Sponsorship package checklist

• Entitlement – what are the areas of ownership within the sponsorship; what can be exploited and in whose name?

• Contract – needs to clarify the above and set out obligations, payment terms and options on renewal.

• Timetable – sets out the key dates for launching the sponsorship and building towards a high-profile finale.

• Budget – breakdown of costs to maintain the commitment and coincide with the publicity highlights.

• Resources – delegation of responsibility to implement the sponsorship at every level.

• Principal opportunity – title rights and access to promote the association under the corporate banner.

• Added value elements – additional benefits for the sponsor by way of advertising, hospitality, free tickets and special access (things that money alone can’t buy).

• Evaluation – set against the original objectives and measured on an annual basis.

The public relations agency agenda

Unlike the majority of advertising agencies which have tended to view sponsorship as a direct threat to their budgets and profit, PR Agencies have been inclined to see it as an opportunity to build business and help create a new corporate image for the client.

In pursuing this line, PR agencies have shown themselves to be not only far more pragmatic, but commercially enlightened. Advertising will argue that PR has simply picked up the relatively small budgets that remain for promoting the investment, but this doesn’t account for the fact that so many advertisers have failed to persuade clients to exploit the sponsorship with an equal spend on directly related advertising.

There are some exceptions – most notably Frank Lowe’s impressive work with the Stella Artois tournament over the past ten years – but for the most part, sponsorship and advertising don’t mix.

This makes the role of the PR agency all the more important. The agency needs to guide the client to set realistic publicity objectives for the duration of the commitment and deliver the highest possible profile through the appropriate media.

That could be national press, radio and television or even local or trade journals to emphasise the dynamic culture of the company to its target audiences. In each case, the PR agency should adopt a bold approach and persuade the client to quantify the value of the sponsorship from the outset – and make it public.

Rugby writers were once invited to attend a press conference for the unveiling of a substantial sponsorship and sat through a long introduction about its merits for both parties. ‘How much is it worth?’ came the first question from the journalists. ‘We can’t tell you that,’ came the reply. End of press and end of any prospect for more than a paragraph or two!

Why be so coy about the investment? If the figure appears to be too large in the eyes of the sponsor, why did they agree to pay it? Surely, the very people they are hoping to impress and influence will be more impressed and influenced if they know the outlay involved. Moreover, they can announce the entire sponsorship budget not simply the asking price, to emphasise the commitment and status involved.

If the figure is so much of a problem, then it is doubtful whether the sponsor should even be taking up the sponsorship. The lack of candour leads to lack of confidence and can erode the momentum the activity needs to succeed.

The importance of getting off to a good start cannot be overstated – so the PR input is crucial in communicating the sponsorship and its significance. Once established, the sponsorship will need creative PR support to keep it in the public eye on a regular basis. This is a quality lacking in many sponsorships and sponsors should inject more resources to this area if the discipline is to expand further in the years ahead.

(Anne Gregory. Public Relations in Practice. – Kogan Page, 2001. – P. 136-146)