A Modern Approach to Traditional Sponsorship Agreements

The sports industry continues to grow exponentially in the United States, and with that growth comes an increased interest for local and national businesses and organizations to affiliate with sports teams through sponsorship relationships. As this trend continues, the nature of the relationship between a sports property and a business will continue to evolve. For years, businesses were satisfied with simply having their name associated with a sports property, but today, businesses are demanding more return on the sponsorship relationship. They want to know how the sponsorship relationship will benefit their brand.

As such, it is important for sports properties to understand this shift in dynamics surrounding the sponsorship relationship. When entering into sponsorship contracts with a business, sports properties should keep the following considerations in mind.

QUANTIFYING THE RELATIONSHIP
Traditional sponsorship packages can include components such as radio, print, team publications (e.g. programs) and stadium signage. In order to effectively pitch these components to sponsors, sports properties need to be able to quantify the impact they will have. Often the appearance of a business’s name or logo as related to the sports property is referred to as an “impression.” Thus, businesses are often curious exactly how many impressions occur through the sports property’s publication, how many impressions result from gameday signage, or how many impressions occur from a radio spot. Not only should sports properties track impressions, but they should be prepared to explain, in detail, the method by which the impressions are tracked.

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