Lesson 8.1 – Sponsorship
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
What is Sponsorship?
Sponsorship is not the
same as advertising
Sponsorships provide a
natural partnership
between two parties
Copyright
Sponsorship:
A form of marketing
in which companies
attach their name,
brand, or logo to an
event for the purpose
of achieving future
profits
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Sponsorship Examples
Mercedes-Benz investing in a 10-year naming
rights deal to rename the Louisiana
Superdome to the Mercedes-Benz Superdome
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Sponsorship Examples
Major corporations sponsoring NCAA college
football bowl games
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Sponsorship Packages
 Right to use team or event marks, logos, names, or
trademarks
 Potential for exclusive association
 Opportunity for title or presenting sponsorships
 Right to use various designations or phrases
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Sponsorship Packages
 The right to conduct promotional activities
 Additional forms of company exposure and media
time (billboards, commercials etc.)
 Product and merchandise (game tickets, licensed
merchandise)
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
What Makes Sponsorship Work?
Allows companies to reach consumers by
appealing to their lifestyle
A marketer’s message is more effective when
consumers participate in something they enjoy
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
What Makes Sponsorship Work?
Sponsorships allow companies to reach
segments they normally would not
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Methods of Sponsorship Implementation
Five popular ways a company may implement
sponsorship programs:
1) Retail Promotions
2) Media Awareness
3) Venue and Event On-Site Promotion
4) Internal Sales and Marketing Tool
5) Product Introduction
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
The goal of a retail promotion is to drive
traffic to a sponsor’s place of business
Walmart created a “Race
Time” platform at stores that
provides NASCAR fans the
ability to purchase NASCAR
tickets, merchandise, snacks
and beverages to take to the
race, making Walmart a one
stop destination to purchase
everything they need to
enjoy NASCAR events.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Effective Sponsorships
Typically the focus of
media awareness is
on impressions
Copyright
Impressions refer to
the number of people
exposed to the
promotion
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
On-site Promotion

Allows a company to connect with the audience

Provides opportunities for a company to network
with other sponsors

Companies are buying fan enthusiasm, access to
crowds and the media benefits associated with
the event
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
On-site Promotion
In 2014, more than 20 million All-Star ballots were
distributed on-site at the 30 Major League ballparks, and in
approximately 100 Minor League ballparks. Firestone, the
official tire of MLB, was once again the exclusive sponsor of
the 2014 In-Stadium All-Star Balloting Program.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Internal Sales & Marketing Tool
Helps companies to:

Maintain an existing customer base

Attract new customers
 Enhance employee relations and
motivate/reward staff
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.1
Product Introduction
Sponsorship is a great marketing tool for
companies to introduce new products because
they provide a quantifiable demographic
Ford may sponsor a “test drive”
promotion at a NASCAR event, offering an
opportunity for fans to drive a new car
model. The promotion enables Ford to
capture the information of an identifiable
number of the program’s participants.
Copyright
© 2014 by Sports Career Consulting, LLC
Lesson 8.2 –
Sponsorship Growth
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Growth of Sponsorship
$20.6
(projected)
2014
2001
Year
$9.3
1996
$5.4
1987
$1.75
1980
$.30
$0.00
$5.00
$10.00
$15.00
Sponsorship Spending (In billions)
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Sponsorship Growth
Sponsorship spending in 2014 by category (projected)
1) Sports - $13.8 billion
2) Entertainment tours and attractions - $2 billion
3) Causes - $1.8 billion
4) Arts - $927 million
5) Festivals, fairs and annual events - $853 million
6) Associations and membership organizations - $576
million
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
According to the latest report from IEG, companies
with the highest levels of investment in sports
sponsorship programs last year include:
PepsiCo
$ 340-345 million
Coca-Cola
$ 265-270 million
Anheuser-Busch
$ 255-260 million
AT&T
$ 175-180 million
Nike
$ 215-220 million
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
Cause Marketing refers to marketing efforts
that tie an organization with a charitable cause
The Boomer Esiason Foundation Website explains that
with cause marketing programs, a corporation
receives tangible benefits – such as a marked increase
in sales – from tying its marketing strategy to the
fundraising needs of a charitable cause
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
Cause Marketing Exploding In Popularity
According to a report from
Performance Research, 41% of U.S.
consumers believe companies can best
improve brand perceptions by
increasing their cause sponsorships
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
After watching footage of children playing soccer with a
ball of trash in Darfur, Tim Jahnigen launched the “One
World Futbol” program which distributes specially
made soccer balls that will never go flat.
The program received a giant boost in 2012 when
General Motors, as part of their sponsorship of
Manchester United, agreed to sponsor the distribution
of 1.5 million of the balls over the next three years.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
Cause Marketing
Speedo launched a creative “Art of the Cap” cause
related campaign, featuring a special collaboration
between the brand, the sports’ biggest stars (Olympic
gold medalists Ryan Lochte, Natalie Coughlin, Nathan
Adrian, Dana Vollmer and Cullen Jones) and paired them
with five celebrated artists to design a limited edition
Speedo swim cap, sold exclusively on
www.SpeedoUSA.com. The proceeds from each design
were donated to the charities of each athlete’s choice.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.2
What differentiates sponsorship from
traditional media?
 Allows a company to tap emotional and intimate
appeals of customers
 Integrates the positive feelings of sports and
entertainment events with company products,
services and staff
 Sponsorships help reach segmented targets that
mass media typically proves ineffective
 Showcases a company’s products and services in an
environment representative of a consumer’s
particular lifestyle
Copyright
© 2014 by Sports Career Consulting, LLC
Lesson 8.3 –
Sponsorship Decisions
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Why do companies sponsor?
 Increase brand loyalty
 Create awareness and visibility
 Change or reinforce image
 Drive retail traffic
 Drive sales
 Showcase community responsibility
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Why do companies sponsor?
 Display brand attributes
 Entertain clients and hospitality
 Recruit and retain employees
 Create merchandising opportunities
 Build company awareness
 Differentiate products
 Associate with particular lifestyles
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Why do companies sponsor?
 Business-to-Business marketing
 Distinguish from the competition
 Introduce new products or services to
a large audience
 Enter new markets
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Sponsorship
Red Bull successfully reaches their target
audience through a sponsorship of the U.S.
Open of Surfing. Conversely, it would not
make sense for Red Bull to partner with the
PGA for a seniors golf tournament.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
How Do Companies Choose What to Sponsor?
Many companies invest in naming rights deals
to maximize the amount of exposure gained
through the sponsorship
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
In 2013, the San Francisco 49ers announced a
partnership with Levi’s for the naming rights to
their new stadium in Santa Clara, costing the brand
a reported $220 million
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Sponsorship Criteria
 Property and company image compatibility
 Audience
 Working with retailers
 Media impact
 Exclusivity
 Increase in consumer sales
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Effective Sponsorships
Property and Company Image Compatibility
 Does the property offer the imagery the
company wants to establish?
 Is it a lifestyle with which the company
wants to be associated?
 Are the co-sponsors companies with which
the company would want to be associated?
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Property and Company Image Compatibility
WWE reported that a decision to create on air content
suitable for a younger audience (the rating for “Raw”
was changed from TV-14 to PG) generated a
significant spike in interest from more new sponsors
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Audience the Sponsorship Reaches
Thanks in large part to
its commitment as a
NFL sponsor, Papa
John’s has become the
third largest pizza
takeout chain in the
U.S. (behind Domino’s
and Pizza Hut).
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Effective Sponsorships
Exclusivity
Exclusivity is a sponsorship component that sports
teams/properties take very seriously, so much so that
Manchester United (sponsored by Pepsi) refused to
take the field for a 2013 match because the
scoreboard was flashing advertisements for Coca-Cola
(a stadium sponsor). Eventually game officials were
able to strike an agreement that both parties agreed
to so the game could be played
VS
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Effective Sponsorships
Criteria consistent with effective sponsorships
 Frequent impressions
 Sponsorship Leverage / Activation
 Company Commitment
 Commitment for the right reasons
 Communication
 Fan Connection
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Effective Sponsorships
The brain records
an image each
time a consumer
sees a company
logo
The goal of a
sponsorship is to
insure consumers
remember those
images the next
time they make a
purchase decision
Copyright
Gross impression
refers to the frequency
in which a company
product or service is
associated with the
event or entertainer
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Effective Sponsorships
Most companies
spend $1-3 per
dollar spent on the
sponsorship fee
itself in leverage /
activation, yet in
2009 IEG reported
an average leverage
spend ratio of 1-4,
thanks in large part
to challenging
economic conditions
Copyright
Leveraging
(activating) the
sponsorship refers
to the action taken
to escalate its
impact and to
increase the overall
value of the
sponsorship
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Sponsorship Leverage/Activation
 Companies must engage in promotion
of the event prior to the actual event
date
 Effective sponsorships require careful
strategic planning
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Part of Adidas’ MLS activation strategy included a wide
range of activities tied to the 2014 All-Star Game held in
Portland, Oregon (home of Adidas’ North American
Headquarters), including placing a giant soccer ball on
top of a nearby building.
Click here for a full schedule of events that surrounded the event
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Fan Connection
This is why we frequently hear statements
like the one posted on the Website for
Toronto’s Scream Literary Festival:
“The Literary Festival would not be possible
without the kind and generous support of
our private and public sponsors, and we
thank them all immensely”
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.3
Sponsorship does present certain risks
- Difficult in measuring your return on investment
- Potential as an impulse purchase internally by an
executive as a result of fandom influencing the
decision
- Ineffective results despite forecasting that might
suggest otherwise
- Clutter in the sponsorship space
- Emergence of social media overshadowing sponsor
awareness and fan connection
Copyright
© 2014 by Sports Career Consulting, LLC
Lesson 8.4 –
Ambush Marketing
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
"Ambush marketing is a
transparent attempt to
cash in on the passion of
our fans"
- NFL spokesman Brian McCarthy
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
Ambush marketing occurs when one brand pays
to become an official sponsor of an event and other
competing brands attempt to connect itself with
the same event, without paying direct sponsorship
fees
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
 It is a legal tactic
 Often referred to as “guerilla” marketing
 Has proven to be very successful
 Presents many challenges for those hosting
the event
 Results in the perception that companies
are affiliated with an event when they
actually are not
 Allows for penetration into events in which
a competitor may have exclusivity rights
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
Notable Sports Marketing Ambushes
1992 Olympics
Michael Jordan (sponsored by
Nike), covered the Reebok
logo on his apparel with the
American flag during the gold
medal ceremonies
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
Notable Sports Marketing Ambushes
2002 Boston Marathon
More than 300 college students sporting
Reebok-branded tattoos on their foreheads
were seeded into the crowd along the Marathon route.
Reebok-endorsed “office linebacker” Terry Tate (featured
in prominent Reebok television spots) led the charge
along the running route. The ambush was effective, with
Reebok forming a sea of red (via more than 2,500
consumers turned into walking billboards) along the
route and creating its own “unofficial” sponsorship of the
Marathon, much to the chagrin of Adidas.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
Ambush marketing tactics
 Sponsorship of sub-categories in an event
 Sponsorship of the broadcast of the event
 Purchasing advertisements at a competitor’s event
 Engaging in non-sponsorship promotions that coincide
with the event
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
Purchasing advertisements at a
competitor’s event
For the 1996 Atlanta Olympics, Nike went to
the extreme of purchasing all the outdoor
poster sites in Atlanta in an effort to ambush
Adidas, the official sponsor of the 1996 Games
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
Engage in non-sponsorship promotions
that coincide with the event
According to ad-age.com, Coca-Cola stole Pepsi's thunder
during the 2014 Oscars when Coke’s logos appeared on
three pizza boxes delivered to host Ellen DeGeneres during
a skit during the broadcast, despite the fact the Pepsi had
just taken over the sponsorship rights as the exclusive softdrink sponsor of the Academy Awards on ABC.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
Create visibility without “official” affiliation
with an event in non-traditional ways
Geico once paid several lower-ranked men's and
women's tennis players up to $5,000 to wear
"ambush advertising patches during high-visibility
matches" at Wimbledon. Because lower ranked
players earn only minimal wages, many were willing
to slap the Geico logo on their uniform, in part to help
pay for travel expenses.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.4
Ambush Marketing
How does Ambush Marketing Affect
the Hosting Organization?
Ambush marketing threatens the ability to sell event
sponsorships, ultimately cutting into profitability
The Sydney Organizing Committee for the Olympic
Games (SOCOG) had a staff of 60 individuals with
legal backgrounds to protect themselves against
ambush marketing
Copyright
© 2014 by Sports Career Consulting, LLC
Lesson 8.5 –
Pricing Sponsorships
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.5
Pricing Sponsorships
The first step to the
sponsorship sales
process is defining
inventory
Copyright
Inventory defines
exactly what assets an
event or property has
available to sell
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.5
Pricing Sponsorships
Inventory could include
many sponsorship
elements, including
advertisements in a
program, on-site
signage or broadcast
opportunities
Copyright
Inventory sheet
Outlines each specific
piece of inventory
available for sale
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.5
Limitless Opportunities
Signage Opportunities
Other Opportunities
Game Situation Sponsorships
Interactive Fan Participation Contest at the Event
Kiosks for Information and Distribution of Wares or
Services
Pre-Game, Post-Game, Half-time Sponsor
Player Appearances/Cheerleader Appearances
In-store Promotions Traffic Driving
Autograph Cards
Ball Boys
Chalk Talk
Cheerleader Calendar & Posters
Coaches ApparelFlag Football Game
Honorary Captains
Tailgating
Players Tunnel
Player Intros
MVP/IRONMAN of the game & season
Fan of the Game
TV/Radio Broadcast
Dasher boards
Turf Squares/On-Field Logos
Back of End zone
Riptide pre-game & post-game parties
Banners
Down Markers
25-Second Clock
Bench Area
Inflatable blimps
Electronic Messages
Game Day Program
Uniform Patches
Helmet Labeling
Media Guide and Game Notes
Cheerleader Sponsorship
Mascot Sponsorship
Team Logo on Promotional Items
Player, Mascot and Cheerleader
Appearances
Rules of the Game
Staff Shirts
Web Opportunities
Full Page/Section Sponsorship
Animated Banner Advertising
Static Banner Advertising
Page Element Sponsorship
Logo Based Link
Text Link
For more information on how your business can team up with the Riptide, contact us at
619-224-4171
** Sample Inventory Sheet **
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.5
Pricing Sponsorships
It is essentially an
inventory sheet with
associated values
Copyright
The rate card is a printed
list of sponsorship fees
charged by a sports or
entertainment property
for association rights
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.5
Pricing Sponsorships
Sponsorship Pricing Considerations
 Price should be based on value, not on
budgets or needs
 Rights & benefits included in the package
 Value should be placed only on those
elements that can be successfully fulfilled
 Cost / Benefit ratios
Copyright
© 2014 by Sports Career Consulting, LLC
Lesson 8.6 –
Endorsements
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement:
The celebrity agrees to
allow the company to
use his or her likeness
to promote company
goods and services
Copyright
A partnership between an
athlete or entertainer and a
company in which the
athlete or entertainer
receives compensation in
return for their support and
approval of a company
product or service
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Gatorade featuring athletes like Usain Bolt, Bill
Russell, Serena Williams, Michael Jordan, Mia Hamm,
Peyton Manning, Sidney Crosby, Jimmie Johnson,
Abby Wambach and others in a new ad campaign as
part of their re-branding effort
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Subway featuring “famous fans”
like Jimmy Fallon, Blake
Griffin, RG3, Apolo Ohno, Carl
Edwards, CC Sabathia,
Michael Phelps, Ryan Howard,
Justin Tuck, Michael Strahan,
Ndamukong Suh & Nastia
Liukin in advertising
campaigns
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
What characteristics among celebrities do sports
and entertainment marketers look for?
 Success and high levels of performance
 Media following
 Work ethic
 Personality traits
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Effective endorsement campaigns
 The most successful campaigns will
feature athletes or celebrities who actively
promote the product or brand
 Consumers must actually believe the
athlete or celebrity uses the product or
service otherwise the campaign’s credibility
risks being undermined
Copyright
© 214 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Kevin Durant has maintained a positive image
throughout his NBA career and as a result, his
marketability is on the rise
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
As a result, he earned $13
million in endorsements last
year according to Sports
Illustrated’s “Fortunate 50”
list in 2014, ranking him as
the sixth highest paid
athlete in terms of
endorsement (even edging
out Peyton Manning who
was seventh on the list,
earning $12.5 million).
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Prior to the 2010 NBA Draft, Reebok locked up
budding superstar and eventual number one overall
pick John Wall to a five year deal, reportedly worth
$25 million. Reebok was banking on Wall
successfully replacing Allen Iverson as the face of
their basketball brand in a move that never quite
paid off (he moved on to adidas in 2013)
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
In an effort to show their allegiance to the brands
they endorse, both Robert Griffin III (Adidas) and
Tom Brady (Under Armour) were fined by the NFL
for covering up the Nike swoosh logo during the
2013 season (Nike is the league sponsor)
Copyright
© 2014 by Sports Career Consulting, LLC
There has been intense interest in McMahon's headbands since the Bears played
the New York Giants in the National Football Conference semifinals when
McMahon wore a headband with the name of a sporting goods company, "Adidas."
The quarterback was fined $5,000 by NFL Commissioner Pete Rozelle.
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Athlete endorsement earnings, according to Sports
Illustrated’s “Fortunate 50” annual list of the 50 topearning American athletes, published in 2014
LeBron James $38 million
Phil Mickelson $33 million
Tiger Woods $31 million
Kobe Bryant $20 million
Derrick Rose $17 million
Click here to view the top 20 earning International athletes in terms of endorsement compensation
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Derrick Rose did not play in a single game in
2014 due to injury, so Adidas actually tracked
his rehab through a season long marketing
campaign (#thereturn)
Video: http://www.usatoday.com/story/gameon/2012/10/04/derrickrose-adidas-rehab-nba-chicago-bulls/1613261/
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Floyd “Money” Mayweather was the top earning
American athlete, yet did not generate any
revenue through endorsements
Click here to view SI’s entire “Fortunate 50” list, including salary
and endorsement earnings
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Finalizing the Selection Process
 Background checks
 Discussion with celebrities to determine
levels of commitment
 Development of a contract and having
each party carefully review the terms
 Familiarizing the celebrity with the
product or service in which they will
endorse
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Marketers can refer to a prospective
endorsers “q score” to determine the
individual celebrity’s marketing potential
According to the q scores Website, a
q score “measures the familiarity
and appeal of personalities in a
variety of categories to determine
targeted audience attraction”
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Basketball Hall of Famer Michael Jordan
remains the best-known and most-liked
pro athlete, nearly a decade after he
retired as a player. He is recognized by
89 percent of fans and has a positive Q
score of 43 percent.
Denver Broncos quarterback Peyton
Manning is tops among active athletes.
He’s recognized by 88 percent and has
a positive Q Score of 32 percent.
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Failure to live up to expectations may result in a
sponsor parting ways with the athlete or celebrity,
particularly in the midst of any negative publicity
surrounding the individual
After accepting a plea deal with
Major League Baseball for his part
in a performance enhancing drug
scandal, Brewers’ star Ryan Braun
was quickly dropped by most
sponsors, including Nike, while
65% of fans felt his brand would
never recover based on a poll
conducted on bleacherreport.com
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Failure to live up to expectations may result in a
sponsor parting ways with the athlete or celebrity,
particularly in the midst of any negative publicity
surrounding the individual
In 2013, Tara Costa, former star
from the popular TV show ‘Biggest
Loser,’ was being sued by a
corporate partner on the basis that
she had allegedly gained too much
weight to continue representing
their brand.
VIDEO: http://video.foxbusiness.com/v/2546539407001/biggest-loser-taracosta-on-getting-sued-for-weight-gain/
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
Given the
incredible sales
success of his
branded grills,
George Foreman
now sorts through
as many as 20
endorsement
offers per week
Copyright
© 2014 by Sports Career Consulting, LLC
Sponsorship & Endorsements
LESSON 8.6
Endorsements
Endorsement Effects Sales
1-800-Flowers teamed up with
Justin Bieber for what was
originally intended to be a
small Valentine's Day
promotion. It turned into one
of the biggest campaigns in
the company's history and led
to an annual relationship with
the teen pop sensation.
Copyright
© 2014 by Sports Career Consulting, LLC
Download

PowerPoint - Sponsoring and Endorsements