how to optimize sponsorship

Issues in Sport Business:

How to Optimize

Sponsorships

Acknowledgements

I would like to thank Dr. Ketra Armstrong for her guidance and availability during the

capstone project period. Also, I would like to thank sport managers Zach Gano (Los Angeles

Clippers), Abigail Bennett (Los Angeles Galaxy), Keith Herbers (Chivas USA), Jenifer

Soliman (Los Angeles Angles), and Katie Ranne (Los Angeles Kings) for their participation

in this study and the useful information they provided. I would like to thank the sponsors as

well, Brad Nichols (LiveWire Energy) and Aurélien Lehembre (BNP Paribas) for their time

and participation. Finally, I would like to thank the participants of the study for their honest

answers and the time dedicated for the elaboration of this study.

Prefatory facts

Table of contents

Prefatory facts ............................................................................................................................ 5

Table of contents ........................................................................................................................ 5

Executive Summary ................................................................................................................... 1

Introduction ................................................................................................................................ 2

Literature Review ....................................................................................................................... 6

Definition of sponsorship ....................................................................................................... 6

Objectives of Sponsorship ...................................................................................................... 7

Sponsorship differs from advertising ..................................................................................... 9

The advantages of sponsorship ............................................................................................ 11

Different options for sport sponsors ..................................................................................... 11

Principal investors and investees .......................................................................................... 12

The interests of sponsorship ................................................................................................. 12

Types of sponsorship contracts ............................................................................................ 15

The role of sport managers ................................................................................................... 16

The mechanism of consumers’ perceptions and attitudes .................................................... 17

Literature review conclusion .................................................................................................... 19

Solution to the problem ............................................................................................................ 20

Methods, procedures, and protocol .......................................................................................... 21

Instrumentation ..................................................................................................................... 21

Data collection protocol ....................................................................................................... 21

Procedures ............................................................................................................................ 22

Delimitations and assumptions ................................................................................................. 24

Results of Data Analysis .......................................................................................................... 25

Profile of Sample Participants .............................................................................................. 25

Sport fandom ........................................................................................................................ 27

Perception of sponsorship in sports ...................................................................................... 30

Attitudes towards sponsorship in sports ............................................................................... 35

Qualitative Analysis ............................................................................................................. 39

Sport Managers ................................................................................................................ 40

Sponsors ........................................................................................................................... 43

Ways to Optimize Sport Sponsorship ...................................................................................... 47

1) What sponsors must know ............................................................................................ 49

2) What sport managers must know ................................................................................. 55

3) Sponsorship activation process .................................................................................... 58

4) Enhance sport sponsorships ......................................................................................... 64

5) Measure sport sponsorships ......................................................................................... 66

6) Limits of sponsorships ................................................................................................. 72

Applications/Implications of project artifact ............................................................................ 75

Practical applications to sports industry ............................................................................... 75

Conceptual implications to sport management academe ..................................................... 75

Contribution to sport management career aspirations .......................................................... 76

Conclusions .............................................................................................................................. 78

Insight of the Capstone project ............................................................................................. 78

Limitations and suggestions ................................................................................................. 78

Concluding remarks and reflections ..................................................................................... 79

References ................................................................................................................................ 81

Appendices ............................................................................................................................... 85

List of tables:

Table 1: Top 10 U.S. Sponsors in 2001 ..................................................................................... 4

Table 2: The reciprocal system of the sponsorship exchange. ................................................... 8

Table 3: Image’s exchange process in sponsorship ............................................................... 13

Table 4: Profile of participants ................................................................................................. 26

Table 5: Sponsors elements sport fans remember the most ..................................................... 32

Table 6: Model of response process in AIDA model ............................................................... 34

List of figures:

Figure 1: To what extent do you consider yourself a sport fan? .............................................. 27

Figure 2: Participation in sports ............................................................................................... 28

Figure 3: How often do you watch sports? .............................................................................. 28

Figure 4: Most used media platforms to follow sports ............................................................. 29

Figure 5: Attention to sport sponsors ....................................................................................... 31

Figure 6: Sponsorship enhances brand and companies' image ................................................ 33

Figure 7: Frequency of association between sponsors and sport entities ................................. 35

Figure 8: Acceptance of sponsors in sports .............................................................................. 36

Figure 9: How often do you get information about a company and its products from

sponsorship? ............................................................................................................................. 37

Figure 10: What is your degree of interest for a sponsor because of sponsorship in sports?... 38

Figure 11: Do companies invest too much in sports sponsorship? .......................................... 39

How to Optimize Sponsorship 1

Executive Summary

Sponsorship in sports is a useful tool for companies among their communication

strategies. The sports industry is an economic sector that generates over $200 billion each

year. Sponsorships offer various opportunities for sponsors to differentiate themselves from

competition. The high number of different sports offers companies various choices, and

enables the targeting of specific audiences sharing similar values, demographics, and

purchasing behaviors sponsors look for. The current economic climate of the late 2000’s

forced companies to reduce and cut budgets to maintain their profitability. Consequently,

marketing and advertising budgets in which sponsorships belong suffered from the recession

and caused economic issues in sports. However, sponsorships remained a vital source of

revenues for sport entities. The purpose of the study is to determine important factors and

conditions sponsors and sport managers are seeking to achieve with the activation of

sponsorship as well as consumers’ perceptions and attitudes towards sport sponsorships. A

survey and interviews of sport managers from professional sport teams in the Los Angeles

area, and of sponsors in different economic sectors were carried out to provide insights

relative to the issues in this problem. Results showed that sport fans accept sponsors in sports,

and pay mostly attention to images and representations promoted with sport sponsorships.

Image and visibility of sponsors are two critical points. In addition, the interviews of sport

managers and sponsors demonstrated a lack of sponsorship measurements and highlight

several opportunities to enhance sponsorships and leverage brands.


Introduction

The sports industry is an economic sector that generates over 200 billion dollars every

year and attracts sport consumers and fans on a global, national, regional and local dimension.

Sponsorship has been an effective way for companies to reach their audience and to be visible

to millions of viewers on a global stage thanks to the diversity of sporting events. Sports have

always interested companies. The display of emotional, performance, effort, and ethic values

in sports are essential for sponsors. It develops positive image and promotes human values

that impact all social classes, and all ages. Sports were considered as a means of

communication for companies (Shank, 1999). Strong interests developed around the sports

industry. The emergence of companies in every economic sector, willing to invest in the

sports industry greatly impacted and generated revenues. From his study, Shank concluded

that an extreme competition emerged between sponsors.

Sponsorship is not a new phenomenon and has been widely used over centuries.

Sponsorship originated from the Greek and Roman empires. In 65 B.C., Julius César used a

financial source to finance gladiators fights and knew the positive outcomes of an entertaining

event for spectators (Tribou, 2007). This can be considered as a minimal action of

sponsorship with small investment for predictable results. However, a genuine action of sport

sponsorship emerged only recently. In his analysis of sponsorship, Tribou described the first

investment in a sporting event. It took place in 1852, when an American railroad company in

New England sponsored the transportation of Harvard and Yale sports’ teams. Sales from

train tickets sold to consumers allowed companies to make a return on their investment. In

1861, the British food company Spiers & Pond sponsored the first British national cricket

team tour in Australia and collected $20,000 (a significant amount at that time). By the late


1890’s many railroad companies sponsored baseball teams. Tribou’s analysis of sponsorship’s

history demonstrated that this communication tool was not a new phenomenon.

With the development of modern sport over the second half of the 20th century, the

number of investments greatly increased. The sports industry offered many different

opportunities and perspectives for companies and allowed for significant media exposure for

companies and their brands (Tribou, 2007). Many types of businesses joined the list of

sponsors such as banks, beverage and food industries, and high technology and electronics

companies over the 1970’s. However, the expansion of sport sponsorship occurred during the

1980’s and 1990’s. The growth confirmed this communication tool as an industrious strategy

for companies. Sponsors allocate colossal budgets for sports to ensure visibility and presence

with sport entities (see table 1). As illustrated in table 1, the largest corporations in the United

States highly invest in sports. In addition, the first six companies have no direct relations with

sports and the first sport manufacturer Nike is ranked only at the 7th place. The table is 10

years old but provides some insights on the importance of sport sponsorship for major

companies. In spite of a difficult economic climate, sponsorships are still widely present in

the sports industry. The snowball effect of the 1980’s and 1990’s still continue due to the

necessity and opportunities to sponsor events such as the FIFA World Cup and the Olympic

Games, leagues such as the NFL and NBA, teams such as the New York Yankees and Dallas

Cowboys, and athletes such as Lebron James and Tiger Woods.


Table 1: Top 10 U.S. Sponsors in 2001

Amount Company 2001 Rank

$215M-$220M Anheuser-Busch 1

$190M-$195M

Philip Morris

PepsiCo

2

3

$165M-$170M General Motors 4

$130M-$135M Coca-Cola 5

$105M-$110M

DaimlerChrysler

Nike

6

7

$90M-$95M Eastman Kodak 8

$75M-$80M

Ford Motor

McDonalds

9

10

Source: IEG. (2001). Sponsorship Report.

The increased number of sponsors in sports may confuse consumers’ perceptions.

They observe sponsors in any sport via all the media platforms. The complexity of the sports

industry and the current global economic downturn complicate the relationship between both

parties and the activation of sponsorship. In addition, the reduction of consumers’ purchasing

power may have a negative impact on attendance of live sporting events. Companies need to

optimize their investments in sports and may question the validity of this tool of

communication tool. In-depth analyses must be carried out to provide necessary information

before launching sponsorship actions. It is necessary to evaluate sponsors and sport

organizations’ expectations with sponsorships before hand.

A general overview of the sponsorship elements enables a better understanding of how

this communication tool works for companies to leverage their brand and images. In addition,


sport managers must conduct a comprehensive analysis of potential sponsors before signing

sponsorship deals. Sponsorships generate sport entities significant and vital source of

revenues for sport entities. Companies do not necessarily evaluate the extent of their

investments. Complementary studies on consumers’ behaviors and perceptions towards

sponsorships would provide relevant and critical elements for sponsors. Based on the data

collected, sponsors could effectively reach the targeted audience that best defines their values

and develop their communication to obtain the expected associations with sport fans. Sport

managers need also to consider the validity of sponsors for their sport entity and select

companies to leverage and improve fan experience. Hence, elements of perceptions and

attitudes towards sponsorships as well as tools to evaluate and modify the actions could help

sport managers and sponsors to establish successful partnership terms.

The purpose of this study is to determine important factors and conditions sponsors

and sport managers are seeking to achieve with the activation of sponsorship. As a result, the

study provides sport managers and organizations with elements to best serve companies’

interests and needs and to develop their sport entities. Furthermore, the study presents

essential tools for sport entities and sponsors to measure the activation of sponsorship and the

images resulting from it.


Literature Review

A complete analysis of sponsorships, its effects and the different options available for

companies was developed to better understand the importance of this tool for sponsors.

Sponsorship has been part of companies’ communication strategies and has been included in

companies marketing plans. Similar to other projects in businesses, sponsorship in sports

needed before hand a depth analysis of potential opportunities for companies. Hence, this

investment in sports has not been a mere decision of the owner or CEO, but a financial action

well-considered.

Definition of sponsorship

The value of sponsorship as a marketing technique has been well documented and

studies have shown that sponsorship expenditure worldwide exceeded $25 billion in 2004

(Alexandris, Douka, Bakaloumi & Tsasousi, 2008). Various definitions have been used to

explain sponsorship. It has been defined as a communication tool which has allowed a brand

or a company to be directly associated directly with a sporting event for a targeted audience

(Sahnoun, 1986). Sponsorship was defined as a communication technique aiming to persuade

the audience of the particular relationship between the sporting event and the company, in

order to promote a brand and its products. (Derbaix, Gérard & Lardinoit, 1994). It is an

investment in terms of money, services, and/or resources in exchange of rights and an

association with a sporting entity that can result in a competitive advantage (Howard &

Crompton, 2004). The action of sponsorship enabled companies to develop a profitable

association in terms of visibility and image (Bühler & Nufer, 2010).

Sponsorship has included ads in sporting events, naming of public facilities,

representation of athletes, sporting goods and by-products, media rights, and every platform at

the sporting event that could be sponsored by a firm. The variety of sports allowed companies


to target one specific segment of the population according to sport fans’ preferences. Thus,

sponsors were able to identify homogenous groups that shared the same behavioral

characteristics and attitudes, which were more likely to have similar purchase behaviors.

Objectives of Sponsorship

Previous studies have analyzed the objectives of sponsorship. Sponsorship was

implemented to transfer the values of sports to a business institution, its products and its

different brands. It also allowed the transfer of some cultural aspects inherent of the sports

industry in order to answer consumers’ expectations and needs (Quester, 1997). The added

value of sponsorship was to drive the consumers apart from traditional advertising and link it

to particular sporting events, organizations, or players (Dambron, 1991).

Below is a scheme that explains how the reciprocal exchange works in sponsorship

between the sponsor and the sponsored (see table 2). The logic remains the same regardless of

the size of the company and the sport entity since the scheme exemplifies the general process

of the sponsorship action.


Table 2: The reciprocal system of the sponsorship exchange.

Source: Tribou G. (2007), Le sponsoring sportif, 3ème édition. Economica : Paris

Previous studies have shown that not only, sport appealed worldwide every social

class of the population, but also sport audiences were the highest on cable network (Tribou,

2007). In fact, the audience for the Super Bowl, NBA Playoffs, and global events such as the

FIFA World Cup or the Olympic Games gathered a significant number of spectators; all

potential customers for companies involved in sport sponsorship. Sponsors have had the

ability to use a wide range of platforms to transmit their message to the audience. Television,

internet, radio, newspapers, stadiums, arenas, billboards, among others constituted medium

for companies when implementing their sponsorship campaign (Stotlar, 2004). As a result, the

sports industry was considered as a unique economic sector.

Sport sponsorship is an expense for companies in which the best return on investment

is the main objective. It is also a communication tool, part of the marketing mix. Sports

developed an array of values that interested sponsors such as authenticity, competition, and

fair-play, among others. Moreover, it enabled people to share feelings and emotions. In

SPORT ENTITY

(event, organization,

athlete)

SUPPORT (financial,

equipment, know-

how).

SPONSOR

(business or non-

profit

organisation)

IMAGE,

REPUTATION, and

PROMOTION


particular, egalitarian competition, team spirit, performance and self-achievement were

fundamental characteristics in sports which attracted and explained why companies invested

millions of dollars in some sporting events.

The most popular sports in the United States benefited from wide coverage by the

media and as a consequence brought the largest amount of dollars from sports such as football

(NFL and NCAA football), baseball (MLS and NCAA baseball) and basketball (NBA and

NCAA basketball). Additionally, sports like NASCAR and hockey have appealed to regions

based fans, while soccer has been the popular among women. This being said, a large variety

of sports were available for sponsorship (Howard & Crompton, 2004). Sponsors appropriately

examined the different sports in the sponsorship decision process in order to effectively

transmit the message to their targeted audience. Furthermore, some niche sports such as

extreme sports and other non-traditional sports, offered additional options to sponsors and

enabled companies to differentiate from competition, allowing them to position their brand in

the consumers’ mind. In fact, competition was less fierce in some niche and non-traditional

sports than football, baseball or basketball, because of its lesser popularity and lower entrance

sponsorship fees. The lack of competition in some of the niche sports also provided better

visibility for the sponsors.

Sponsorship differs from advertising

Sponsorship differed from advertising in many aspects. Companies questioned the

credibility and effect of sponsorship on advertising campaigns. In some cases sponsorship

resulted in a negative association that poisoned the company’s image (Pope & Voges, 2000).

Advertising enabled to transmit a message and encouraged consumers to pay attention to

images, information, and messages that develop the features and inherent functions of the

companies’ products (Cornwell, Weeks & Roy, 2005). Sponsorship transferred a message

since only a logo or the sponsor’s name was visible to consumers. Advertising allowed longer


spots and promotional messages for companies than sponsorships, where the audience saw the

sponsor briefly. The presence of the sponsor could not provide a long and detailed message,

but only images, logos and various representations.

Sponsorship represented necessary revenues for sporting events and organizations.

The relationship was obvious and unconsciously forced the audience to see the sponsor.

Companies could directly target an audience which was not reached with traditional

advertising (Howard & Crompton, 2004). Sponsorship engaged with a particular sporting

event and companies expected positive associations from the partnership. Thus, the audience

was more likely to accept sponsors’ brands and products. This position developed a feeling of

goodwill or acceptance towards a sponsor that created likeness and purchase (Anne &

Chéron, 1990). This feeling was one of the main differences between sponsorship and

advertising which developed consumers’ reactions and possibly led to patronize sponsors.

(Meenaghan, 1998).

Sponsors believed advertising was not necessary because it would undermine the

credibility of the partnership with a sporting event. Sport sponsorships have been substantially

present in television, internet, and magazines. On the contrary, some companies thought

sponsorship was unnecessary and created redundancy with advertising. Advertising

campaigns suffered budget cuts because of sponsorships whose reliability and efficiency

remained unpredictable (Townley, Harrington & Couchman , 1998). However, many studies

demonstrated the positive outcomes of simultaneous advertising and sponsorship (Cégarra,

1994). Sport Sponsorship developed a closer and more intimate relationship with sports fans

than advertising; by sharing values and emotions related to sporting events. Traditional

advertising relayed the action of sponsorship by presenting companies’ products to the

consumers with whom they shared common values and emotions. Consumers who did not

like the brands’ products could change their mind and attitudes towards sponsors, and develop


positive associations with brands. Companies were able to exploit both communication tools

to reach its sales, profits objectives and reputation (Quester & Thompson, 2001).

The advantages of sponsorship

Sponsorship developed three main advantages which justified investments in sport

(Tribou, 2007). First, it positioned companies’ marketing strategy, and developed brands’

image and reputation. In fact, sponsors exposed their name, logo and images to consumers.

Second, it created a communication strategy intended for a segmented and targeted audience.

Sponsors could identify and define potential buyers. Lastly, it established a closer and more

personalized relationship with consumers watching sport events they liked. Therefore,

consumers paid more attention to sponsors and their message. Sport sponsorship brought

social and moral values to brands. It enabled the creation of a direct relationship without

talking about any product. Moreover, companies could express their thoughts, interests, and

strategies because sponsorship implied sponsors’ concerns about sporting events, teams, or

athletes. It increased authenticity for consumers’ perceptions.

Different options for sport sponsors

The activation of sponsorship enabled companies to reach various objectives and

utilize several platforms (Howard & Crompton, 2004). Sponsorship could be based on

visibility and frequency in order to develop reputation and sales. The development of

partnership with tangible platforms at sporting events and with sports organizations increased

the presence of a brand. Sponsorship could be based on image in order to refine brand’s

identity and in general its equity. A hospitality sponsorship in collaboration with public

relations department included a commercial approach of trade sponsoring and an institutional

approach called corporate sponsorship to improve companies’ image.


Principal investors and investees

Forty percent of the total expenses in sport sponsorship are located in the United States

(Howard & Crompton, 2004). Soccer remains in the global stage as the most sponsored sport

exceeding 1,500 billions of dollars in 2005 but football generates over 1,000 billions of

dollars solely in the United States. Various companies highly invested in the National

Football League and opted for this communication strategy, such as Gatorade ($393 millions),

VISA ($303 millions), Coors ($103 millions). These three examples demonstrated the critical

importance of football in sponsorship. Basketball and baseball in the United States also

massively attract sponsors; however to a lesser extent than football.

The interests of sponsorship

It could be possible to think that sponsorship was motivated by the sport preferences

and likeness of companies’ CEOs and managers for a sport, an event or an athlete. Actually, it

was an authentic investment where sponsors looked for returns on their investment and

measured the profitability of the actions in the sports industry (Shank, 1999). Alike any

business activity implemented by companies, sponsorship was a means to increase sales and

encouraged consumers to buy new products. Sponsorship developed an appropriate way to

communicate a brief and non-aggressive message to a specific audience. Consumers did not

feel an intrusive and intensive advertising campaign, and they were not directly conduced to

make a purchase. They accepted the sponsors’ message and presence with the sporting event

and were more willing to positively respond to sponsors’ images and messages. Several

options became available for sponsors to leverage their sponsorship such as point-of-sales

display at sporting events, exclusive and adapted sales promotion, and interactive games and

sweepstakes, among others.

Companies leveraged their brand image which is comprised by the conjunction of

associations connected to the brand, and is based on representations and images and not on


products (Keller, 1993). Sponsors tried to differentiate themselves from competition by

investing in sport entities where business rivals were not present, and with niche or non

traditional sports such as hockey, Nascar and extreme sports. A reciprocal exchange occurred

where sponsors benefited from inherent values of the sport entities and sport entities chose

companies that positively leveraged their organization, event, or athlete. As a consequence,

sponsorship improved both the image of the sponsor and the sport entity (see table 3)

Table 3: Image’s exchange process in sponsorship

Source: Tribou G. (2007), Le sponsoring sportif, 3ème édition. Economica : Paris

Sponsors were also very concerned about their reputation and customers’ perceptions

and attitudes towards their brands and line of products. Reputation was measurable by the

presence of brands in the consumer’s mind (Shank, 1999). It was critical and essential for

sponsors to be visible and obvious to a maximum number of consumers, so that consumers

would remember for longer periods of time brands and products associated with the sponsors.

Media ensured large coverage of the sporting events and allowed sponsors to reach a wide

targeted audience. Furthermore, sport entities ensured sponsors’ visibility and presence

according to attendance and media coverage (Desbordes & Falgoux, 2007). Sport entities also

IMAGE of

the sponsor

Image TRANSFER

Image RETURN

IMAGE of sport

entity


limited the number of sponsors to avoid confusion in the consumer’s mind. The multiplication

of sponsors associated with sporting events, leagues, teams, or athletes are detrimental to

sponsorship and its effects on consumers. However, sport organizations and managers

attempted to increase the number of sponsors associated with them to generate greater

revenues and to consolidate the image of their sport entity. This strategy was relevant for

sporting events lacking reputation, since the cost of sponsorship would reduce expenses and

enabled sport entities to be associated with renowned brands. On the contrary, large

corporations such as Coca Cola and McDonalds extensively invested in sport during the

increasing popularity of sponsorship.

The visibility and the presence of sponsors created a need for consumers and

encouraged purchase. Thus, it was another essential point to focus on when developing a

sponsorship proposal or package (Zinger & O’Reilly, 2010). Furthermore, companies created

and sold by-products from sponsorships which allowed expanding the life cycle of the

sponsorship actions even if sponsorship terms previously ended. The products would remain

in consumers’ mind as well as associations between companies and sport entities.

Alternatively, Internet offered another platform of communication for visibility objectives. In

fact, Internet enabled sponsors to establish and reinforce the relationship between consumers

and companies’ brands and products.

Sponsorship also affected companies’ employees. Sponsorship impacted on employees

as much as consumers (Lardinoit & Derbaix, 2001). Employees’ awareness and in-house

communication was vital in sponsorship in order to unite around a common project.

Sponsorship could be very expensive and employees could think this form of communication

was a useless investment that could be used differently and better. Lastly, sponsorship

positioned companies and their brands as an institution whose goals were not only business

related but also to develop good media and public relations, and to be closer to the targeted


communities to improve the brand’s equity (Lardinoit & Derbaix, 2001). In addition, sport

entities developed a reversed sponsorship where the sponsored become the sponsor. This type

of sponsorship was illustrated with the soccer team FC Barcelona and the non-profit

organization UNICEF highlighting a conscious act from soccer players.

Types of sponsorship contracts

Sponsorship allowed various levels of involvement for companies including naming,

title sponsor, official sponsor, and sleeping partner (Shank, 1999). Shank described the

different sponsorship platforms available for sponsors. Naming enabled companies to

associate the name of companies or brands with a stadium or an arena. The renovation and

building of new facilities for sport teams facilitated the expansion of this form of sponsorship.

Naming accomplished the objectives of exclusive and permanent visibility, positive media

communication, and public relations for sponsors.

Title sponsors enabled companies to enjoy exclusive image and presence rights.

Companies had the opportunity to make substantial financial profits by borrowing the image

of sport entities and relating it to a brand. Only one company per economic sector was

represented in this situation which prevented the entrance of competitors and guaranteed an

exclusive diffusion. Official sponsors involved companies to a lesser extent, since the

investments and financial risks were reduced. Sponsors offered services, products, equipment,

food and beverages, and knowledge to accompany the organization of the sporting events.

This type of sponsorship allowed the trial of companies’ products and persuading sport

managers and employees about the quality of the sponsored products. Companies assisted

sport entities with their marketing and communication resources to enhance the sporting

events. It enabled to operate a sober sponsorship action, unite staff, and it reduced the risks

related with the brands’ image and equity. The use of fixed platforms such as billboards, and


the association with sport shows on television and the internet also developed strategies of

sponsorship with lower expenses than primary forms of sponsorship.

The role of sport managers

Sport organizations, events, teams, and players selected companies and brands which

best represent the values of sport and sport entities’ image. The determination of the ideal

sponsor became more difficult when corporations intensively invested in sport. Sponsorship

was an asset for companies which decided to adapt a strategy of differentiation from the

competition. It resulted in a competitive advantage (Ricardo, 1817). Sponsorship became

necessary to finance sporting events. Sport entities had to define the profile of the sponsors

they wanted to be associated with. They made consciously choices to leverage the image of

their sport. Sport managers had to determine the profile of the ideal sponsors knowing that

contracts lasted on average two to three years. The knowledge of sponsors’ objectives became

fundamental to ensure a beneficial partnership for sport managers. Nevertheless, some sport

managers did not get the time to focus on this part and failed in the implementation of the

sponsorship action.

Sponsors altered the development of sporting events by requiring some features and

changes to have the opportunity to develop their message. Broadcasting is a main component

in sponsorships. The duration of time-outs lengthened to include more air time for advertising.

Companies invested millions of dollars in primetime sporting events. Furthermore, they

invested for commercial purposes and had the possibility to interfere with sporting events by

asking players meetings and changes in broadcasting to reach the largest audience possible

(Shank, 1999). Sponsorship developed a large industry with various intermediaries between

sponsors and sponsored. Studies demonstrated that companies collaborated with specialised

agencies to develop their and market research and sponsorship action. (Walliser, 2003). They


provided information to agencies about demographics, the media strategy, and the audience

targeted in their action. In some cases, two or more intermediaries offered their services to

guide sponsors in their investment. Intermediaries are generally sport marketing agencies

representing the rights of sponsors. Walliser (2003) examined the role of the agencies and

found out diverse functions. They allowed companies to delimitate their scope and select the

best communication strategy. They also facilitated the establishment of a relationship between

business and the sports industry. Sport agencies also determined the best sponsorship

platforms to obtain the required visibility and presence for the sponsors. Additionally, they

developed on-field operations including logistics, organization, and public relations. They

generally charged a ten to twenty percent commission to sell marketing rights to sport entities

(Tribou, 2007).

The mechanism of consumers’ perceptions and attitudes

Previous researches examined the reaction of consumers towards advertising and in

particular sponsorship. It was necessary to ensure the efficiency of sponsorship (Grohs &

Reisinger, 2005). The cognitive approach demonstrated attitudes towards brands and their

products, which created a sentiment of likeness that led to purchase (Lavidge & Steiner,

1961). Grohs & Reisinger also showed that the involvement of the audience determined the

efficiency of sponsorship and the opinions related to the message. Consumers’ perception was

also selective and the message was partially remembered (Gi-Yong, Quarterman & Flynn,

2006).

Consumers memorized images based on different factors such as colors, designs,

proximity between sponsors and sport entities, and surprise effect. Sponsors strived to

establish clear and short messages to be understood by their audiences. Studies also

highlighted the degree of acceptance of the sponsors. The closer the relationship was between


sponsors and sport entities, the easier consumers accepted associations and brands in sporting

environments. In some case, this relationship developed the credibility of brands and

companies used sponsorships to redefine their image and position in the market. Sponsorships

gave opportunities to change a negative image and generated positive attitudes and

perceptions about the brands.

Studies demonstrated the necessity to be creative and to remind consumers of the

action of sponsorship to attract a wider audience. In fact, the repetition and intensity of

sponsorship reinforced and convinced consumers (Zajonc, 1968). The creation of emotions

related with sport entities also developed positive attitudes toward sponsorship. The

understanding of the mechanism of consumers’ perceptions and attitudes toward brands

enabled sponsors to develop appropriate and target sponsorship actions.


Literature review conclusion

The analysis of the literature review provided an in-depth analysis of sponsorship and

the different objectives companies and sponsors are looking for. Sponsorship is not a new

phenomenon and has been utilized by most of the large corporations as a strategy of

differentiation from competition. Sponsorship is a marketing tool for companies which differ

from advertising. In sponsorship only brief images are visible and there are no incentives to

buy products. On the contrary, in advertising, a message is targeted to an audience and display

products characteristics to encourage purchase by consumers. Therefore, sponsorship enabled

sponsors to reach some objective they could not accomplish with traditional advertising

campaigns.

Sport managers have had an important role to play in the activation of sponsorship.

Constant communications with sponsors and full understanding of their objectives have been

fundamental points to ensure the success of sponsorship campaigns. The difficulties

encountered between both parties have led to the intervention of specialized agencies to act as

intermediaries. In fact, the different possibilities for the activation of sponsorship have

multiplied the number of sponsors. Sponsorship became a marketing strategy for many

companies which needed reliable information for the activation of their action in sports.

The next sections will present the necessary elements utilized to solve the initial

problem which was to provide guidance for sport managers and organizations with the

activation of sponsorship in accordance with companies’ expectations and needs to develop

their sport entity.


Solution to the problem

A constant communication between sponsors and sport managers is essential to

maintain sustainable and positive business relationships (Shank, 1999; Howard & Crompton,

2004; Tribou, 2007). Some sponsorship activation failed because of misunderstanding when

implementing the terms of contracts. Also, companies must remember that the initial

investment in the sports industry must be financially accompanied during the duration of

contracts. In fact, the accompaniment enables to strengthen sponsors’ investments and

reminds sponsorships to consumers. The difficulty and problem in meeting both parties’

interests can be solved with the creation of a handbook that will gather all the necessary

information and the details in the sponsorship process. It will help indentifying the best

suitable sport entities according to the type of companies. Furthermore, the handbook will be

critical for the activation of sponsorship and its financial measurement. For sport managers,

the handbook will reveal the different limits of sponsorship and the necessary points sport

entities have to follow to ensure the success of business collaborations. Several interviews of

sponsorship managers in different sports and companies as well as a survey allowed gathering

information and enabled the creation of the handbook to solve the problem.


Methods, procedures, and protocol

Instrumentation

A survey and several interviews were carried out to obtain relevant information. A

panel of companies and sport entities were also interviewed to obtain an insight of sport

sponsorship issues and challenges. On one hand, interviews of sport sponsorship managers of

the Los Angeles Clippers, Los Angeles Galaxy, CD Chivas USA, Los Angeles Angels, and

Los Angeles Kings, were executed. The interviews of sport managers in different sports

provided diversity to the study and enhanced its validity. It enabled to notify potential

differences in sponsorship activation between sport teams essentially in the Los Angeles

County. On the other hand, interviews of sponsors such as BNP Paribas, LiveWire Energy

were realized as well as excerpts from a radio show on sports economy with Dannon, Bel

Group, and Veolia were taken for the purpose of this study. The interviews with sponsors

were necessary to understand the conditions and terms sponsors are looking for when

investing in sports. The survey was also created to gather consumers’ perceptions and

attitudes towards sponsors. The answers determined whether consumers were likely to

patronize sponsors of sporting events. The instrument, based on a scaling rate and open-

ended question method was distributed to a representative sample.

Data collection protocol

The survey was created using an online platform called Quick Survey and was

distributed to a representative sample of sport fans via social media and emails database.

Respondents were required to answer with honesty the 17 questions of the survey. The survey

was divided in four different parts. The first part analyzed sport fandom and participation in

sports. The second section of the survey was composed of questions regarding consumers’

attitudes towards sponsors and sponsorships. The third part depicted consumers’ perceptions


towards sport sponsorships. The last part asked questions about demographics. Face to face

and email interviews with sponsors and sport managers were performed for the study. For the

podcasts, selected excerpts similar to questions in the interview were selected and provided

additional information. For convenience, executives of sport entities were asked to answer

nine questions while sponsors were asked 10 questions regarding sport sponsorship activation,

benefits, and values. Secondary data was used to complete the panel of sponsors’ answers. An

in-depth analysis was also performed to classify the answers. No incentives were offered for

completing the survey and a total of 140 respondents from various backgrounds completed

thoroughly the survey which ensured its validity and reliability.

Procedures

The data collected, on a five weeks period, from the interviews and the survey enabled

to develop a series of test to determine consumers’ perceptions and attitudes towards

sponsors, and issues and challenges regarding the activation of sponsorship. Descriptive

statistics were utilized to portray the results of the data collection. The measurements of scales

as well as frequency and tendency tables enabled to draw conclusions and determined the

different aspects consumers pay attention with sponsorship. Furthermore, tables and figures

enabled to establish relationships between the patronization of sponsors and the activation of

sponsorship. Interviews showed the different and common objectives sponsors are looking to

achieve with investments in sports, and explained the multiple challenges sport managers

have to cope with the activation of sponsorship. Interviews also showed the gap between

sponsors and sport managers’ perceptions on sponsorship activation as well as the necessity to

use intermediaries to develop a consistent and reliable relationship between both parties. The

comprehensive analysis of the representative sample enabled the creation of a handbook

which sponsors and sport managers could use for guidance in the sponsorship activation. The

manual included a credible analysis of different indicators of audience and exposure as well


as tests to evaluate the corporate image and memorization of sponsors. The limitations of

sport sponsorship were also examined. The handbook could be used for companies and sport

entities unfamiliar with sponsorships. It would help them in defining a sponsorship activation

process and guide them throughout the different steps in the implantation. Hence,

inconveniences and failures could be reduced and successes facilitated.


Delimitations and assumptions

Various delimitations need to be stated in this study. The survey was sent via email

and via other platforms to only researcher’s friends and network with different demographic.

Interviews of sport managers offer a panel of responses from executives in the Los Angeles

Area. Executives from different sports were chosen to provide diverse responses, and to

examine the similarities and differences between sport sponsorship managers in various

sports. In addition, only professional sport teams were chosen for the purpose of the study.

The interviews and podcast of sponsors were delimited to American and French corporations,

and offer insight on practices in four different economic sectors (bank, food industry, energy,

and environment). As a consequence, no latent analysis was conducted and only manifest data

was provided from the email interviews. Sponsors interviewed appear in different sports and

apply different types of sponsorship platforms. Thus, the study provides comprehensive

information about sponsorships.

Various assumptions were made during the conduct of the study. The researcher

assumed participants answered the questions of the survey with honesty and took an

appropriate amount of time to understand the questions. In addition, most interviews were

sent over emails and for the purpose of the study the researcher assumes sponsors and sport

managers also answered the questions with honesty and professionalism.


Results of Data Analysis

Quantitative and qualitative analyses were conducted for the purpose of this study.

The goal of the survey was to determine perceptions and attitudes towards sponsorships as

well as the degree of acceptance and patronization of the sponsors’ products. Results

demonstrated the acceptance of sport sponsorships and a positive impact on brand’s image

and recognition. The analysis of the data collected enabled to determine trends both sports

managers and corporate executives should follow when implementing sponsorship operations.

The purpose of the interviews was to determine important factors and conditions

sponsors and sport managers are seeking to achieve via sponsorship in order to establish a

successful and durable business relationship. Sport managers from different sport teams in the

Los Angeles area were interviewed, and offered a panel of different views and opinions

regarding their approach to sponsorship.

Profile of Sample Participants

The survey was conducted over a period of 5 weeks between December 2010 and

January 2011. A representative sample of 140 participants took the survey. All the

participants completed the survey. The electronic version of the survey was sent out via

different platforms including emails, social media, and sport forums. However, the number of

participants coming from these platforms was hard to evaluate since results cannot be traced.

The participants of the survey were closely selected among friends, family, and professional

networks. 62 % of the respondents were male, and 82% of the participants were between 18

and 40 years old including 48% between 26 and 40 years old. The majority of the participants

were professionals with financial stability. They constituted viable targets and potential

buyers. 31% earn a yearly estimated level of income between $20,000 and $40,000 , 25% of


the participants earned between $40,000 and $60,000 per year and 22% over 60,000$ per year

(see table 4).

Table 4: Profile of participants

Gender Participants Percentage

Male 87 62%

Female 53 38%

Age

18-25 50 36%

26-40 57 41%

41-50 15 10%

51-65 18 13%

65+ 0 0%

Ethnic Background

African American 5 4%

Asian 5 4%

Hispanic 13 9%

Pacific Islanders 1 1%

White 103 74%

Other 13 9%

Income Level

Less than $20 000 30 22%

$20 000 to $40 000 44 31%

$40 000 to $60 000 35 25%

$60 000 to $80 000 16 11%

$80 000+ 15 11%


Sport fandom

Sport fandom is an essential element of sponsorship’s attractiveness to consumers.

Sport fans are necessarily exposed more often to sports than non-sport fans that have no

interest for sports. As a result, they do not consume it. To determine sport fandom, an

evaluation of sport involvement was asked to the participants of the study with a scale ranging

from not a fan of sports to diehard fan. Overall, 82% of the respondents considered

themselves sport fans to a certain extent and 19% were diehard sport fans (see figure 1).

Figure 1: To what extent do you consider yourself a sport fan?

30%

19%

9% 9%

33%

0%

5%

10%

15%

20%

25%

30%

35%

Not a fan Rarely a fan Occasionally a fan Often a fan Diehard fan

Participation in sports is another way for sponsors to establish a closer approach with

potentials consumers. Sponsors can invest in sport facilities and be involved with the

community to develop positive attitudes. A frequency scale was used to determine the

participation in sports. The results showed a relatively high participation with 42% of

contestants regularly participating and following sports, and 35% who occasionally participate

in sports (see figure 2). The majority of participants of this study watched more sports than


practiced sports in general. 54% of the contestants frequently watched sports and 26% only

watched sports occasionally (see figure 3).

Figure 2: Participation in sports

15%

34%

4%

19%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Never Rarely Sometimes Often Very often

Figure 3: How often do you watch sports?

Very often

21%

Never

4%

Rarely

16%

Sometimes

26%Often

33%

Never

Rarely

Sometimes

Often

Very often


3%

60%

29%

6%

2%

0%

10%

20%

30%

40%

50%

60%

70%

Live events Television Internet Newspaper/magazine Other

Among the different media available to follow sports, television was the most used,

reported by 60% of the respondents (figure 4). This high number was due to the proliferation

of sport channels on television and cable networks. This dominance is significant for sport

managers and sponsors. The use of television and the increased number of tools available for

sponsorships enable to target audience at a local, regional, national, and global level. Internet

gathered 29% of participants, and was the second most used platform to follow sports. It was

due to the high number of streaming channels that enabled sport fans to watch live sport

events via their computer anywhere with an Internet connection.

Figure 4: Most used media platforms to follow sports

As shown in figure 4, Television and Internet made up almost 90% of the platforms

used to follow sports, which proved the dominance of the two media in sport viewership. Print

media such as newspapers and magazines encountered difficulties used by only 6% of

respondents and 2% of respondents selected other media that could be radio. Apparently, the

importance of sponsorship in radio was minimal and consumers did not consider this medium


as essential to follow sports. Radio is a more convenient way to follow sports in motor

vehicles than a deliberate choice. Lastly, only 2% of respondents attended live sporting events

as a means of following sports. The economic recession could explain such a low percentage

of attendance of live sporting events as a preferred method.

Perception of sponsorship in sports

One of the purposes of this questionnaire was to identify and understand consumers’

behavior regarding sport sponsorships. Perception of sponsors is necessary to understand and

remember their presence. Consumers identify sponsors and create associations with logos,

brands, and products. These attitudes then determine the final decision leading to the

purchase. The survey demonstrated that 62% of respondents, to a certain extent, pay attention

to sponsors when they are exposed to sport entities. Although, the attention to sponsors’

message might be volatile, 23% of participants did often pay attention while only 7% never

considered sponsors in sporting events (see figure 5). In addition 32% of respondents rarely

paid attention to sponsors demonstrating the need of stronger images and presence with sport

entities to be recognized by consumers. This information is all the more important since

consumers’ consideration to sponsors is a critical element for corporate executives when

activating their sport sponsorship. Thus, consumers’ attention to sponsors even selective,

offers opportunities to get more exposure. Sponsors’ image and presence will be more easily

remembered which in turn will facilitate the association with sponsors.


6%

32%

4%

39%

19%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Never

Rarely

Sometimes

Often

Always

Figure 5: Attention to sport sponsors

Furthermore, 61% of sport fans paid attention and remember images related to

sponsors. Images were by far the most remembered element by sport fans while watching or

attending sporting events, while announcements, and music, are remembered by 13% and

11% of fans respectively (see table 5). These three elements make up the top three elements

remembered. In fact, images are one of the elements that sport consumers will recognize the

most. The visual aspect has the most significant impact on consumers’ perceptions. Sponsors’

visibility and presence with consumers enhance their image and develop positive attitudes. In

addition, television and the Internet were the two most popular ways of following sports.

Therefore, sponsors’ visibility and visual presence are critical during the activation of the

sponsorship action.


Table 5: Sponsors elements sport fans remember the most

Elements Participants (140)

Music 9%

Image 67%

Emotion 6%

Text 8%

Announcements 10%

Sponsorship enabled companies to transmit a message to a targeted audience and was

considered as a means of communication for companies (Shank, 1999). As a result, the

involvement of companies in sporting events, organizations, or athletes should develop their

image. Sponsorships, to a certain extent, also improve relationships with sport entities and

positively impact a sponsors’ image. In fact, 62% of the study’s participants agreed that

sponsors’ images were enhanced by sponsoring sports, while 27% of the respondents are

uncertain about the positive impact of sponsorship on sponsors’ image (see figure 6). In

addition, a mere 1% of respondents disagreed with the positive impact of sport sponsorship on

a brands’ image. This information is essential and very relevant for sponsors as it

demonstrates the importance of sport investment. Brands and companies benefit from sport

sponsorship in sports as they are able to position their brands and images among the public.

Sponsors also use this communication tool to diversify themselves from the competition.


27%

1%

9%

42%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Strongly disagree Moderately disagree Uncertain Slightly agree Strongly agree

Figure 6: Sponsorship enhances brand and companies' image

27% of uncertain respondents were consumers who encounter difficulty associating

brands with sporting events. This portion of the population surveyed is also critical for sport

managers because these people are the ones sponsors need to convince. The agreement that

sponsors’ images are enhanced by sport sponsorship can develop positive attitudes and

perceptions towards sponsors’ brands and products. As exemplified in table 6, the AIDA

model was developed to represent the stages consumers successively pass through during the

selling process (Belch, 2007). The stages are attention, interest, desire, and action. According

to Belch, strong levels of interest should create desire to own or use the product. The

uncertain respondents are located in the cognitive stage. Therefore, an emphasis on doubtful

sport viewers is necessary to increase the benefits for sponsors because positive attitudes can

result in positive behavior towards brands.


Table 6: Model of response process in AIDA model

Stages AIDA model

Cognitive stage Attention

Affective stage

Interest

Desire

Behavioral stage Action

59% of the participants associated sporting events, sport organizations, and athletes

with sponsors in general. It demonstrated a correlation between sport entities and sponsors.

Therefore, some brands and companies closely partnered with sport entities whose fans

remember the brand’s presence. This way, it becomes easier for sponsors to target their

audience and to identify potential consumers. Nevertheless, only 1% of respondents always

associated sponsors with sport entities while 28% rarely noticed the association, and 12% of

respondents never did (see figure 7). In fact, the proliferation of sponsors in different sports

could confuse consumers’ perceptions and interpretations. It becomes even harder for

consumers to remember since in some cases, the same sponsors invest in different sports,

leagues, events, and athletes. The increase number of sponsors using similar platforms to

communicate with their audience could result in negative perceptions and sponsorship rebuttal

from consumers. Consequently, the association between sponsors and the sponsored was

interfered with, weakening the effectiveness of sport sponsorship.


12%

28%

41%

17%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Never

Rarely

Sometimes

Often

Always

Figure 7: Frequency of association between sponsors and sport entities

Attitudes towards sponsorship in sports

The analysis of consumers’ attitudes towards sport sponsorships depicted behaviors

and provided useful information for sponsors. 63% of respondents accepted the presence of

sponsors in sports. Companies are a vital source of revenues for sport entities, what is more

the sports industry could not be such a large economic sector without the investments of

companies. In addition, 25% of respondents strongly accepted the presence of sponsors in

sports while only 4% strongly reject their presence (see figure 8). Companies have widely

invested in the sports industry over the last two decades. The sports business represents more

than a $200 billion industry. As a result, the presence of sponsors associated with sport

entities has been standardized and common. For this reason, sponsorships’ perception in the

sports industry is mostly accepted by consumers.


25%

4%

12%

21%

38%

Strongly reject

Moderately reject

Uncertain

Slightly accept

Strongly accept

Figure 8: Acceptance of sponsors in sports

Sport sponsorship also results as an element of communication confusion for 21% of

respondents who declared being undecided regarding the acceptance of sponsors in sports. In

fact, consumers could question the validity of sponsors’ actions and the benefits resulting

from sports investment. Most of the investments are targeting sales, brand’s reputation and

image objectives; whereas only few sponsors invest in sports to establish an intimate and

more personal relationship with customers and their community. However, the undecided

respondents remain potential buyers and users of sponsors’ products who need to be

convinced by the positive presence of sponsors in sports.

The presence of sponsors did not stimulate the curiosity of sport fans to look for

information about the sponsors and its products. 35% of the respondents occasionally

obtained information about sponsors they identified in sports and 10% often do. 40% of the

surveyed rarely obtain information and 22% never do (see figure 9). The answers to this

question demonstrated the difficulty for companies to associate their attributes to sport


1%

9%

35%

18%

38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Never Rarely Sometimes Often Always

entities. However, the more significant the association between sponsors and sport entities

was, the easier it is for consumers to remember.

Figure 9: How often do you get information about a company and its products from

sponsorship?

Sport consumers did not give significant importance to sponsors. The interest of

participants was determined with a scale ranging from not interested to very interested

Only 22% of participants are interested in sponsors and their brands, and 42% of

respondents are unconcerned (see figure 10). One of the main objectives of sponsorship is to

develop consumers’ interest and appeal for sponsors. The disinterest of consumers

demonstrated the difficulties in sponsorship activations. In addition, it also proved that

although consumers mostly accepted sponsors in sports, there are trends in consumers’

attitudes towards ignorance and indifference regarding sponsors. Consumers come to live

events, listen and watch sports because they are sport fans, and they can relate to sport

entities. Consumers share feelings and emotions promoted by the sports with a community.

However, they do not have a specific interest for sponsors but nonetheless they see their


presence. Visibility is an essential element of sponsorship activations for both sponsors and

sport managers. It ensures and enhances the association between both parties.

Figure 10: What is your degree of interest for a sponsor because of sponsorship in sports?

12%

22%

42%

22%

2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Very disinterested

Somewhat disinterested

Neutral

Somewhat interested

Very interested

Investment of companies in sports has been common and is an element of the

marketing mix. Sponsorships enable to differ from competition and thus develop new markets

and potential audiences. Sport fans did not necessarily think sponsors invest too much in

sports. 33% of the contestants affirm companies did not allocate sufficient funds for

sponsorship, and 36% of the participants remained undecided regarding this matter (see figure

11). 34% of respondents rejected the investments of companies in sports. They believed

sponsorships could impede allocations of further funds by being used for advertising. The

respondents of the survey also questioned the validity of sponsors associated with sports and

the changes resulted from their presence in terms of rules, broadcasting, and time pressure

during sporting events.


Figure 11: Do companies invest too much in sports sponsorship?

7%

26%

33%

23%

11%

0% 5% 10% 15% 20% 25% 30% 35%

Strongly disagree

Moderately disagree

Uncertain

Slightly agree

Strongly agree

The amount of money invested in sports is colossal and companies such as Visa,

Gatorade, and Coors invested more than $100 million each in the National Football League

(Tribou, 2007). Sponsorship is a necessary source of revenue for sport entities. Most sporting

events could not take place without the financial support of companies. Companies not only

provide funds but also a savoir-faire and equipment. As a result, sport fans are not irritated by

the multiplication of sponsors which is a necessary source of income for sport entities.

Qualitative Analysis

The analysis of the survey answers offered critical elements regarding the perception

and attitudes of consumers towards sport sponsorship. The information obtained enabled for

the development of various conclusions that companies and sport managers can focus on

during the activation of sponsorship. In addition, interviews and secondary data analysis were

carried out for the purpose of the study. Selected sport team managers and sponsorship


executives were auditioned to provide insight on their perceptions and actions. Significant

similarities were identified between both sport managers and sponsors.

Sport Managers

Nine questions were asked to five sport managers for the purpose of the study. Sport

managers agree on the major importance of sponsorship for their sport entity. It constitutes a

vital revenue stream and occupies a large activity of the teams’ business. Furthermore the

investment of large and renowned companies enables the development of the team’s brand

and image. As mentioned by the executive from the Los Angeles Kings, “Sponsorship also

allows us to get the Kings out in the marketplace with joint marketing promotions we do with

sponsors”. The implementation of sponsors’ promotions and discount enhanced the

effectiveness of sponsorship and quality of the fan experience with the teams. Sponsors have

to be accurately selected in accordance with team’s values and interests.

Sport managers emphasized on the necessity to avoid the addition of sponsors from the

same economic sector and approaching partners’ competitors. It creates a negative and clutter

effect for consumers’ perceptions and also distorts the relationship between sponsors and

teams. The presence of two sponsors from the same economic sector weakens the credibility

of the sponsors’ image and sponsorship campaign. It also drives fans away from the teams

and potentially sports. They think sport entities are only motivated by generating revenues

rather than establishing a closer relationship with their sponsors and developing common

community outreach and charity programs. Thus, sport teams strive to offer exclusive

categories for their sponsors and minimize the number of small sponsorships to offer the most

marketing and promotional assets, and image for sponsors. They also focus on sponsors that

target the same audience similar to sport teams, which facilitates the associations between

sponsors’ products and sport fans. The length of sponsorship agreements is also critical for

sponsors and long-term partnerships are preferred to develop closer and personal associations,


and promotions. Sponsors’ interests vary according to their business, size and their purposes

when investing in sports. The sponsorship executive from the Los Angles Galaxy clearly

summarized this diversity: “Some partners focus heavily on media and hospitality for their

clients and employees while other partners concentrate on grassroots marketing and in-

stadium offers”. Thus, sponsors focus on different marketing options when developing their

sponsorship package but an appropriate communication is needed to meet both parties’

expectations. It is also important to “reach their ROI criteria” as suggested by the sponsorship

executive within CD Chivas USA

Brand image and exposure are vital points for companies investing in sports. The

primary goal of sponsors is to be seen by a maximum number of eyes and be placed in a high

exposed location. Sponsors looked to “align themselves with a credible team that gets positive

exposure” (sponsorship executive, Los Angeles Clippers). Thus, the role of sport managers is

to enhance sponsors’ image via the team’s platforms and develop positive attitudes towards it.

The sponsorship executive of the Los Angeles Kings also mentioned the importance of the

off-field presence within the community as a positive factor for consumers’ perceptions:

“sponsors also like to see teams that support the community off the ice as well”.

Sport managers were asked to evaluate the importance of team’s performance regarding

sponsorship investments. Responses to this questions showed that the performance of the

teams is correlated to sponsorship investments. Thus, winning years and playoff appearances

encourage the establishment of long-term associations between both parties and allow the

development of broader partnership agreements. However, as highlighted by the sponsorship

executive at the Los Angeles Angels of Anaheim, “The goal is to build a strong mutually

beneficial relationship so that you don’t have to worry too much about the team’s

performance”. Sport team managers strive to develop a positive and high-quality


environment for both their fans and sponsors which they can control to minimize the potential

negative effect of losing over which they have no control.

Sport managers were generally flexible about the possibility to offer customized

sponsorship packages for their sponsors. As mentioned by the Los Angeles Clippers, “pricing

is based on the market place” and discounts are given “for the more inventory that is

included”. Long-term deals also encourage the creation of discounted packages for sponsors

and loyal partners are more likely to receive preferred sponsorship packages. Furthermore,

sport managers established rate-cards to determine the price of each sponsorship categories.

The percentage of sponsorship renewal is significantly high for the panel of sport

managers interviewed including winning and losing teams. Sponsors evaluated the renewal to

be approximately 85%. Thus, team’s performance is not an essential element for sponsorship

investments but a factor of development for further opportunities. Sponsors’ structural and

strategic changes may also affect sponsorship renewal and is independent from sport

managers’ control.

The measurement of sport sponsorship is critical for sport managers and sponsors.

Numbers and figures justify the validity of the investments and the necessity to renew it

according to the sponsorship results. The Los Angeles Kings used a research tool called

Scarborough Research in order to “see the year over year percentage of fans that use the

sponsors’ products”. The measurement of sponsorship also depends on the type of sponsors’

investment into the teams. In general, sport managers strive to offer the best results generated

from sponsors’ investments in order to encourage long-term partnerships. However,

surprisingly, sport managers did not clearly evaluate the benefits for their sport entity, even

though it is one of the most critical aspects and will determine the continuation of

partnerships.


The recommendations of sport managers focused on a constant communication with

sponsors and the development of a successful partnership. Sponsorship represents a major part

of team’s revenues. It is critical to provide new marketing and advertising ideas for sponsors

to enhance partnerships. Sport managers must always have in mind companies’ goals and

objectives in order to develop appropriate strategies. As mentioned by the L.A. Clippers, “be

open to constructive criticism and be progressive”, sport managers may have to face some

difficulties during sponsorship terms. Companies’ structural changes and budget cuts also

have an impact on sponsorships. Sponsors are highly present among sport teams. Thus, the

volume of sponsorships requires quantity and quality of staff to be able to meet the needs of

sport fans. It is critical to evaluate the necessary resources to best activate sponsorship

agreements.

The interviews of sport managers demonstrated major trends followed by the majority

of the surveyed sport organizations as well. Flexibility, long-term association and sponsors’

expectations are significant and essential points sport managers focus on when activating

sponsorships. The evaluation of sponsors’ perceptions enabled the drawing of significant

conclusions and similarities with sport entities.

Sponsors

Ten questions were asked to two corporate sponsorship executives. Responses to these

questions and secondary data from a radio sport business show were used for the purpose of

the study. A total of five sources were used to draw conclusions on sponsors’ approaches to

sponsorships. Sponsors were first asked to identify the reasons behind the decisions of

investing in sports. The respondents stated that they sponsor sports to be in alignment with

their target market. Sponsors identify potential sport entities that share the same target

audience, and promote similar values and attributes. Thus, sponsors such as LiveWire Energy

tried to “reach the active lifestyle market segment” and invested in athletes to create loyal


customers who will become “advocates for our brand”. Companies also provide essential

financial support for the implementation of sporting events and they become of course sport

sponsors. Sponsors look for sport entities that will not only meet their financial objectives but

also transfer corporate image and values. Sport entities with similar core values facilitate this

association and therefore sponsorships are facilitated.

Sponsors invest in different sports to target a broader audience and to leverage their

brands. In addition, sponsors invest at different levels within the same sport. The bank BNP

Paribas illustrated this example in tennis. In fact, the bank sponsors professional tennis

tournaments such as the French Open and BNP Paribas Open; but also amateur leagues, youth

tournaments, and charity events. Thus, BNP has a dominant position from competitors and is

considered as a major sponsor in tennis. A close association with a sport sponsored enabled

the development of positive perceptions and attitudes which can influence fans and players in

their purchasing behaviors.

Companies sponsor different sport entities including leagues, teams, athletes, and

events. “This results in affordability and a grass roots growth for our brand and products”

(LiveWire). It intensified the media coverage and the presence of the brands with the sport.

Again, sponsors’ visibility is central in sponsorships and will justify a financial support.

Sponsors invested on athletes who represent the same values and image as the sponsors.

Athletes are great ways to promote shared opinions and common beliefs. They are popular

icons and endorse the brand to transmit the message to the targeted audience. As mentioned

by Dannon whose endorser is a famous retired soccer player, Zinedine Zidane. “Zidane is the

prefect ambassador for our brand and is significantly involved with youth who is our

principal target audience”. In addition, the English bank Barcalys invested in the English

Premier League whose image was tarnished by hooliganism during matches. This new

strategy enabled to develop positive attitudes and revamped the league which is now


considered as the most competitive soccer championship in the world. These examples

demonstrated the influence of sponsors and the support of athletes to draw positive outcomes

for both parties.

Sponsorships require the intervention of all platforms available for companies. It

includes all components of marketing, sales, public relations, and community involvement.

Platforms promote sponsorships and develop brand recognition and image in consumers’

purchasing behaviors. Companies can use intermediaries to activate their sponsorship. Sport

marketing and consulting agencies enables the implementation of sponsors’ strategies and

allow sponsors to meet their objectives. Many companies have their own sponsorship

departments and develop internal strategies to put investments into action. “We better control

our actions to establish partnerships” (BNP Paribas).

Companies benefited highly from sponsorships. “It develops a direct connection with

our target customer and helps us to build our brand position” (LiveWire). Sponsors

employed advertising to support sponsorships and also to maintain media and public relations.

It enabled to leverage the brand and creates positive images and representations. Sponsorships

created brand ambassadors who developed consumers’ interest and attractiveness, which

directly impacted on product sales. The study also showed that sponsors consider internal

communications essential to support sponsorships. The unification of employees and the pride

to see companies’ names associated with successful sport entities created positive attitudes

and behaviors for brands.

Measurement of sponsorships is critical to determine the effectiveness of investments.

An audit analysis of sales, image, brand recognition, reputation, and companies’ activity must

be carried out internally and/or externally. Sport marketing and consulting agencies provide

information regarding visibility and reputation index, and support the financial action through

its terms.


Sponsorships remain risky investments with independent factors. Sport entities’

performances, image, and behaviors influence consumers’ perceptions and attitudes, and can

create negative outcomes for sponsors. However, sport sponsorship is a useful tool of

communication and provides several advantages in terms of image and brand’s equity. The

qualitative analysis enabled the depiction of a few sport managers’ and sponsors’ perceptions

and attitudes towards sponsorship. It also offered an analysis of the critical points of the

sponsorship contract and the role of intermediaries between sport managers and companies.

The information collected via interviews and the survey allowed the creation of an artifact

which gathers the essential elements sport managers and companies must know follow to

implement sponsorship as well as information about consumers’ perception and attitudes. In

addition, it presents the tools available to evaluate the sports investment and limitations of

sport sponsorships. Thus, the artifact proves to be a useful tool and guide for both sport

managers and companies. It combines the elements both parties must follow and implement

with sponsorships, and the behavioral characteristics of the targeted audience. A good

understanding of sport fans is essential to ensure positive and beneficial sponsorship

activations.


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Introduction

Sponsorship is a useful tool of communication for companies and a vital source of

revenue for sport entities. Sponsorship in sports develops brand image and recognition,

enhances fan experience with sport entities, and creates community and charity programs. The

activation of sponsorship agreements may be complicated and requires the intervention of all

the companies’ resources to ensure successful partnerships. Furthermore, many internal and

externals factors have to be taken into account when activating these investments. Thus,

sponsorships are in line with companies’ strategies and should meet specific financial and

other corporate needs.

This handbook provides critical elements sponsors and sport entities must be familiar

with when establishing sponsorship contracts. It also explains the different business

opportunities with sponsorships and the differences between the platforms to sponsor. It seeks

to help with the establishment and activation of sponsorship contracts. Lastly, it provides tools

to leverage, optimize, and measure the investments in sports as well as a presentation of the

limitations and risks of this specific communication strategy.


1) What sponsors must know

a. Cost

Sponsorship has a price and it can be relatively high considering the sports or athletes

sponsored. A careful analysis of sponsors’ resources has to be carried out as well as an

evaluation of advertising and marketing budgets before hand. Thus, the evaluation minimizes

budget cuts generated by sponsorship and allows for the intervention of all companies’

resources. Sponsors must also add additional expenses to their investment. The investments in

sponsorship constitute the beginning of promotional and marketing campaigns. In general, for

$1 spent on sponsorships $2 to $3 must be allocated to leverage the brand and its image. The

substantial investments in sponsorships incite sponsors to create their own sporting events

rather than sponsoring an existing event. It gives better control over the organization of

sporting events and can reduce costs relative to high profile teams or athletes.

b. Time constraint

Sponsorship contract terms must follow companies’ objectives and strategies.

Sponsorships must coincide with the launch of new products, positioning and promotional

strategies, and corporate changes. The determination of sponsorships length is also critical for

companies. Sponsorship terms last in average 2 to 3 years but are rarely short-term. Thus,

sponsors need a visionary attitude to be able to cope with internal and external changes.

Short-term investments do not allow the leverage of the sponsorship action and reduce the

positive outcomes of an association with sport entities. The acceptance of sponsorships in

consumers’ mind is usually longer than its activation.

The first six months of the agreements allows the implementation of the different

sponsorship terms and conditions. Sponsors need to know sport entities, make minor

modifications, and position themselves with the sponsored.


The second stage of sponsorships enables the determination of potential positive

outcomes of the action and lasts a year or so.

The third and final stage develops the Return on Investments (R.O.I.) for companies.

Consumers recognize the association and accept the presence of the brand and its name

associated with sport entities. Consequently, positive perceptions and attitudes will be

generated, and media and public relations will follow by promoting sponsorships. Long-term

agreements allow companies to be present in consumers’ minds even after the end of the

investment because the action was long enough to be remembered and accepted.

c. Competition

Competition is an important factor for sponsors, and the multiplication of sponsorships

in sports requires a careful analysis and an appropriate communication strategy. Competition

in sponsorships is different from traditional competition related to companies’ activities.

Products, reputation, and resources differ but all compete at the same level as sponsors of

sport entities. Competition and sport entities’ success will increase the entry price for

sponsorships. Collaboration between sponsors is a most suitable term to define the

environment of sponsorships. Sponsors prefer to be associated with brands which belong to

the same product lines. Thus, top-of-the-range brands would like to be associated with other

sponsors in the same segment rather than with inferior brands.

d. Sport fans’ profile

Demographic of sport fans is critical for sponsors because they constitute their target

audience for sponsorships. Consequently, an analysis before hand is required to understand

the cultural and behavioral aspects of the target market. Sponsors need to know consumers’

lifestyle to better segment their communication with sponsorships and to invest on sport

entities that interest and attract fans. For example, adolescents comprise a significant

population for sports and sponsors. Sports are leisure where emotions, values, and efforts are


shared. It is consumed by a large part of the population. Consumers greatly participate in

sports (see figure 1). In addition, sports are related to entertainment and leisure. Sport entities

attract people’s interests (see figure 2). Sport fans can watch a variety of sports, all year long;

hence multiplying the number of resources and platforms available for sponsors to reach

potential customers.

Figure 1: Participation in sports

15%

34%

4%

19%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Never Rarely Sometimes Often Very often


Figure 2: How often do you watch sports?

Very often

21%

Never

4%

Rarely

16%

Sometimes

26%Often

33%

Never

Rarely

Sometimes

Often

Very often

The study of consumers’ purchasing behaviors would enable to draw conclusions and

better communicate. It is also critical to study demographic trends and developments to

transmit an appropriate message to sport fans. Demographic census also provides relevant and

useful information on a local, regional and national level for sponsors. DemographicsNow,

FactFinder, the US Census Bureau, Nielsen Company, Sport Marketing Surveys, and

Scarborough research among others are useful databases which supply necessary information

for sponsors about demographics, purchasing behaviors, and lifestyles.

e. The target audience

Sponsors target a specific audience with sponsorships called effective audience of an

event. It is the portion of sporting event’s audience that companies target. Here below is an

illustration of the effective audience for sponsors (see table 1).


Table 1: Sponsors’ effective audience

In this model, another communication action will be needed to reach the intended

audience not reached. The effective audience is determined by the information from the

analysis of demographics and allows sponsors to define their action in sports. It is essential

for sponsors to know the average audience of each media for different sporting events to

determine which platform sponsors will use to communicate between TV, Internet, signage,

newspapers, and radio among others. It will also enable sponsors to reach audience that are

not sport fans but have interest in sponsors’ products or services.

f. Applications

Companies must ask a series of questions when activating their sponsorship: How to

influence purchasing behaviors? How to create positive brand perceptions? What is the size of

targeted sport entities? What is brand’s reputation and image? What is the expected return on

investments? Which platform is the best to communicate its action? Corporate sponsorship

managers also have the possibility to create brainstorming sections with the staff to define

what type of sport entities (event, league, team, and athlete) sponsors would like to invest in.

The different applications enable to find common points between sponsors and sponsored, and

facilitate the development of sponsorships. Furthermore, sponsors’ image is fundamental for

consumers’ perceptions, and television remains the preferred means of communication to

Sponsor’s

communication target

Useless audience Effective audience Intented audience

not reached

Audience of sporting events


watch sports (see figure 3). The visual appeal is essential to captivate consumers, including

sport fans.

Figure 3: Most used media platforms to follow sports

3%

60%

29%

6%

2%

0%

10%

20%

30%

40%

50%

60%

70%

Live events Television Internet Newspaper/magazine Other


2) What sport managers must know

a. Determination of sponsors

Similar to sponsors, sport managers must determine and define the type of sponsors

they want to associate their sport entities with. However, the attractiveness of sports

stimulates sponsors to allocate substantial funds to sports in order to have exclusive rights

with sponsors for national and global events. This element clearly influences sport managers’

decisions. Sport managers have to be able to determine target audience’s characteristics and

the demographics of their sport entities. It facilitates the research for sponsors sharing the

same target market. In addition, the representation of the sport entity is a critical element in

sponsorships and sport fans greatly remember logos and images associated with sponsors (see

graph 4). Sport managers would need to develop communication with sponsors focused on

image representations and illustrations

Figure 4: What sponsors’ elements consumers remember the most?

Announcement

10%

Music

9%

Text

8%

Emotion

6%

Image

67%

Music

Image

Emotion

Text

Announcement


b. Find information

Specialized Internet platforms such as Hoovers, Kompass, and D&B enable sport

managers to obtain critical information on businesses and help sport managers in their

decisions. These sites provide companies reports and extensive databases.

c. Sponsor’s coverage

Sport managers must determine the coverage of their sport entities and chose sponsors

in accordance with their geographic dimension. The determination of the geographic coverage

enables to find sponsors which share the same dimension and are present in the same market

either at local, regional, national, or global levels.

d. Sport entities’ image

Sport managers want to be associated with companies which promote their entity,

share the same values, and give a positive image. The image of sport entities can be tarnished

or leveraged by sponsors. In addition, sport entities can use sponsors to improve their image

in case of negative perceptions. Sponsors enjoy positive representations and perceptions

resulting from their involvement with community or charity programs. Thus, Thus,

transferring these positive elements to sport consumers, which benefit sport entities (see

figure 5). There are reciprocal goals between sponsors and sport managers in terms of image.


Figure 5: Sponsorship enhances brand and companies' image

27%

1%

9%

42%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Strongly disagree Moderately disagree Uncertain Slightly agree Strongly agree

e. Changes due to sponsorships

Sport entities need to modify some aspects of their activity to meet with sponsors’ needs

and make it more attractive to consumers. Television broadcasting enables sponsors to target

a mixed audience of different classes and ages, and modify sport entities by giving more

promotional time to sponsors. Sporting events are also scheduled at different times during the

day to reach the largest audience possible. In addition, competition with other sports or events

requires sport entities to modify trainings and game schedules. Sponsors might provide

equipment which they require sport entities to use and wear. They also organize meetings and

conferences with sport organizations. Thus, sport managers have to take into account

sponsors’ requirements and always focus on communication with sponsors to make sure their

goals and objectives are carefully maintained.


3) Sponsorship activation process

a. Sponsorship contract

Sponsorship contracts are composed of seven parts which cover the entire contract.

1) Purpose

Present both parties engaged in the sponsorship

agreement. It defines sponsors and sport entities.

Includes a detailed description of the contract elements

(event, location, dates, services, etc)

2) Terms and conditions The length of partnership and the right of first refusal

have to be stipulated in this part.

3) Commitments

Sponsors must follow a series of commitments

Financials commitments (down payment, due date)

Services and equipment provided related to sponsorships

(transport, catering, I.T., services, etc.)

Bonuses, allowances, and penalties must be established.

Sport entities must also follow a series of commitments

Exclusivity clause for sponsors in specific economic

sector

Ensure sponsors communication, visibility, and presence

Promote sponsors (autograph, training sections, press

conferences, public relations, etc.)

Utilization of materials and equipment

Participation in scheduled events

Image rights are critical in sponsorships and must abide


4) Image rights

to different rules.

Mention in the contracts the differences between

representation of a sponsored players, and representation

of entire teams

Conditions of image rights: during sporting events,

training, media, public relations, and licensed products

Ensure sponsors’ visibility and description of the use of

sponsor’ logo and image

Visibility includes size, location of logos, signage and

duration of presence.

Terms of image rights: media promotion, hospitality and

community programs, sponsors’ title

Licensing rights: Redistribution commissions relative to

sales of licensed products.

5) Product portfolio

An array of products is also concerned with sponsorship

activities and includes TV shows, movies, DVD’s,

internet websites, and video games among others where

sponsors’ names and/or logos are mentioned.

6) Breach and contract

termination

Breach of contract terms must be stipulated for both

parties

Compensation fees must be mentioned.

7 Terms renegotiation Based on results: objectives, quality of representation,

sales, public relation, and time among others


In addition few other critical points are mentioned below when activating sponsorships.

State the purpose of sponsorships and determine strategies to reach objectives

Description of sport entities’ mission statement and history providing a better

knowledge and understanding before the activation of sponsorships.

Dates, locations, exposure, visibility, and expected attendance which enable

companies to construct their action and develop specialized sponsorship offers.

The structure of companies’ distribution channels and logistics

Expected revenues generated from sponsorships, but also in terms of brand’s

equity

The appropriate strategy to ensure the best communication with the target market

Delimitate promotional and advertising opportunities for sponsors and also for

consumers

Protection from ambush marketing. It consists in developing advertising and

promotional campaigns for sporting events without title or official sponsor rights

and without sponsorship fees.

b. Differences in sponsorships activation

Sponsorships in the sports industry offer numerous opportunities and options for

companies. It includes sporting events, leagues, teams, and athletes. In addition, it follows a

defined strategic plan.

Sporting event sponsors

Sponsorships in sporting events allow visibility and presence from the beginning to the

end of the events. Thus, competition to be associated with sporting events is fierce. The

variety of events at different geographic levels attracts many sport fans who share different

demographics and purchasing behaviors. The interests of sport fans also attract media to

ensure the broadcasting and coverage of events. In addition to on-site visibility, it offers


sponsors a broad range of platforms to expand their sponsorship, including television,

internet, newspaper/magazine, and radio.

As a consequence, the audience of sporting events is not only duplicated, but also

different target market can be approached. Sport fans who attend events, and sport TV or

Internet viewers have different perceptions and attitudes toward sponsorships which are keys

for sponsors’ actions. Companies may only choose to sponsor at sporting events and not use

media or vice-versa, both to target specific market segments and develop promotional

strategies.

Companies can also create their own sporting events. The creation of sporting events

requires the intervention of all the company’s resources, offers total control of the

organization, and choice of the participants. Corporate events enable the establishment of a

closer relationship with consumers who are both viewers and participants, and unite

employees towards common goals and objectives.

League and team sponsors

Similar to sporting events, league sponsors enjoy visibility from the beginning to the

end of leagues and championships. Leagues enable sponsors to have a longer presence than

during sport events. Leagues are spread out through an entire season, whereas sporting events

are covered on a short period. There are fewer leagues than events available in sports for

sponsors, and competition is high.

Teams offer sponsors the possibility to be associated with image, values and team

success. It ensures visibility every time the team sponsored is presented, and participates in

community and charity events. As a result, sponsors can transmit their message to many

different consumers in different locations when teams travel. The increase in number of eyes

watching allows for different communication strategies since consumers’ lifestyle and

purchasing behaviors differ from place to place. The high number of games in major sport


leagues offers multiple possibilities on regional, national, and even international levels, with

team tours in different continents. The expansion of team tours throughout the world offer

global opportunities for sponsors to target consumers with different cultures who do not

necessarily know the sponsoring brands and its products. It can have an impact on

exportations and market penetration.

On a local level, sponsors can establish close relationships with sport fans and profit

from local media coverage. Some limitations are related to sponsoring teams and the

performance of teams. Has a great influence. Sponsors may suffer from uncompetitive teams

or if teams are eliminated in the early stage of tournaments. However, sponsors and sport

managers must focus on sport fans’ experience and on-site sponsorship activations to provide

the best services and to develop positive attitudes.

Athlete sponsors

Sponsorship investments in athletes are called endorsements and can be combined

with team sponsor agreements. Endorsements offer opportunities for companies to associate

their brand and logo to athletes who develop different values. Thus, it enables the promotion

of a more specific association with a target audience than teams which are group of athletes

with different values and beliefs. Athletes are considered icons and are very famous among

the population including sport and non-sport fans. Their aura surpasses the boundaries of

sports and creates significant competitive advantages. Companies, whose activities greatly

differ from sports, have opportunities to install a legitimate presence in sports by investing in

athletes.

Endorsement of athletes is defined by two target market segmentations according to

consumers’ profiles.

Geographic segmentation: Sponsors will select athletes familiar to targeted regions

in order to facilitate the transfer of messages to local sport fans.


Segment market under first segmentation: Athletes promote values and image that

are aimed at different categories of the population. They represent symbols for sport

fans and are identified by non-sport fans.

Sport athletes transfer different perceptions and attitudes to consumers. They are famous

icons who enable sponsors to target several social and demographic classes. They are a

brand’s spokesperson who transfers positive attributes to consumers. Popular athletes are

involved in community and charity events which offer sponsors other opportunities to benefit

from endorsed players’ image.

The role of athletes goes beyond their sport performances. There is a harsh price

competition between sponsors to get the most famous athletes because they are significant

assets for companies. The endorsement of several athletes reduces the risks related to image

and athlete’s performance, and allows balancing potential negative perceptions. Companies

with smaller budgets can also concentrate on promising talents whose image is less expensive.


4) Enhance sport sponsorships

The enhancement and leverage of sport sponsorships will develop brand’s equity and

acceptance by sport fans. There are essential points that sponsors must follow.

Communication of sponsorships, before it occurs, is necessary to inform employees,

distributors, and clients, as well as to attract the interest of media. Media will spread out the

information and create a buzz.

a. Media relations

Media are extremely important for sponsors’ communication and have a significant

impact on image. Good relationships with journalists are required to leverage sponsorship

actions.

b. Public relations

Public relations are also important for sponsors and concern hospitality events. These

activities will enable sponsors to develop positive perceptions and enhance their image. It

includes three different categories:

The facilities (suite and show invitations, on-arena reserved seats, partner stands,

conferences)

The staff ( in-house communication and incentives, hostesses for partners)

Additional operations (newsletters, autograph sections, prizes, events with

sponsored)

c. Promotional activities

Promotional activities offer sponsors additional opportunities to leverage their

sponsorship. Promotion can take place during the events and in the facilities using a push

strategy to attract consumers’ attention and interest. It includes radio announcements, sample

and giveaways distributions, banners, and coupons among others.


Sponsors can also continue promotional activities after sporting events took place,

which reminds consumers of sponsorships. In general, consumers accept the presence of

sponsors and understand the necessity for sport entities of their presence (see graph 3).

Packaging, advertising operations, entertainment, and interactive games may serve to

maintain the association between sponsors and sport entities in consumers’ minds.

Figure 3: Acceptance of sponsors in sports

Strongly accept

25%

Strongly reject

4%

Moderately reject

11%

Uncertain

21%

Slightly accept

39%

Strongly reject

Moderately reject

Uncertain

Slightly accept

Strongly accept

d. In-house communication

In-house communication is extremely important for sponsors but often neglected. It

enables the gathering and motivation of staff towards common goals. In addition, it develops

pride and a positive image for sponsors. Communication about sponsorship activities starts

before the activation to unite and inform employees. During the sponsorship terms, in-house

communication develops corporate culture and stimulates employees. Lastly, after the end

sponsorship terms, various operations are possible to maintain the association. For example,

the creation of events with sponsored sport entities, corporate newsletter, and athlete

invitations of at the companies’ site.


5) Measure sport sponsorships

The measurement of sponsorship’s effectiveness is imperative for sponsors in sports. Only

30% of companies measure their investments in sports and analyze the impact on overall

performance including sales, image, media relations, and awareness among others.

a. Sales and business indicators

Sales and business indicators allow sponsors to measure the return of their

investments. Description of the target market, economic structure and climate, and

competition are various factors which have to be taken in to account because they will have

an impact on the results. Hence, the increase of sales and the action in sponsorship is

correlated. However, budgets for sponsorships is not only limited to the activation, it includes

additional expenses. It encompasses public and media relations, leverage of sponsorship via

by-products, videos, and corporate events among others.

b. Exposure indicator

Exposure is divided into three different levels (see table 5). The first level of exposure

is concerned with the participants of the sporting events. Participants can make up a broad

target for sponsors in the case of marathons, triathlons, and other similar events.

The second level includes spectators of the sporting events. Their presence at events

location demonstrates their interest and enthusiasm for sporting competitions.

The third and last level includes viewers of sporting events via all media platforms.

Each element must be thoroughly studied to enhance companies’ investments.


Table 5: Exposure in sporting events

First level Participants of sporting events (marathon, triathlon, cycling)

Second level Live spectators (in stadiums, arenas, outside events)

Third level Media spectators (live broadcast, highlights on TV shows,

Internet, press and newspapers)

c. Audience indicators

Audience can be measured using total sales of tickets and frequency analyses.

Sponsors can also use observation analyses and examined various demographic characteristics

of sport fans at events.

Tracking:

Tracking measures the presence of sponsors on media and communication platforms

as a whole by counting the number of times sponsors were mentioned and visible. For

newspapers and magazines, the impressions data (tracking) are calculated by the product of

the number of times sponsors are visible with the number of readers and circulation rate. For

television and Internet, the sport eye tracking method is used to determine the number of

viewers, the popularity of TV channels and announcers, and the time of broadcasting. These

elements provide tools to measure sponsors’ performance.

GRP Sport:

GRP Sport (gross rating point) measures the size of an audience reached by specific

media. It is the product of the percentage of the target audience reached by sponsorships,

times the frequency it has been seen in a given action. Also, it can be calculated by dividing

gross impressions by the target population and multiplying the result by 100.


Media promotion:

This method enables companies to compare cost of sponsorships with the use of

traditional advertising. It includes prices for TV, internet, radio, billboards, and print ads.

Hence, sponsors can measure the profitability or additional costs. Sponsors have widely used

sponsorships to develop new promotional strategies and launch new products and logos.

Sponsorships and advertising differ but must not be considered separately. Advertising

enables the transmission of a message with text, and highlights product’s features and

advantages. Advertising enables to relay sponsorships in consumers’ minds.

d. Memory and reputation indicators

Several factors influence the memorization of sponsorships. The time for

measurements is critical because sponsors’ recognition and reputation increase with the

intensity of their presence. Hence, sponsors may want to wait a few months until they have

been incorporated into sport entities’ environment. In addition, sponsors need to measure

memorization before the end of sponsorship terms because the association with sport entities

in consumers’ minds will be less significant.

The importance of sporting events impacts on consumers’ memorization. Events with

significant media exposure, and on national or international levels, attract more viewers and

create a larger appeal. Television is the most useful tool for consumers’ memorization of

sponsors because visual and auditory aspects are memorized longer than with other platforms.

e. Image indicators

Several tests of associations are available for companies and provide a large source of

information regarding consumers’ perceptions and brand’s effectiveness. They examine

attitudes, observational capacity, and emotional responses (see table 6).


Table 6: Image and representations tests

f. Quantitative and Qualitative studies

Quantitative

Surveys on representative samples examine perception and attitudes, values and

beliefs, and a large variety of a population’s characteristics and demographics. Hence, surveys

are critical to measure the success of sponsorships. Sponsors can use their website, send

questionnaires to clients, conduct in-house surveys, and offer incentives to optimize the

number of sport fans’ answers.

Surveys must include different scales regarding acceptance, interest, frequency, and

appreciation among others to measure participants’ opinions (see tables 7 and 8). The Likert

scale evaluates appreciations and acceptance whereas the Stapel scale asks participants to

determine an opinion regarding variable(s). Semantic tests are based on multiple ways where

participants are asked to select answers corresponding to various criteria established by

researchers. The study is based on agreement variables (table 9).

Thematic Aperception test (Murray)

Ask participants to associate various images with

sports and comment on them

The shuffle cards test

Ask participants to select cards and classify

symbols with sports

Words association test

Ask participants to complete sentences and

answer questions to define sports.

The Rozenzweig test

Create stories with images related to sports and

asks participants to comment and complete

stories


Table 7: Example of Likert scale:

Strongly reject Slightly reject Neutral Slightly accept Strongly accept

Table 8: Example of Stapel scale

Very bad Bad Slightly bad Slightly good Good Very good

Table 9: example of semantic test

Sponsors in sports To what extent do you agree or disagree with the following

statements?

Improve sponsors’

image

Strongly

disagree

Slightly

disagree

Neutral Slightly agree Strongly

agree

Enhance quality of

fan experience

Strongly

disagree

Slightly

disagree


agree

Enable to develop

promotions for fans

Strongly

disagree

Slightly

disagree


agree

Enable the

development

community and

charity

Strongly

disagree

Slightly

disagree


agree

Develop sport fans’

interest for sponsors

Strongly

disagree

Slightly

disagree


agree

Qualitative

Interviews and others qualitative examinations provide different perceptions and

provide useful information. Participants must be selected thoroughly to obtain representative


samples. Contrary to surveys, qualitative analyses do not require a large number of

participants but participants who respond to the target market and will offer significant

answers for sponsors’ strategies. Qualitative analyses are based on the exchange of ideas and

reflections. They must be conducted in favorable environments, and relieved from stress.

Incentives and prizes should be rewarded to participants.


6) Limits of sponsorships

Sport sponsorships are widely used and are effective investments for large

corporations. The large audience of major sporting events and organizations allows targeting

new markets and developing closer relationships with consumers. Small corporations also use

this opportunity to create brand awareness and attract consumers’ interest by investing in

smaller structures. However, sponsorships remain risky investments for companies and

present limitations. These risks are, for the most part, beyond the control of sponsors and can

promote negative images.

Limitations to athletes’ endorsement

Endorsement of athletes presents the most risks because the sponsors are associated

with athletes whose performances, health, and behaviors evolve. The presence of sponsors is

reduced when athletes are injured, and damaged with bad behaviors and trials. Poor

performances also negatively influence on sponsors’ image and perceptions. Athletes also

decide to change sponsors and reduce partnership terms. Athletes with strong personalities

can also limit perceptions, making it difficult for consumers to remember sponsors. In

addition, the large appeal of popular athletes may attract too many sponsors. Consumers are

led to confusion by the number of sponsors associated with extremely popular athletes such as

Lebron James (see image 5). Their performances, the exposure received, and behavior on and

off-field are elements that influence on consumers’ perceptions and acceptance of athletes as

sponsors’ ambassadors

Image 5: Lebron James as brand endorser


Limits of teams sponsored

Teams promote common values of unity, determination, and effort. They develop a

less emotional relationship with consumers than athletes’ endorsements. Consumers who

appreciate in particular a selection of athletes will have better perceptions and behaviors

towards sponsors than those with teams. The multiplication of sponsors, associated

simultaneously at sporting events, mixes up and confuses viewers. There are multiple

sponsors in sports teams and it can distort perceptions and memorization. A strong visibility

as official partner allows reducing this inconvenient.

Limit at sporting events

Sporting events depend sometimes on the weather and outside events may suffer from

unexpected bad weather, facilities and structural problems, and bad location. Hence, the

numbers of eyes watching decrease, since TV and Internet ensure a smaller coverage of

sporting events. Competing events in other sports which take place at the same time can

reduce sponsors’ impact. It depends on competitors’ size, appeal, and significance for sport

fans. Scheduling is also an essential part in sponsorships.


List of tables

List of figures

List of images


Applications/Implications of project artifact

Practical applications to sports industry

The project artifact serves as guidance for sport managers and companies willing to invest

in sports. The artifact offers a comprehensive analysis of sponsorships and the different

options available for both parties involved in this investment. It describes essential points that

sport managers and sponsors must follow to reduce limitations and optimize sponsorships.

The artifact also provides a description of sponsorship contracts and its activations. Hence,

companies not familiar with sponsorships could use this handbook and follow these steps to

determine the characteristics of their action in sports.

The artifact defines options for sport managers and sponsors to enhance sponsorship

activations and maintain a successful two-way relationship between partners. In addition,

tools for sponsorship measurements are provided and enable for the evaluation of financial

benefits from sponsorships as well as the evaluation of companies’ image, reputation, and

equity. For sport managers, the artifact renders the comparison of methods and techniques in

different sports, and establishes tools to improve and leverage their sport entity. Lastly, the

artifact presents limitations of sponsorships and risks sport managers and sponsors must take

into account when activating sponsorships. Hence, a pro-active approach is described to

prepare for potential issues that may arise by this investment in sports.

Conceptual implications to sport management academe

The project artifact finds has its foundation in the different academic courses studied over

an 18-month period focusing on sport management principles and business applications.

Insight from various classes facilitated the elaboration of the project. Sponsorship is part of

companies’ marketing strategy in sports and represents a large part of companies’ budget. The


financial aspect of sponsorships was approached during finance classes with creation of

events, and the description of expenses that sponsors must carefully calculate when investing

in sports. In addition, statistics class provided measurement tools further explained in the

artifact.

Sports in US culture drew conclusions on sport fans and consumers’ demographics and

lifestyle in this country. For this reason sponsorships in soccer were not used for the purpose

of the study. Although, soccer is the most popular sports in the world, it lacks popularity in

the United States and does not attract as many sponsors as it does in Europe or Latin America.

The importance of media and public relations is also significant in sponsorships to promote

and leverage investments. The knowledge of both fields is necessary and was studied in class.

Internship experiences with sponsorship departments, such as within the Los Angles

Clippers and SUSA Everton, also provided a personal insight on sponsorships’ importance for

sport entities. Sponsors represent a large part of sport entities revenue and are essential. They

not only provide funds but also equipment, products, and skills which are extremely valuable

for sponsored entities. Hence, my personal experience in sponsorship departments gave me a

better understanding of the process of sponsorships at local, regional, and national levels, and

ultimately aided me with the creation of the project artifact.

Contribution to sport management career aspirations

The artifact is part of a personal and professional portfolio, and can be presented to sport

managers during interviews as well as inserted in my resume. It can provide actual results and

explain the process of sponsorship activations companies and/or sport entities would need.

Thus, it constitutes a qualitative element which can add value to job interviews and

applications. Sponsorship is relative to my goals in the sports industry and implies a great

knowledge of sport entities’ business and activities. I interviewed sport managers specifically

in the Los Angeles area because I pursue a career in professional sport teams in this location.


Soccer is also my passion and main focus on sports. Hence, I managed to interview executives

from both professional teams in this particular sport (Los Angeles Galaxy and CD Chivas

USA). I also used my professional network with the Los Angeles Clippers to obtain the

interview of the sponsorship executives at this organization. Overall, this study enabled the

development of a professional network and reminded sport managers of my presence and

aptitude for potential jobs.


Conclusions

Insight of the Capstone project

The interviews of sport managers provided unexpected results regarding measurements,

since the majority of respondents did not provide a substantive explanation on how they

measure sponsorship actions. In addition, most sport managers asked me to present the results

of this study and the different conclusions I could draw from it. It gives me the opportunity to

offer a professional presentation to sport managers and possibly position myself for job

openings or offers. This project also asks the researcher to cope with time constraint and meet

deadlines for the various parts of the projects. Academic rigor is determinant in the

professional context and develops time management skills. It also allowed me to provide a

foresight approach for diverse issues, and to appropriately plan the different steps in the

elaboration of the artifact.

Limitations and suggestions

The study includes various limitations. The researcher could not have control of the

response rate since the survey was sent via emails and posted on social media sites and on

sport forums. It was impossible to track the exact number of respondents from each platform.

The profile of participants would need more ethnic diversity since 82% of respondents are

white. As a consequence, a more diverse sample is necessary to draw further conclusions. The

sample used was not exclusively composed of sport fans and further research must be

conducted to reach a statistically sound conclusion. An ideal representative sample would

include surveying identified sport fans as for examples season ticket holders, recreation center

users, and other locations where sport fans can be found. Time was a major inconvenient for

the study. Only 140 participants completed the survey which does not allow for extrapolation

of the data collected for the analysis. Also, respondents are mostly based in the USA and


France essentially, failing to provide perceptions and attitudes of consumers from other

developed countries.

Five sport managers were available to participate in this study. More time would have

allowed interviewing more sport managers including the richest sport teams in the world

including the New York Yankees, Dallas Cowboys, New York Knicks, and Manchester

United among others. Other sport managers in NFL and NBA were also unable to complete

the interviews, thus reducing the number of respondents. Only four sports were selected and

interviews of other sport managers from different sports would have enriched the diversity of

responses. Further interviews must be conducted with sporting events, leagues, and athletes in

order to collect answers from all types of sponsorships. Similar to sport managers, a more

comprehensive study of sponsors would be needed to increase the reliability of the studies.

Large sponsors such as Visa, Gatorade, Staples, Home Depot, and Anheuser-Busch among

others were contacted but did not wish to answer the questions of the interviews. Insight on

large corporations would also be necessary to able to entirely complete the study.

Hence, time constrain was a major issue in this study. More data collected would draw

stronger conclusions and would increase the credibility and validity of the study. In spite of

these limitations, the survey and the interviews provided enough data to draw significant

conclusions on consumers’ perceptions and attitudes towards sport sponsorships.

Concluding remarks and reflections

The sports industry attracts many sponsors and the majority of multinational

corporations have invested in sports over the last decades to face with competition. Sports

promote different values and images which enables for different associations with sponsors.

The popularity of sports among the population and the broad coverage by the media offer

much visibility and a sustainable presence for sponsors. Clearly, a world without sponsors in


sports could not exist because of the significant and positive outcomes developed from

sponsorships.

However, the difference in goals and understanding does not facilitate the development

of a successful collaboration between sport entities and companies. Sponsors must find

benefit from sponsorships and sometimes they do not understand how it can help promoting

their brands and image. Throughout my experience I had the opportunity to apply the

principles of sponsorships. The negative economic climate and the lack of available funds for

this type of communication demonstrated the difficulties sport managers can encounter with

sponsorships. Nevertheless, the durability of sponsorships in sports is not questionable and

budgets allocated to this domain remain high.


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85

Appendices

A) Powerpoint presentation slides

Interview with [insert name of executive and sponsor here]

Greetings! Thank you for agreeing to participate in an interview that is part of a student

research project for a Sport Management Graduate Course at California State University,

Long Beach. The purpose of the study is to determine important factors and conditions

sponsors are seeking to achieve with sponsorship in order to establish a successful and

durable business relationship. This interview will be recorded and transcribed for analysis;

however, you will not be asked to provide any personally identifying information during the

interview and you may omit any question you are uncomfortable answering. You must be at

least 18 years of age to participate in this study. If you consent to participating in this project,

please indicate so by signing the consent statement below.

Research Participant Consent Statement: I understand the purpose of this research study. I

know that it is a part of a Graduate Class Project for California State University, Long

Beach. Although the interview will be recorded, my personal identity will not be revealed or

reported in the interview or in the final written document.

Printed Name: _____________________________

Signature: _________________________________

Date: _____________________________________

QUESTIONS:

How do you consider the importance of sponsorship for [insert name of team here]?

Which elements are important in the selection of potential sponsors?

What terms of contract sponsors focus on?

What is the attitude of sponsors regarding image and exposure?

How do sponsors react with team’s performance? Any promotional/advertising

changes?

How do you determine the price of sponsorship? Do you create packages, allow

discounts? If yes, please explain

What is the percentage of sponsorship renewal? What are the determinants?

How do you measure the sponsorship benefits for [insert name of team here]?

What are your recommendations to improve the business relationship with sponsors?

Thank you for taking the time to answer the questions

Interview with [insert name of executive and team here]

Greetings! Thank you for agreeing to participate in an interview that is part of a student

research project for a Sport Management Graduate Course at California State University,

Long Beach. The purpose of the study is to determine important factors and conditions sport

managers are seeking to achieve with sponsorship in order to establish a successful and

durable business relationship. This interview will be recorded and transcribed for analysis;

however, you will not be asked to provide any personally identifying information during the

interview and you may omit any question you are uncomfortable answering. You must be at

least 18 years of age to participate in this study. If you consent to participating in this project,

please indicate so by signing the consent statement below.

Research Participant Consent Statement: I understand the purpose of this research study. I

know that it is a part of a Graduate Class Project for California State University, Long

Beach. Although the interview will be recorded, my personal identity will not be revealed or

reported in the interview or in the final written document.

Printed Name: _____________________________

Signature: _________________________________

Date: _____________________________________

QUESTIONS:

Why does [insert name of company here] invest in the sports industry?

How do you choose the sport to sponsor? Do you sponsor several sports?

Do you invest in several platforms of sponsorship (event, league, team, athlete, etc...)?

What are the levels of the sponsorship activation (title, official, presenting sponsor)?

Why?

Do you use intermediaries in the activation of sponsorship? Please explain

What are the benefits/expectations of the relationship with sports?

How do you leverage your sponsorship?

How do you measure the sponsorship benefits for [insert name of company here]?

Does the economic climate impact on the expenses related to sponsorship? If yes,

why?

What are your recommendations to improve the business relationship with sport

entities?

Thank you for taking the time to answer the questions

how to optimize sponsorship

Documents

definition of sponsorship

objectives of sponsorship

advantages of sponsorship

interests of sponsorship

sport sponsors

types of sponsorship

sport business

role of sport managers