5 Tips for Sponsorship Renewal Time
Updated: Oct 29, 2019
Sponsorship renewal time, particularly in the sports industry is typically one of two common scenarios.
Scenario One - Your team have kicked goals (either literally or figuratively) all year and your account has been proactively managed. It's been a win-win for everyone involved and re-signing is an absolute no brainer.
Scenario Two - Game day performances haven't been as great as either party had hoped but as a sponsor you understand there isn't much you can control in that department. However your account manager hasn't really stepped up and 'over delivered' on your contract either, leaving a bitter taste in your mouth about
re-signing for another season.
Any of these sound familiar? The first is probably the least common but of course an 'ideal world' scenario for both sponsor and rights holder. So if you're in the 'Scenario Two' boat then listen up to our 5 Tips for a Successful Sponsorship Renewal.
1. Re-define your Objectives
Did you have any Specific, Measurable, Achievable, Realistic or Timely objectives defined for your sponsorship investment? If so, where these communicated clearly to the Rights Holder last season? This is so critical to success! If you do nothing else on this list, make sure you do this. And no, these objectives should not be related to team performance in anyway!
Remember when you invest in sponsorship, you are investing in the opportunity, not results. It’s your leverage program that provides the results against your objectives. Think of it as a return on your objectives (ROO), rather than investment (ROI).
2. Build Activation Plans/Tactics into your Contract
Make sure you put some responsibility (not all) back on the rights holder to help execute some of your activation tactics. The best rights holders should be presenting a series of ideas to you during renewal time which should be linked to achieving your objectives. If they aren't doing this then it's just being lazy.
3. Hygiene Factors
Tickets to things, logo's on things, corporate hospitality etc etc. Should not be the core focus of your contract. This shows that your rights holder simply isn't taking the time to understand your brand or your objectives. If your contract is littered with these then this should be a giant red flag. Our advice? Address this with your account manager early and shift their focus onto activation strategies that work! Run for the hills or starting tearing up $$ now.
4. Measurability & Accountability
Part of our number one tip but worth mentioning again. How are you measuring success? Don't rely on your rights holder to do this for you, it's unrealistic and unfair, after-all they are your objectives, not theirs.
Do you have a way to measure success, are all of the key internal stakeholders on board with this metric, have you communicated this to the rights holder? Make sure you can measure some of these 'success factors' during the season and not just at the end too.
P.S This doesn't include mid/end of season reports with highly inflated TV numbers!
5. Don't Wait!
If you aren't happy with the level of service or benefits your receiving from your Rights Holder, please don't wait until the end of the season to bring them up! Chances are there could have people a simple fix that won't waste your season or your money. Regular meetings with your rights holder throughout the season like fortnightly WIP's are super important for everyone.
Til next time
email@example.com / 0422 050 520