Guideline 30
Sponsorship
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A club hoping to attract support for an
event or championship must recognise that sponsorship
is, or should be, a two way business deal, not charity or patronage.
Of course local organisations may support a club for other than full-blooded
commercial reasons but nevertheless a club must aim to offer value
for money.
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Clubs should also recognise that finding
sponsorship may not (in fact almost certainly will not) be easy as there
are countless other sports and activities out there seeking support.
And sponsorship practices change; for example when this manual was first
produced TV programme sponsorship was rare, now it is commonplace and sucks
up money which would otherwise go elsewhere.
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Although, as with a lot of selling, there
is no guarantee of success at the end of the day, your chances will be
improved if you plan your approach carefully. The sales skills required
are the same as any other selling activities so you may benefit from reading
general sales books
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First, consider what you have to offer
and if it can be improved. If you seek sponsorship for an event would
it be more appealing if part of a championship? Can you get a local
radio or newspaper interested in a quiz? If you have a club room
or caravan available for sponsors. is it time it had a quick coat of paint.
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Next, list all the possible benefits to
a potential sponsor; these could include: title to the event, company name
on competing cars and official paperwork (such as cover of regulations
and programme); advert in programme and regulations; banner advertising
opportunities at the start, finish and throughout the route; opportunity
to organise displays and promotions around the event; hospitality opportunities;
benefits from local TV and other media coverage. Plus, of course,
the community relations benefits of supporting a local club in the local
community.
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If an event attracted media coverage in
previous years whether in local newspapers or television, mention this
and keep copies of press material to show to potential sponsors.
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Next prepare a draft proposal including:
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An introduction to the event and the organisers.
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Specific details about the event where,
when, how many entrants/ spectators etc.
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Specific benefits as listed above.
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Possible media coverage.
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A final summary possibly mentioning how
much money is sought and how it will be spent.
By completing this exercise
you will have a clear picture of what you are offering to a sponsor and
you should then be able to deal with any queries.
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Once you have drafted the basic information,
try to get a hard-nosed business friend to take an outsider's look and
play devil's advocate and based on this, put it into a more formal presentation.
This could range from a straight letter (well typed of course) to a brochure,
to a presentation involving slides and a video - it all depends on how
much sponsorship you are after, what you are offering and to some extent
the size of company you are approaching.
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The next stage is to approach potential
sponsors but before contacting companies first consider 'who you know'
because personal contact is one of the most effective ways of raising sponsorship.
The Committee of a club and other influential members should be roped in
to help in the search. Strings are meant to be pulled, so pull them.
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If this fails and you have to approach
companies cold then cast your net widely and plan your approach in a businesslike
way. And don't give up - if the first approach to a company results
in a negative response, perhaps you can change the proposal slightly and
go back later a second or third time, when the outcome may be more positive.
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The aim of a written approach should be
to fix a meeting at which a club can present its proposals.
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Don't go to such meetings mob handed but
do go with people who are articulate and can present a case well.
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Rehearse the presentation, preferably in
front of someone used to such proposals.
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Don't waffle - if you have 30 minutes allocated
for a meeting then don't make the presentation longer than 10 minutes so
that there is time for discussion.
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Don't use motor sport jargon - not everyone
will understand it.
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Don't promise what you can't deliver -
that's a sure way of having a disappointed sponsor (and maybe even litigation).
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How much should a club ask for? This
obviously depends on the importance of the event which is why involving
the local media will enhance the value. Try to relate the sum you
seek to something e.g. 'that would only buy you two ads in the XYZ paper'.
Remember you can negotiate downwards on price but rarely upwards.
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If you reach an agreement with a sponsor,
put things in writing, either a simple letter of intent or a formal contract
- this will help avoid "who said what" arguments later if things go wrong
or a key person on the sponsor's side moves on. Incidentally, if a sponsorship
deal does break down or a sponsor decides to quit at the end of the contract
period, don't slag them off in the local press. All that will do
is deter other potential sponsors.
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If the club is registered for VAT (or will
be above the limit when the sponsorship limit is taken into account) then
VAT will need to be charged and provided for in the agreement. Corporation
tax may also be payable on the sponsorship income.
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Look after your sponsor to ensure the partnership
continues in years to come. It is much easier to keep a sponsor than
to have to search for new ones. This does not generally mean taking
your sponsor out for expensive meals every week, but simply involving them
and helping them achieve their own objectives. If your sponsor is
not actively involved in the event, it is in your club's interest to at
least keep him or her informed.
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Think what extra you can offer sponsors.
A simple plaque presented to them at the annual dinner may help make them
feel welcome and that much more part of the club.
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Above all, don't take the money and then
forget a sponsor.
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