Negotiate
Sport/Event
Contract
Ultimate goal is gain the sponsorship
contract!
 Build Trust with the sponsor
 Make sure both parties are “winners”
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Do your homework
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Know your alternatives or BATNA (best
alternative to a negotiated agreement) in
case the deal does not happen.
Know your counterpart
Know the Standards
Double and Triple Think-anticipate what
the other party wants (double) and
anticipate what the other party thinks
you want (triple).
External listening-actually listen to the
other party.
 Make an aggressive first offer.
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› Present multiple, equivalent, simultaneous
offers.
› But NO more than 3 offers at once!
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Move beyond “positions”
› Not be intimidated or intimidating
› Own you Power-”position power” never
assume because someone has titled position
that he/she is the “all power”
Always know the BATNA, (best
alternative to a negotiated agreement)
in case you aren’t successful.
 Trademarks
 Merchandising
 Company status
 Terms of contracts
 Past sponsorships
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Fee and Payment Schedules
Exclusivity
Lead time
Reach
Brand Positioning
On-site sales
Signage
Product Placement
Ticket Discounts or Premium Tickets
Etc.
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An important part of negotiating a
sport/event sponsorship contract
involves both the sport/event and the
sponsor agreeing on the fee and
payment schedule.
Prepare sponsorship
agreement
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A sponsorship agreement between a
sport team and a local business should
benefit both parties.
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When preparing a sponsorship
agreement, it is important for the
sport/event to include detailed
information concerning the sponsor's
marketing rights
Benefits included in the
sponsorship agreement:
 Exclusivity.
 Are companies willing to pay a
higher fee to keep competitors from
participating?
 Can the sponsee use phrases such
as “official sponsor” or “presented
by”?
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Media package.
 Exactly what type of coverage will be provided?
 How much airtime will be provided?
 Will sponsors need to purchase additional media
coverage?
 Will there be vignettes (short story, video or musical
compellation)?
 What type of signage will appear on television?
 Will ad space be provided?
 Will the sponsor’s name and logo be included on
information sent out about the event?
 Will the sponsor be able to conduct contests or
advertising campaigns?
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Signage.
 What type of signage will be available?
 Will rotational and virtual signage be used?
 Will banners be allowed or provided?
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Entertainment.
 Will luxury boxes, hotel rooms and VIP passes be
provided?
 Will
the sponsor have access to the
athletes or stars?
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Merchandise rights.
 Will there be an area to sell merchandise?
 Will logos and trademarks be used?
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In-Kind.
 Are sponsors willing to provide products?
 How much non-cash sponsorship will be provided?
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Internet.
 Will the entity provide links to corporate websites?
 Will possible banner advertisements be provided?
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By assigning a staff member to
communicate and coordinate activities
with each of its sponsors, a sport/event
organization facilitates goodwill by
servicing their sponsors. (making sure that
they are well taken care of from start to
finish
Obtain
endorsements for
sports/event
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When an event planner seeks celebrity
endorsements for an upcoming event,
she/he should make sure they are
credible and trustworthy.
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The selection of a particular entertainer
to endorse a new product should be
directly linked to the company's image
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What portion of the license agreement
specifies the exact begin and end dates
of the contract term
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What does the license grant portion of
the license agreement specify Which
properties are being licensed and what
types of merchandise will be produced
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What should every sport organization do
before registering a trademark Conduct
a trademark search for conflicting/similar
marks
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Professional sport franchises' marks are
considered service marks because of the
entertainment value of sporting events.
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Trade Dress - product's physical
appearance, including its size, shape, color,
design, and texture. In addition to a product's
physical appearance, trade dress may also
refer to the manner in which a product is
packaged, wrapped, labeled, presented,
promoted, or advertised, including the use of
distinctive graphics, configurations, and
marketing strategies
It protects the distinctive
appearance/image of a good or
service.
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Any Questions????