Understanding Corporate Sponsorships: Moving from a $100 Ad Purchase to a $1,000 Sponsorship Agreement

By Hatfield, Laura M.; Hatfield, Lance C. | Strategies: A Journal for Physical and Sport Educators, January-February 2014 | Go to article overview

Understanding Corporate Sponsorships: Moving from a $100 Ad Purchase to a $1,000 Sponsorship Agreement


Hatfield, Laura M., Hatfield, Lance C., Strategies: A Journal for Physical and Sport Educators


During the past two decades, funding for school-sponsored activities for children, including interscholastic athletics, has diminished. Tighter budgets, decreasing governmental allocations, and ever-changing educational programming priorities are among the many reasons for this phenomenon. These funding reductions have led to a number of challenges for athletic directors, coaches, students, and parents. A corporate sponsorship program, built on an appropriate knowledge base, can help bridge the funding gap that exists between the costs to field teams and the decreasing budget allocations in interscholastic athletics.

[ILLUSTRATION OMITTED]

The primary expenses of interscholastic athletic programs include equipment, uniforms, transportation, and facility maintenance and upgrades (Bundrick et al., 2010; Danzey-Bussell & Pierce, 2011). To supplement budget allocations in order to meet these expenses, administrators have traditionally used three strategies: (1) generate revenue through gate receipts, (2) participate in fund-raising activities, and (3) utilize booster organizations. Unfortunately, these three strategies, as a general rule, have been unable to meet the financial demands in interscholastic athletics that have resulted from reduced government allocations. Therefore, many administrators have had to take drastic fiscal measures, including eliminating or scaling back participation opportunities and, where legal, implementing the "pay-for-play" funding model. These reductions in and barriers to participation opportunities have been linked to increased dropout rates, criminal activity among students, and childhood obesity (Spanberg, 2011).

Corporate investment in interscholastic athletics through sponsorships is a funding strategy that is gaining traction at the secondary level. Although corporate sponsorship of scholastic activities at local, regional, and national levels is not new, these arrangements are becoming more common and acceptable. According to a 2010 poll conducted by Turnkey Sports and Entertainment, 88% of high school sport fans viewed corporate sponsorship as an "important source of funding for local high schools" (Spanberg, 2011). Because broad-scale increases in governmental funding for school-sponsored activities are not on the horizon, and in lieu of alternative viable solutions, it appears that corporate sponsorship is here for the foreseeable future.

To help readers establish a firm foundation upon which to maximize corporate interest and investment in their activities, the purpose of this article is threefold. First, readers should better understand sponsorship in its truest, most effective form as a business concept. Next, readers should understand the value that their athletic department provides to sponsors. Finally, readers should understand what prospective sponsors want and need from sponsorship agreements (see Figure 1).

Understanding Sponsorship

Howard and Crompton (2004) define sponsorship as a "business relationship between a provider of funds, resources, or services and a sports event or organization, which offers in return specific rights that may be used for commercial advantage" (p. 434). Immediately, this definition should restructure what many researchers and practitioners at the interscholastic level think about sponsorships conceptually. Much of the research and many of the sponsorship activities at this level equate sponsorship with advertisements placed in game programs or on venue signage (e.g., ads on scoreboards or outfield fences). Although such advertising can be an aspect of sponsorship, "advertising" and "sponsorship" are not synonymous. Consider that in 2012, corporate spending on sponsorship deals in North America was $18.9 billion (International Event Group [IEG], 2013). IEG also reports that of every dollar spent on sponsorship in North America, approximately 70 cents were spent on sport-related deals. For businesses to invest at these levels, sponsored teams and events need to provide activities that lead to sponsor business development. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Understanding Corporate Sponsorships: Moving from a $100 Ad Purchase to a $1,000 Sponsorship Agreement
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.