sportsponsorship

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Week 6: Reflection on the subject including your sponsorship knowledge development and new insights,your engagement with your club and project team, and your presentation experience

Sport sponsorship has been an extremely interesting and at times extremely stressful subject to undertake. However, over the semester, my knowledge of the sponsorship industry has significantly increased. Although I still have content to learn, the knowledge I will carry forward is extremely useful knowledge that could benefit myself and any place of employment I work at in the near future. 

Over the semester, our engagement with our selected VAFA club has been ‘decent’ at best. Whilst sometimes they would get back to us with useful information, other times we would be waiting weeks on end for response creating somewhat of an awkward dynamic as we want the information, however, we don’t want to bother them. Overall, I’m in a positive mindset that the VAFA program concludes at the end of second-year studies as it is once less person I have to rely on to contribute to my success at Holmesglen. I want to be the master of my own destiny. 

Pictured Below: Me at Hong Kong Disneyland. Similar to as I am in this photo I often enjoy working by myself.

Similarly, when I work in a group setting it can either be great or not so good and this semesters class was a bit of a mixed bag. While some would contribute, others wouldn’t do their work so others had to pick up the slack. While some got their work done early, others left it until 11 pm, the night of submission. Overall, despite having a new member to our existing team and dynamic, group work was an enjoyable experience but as previously mentioned, when it comes to assignments, I don’t want to rely/wait on others. However, this is a mindset I need to reshape as working in groups does have many benefits both in the classroom and in the workplace (Skills You Need, 2011). 

Pictured Below: Me joinging a group of elite people to form our club committee, this should help my group-working skills.

My presentation experience in the sports sponsorship class has been really enjoyable. Whilst my computer not being able to run the ‘share screen’ option has definitely come up with its challenges, I’ve been confident that I have delivered some quality work through my presentations. I have generally always been good at giving presentations as I participated in debating and public speaking throughout high school. This confidence will be extremely helpful in the future due to confidence and networking being keys to success when it comes to marketing and interactions in the sports industry (Smith & Stewart, 2015). As a result whilst others get their marks from essays and reports, presentations are my bread and butter. 

Pictured Below: Both my presentations that I delivered that I was pretty happy with. 

References

Skills You Need. (2011). 6 benefits of group work. https://www.skillsyouneed.com/rhubarb/group-work-benefits.html. 

Smith, A., & Stewart, B. (2015). Introduction to sport marketing (2nd ed.). Routledge.

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Week 5: Exploration on the principles of leveraging and co – activation, supported with real world examples

When it comes to working together in a partnership I believe both leveraging and co-activation. Leveraging relates to activities and actions a sponsee will make in order to make their partnership with the sponsor as successful as possible. Co-activation relates to servicing, reviewing and then either replacing or renewing the sponsorship deal between the partners. 

Leveraging encapsulates various things that a business may undertake in order to ensure that they appease their sponsor to the best of their abilities in addition to making the partnership an overall success. I believe the main part of leveraging however is how the sponsee can take the capital provided by the sponsor and then turn that capital into a worthwhile investment and potential profits. An example of this is the UFC with their relationship with ESPN, they were able to take that money and invest into new programs and training facilities, boosting the overall product. 

Pictured Below: One of the biggest PPV’s of 2021, being exclusive on ESPN+ 

Servicing the partnership is extremely important when it comes to the success of said partnership. This section is also incredibly important (potentially more then the final phase). You just don’t want to take the money and run, that gives a bad impression for you and a loss of investment for the sponsor. You would like to ideally make sure they get their moneys worth by meeting KPI’s, keeping the sponsor informed and boosting your overall chance at renewal. I believe an example of this is LeBron James and Nike. Nike serviced their partnership well with LeBron, keeping him away from other competitors.

Pictured Below: LeBron James with one of his signature Nike shoes

Reviewing the partnership is extremely important when it comes to the success of said partnership. I believe this is best done through the use of key performance indicators (KPI’s) which are essentially goals that give the partnership direction. Examples of this include a specific amount of sales, new customers or a certain level of engagement (Scoro, 2021). I believe an example of this is the AFL’s partnership with Sherrin. The AFL may have an expectation that Sherrin will provide and sell ‘x’ amount of footballs during the year and thus uses the football brand for their games. 

Pictured Below: The little master giving off a handball to a teammate using a Sherrin football. 

Replacing or renewing is then the next phase of co-activation and is extremely important when it comes to the success of said partnership. I believe that this is the most important phase when it comes to co-activation. I believe this due to the replacing or renewing phase being the phase where ultimately the partnership gets extended or gets canned. This is important as you want your business and the marketing of your sporting organisation to be surrounded by successful partnerships (Smith & Stewart, 2015) and not ones that have failed or have been unsuccessful in meeting KPI’s. I believe an example of this is the WWE and their partnership with the Kingdom of Saudi Arabia. Due to great performances in the country WWE was willing to extend their deal with the nation. 

Pictured Below: An amazing spectacle at one of WWE’s shows in Saudi Arabia 

References

Scoro. (2021). 136 key performance indicators examples (the complete list). https://www.scoro.com/blog/key-performance-indicators-examples/. 

Smith, A., & Stewart, B. (2015). Introduction to sport marketing (2nd ed.). Routledge.

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Week 4 - Understanding the importance of congruence(and incongruence) with real world examples

Understanding congruence (and incongruence) is extremely important when it comes to the real world operations of business partnerships and sponsorships. Congruency is all about finding the perfect alignment between a business and a potential partner when it comes to three factors. Those three factors are audience, aims and attributes.

Audience relates to if the proposed partner aligns with the existing organisations consumers, intermediaries and their staff. The audience is extremely important when it comes to factoring in the proposed partnership. For example, the UFC partnered with ESPN recently in a partnership that extremely benefits it’s audience giving their favourite sport more attention in the media whilst providing them with more free to air events, something I’ve personally enjoyed in recent years. I believe this is probably one of the most important factors as ultimately sport is marketed to and paid by the fans (Smith & Stewart, 2015).

Pictured Below: One of the many cards that ESPN has access to as a part of their deal with ESPN

Aims relates to both the organisation and proposed partner having similar and aligned core values and mission and visions. I believe this is extremely important as this can result in an extremely strong partnership between all involved. I believe an example of this is the Las Vegas arena and T-Mobile. Both partnered up and T-Mobile was given the naming rights to the venue, thus the T-Mobile Arena. This is a great venue, in particular for the UFC and the Las Vegas Golden Knights. Both have similar aims as both T-Mobile and the Las Vegas arena want to provide the best possible services to their users. 

Pictured Below: Conor McGregor making his UFC return at a sold out T-Mobile Arena in Las Vegas. 

Attributes relates to the attributes of the proposed partner and the organisation being complimentary towards one another and both being consistent brands. Streetwear hat brand New Era have exclusive ranges with popular streetwear store, Culture Kings. Both are popular clothing brands that aren’t the most popular brands however have significant influence on the Australian clothing market. Both also strive to provide Aussies with fashionable options at the best possible prices. 

Pictured Below: Some of the exclusive hats that are a part of the partnership deal between New Era and Culture Kings

There are also three main types of congruent partnerships. Those three main types of congruent partnerships are direct functional congruency, indirect functional congruency and imaged based congruency.

Direct functional congruency relates to when the potential sponsors product or services are directly involved in the operations of the existing business. This is definitely the most valuable form of congruency and the most beneficial for both parties. For example the NBA and NBA players have major partnerships and sponsorships with Nike. This is extremely beneficial as Nike wants their logo in some of the worlds most marketable athletes in addition to their shoes worn by these athletes. On the other hand, NBA players want free shoes and clothing from one of the worlds premier sporting brands. 

Pictured Below: NBA players rocking their Nike, Jersey, shorts and in most cases socks and shoes.

Indirect functional congruence relates to when the potential sponsors can be considered linked or associated with those viewing the sport as a spectator or fan. This is very useful for the original sporting organisation (probably not as much as direct functional congruency) but still extremely valuable. An example of this is is the partnership between the AFL and Carlton Draught. Whilst players can’t wear Carlton Draught, the fans can partake in the leagues best drink whilst watching a game of footy at the ‘G. 

Pictured Below:  Carlton Draught sponsoring the Longest Kick (I believe at the 2018 AFL Grand Final)

Image based congruence relates to when the potential sponsor has no identifiable links to the organisation. This is the type of congruence that I believe is the most risky to dive into however is potentially one of the most rewarding if successful as this can be replicated multiple times. For example, the Richmond football club has Puma as their jersey sponsor (direct functional congruency) however over the last 10 years we’ve seen Jeep, Dick Smith and NIB feature as major club sponsors. 

Pictured Below: One of Richmond’s main sponsor being automobile company, Jeep.

Incongruence is when two partners not only nothing in common but they have no aligned consumers, aims or attributes. This will ultimately more then likely lead to the end of this partnership between the two as poor results are a sure thing (Change Factory, 2014). An example of this would be if cigarette company Marlboro partnered with Little Athletics

Pictured Below: Little Athletes that have no need to be sponsored by a smoking company (which is something they can’t even do). If this partnership came into affect it would be ridiculous. 

References

Change Factory. (2014). Goal incongruence creates low productivity. https://www.changefactory.com.au/our-thinking/articles/goal-incongruence-creates-low-productivity/. 

Smith, A., & Stewart, B. (2015). Introduction to sport marketing (2nd ed.). Routledge.

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Entry 3: Your contribution to A3’s Asset Inventory and how Asset Inventories can assist a sports organisation in managing their sports sponsorships assets

The assessment required our VAFA groups to develop a sponsorship asset inventory for the Old Xaverians Football Club in the form of an excel sheet. The asset inventory needed to include the club’s sponsorship assets which would be further described by their features, functions, benefits, costing and valuation. 

During the completion of our third assessment task, I led the teams’ completion of the task. As the captain of the team, I distributed the different tasks to who I thought could complete them the best. I also helped when it came to communication with the Old Xaverians Football Club which helped us discover unknown assets in addition to their existing sponsorship packages which helped with our asset inventory. 

I was then in charge of completing our front cover page which involved basic information and the links to the sponsorship asset inventory, costing, valuation and sponsorship packages pages. I was also responsible for listing all the assets in addition to the functions and benefits. I then assisted when others were unsure and assisted towards the end of the night when there was a bit of a panic. I was also in charge of the design of the whole inventory including colour coordinating the different asset categories. 

Pictured Below: Old Xaverians Football Club packages page

Asset inventories can assist a sporting organisation in managing their sports sponsorship assets for many reasons. Firstly, the club can organise their assets into different categories as specific sponsors may want control and ownership of particular assets which makes negotiations easier between multiple parties. For example, the assets of the Old Xaverians Football Club are apparel, merchandise, events, social media, advertisement, signage, awards and others. A sponsor however may only want to be involved with apparel and events. 

Pictured Below: An IT based asset inventory. 

Secondly, it makes it easier for the sporting organisation, in this case, the Old Xaverians distinguish what their assets are. This can lead to easier negotiations with potential sponsors as previously sponsored but it can lead to establishing what assets they need to attain whether that be new signage, different apparel such as a cap or a beanie or maybe a new podcast or newsletter. 

Ultimately sponsorship is an important part of a sporting organisation and ultimately is incredibly important to the success of the sporting organisation. Entry 4 will look into congruence, which is a major part of forming sports sponsorships can be a major influence on the success of a sponsorship (Smith & Stewart, 2015). In a modern-day sporting environment, we are seeing more and more digital assets being introduced in the form of social media (Tandem Partnerships, 2018).

References

Smith, A., & Stewart, B. (2015). Introduction to sport marketing (2nd ed.). Routledge. 

Tandem Partnerships. (2018). The 3 kinds of most valuable sponsorship assets. https://tandempartnerships.com/3-most-valuable-sponsorship-assets/

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Entry 2: The importance of providing real tangible (and intangible) sponsorship benefits and a review of your club’s sponsorship packages /proposal.

Tangible and intangible assets provide real benefits for clubs to utilise to entice potential sponsors to jump on board. The Old Xaveirans Football Club has capitalised on both tangible and intangible benefits and have also culminated together various sponsorship package tiers which are outlined as ‘Premier’ (sponsors sought not accepted)  ‘Platinum’, ‘Gold’, ‘Silver’ and ‘Bronze’.

Tangible benefits are essentially all physical assets that can be touched. Examples of tangible assets include cash, infrastructure, vehicles, equipment and any existing inventory the club may possess. Tangible benefits as they are assured assets they can offer to those who choose to take up the sponsorship at the club. 

Pictured Above: Various Fixed assets/tangible benefits that a club can provide for a potential or existing sponsor.

Intangible benefits are assets that cannot be touched and are described as ‘non-physical’ and include knowledge, naming rights, trademarks and existing clientele and customers. Intangible benefits are important as they present an opportunity for a sponsor to have a piece of the club that they can truly call their own. 

Pictured Above: Various Intangible assets/tangible benefits that a club can provide to a potential or exiting sponsor.

Assets are incredibly important as they entice these sponsors to jump on board and be a part of the club. Sponsors obviously also help the particular organisation as they gain more public recognition from the community which helps when it comes to positioning and marketing (Smith & Stewart, 2015).

Various sponsors, assets and the relationships formed by both parties are incredibly important and potentially incredibly beneficial as a good sponsorship relationship can massively help both parties (Social Tables, 2021).

The Old Xaverians Football Club prides itself on having a long list of incredibly valued sponsors across their wide array of tiered packages.

The Premier package includes numerous benefits however these benefits are not set and are determined between the potential sponsor and Commercial manager Paul in addition to club President Marcus.  Premier partners include HelloWorld Travel, Australian Venue Co., Honan insurance and Bowens. 

The Platinum package includes various signage, hospitality opportunities, advertising, apparel and other benefits such as voting rights and a tax invoice. Platinum partners include Marshall White, Higgins, Fawkner Property and Attribute Group.

The Gold package includes, similar benefits as to the previously mentioned platinum package however this tier provides fewer tickets to club events in addition to not having advertising in the social rooms. Gold partners include East Malvern’s Bendigo Bank, Gorman Commercial, HFH Auto Group and RSEA Safety. 

The Silver package includes only poster banner signage and even fewer tickets to club events. Silver sponsors also miss out on the provided apparel. Silver partners include Henry Dwyer, Lotus Commercial, Comfort Sleep and Colliers International.

The Bronze package includes only advertising on the club websites and club publications. Bronze package holders however still get voting rights at the clubs AGM. Bronze partners include Genius childcare, SOHO Workshop, Quin and Bourke and PNO insurance. 

In conclusion, tangible and intangible sponsorship benefits are both very important and very useful to all sporting organisations. In addition, the Old Xaverians have set themselves up well when it comes to sponsorships with a wide array of packages for different levels of investment. 

References

Smith, A., & Stewart, B. (2015). Introduction to sport marketing (2nd ed.). Routledge. 

Social Tables. 2021. 5 Simple Steps To Building Meaningful Relationships With Event Sponsors. https://www.socialtables.com/blog/event-planning/relationships-sponsors/. 

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Entry 1: The increasing importance of sponsorship with regards to the business of sport and the sponsorship framework

Sport is a multi-billion dollar industry in Australia with two main faces of sport being entertainment and business. Statistics taken in 2016-17 showed that the Australian sporting industry supported 128,000 full-time jobs, contributed $14.4 billion to Australia’s GDP and generated $32.2 million in sales (Australian Government Department of Health, 2020).

 A large portion of this income when it comes to leagues, teams and athletes is the income that is brought in from sponsorship. In North America, sports sponsorship revenue was estimated at approximately $17.17 billion dollars in 2018 (Statista, 2021), a number that is expected to grow in future years.

When it comes to sports sponsorship the best way to summarise the process from beginning to end is a four-step process. The key steps along this process are the foundation, customisation, realisation and co-activation.

Foundation has three key parts being an inventory of assets, platforms and a marketing plan. This is essentially the planning phase. During this phase, an organisation will work out their assets that they have to offer the sponsor. They will also figure out their various platforms of marketing which then leads to their creation of a suitable marketing plan.

Take ASICS for example. Before the organisation put forward an offer to the Australian National Cricket, they had to figure out what assets they could offer to the team and had to figure out a proper marketing plan. ASICS was able to offer uniforms and footwear for the club (Mumbrella, 2011). As a result of their successful marketing plan, the deal has been a successful one having being a 10-year partnership (SportsProMedia, 2011).

Pictured Above: Former captain Steve Smith wearing the ASICS Sponsored kit. 

Customisation has two key parts being targeting sponsors and developing a sponsor plan. 

Take Gymshark for example, they are a fairly new brand and as a resulted targeted a wide arrange of athletes including UFC Heavyweight champion Francis Ngannou and WBC interim lightweight champion Ryan Garcia. Gymshark wanted to get their money’s worth and as a result produced various content with both elite athletes. This is important as through brand awareness, these athletes will bring attention to the Gymshark organisation  (Smith & Stewart, 2015).

Video Above: A promotional video featuring Ryan Garcia, wearing the Gymshark Kit. 

Realisation has two key parts being negotiation/sales and the implementation of the sponsorship plan. This is when you start dealing and communicating with your desired sponsor and then go on to put your sponsorship plan into effect. This is a stage that can either set up the business for massive success or failure. 

Take Steph Curry and his negotiations with Nike and Under Armour for example. When Curry entered the league he was already wearing Nike shoes so the organisation thought he was a lock to sign with the company. Nike put on a presentation for ‘Steph-on’ which was presented by poorly equipped employees instead of top tier executives (Medium, 2016), thus losing Curry’s appreciation and attention in the process. This was due to horrible negotiations. Under Armour then reached out to Curry with a $4 million offer which Curry accepted because he knew he was appreciated and a big part of their plan (Essentially Sports, 2021). Under Armour executed its sponsorship plan to perfection and as a result, Steph Curry has added approximately $14 billion to the value of the Under Armour brand (Medium, 2016). 

Pictured Above: Steph Curry wearing a top that is a part of the Steph Curry Under Armour collection whilst holding one of his shoes, which happens to be an Under Armour shoe. 

Co-Activation has three key parts being service, review and renew/replace. This relates to when both parties are doing their best to ensure that the implemented sponsorship is reaching its maximum potential. Also during this phase, both parties will review the current plan and will either decide to try to extend the existing partnership or terminate the contract. 

Take LeBron James’ deal with Nike for example. LeBron James and Nike have an incredible partnership that is set to last a lifetime. In 2003, James signed a contract with Nike for seven years in a deal that was worth $90 million (Akron Beacon Journal, 2021). Fast forward to 2016, James signed a new contract which many have dubbed ‘a contract for life’ (Business Insider, 2016). During this contract, James is estimated to make $30 million a year (Sports Illustrated, 2016). This incredibly successful sponsorship and partnership is due not just to LeBron’s abilities on the court but his business abilities off them. 

Pictured Above: One of the faces of modern day Nike, LeBron James wearing all Nike clothing in front of a prominent Nike swoosh background.

In conclusion, it is clear that sports sponsorship is an extremely important part of the modern-day sporting industry. Athletes, teams and leagues are able to make more than their wages from association with a brand whilst that brand has a notable figure that can represent and grow their existing brand and business.

References

Akron Beacon Journal. 2021. Is LeBron James a billionaire? Who knows, but he does have a contract that could be worth that much. https://www.beaconjournal.com/story/sports/2021/03/16/lebron-red-sox-could-billionaire-thanks-nike-other-businesses/4723050001/. 

Australian Government Department of Health. 2020. Sports Industry Economic Analysis. https://www.health.gov.au/resources/publications/sports-industry-economic-analysis. 

Business Insider. 2016. LeBron James’ business partner confirms lifetime deal with Nike is worth over $1 billion. https://www.businessinsider.com.au/lebron-james-nike-deal-exceeds-1-billion-maverick-carter-says-2016-5?r=US&IR=T. 

Essentially Sports. 2021. Steph Curry’s Under Armour Deal: How Much Does the Golden State Warriors’ Star Earn from it? https://www.essentiallysports.com/nba-basketball-news-steph-curry-under-armour-deal-how-much-does-the-golden-state-warriors-star-earn-from-it/. 

Medium. 2016. How a crappy PowerPoint lost Nike a once in a lifetime athlete. https://medium.com/@Clearpreso/how-a-crappy-powerpoint-lost-nike-a-once-in-a-lifetime-athlete-d7c59e2b861d. 

Mumbrella. 2011. ASICS becomes new clothing sponsor of Cricket Australia. https://mumbrella.com.au/asics-becomes-new-clothing-sponsor-of-cricket-australia-60002. 

Smith, A., & Stewart, B. (2015). Introduction to sport marketing (2nd ed.). Routledge. 

Sports Illustrated. 2016. LeBron James’s Nike deal may be worth more than $1 billion. https://www.si.com/nba/2016/05/17/lebron-james-nike-deal-contract-one-billion. 

SportsProMedia. 2011. ASICS partner with Cricket Australia. ​​https://www.sportspromedia.com/news/asics_partner_with_cricket_australia/. 

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About Me

Name: William Bolch

Age: 21

Previous Study: Event Management/Sports Development (Holmesglen)

My Interests: Majority of my interests revolve around sport wether that be playing, watching or writing on it. I also enjoy watching movies with my chromecast being one of my best purchases in recent times. I also love hanging out with my friends and getting around bowling alley’s and pool bars. I’ve also started to take up running having completed my first 10km a few months ago. 

Sports I Play: I play football for the Masala Dandenong Football Club where I consider myself to be a Utility that can play any position. I also play tennis on Monday and Tuesday nights at the Wheelers Hill Tennis Club. I play futsal on Sunday nights for the LTS Old Boys and I also recently participated in a 10km race and look to do so again on Sunday, November 28.

Sports I follow: I follow many different teams across different leagues including Richmond (AFL), Melbourne Storm (NRL), Melbourne Victory (A-League), Melbourne United (NBL), LA Clippers (NBA), Melbourne Stars (BBL) and Chelsea (EPL). I am also a fan of the UFC where some of my favourite fighters are Conor McGregor, Chan Sung Jung (The Korean Zombie) and Alexander Volkanovski. 

Family and Friends: I live with my sister and my mum, my dad lives a little over an hour away and I see him every fortnight. I love hanging out with my friends and when we do sport is generally featured whether that is playing or watching.

Unique or Interesting Talents: I don’t have any real unique or interesting talents however I consider myself to be a bit of a funny dude who is always great at giving speeches (when he has time to prepare them).

Memorable Moments (Whilst at Holmesglen): During my dual diploma I loved being a part of a team that put together an intervarsity futsal competition. I also enjoyed our week away in Eildon. We had lots of fun activities, helped out a lot of schools and I also got to bunk with one of my best mates.

During my Bachelor’s degree, my best memories have been spending time with my classmates at Chaddy having good food and a shop. My favourite memory however is having two of my favourite classmates who are two of my best friends (one being more a uni acquaintance) come out to celebrate my 21st birthday with the rest of my friends and family.

Memorable Moments: I don’t necessarily have any moments that stand out as memorable in my life but my 21st birthday week was great as I got to spend the week with all of my different friends culminating in fish and chips with one of my best friends whilst watching the footy on a computer screen. 

Secondary school was also an incredibly exciting time for me as I took up many different titles of leadership including public speaking captaincies, debating captaincies, social justice captaincies, SRC leadership and house captaincies. I was also awarded different titles for my leaderships but more importantly I was able to form lifelong friendships.

What makes me tick: I get my tick by being good to people and by being around good people. I love hanging out with my mates wether we’re watching a game or taking in a movie. I also want to be the best version of myself all the time with the knowledge that I should learn like I will live forever and live like I could die tomorrow.

My Inspirations: I have many different inspirations in my life with the main two being Charlie Rocket and Conor McGregor (before he went a bit evil). Charlie Rocket is an incredible person in my eyes and although his messages can sometimes come off as extremely cheesy he has a great story and loves helping people which is elite. I also love Conor McGregor and how he completely changed the fight game. I also admire how he was super persistent in completing his mission and never giving up on his dreams.