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