Definitions for Defining Your Sponsorship Terms
Developing your sponsorship package can be tough if you don’t speak sponsor (aka you’re not able to effectively communicate what a brand may expect to provide or receive in return). The sponsorship glossary below will help you begin to think through some of the options that you can provide within your sponsorship pitch to help sponsors effectively understand the scope of your opportunity within commonly used frameworks.
Sponsorship Levels - The designation granted to a sponsor by way of their involvement. In descending order, examples include:
You can use SponsorPitch to benchmark against a database of 50,000 deals sortable by each of these sponsorship levels.
Category Exclusivity - This is the sole sponsor within a brand category of service or product. No other competitor within the category may sponsor the event. For example, Pepsi is the “exclusive” provider of soft drinks at Yankees Stadium. Typically, this will be coined with the status/phrase “official and exclusive ________ of the property”
Think there’s only a handful of exclusive sponsor categories? Think again. SponsorPitch can be used to sort by over 450 different business categories that are most commonly defined within sponsorship.
Term - The length of the sponsorship deal including the date that the sponsorship agreement officially begins and ends. Not all sponsorships start when a contract is signed. Due to previous sponsorship agreements, some may not officially begin for months or even years after a deal is signed.
Licensing - Granting the sponsor the right to use the property’s marks – terminology, logo and other trademark usage under brand guidelines. This commonly applies to consumer product goods that may use marks to create a special product or exclusive offer.
Pass-Through Rights - Allowing sponsor to involve approved vendors, typically assuming they do not compete with other exclusive sponsors of the event.
Sponsorship Fee/Rights Fee - Cash and non-cash transactions asked of the sponsor. This should include specific deadlines according to the property’s calendar of deliverables In-Kind Sponsorship - exchange of goods or services in lieu of financial obligations
Assets/Benefits - A listing of what specifically the company will receive as an official sponsor and when. Assets may often be the same across sponsors, but never be afraid to create unique assets for each sponsor depending on their business objective or audience. Examples include:
Media Buy - The required allocation of spend devoted to media. With larger properties, an incremental media spend or buy with the broadcast partner may be required as a condition to the sponsorship deal.
Renewal - Specifying the terms by which subsequent terms of sponsorship will be offered, negotiated or undertaken.
These are just a few basic terms to be thinking about as you prepare your pitch. Got others? Add them in comments or tweet @SponsorPitch
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