Key Sponsorship Terms:

Audio Mention: The mention of a sponsor during a TV or radio broadcast.

Business-to-Business Sponsorship: Programs intended to influence corporate purchase/awareness, as opposed to individual consumers.

Category Exclusivity: The right of a sponsor to be the only company within its product or service category associated with the sponsored property.

Contract: A legal document binding two parties together by law.

Cross-Promotions: A joint marketing effort conducted by two or more cosponsors using the sponsored property as the central theme

Event Marketing: Promotional strategy linking a company to an event (sponsorship of a sports competition, festival, etc.). Often used as a synonym for “sponsorship.” The latter term is preferable however, because not all sponsorships involve an event, per se. See: Sponsorship

Hospitality: Hosting key customers, clients, government officials, employees and other VIPs at an event. Usually involves tickets, parking, dining and other amenities, often in a specially designated area, and may include pro-am spots, backstage tours, etc. Synonym: Client Entertainment

Media Equivalencies: Measuring the exposure value of a sponsorship by adding up all the coverage it generated and calculating what it would have cost to buy a like amount of ad time or space in those outlets based on media rate cards.

What is Sponsorship?

Spon` sor-ship, n. - Financial or other support given by a business, organization or individual to a project, event, or activity carried out by another person or group in exchange for marketing and promotional services rendered. In sports terms, sponsorship is a partnership where a business or individual provides a goods, services, or payment to an athlete, team, event, or property in exchange for brand promotion.

Forms of Sponsorship

Sponsorships can range from product discounts offered to amateur athletes and teams up to top-tier financial commitments. You have to be a premier athlete or opportunity to qualify for upper-level sponsorships like free product and cash, but that’s a goal to work toward—not a starting point. Below is a breakdown of the common forms of sponsorship: 1) Product Discounts

Best for: Entry-level to professional athletes. How: Provide deep product discounts. Discount percentages may vary depending on the performance level of the athlete or team. Benefit: Discounts provide value by helping the athlete in need of sponsorship to offset the cost of activity, while protecting the sponsor’s bottom line.

2) Free Product

Best for: Upper-level athletes, long-term athletes, and athletes with proven brand loyalty. How: Sponsors determine the amount and type of free product available throughout the season. Sponsors expect exposure from dedicated athletes. Benefit: This trade limits cash output for the sponsor, while providing significant value for athlete receiving sponsorship.

3) Contingency Bonuses/Incentives

Best for: Athletes who are influential figures in their sports, and sponsors looking to attract bigger-name athletes and media-generating opportunities. How: Athletes and sponsors work together to establish incentives for top finishes at events, media exposure, or meeting other predefined goals. Benefit: Sponsors receive exposure, increased brand awareness, while athletes are able to offset costs and focus on performance.

4) Cash

Best for: Athletes who are influential figures in their sports, and sponsors looking to attract bigger-name athletes and media-generating opportunities. At this level, sponsors often use cash to leverage athletes’ sponsorship decisions. How: The athlete and sponsor work together to set terms of the contract, and what is expected of the athlete in order to receive payment.

Benefit: The ultimate level of sponsorship--athletes get paid for being athletes.