(s), team, event, or sports entity. For instance, if the organization decides to sponsor a professional women’s tennis player, who will be chosen – Serena or Venus Williams, or Maria Sharapova? As with the previous decisions regarding sponsorship, the choice of a specific sponsor is based largely on finding the right “fit” for the organization and its products.

A recent trend is for sports marketers to ensure and control the fit by manufacturing their own sporting events. For example, Nike has created a division to create and acquire global sporting events. By creating their own events, Nike will be able to control every aspect of how each event is marketed. Moreover, Nike will be able to develop events that are the perfect fit for their multiple target markets.⁶⁹ Other organizations, such as Honda, are pursuing a similar strategy. They have put pressure on their advertising agency to develop sporting events that will be the ideal match for the Honda target market.

Once the decision regarding the general level of sponsorship and the specific athletic platform have been addressed, it may be useful to review carefully the choice(s) of sponsorship before taking the final step. To do so, Brant Wansley of BrandMarketing Services, Ltd. offers the following suggestions for choosing a sponsorship.⁷⁰

  Does the sponsorship offer the right positioning?

  Does the sponsorship provide a link to the brand image?

  Is the sponsorship hard for competitors to copy?

  Does the sponsorship target the right audience?

  Does the sponsorship appeal to the target audiences’ lifestyle, personality, and values?

  How does the sponsorship dovetail into current corporate goals and strategies?

  Can the sponsorship be used for hospitality to court important potential and current customers?

  Is there a way to involve employees in the sponsorship?

  How will you measure the impact of the sponsorship?

  Can you afford the sponsorship?

  How easy will it be to plan the sponsorship year after year?

  Does the sponsorship complement your current promotion mix?

Sponsorship implementation and evaluation

Once the sponsorship decisions are finalized, plans are put into action and then evaluated to determine their effectiveness. Do sponsorships really work? The findings to this million-dollar question are somewhat mixed. In Chapter 13, we discuss the techniques organizations use to determine whether the sponsorship has met their objectives. For now, let us look at the results of several studies that were conducted to determine consumer response to sponsorship. In a poll conducted by Performance Research, more than half of the respondents indicated they would be “not very likely” or “not at all likely” to purchase a company’s products because it was an Olympic sponsor.⁷¹

Most studies report that sponsorship is having a positive impact on their organizations. For example, Visa reported that since its affiliation with the Olympic Games its market share in the United States increased by one-third, but the number of consumers who considered it the best overall card doubled to 61 percent.⁷² Delta Air Lines also increased awareness levels from 38 percent to 70 percent due to its Olympic sponsorship. A recent study by the International Olympic Committee found that 22 percent of respondents would be more likely to buy a product if it were an Olympic sponsor’s product.⁷³ In another study, roughly 60 percent of consumers indicated that they “try to buy a company’s product if they support the Olympic Games.⁷⁴ In addition, 57 percent of consumers around the world agreed that “they look favorably towards a company if it is associated with the Olympics.”

However, some researchers found that the majority of consumers say sponsorship makes no difference to them and their purchase behavior. For example, Quester and Lardinoit conducted a study and found that Olympic sponsors could not expect to find higher levels of brand recognition or loyalty.⁷⁵ Additionally, a study by Pitts and Slattery found that over 60 percent of respondents said they would not be more likely to purchase a product just because they knew it was a sponsor’s product.⁷⁶ One potential reason for these less than encouraging findings is the amount of sponsorship clutter. For example, Ohio-based Wendy’s, which had been an OSU sponsor for “more than two decades,” decided to drop its sponsorship with the school “under pressure from activist investors to reduce costs and improve its financial performance.”⁷⁷ The company has also ended its sponsorships of a local LPGA tournament, and the Columbus Blue Jackets in 2011. Other reasons that sponsorships are dropped or fail are highlighted in Table 11.9.

Table 11.9 Why sponsorships fail

No Budget for Activation – Be prepared to spend several times your rights fees to leverage the property.

Not Long-Term – One-year commitments generally don’t work. It takes time to build the association.

No Measurable Objectives – Must have internal agreement on sponsorship goals.

Too Brand-Centric – Sponsorship should be based on the needs of consumers not brands.

Overlook Ambush and Due Diligence – Know what you are not getting is as important is as what you are getting.

Too Much Competition for Trade Participation – When products sold through the same distribution channel sponsor the same property, the impact is diluted.

Failure to Excite the Sales Chain – A sponsorship program will not work unless the concept is sold throughout the entire distribution channel.

Insufficient Staffing – Additional staffing is needed to meet the time demands of sponsoring an event.

Buying at the Wrong Level – Higher sponsorship levels equate to more benefits. Make sure you are reaping all the benefits or buy at a lower level.

No Local Extensions – National brands must create localized execution overlays for a sponsorship to truly reach their audiences.

No Communication of Added Value – For maximum impact, sponsors must be viewed as bringing something to the event. The activity should be “provided by” the brand rather than “sponsored by” it.

Summary

The element of the promotional mix that is linked with sports marketing to the highest degree is sponsorship. A sponsorship is an investment in a sports entity (athlete, league, team, or event) to support overall organizational goals, marketing objectives, and/or promotional objectives. Sports sponsorships are growing in popularity as a promotional tool for sports and nonsports products (and organizations). For example, it is projected that $55.3 billion will be spent globally on sports sponsorships in 2014.⁷⁸ Because so much emphasis is placed on sponsorship, an organization must understand how to develop the most effective sponsorship program.

The systematic process for designing a sponsorship program consists of four sequential steps, which include setting sponsorship objectives, determining the sponsorship budget, acquiring a sponsorship, and implementing and evaluating the sponsorship. Because sponsorship is one of the promotional mix elements, it is important to remember the relationship it has with the broader promotional strategy. As suggested in Chapters 9 and 10, all the elements of the promotional mix must be integrated to achieve maximum effectiveness.

The sponsorship process begins by setting objectives. These objectives, not unlike advertising objectives, can be categorized as either direct or indirect. Direct sponsorship objectives focus on stimulating consumer demand for the sponsoring organization and its products. The sponsoring company benefits by attaching their product to the sports entity. The sports entity also benefits by increased exposure given by the sponsor. As such, both parties in the sponsorship agreement benefit through the association. Indirect objectives may also be set for the sponsorship program. These objectives include generating awareness, meeting and beating the competition, reaching new target markets (e.g., disabled) or specialized target markets (e.g., mature market), building relationships with customers, and enhancing the company’s image.

After objectives have been formulated, the sponsorship budget is considered. The techniques for setting sponsorship budgets are also in accord with the promotional budgeting methods discussed in the previous chapter. Generally, sponsorship of sporting events is not an inexpensive proposition – especially given the threat of ambush marketing. Ambush marketing is the planned effort by an organization to associate themselves indirectly with an event to gain at least some of the recognition and benefits that are associated with being an official sponsor. In past years, the Olympics have been a playground for ambush marketing techniques. For example, Nike, not an official sponsor of the 1996 Summer Olympics, constructed a building overlooking the Olympic Park to associate themselves with the festivities of the Olympic Games. Today, more stringent policing and regulation of ambush marketing is occurring by the sporting event organizers to protect the heavy financial outlay of official sponsors.

The third step of the sponsorship process is to choose the sponsorship opportunity, or acquire the sponsorship. This means making decisions about the scope of the sponsorship, choosing the general athletic platform, and then choosing the specific athletic platform. The scope of the sponsorship refers to the geographic reach of the sports entity, as well as the interest in the entity. Shani and Sandler describe the scope of athletic events using a tool called the Sports Event Pyramid. The Sports Event Pyramid is a hierarchy of events based on geographic scope and level of interest among spectators. The five-tiered hierarchy ranges from international events, such as the Olympic Games, to local events, such as a Little League tournament in your community. Once the scope of the sponsorship has been chosen, the athletic platform must be determined. The athletic platform for a sponsorship is generally a team, sport, event, or athlete. In addition, the athletic platform could be further categorized on the basis of level of competition (i.e., professional, collegiate, high school, or recreational). Decisions regarding the choice of athletic platform should be linked to the objectives set in the previous stages of sponsorship planning. After choosing the general athletic platform, the potential sponsor must select the specific platform. For example, if a collegiate sporting event is to be the general platform, then the specific athletic platform may be the Rose Bowl, the Championship Game of the Final Four, or a regular season baseball game against an in-state rival.

The final phase of the sponsorship process is to implement and evaluate the sponsorship plans. Organizing a sponsorship and integrating a sponsorship program with the other promotional mix elements requires careful coordination. Once the sponsorship plan is put into action, the most critical question for decision makers is, “Did the program deliver or have we met our sponsorship objectives?”

The implementation and evaluation of the strategic sports marketing process and, more specifically, sponsorships are considered in Chapter 13.

Key terms

  ambush marketing

  athletic platform

  awareness

  competition

  decision maker

  direct sponsorship objectives

  gatekeepers

  global events

  image building

  indirect sponsorship objectives

  influencers

  international events

  local events

  national event

  match-u p hypothesis

  purchasers

  reaching new target markets

  regional events

  relationship marketing

  sales increases

  sponsorship

  sponsorship budgeting methods

  sponsorship evaluation

  sponsorship objectives

  sponsorship program

  sport sponsorship acquisition

  sports event pyramid

Review questions

1.  Define sponsorship and discuss how sponsorship is used as a promotional mix tool by sports marketers. Provide evidence to support the growth of sports sponsorships worldwide.

2.  Outline the steps for designing a sports sponsorship program.

3.  Discuss, in detail, the major objectives of sports sponsorship from the perspective of the sponsoring organization.

4.  What is ambush marketing, and why is it such a threat to legitimate sponsors? What defense would you take against ambush marketing tactics as a sports marketer?

5.  In your opinion, why are sports sponsorships so successful in reaching a specific target market?

6.  How are sponsorship budgets established within an organization?

7.  Describe the various levels of the sponsorship pyramid. What is the Sports Event Pyramid used for, and what are some potential problems with the pyramid?

8.  Define an athletic platform. In determining what athletic platform to use for a sponsorship, what factors should be considered?

9.  What questions or issues might an organization raise when choosing among sponsorship opportunities?

10.  Describe the different ways that sports sponsorships might be evaluated. Which evaluation tool is the most effective?

Exercises

1.  Design a proposed sponsorship plan for a local youth athletic association.

2.  Provide five examples of extremely good or effective match-ups between sporting events and their sponsors. In addition, suggest five examples of extremely poor or ineffective match-ups between sporting events and their sponsors.

3.  Find at least one example of sponsorship for each of the following athletic platforms: individual athlete, team, and league.

4.  Contact an organization that sponsors any sport or sporting event and discuss how sponsorship decisions are made and by whom. Also, ask about how the organization evaluates sponsorship.

5.  Design a survey to determine the influence of NASCAR sponsorships on consumers’ purchase behaviors. Ask 10 consumers to complete the survey and summarize the findings. Suggest how NASCAR might use these findings.

Internet exercises

1.  Search the Internet and find an example of a sponsorship opportunity at each level of the Sports Event Pyramid.

2.  Locate at least three sports marketing companies on the Internet that specialize in the marketing of sponsorship opportunities. What products or services are these organizations offering potential clients?

Endnotes

1  “Kansas Athletics renews partnership with Adidas,” Kansas University Athletics (June 6, 2013). Available from: http://www.kuathletics.com/news/2013/6/6/060613aab_600.aspx?path=mbball.

2  IEG Sponsorship Report, “Sponsorship Spending Growth Slows in North America As Marketers Eye Newer Media and Marketing Options” (January, 7, 2014). Available from: http://www.sponsorship.com/iegsr/2014/01/07/Sponsorship-Spending-Growth-Slows-In-North-America.aspx, accessed May 9, 2014.

3  Ibid.

4  “Report: Pro Sports Sponsorships Are The Real Financial Deal In NFL, MLB, NBA, NHL,” NYSportsJournalism.com (November 19, 2010). Available from: http://www.nysportsjournalism.com/sports-deals-hit-stride-111810/, accessed June 24, 2014.

5  *Twenty20, 2014, http://en.wikipedia.org/wiki/Twenty20, accessed June 29, 2014.

6  Ibid.

7  “Cricket Sponsorship Passes $400 Million,” IMR Sports Marketing & Sponsorship (November 21, 2013), accessed June 29, 2014.

8  Ibid.

9  Ibid.

10  Mark Lyberger, “Responses Submitted to Editor John Kiernan, 2014 FIFA World Cup By The Numbers,” Wallethub.com (June 9, 2014). Available from: http://wallethub.com/blog/world-cup-by-the-numbers/4433/#ask-the-experts, accessed June 29, 2014.

11  IEG Sponsorship Report, “Sponsorship Spending Growth Slows in North America As Marketers Eye Newer Media and Marketing Options” (January, 7, 2014). Available from: http://www.sponsorship.com/iegsr/2014/01/07/Sponsorship-Spending-Growth-Slows-In-North-America.aspx, accessed May 9, 2014.

12  Nick Forrester, “High School Sports Look for Outside Revenue,” SportsPro (August 2010).

13  John Lombardo, “Team Deals Put Adidas Areas in Some NBA Arena Stores,” Street & Smith’s Sport Business Journal (October 16–22, 2006). Available from: http://www.sportsbusinessdaily.com/Journal/Issues/2006/10/20061016/This-Weeks-News/Team-Deals-Put-Adidas-Areas-In-Some-NBA-Arena-Stores.aspx?hl=Arena%20Partnership&sc=0, accessed June 24, 2014.

14  “FIFA and Adidas Extend Partnership Until 2030,” FIFA.com (January 21, 2013), accessed May 9, 2014.

15  http://www.kcchiefs.com/news/article-2/Chiefs-Encourage-Young-Readers/98aca55d-114b-482f-ae98-d0624ab7a684.

16  Ibid.

17  Weston Fury Soccer Club, http://www.westonsoccer.net/docs/wfscsponsorshipfundraisingdona/sponsorshipopp/Official%20PDF%202012-13%20Weston%20FC:AYSO%20644%20Sponsorship%20Package.pdf.

18  Scott Hamilton, “PGA Tour Adds Tiffany as Sponsor,” Street & Smith’s Sport Business Daily (December 4, 2006). Available from: http://rn.sportsbusinessdaily.com/Joumal/Issues/2006/12/20061204/This-Weeks-News/PGA-Tour-Adds-Tiffany-As-Sponsor.aspx, accessed June 29, 2014.

19  http://rio2016.com/en/sponsors/ge, accessed May 9, 2014.

20  “Sponsorships – Corporate Hospitality,” Wyndhamchampionship.com (2014). Available from: http://www.wyndhamchampionship.com/sponsorships/corporate-hospitality/, accessed June 29, 2014.

21  David Stotlar, “Sponsorship Evaluation: Moving from Theory to Practice,” Sport Marketing Quarterly, vol. 13, no.1 (2004), 61–64.

22  See, for example, Nigel Pope, “Overview of Current Sponsorship Thought,” www.cad.gu.edu.au/cjsm/pope21.htm; R. Abratt, B. Clayton, and L. Pitt, “Corporate Objectives in Sports Sponsorship,” International Journal of Advertising, vol. 6 (1987), 299–311; Christine Brooks, Sports Marketing: Competitive Business Strategies for Sports (Englewood Cliffs, NJ: Prentice Hall, 1994).

23  Janet Hoek, Philip Gendall, Michelle Jeffcoat, and David Orsman, “Sponsorship and Advertising: A Comparison of Their Effects,” Journal of Marketing Communications, vol. 3, no. 1 (1997), 21–32.

24  “Major League Baseball Properties Announces State Farm as ‘Official Insurance Company of major league Baseball,’” MLB.com (June 29, 2007). Available from: http://mlb.mlb.com/news/press_releases/press_release.jsp?ymd=20070629&content_id=2055865&vkey=pr_mlb&fext=.jsp&c_id=mlb&partner=rss_mlb.

25  Dennis M. Sandler and David Shani, “Ambush Marketing: Who Gets the Gold?” Journal of Advertising Research, vol. 29 (1989), 9–14.

26  A. Choi, “Ambush Marketing – Sport Marketing,” USF Sport Management Class Power Point Presentation (2010)

27  Robert Passikoff, “Ambush Marketing: An Olympic Competition. And Nike Goes for Gold,” Forbes (August 7, 2012).

28  Atlanta Constitution Journal (December 29, 1995). Available from: www.atlantagames.com/WEB.oly.getcoke2.html.

29  Robert Passikoff, “Ambush Marketing: An Olympic Competition. And Nike Goes for Gold,” Forbes (August 7, 2012).

30  Luke Hulse, “Ambush Marketing: The 10 Most Creative Guerrilla Campaigns Ever,” ThePrintsomeBlog.com (February 13, 2014). Available from: http://www.printsome.com/blog/2014/ambush-marketing-10-creative-guerrilla-campaigns/, accessed June 29, 2013.

31  John Kalogiannides, “Ambush Marketing and The World Cup,” The Sponsorship Place (June 15, 2014). Available from: http://www.thesponsorshipspace.com/#!Ambush-Marketing-and-The-World-Cup-/cb1r/19361BB8-A4B3-4FDE-A79F-F35F25686904, accessed June 29, 2014.

32  “Brands Set Sponsor Ambush,” Sports Marketing (November 2000), 2.

33  “In a Risky Action Burger King Uses Anderson Silva to Gain Profit with the Olympic Games” (2012). Available from: http://www.carlezzo.com.br/en/ler-noticia.php?id=83.

34  Alina Dumitrache, “Mercedes-Benz to Sponsor US Open, Replaces Lexus,” Autoevolution.com (October 2009).

35  Keir Beadling, “Mavericks Announce Partnership with Sony Ericsson,” Surfersvillage Global Surf News (January 2009).

36  “March Madness: Jetsetter Offers Luxury Hotel Packages and Ticket Offerings for NCAA Tournament,” (2012). Available from: http://www.gadling.com/2012/03/13/march-madness-jetsetter-offers-luxury-hotel-packages-and-ticket/. Official Press Release – NCAA (February 2008).

37  Paralympic ticket sales smash records (2012). Available from: http://www.aljazeera.com/sport/paralympics/2012/09/201296155157894823.html.

38  Nancy Lough and Richard Irwin, “A Comparative Analysis of Sponsorship Objectives for U.S. Women’s Sport and Traditional Sport Sponsorship,” Sport Marketing Quarterly, vol. 10, no. 4 (2001), 202–211.

39  Dan Migala, “Be a Good Host: How to Increase Revenue Through Non-Traditional Hospitality Outings,” The Migala Report (June 2, 2004). Available from: http://migalareport.com/node/66, accessed June 24, 2014.

40  Roger Bennett, “Corporate Hospitality: Executive Indulgence or Vital Corporate Communications Weapon,” Corporate Communications: An International Journal, vol. 8, no. 4 (2003), 229–240.

41  USGA, www.usga.org/championships/U_S_Open_2011_2013_Tickets_Hospitatlity_and_Volunteers/.

42  “$2,145,000 Charitable Donation Announced by Shell Houston Open Officials,” Official Press Release – Shell Houston Open (October 2010).

43  http://mavericksinvitational.com/2012/11/gopro-signs-on-as-presenting-sponsor-for-the-mavericks-invitational

44  “PGA Tour’s Final Charity Total for 2009 Hits $108 Million,” Pgatour.com (January 2010).

45  Alain Ferrand and Monique Pages, “Image Sponsoring: A Methodology to Match Event and Sponsor,” Journal of Sport Management, vol. 10, no. 3 (July 1996), 278–291.

46  “Major League Baseball Announces Extension of Historic Sponsorship with Gillette Dating Back to 1939,” Official Press Release – Major League Baseball (April 2009).

47  Jennifer C. Kerr, “Consumer Group Wants College Sports to Nix the Beer Ads,” Associated Press (November 12, 2003).

48  Robert Copeland, Wendy Frisby, and Ronald McCarville, “Understanding the Sport Sponsorship Process From a Corporate Perspective,” Journal of Sport Management, vol. 10, no. 1 (1996), 32–48. A. Edwards, “Sports Marketing: How Corporations Select Sports Sponsorships,” The Coaching Director, vol. 6, no. 3 (1991), 44–47. Jeff Jensen, “Sports Marketing Links Need Nurturing,” Advertising Age, vol. 65, no. 13 (1994), 30. Stephen Kindel, “Anatomy of a Sports Promotion,” Financial World, vol. 162, no. 8 (1993), 48. P. Lucas, “Card Marketers go for the Gold,” Credit Card Management, vol. 9, no. 2 (1996), 22–26. James H. Martin, “Using a Perceptual Map of the Consumer’s Sport Schema to Help Make Sponsorship Decisions,” Sport Marketing Quarterly, vol. 3, no. 3 (1994), 27–31. Douglas W Nelms, “Going for the Gold,” Air Transport World, vol. 33, no. 11 (1996), 71–74. Nigel K. Pope, “Sport Sponsorship in the Corporate Plan,” Lecture Notes Week 8 (October 5, 1997). Available from: http://www.cad.gu.edu.au/market/cyber-journal_of_sport_marketing/cjsm.htm. Nigel K. Pope and Kevin E. Voges, “An Exploration of Sponsorship Awareness by Product Category and Message Location in Televised Sporting Events,” Cyber-Journal of Sport Marketing, vol. 1, no. 1 (1997),16–27. David K. Stotlar and David A. Johnson, “Assessing the Impact and Effectiveness of Stadium Advertising on Sport Spectators at Division I Institutions,” Journal of Sport Management, vol. 3, no. 2 (1989), 90–102. Douglas M. Turco, “Event Sponsorship: Effects on Consumer Brand Loyalty and Consumption,” Sport Marketing Quarterly, vol. 3, no. 3 (1994), 35–37.

49  Roger Williams, “Making the Decision and Paying for It,” Mark McCormack’s Guide to Sports Marketing, International Sports Marketing Group (1996), 166–168.

50  Brant Wansley, “Best Practices Will Help Sponsorships Succeed.” Marketing News (September 1, 1997), 8.

51  “11^th Annual IEG/Performance Research: Sponsorship Decision-Makers Survey,” IEG (March 2011).

52  “Coca-Cola Launches ‘Open The Games. Open Happiness’ Campaign for the Vancouver 2010 Olympic Winter Games,” Official Press Release – The Coca-Cola Company (January 2010).

53  David Shani and Dennis Sandler, “Climbing the Sports Event Pyramid,” Marketing News (August 26, 1996), 6.

54  Christine Brooks, Sports Marketing (Benjamin Cummings, 1994).

55  Jeremy Mullman, “Is Nike Next? ATA Drops Scandal-Prone Vick; Football Pitchman Faces Indictment for His Alleged Role in Dog-Fighting Ring,” Advertising Age (June 4, 2007), p. 6.

56  Kantar Media Press Room, “March Madness Generated $1.15 Billion in Ad Revenue in 2013,” Kantar Media (March 10, 2014). Available from: http://kantarmedia.us/press/march-madness-generated-1-billion-ad-revenue-2013, accessed June 29, 2014.

57  Caroline Kennedy, “Selling School Spirit: Say Hurrah for Collegiate Licensed Product, a Growing Category That Taps Team Loyalty and Alumni Pride,” Gifts and Decorative Accessories (June 1, 2007).

58  “UNC, Nike Sign New 10-Year Contract,” UNC General Alumni Association (July 2009).

59  Katie Thomas, “WNBA Signs Jamba Juice as New Sponsor,” Nytimes.com (August 2010).

60  Barry Janoff, “WNBA Scores Points in Diversity Marketing,” Mediapost.com (May 27, 2014). Available from: http://www.mediapost.com/publications/article/226619/wnba-scores-points-in-diversity-marketing.html, accessed July 1, 2014.

61  Sammy Said, “The 10 Biggest Event and Sport Sponsorships,” the richest.com (August 6, 2013). Available from: http://www.therichest.com/sports/the-10-biggest-event-and-sport-sponsorships/, accessed July 1, 2104.

62  Bryan McWilliam, “Anheuser-Busch a Sports Sponsorship Heavyweight,” SportsNetworker.com (May 24, 2013). Available from: http://www.sportsnetworker.com/2013/05/24/anheuser-busch-a-sports-sponsorship-heavyweight/, accessed May 9, 2014

63  Ibid.

64  Doug Ferguson, “Web.com Takes over as Title Sponsor of Nationwide Tour, Starting Right Now,” PGA.com (2014). Available from: http://www.pga.com/news/nationwide-tour/webcom-takes-over-title-sponsor-nationwide-tour-starting-right-now, accessed July 1, 2014.

65  Ibid.

66  “Nike 6.0 Increases Winter Dew Tour Sponsorship with Namesake Breckenridge Stop,” www.theskichannel.com (September 2010).

67  Rick Burton, “A Case Study on Sports Property Servicing Excellence: National Football League Properties,” Sport Marketing Quarterly, vol. 5, no. 3 (1996), 23–30.

68  Nancy Boomer, “Winnipeg’s Next Flood,” www.marketingmag.ca/Content/1.98/special. html.

69  Jeff Jenson, “Nike Creates New Division to Stage Global Events,” Advertising Age (September 30, 1996), 2.

70  Brant Wansley, “Best Practices Will Help Sponsorships Succeed.” Marketing News (September 1, 1997), 8.

71  Carol Emert, “Olympic Seal of Approval,” The San Francisco Chronicle (September 2, 2000), D1.

72  Ibid.

73  Pascale Quester and Thierry Lardinoit, “Sponsors’ Impact on Attitude and Purchase Intentions: Longitudinal Study of the 2000 Olympic Games” (December 2001). Available from: http://130.195.95.71:8081/WWW/ANZMAC2001/home.htm, accessed May 7, 2014.

74  Stuart Elliott, “After $5 Billion Is Bet, Marketers Are Racing to Be Noticed Amid the Clutter of the Summer Games,” The New York Times (July 16, 1996), D6.

75  Pascale Quester and Thierry Lardinoit, “Sponsors’ Impact on Attitude and Purchase Intentions: Longitudinal Study of the 2000 Olympic Games” (December 2001). Available from: http://130.195.95.71:8081/WWW/ANZMAC2001/home.htm, accessed May 7, 2014.

76  Brenda Pitts and Jennifer Slattery, “An Examination of the Effects of Time on Sponsorship Awareness Levels,” Sport Marketing Quarterly, vol. 13, no. 1 (2004), 43–54.

77  “McDonald’s to Sponsor Ohio State Athletics” (March 13, 2007). Available from: http://www.bizjournals.com/columbus/stories/2007/03/12/daily9.html?from_msnbc=1, accessed May 8, 2014.

78  IEG Sponsorship Report, “Sponsorship Spending Growth Slows in North America As Marketers Eye Newer Media and Marketing Options” (January, 7, 2014). Available from: http://www.sponsorship.com/iegsr/2014/01/07/Sponsorship-Spending-Growth-Slows-In-North-America.aspx, accessed May 9, 2014.