When brands step onto the global stage of a sporting event, the stakes are high, and the opportunities are boundless. To secure a victorious sponsorship strategy, it's crucial to navigate the field with precision.
In this article, we unveil a selection of top tips for brands aiming to score big when entering an official sponsorship for a sporting extravaganza:
- Alignment with Brand Values
- Measurement and ROI
- Budget Allocation and Exclusivity
- Activation
- Trade mark and Other IP Usage
- Contractual Agreement
1. Alignment with Brand Values
Your sponsorship should make sense in the context of your brand identity. For example:
- Nike's sponsorship of the Olympic Games reinforces its commitment to athletic excellence and personal achievement, aligning itself with the Olympic values of perseverance and sportsmanship.
- For companies with a focus on sustainability and environmental responsibility, it makes sense to sponsor events that embrace those values, e.g. Volvo has recently declared the end of the line for their diesel cars as of early 2024, as well as becoming one of the brands leading the charge in developing the world' first wind-powered deep sea car and truck transport vessel. Volvo remains a premier partner of the Ocean Race, and alongside 11th Hour Racing, promotes sustainability in sailing, emphasising the importance of ocean conservation.
- Adidas partnered with Stonewall FC, the world's most successful LGBTQ+ football club, to emphasize its commitment to diversity and inclusion, and to combat homophobia in football.
Legal takeaway: what measures are in place to ensure there are obligations on both parties and other stakeholders to abide by key values? What options are available to you under the contract if the other party or another stakeholder fails to abide by these values?
2. Measurement and ROI
To make sure your investment pays off and to fine-tune your game plan for future events, here are some savvy steps for measuring your success:
- Start by defining specific, measurable objectives; whether it's boosting brand awareness, turbocharging sales, or reeling in leads.
- Identify those all-important Key Performance Indicators (KPIs) that sync up with your objectives and establish a baseline of relevant metrics. Think website traffic, social media buzz, conversion rates, lead generation, and brand buzz.
- Implement data collection tools to monitor those vital metrics during the event. Make sure to play by the rules - respect data protection regulations and have a watertight privacy policy in place.
Legal takeaway: do you have an appropriate legal framework to allow you to collect and process data? Do you need to include any consequences for failure to meet KPIs? Do you need audit rights to measure performance?
3. Budget Allocation & Exclusivity
Determine how much of your marketing budget you can allocate to sponsorships - we're talking about how to divvy up your marketing funds for sponsorships, and it's not just about the price tag. You've got to factor in all the extra plays like activation, marketing magic, and your team's star players.
Now, when it comes to picking your sponsorship level, it's like drafting your dream team. Each level packs its own punch:
- Title Sponsor or Presenting Sponsor: This is where you're the top dog, with your name in the event's title. You're in the spotlight, getting max visibility, branding opportunities, and exclusive rights in your category. Think "Rolex Wimbledon."
- Official Sponsor: You've got the exclusive rights in your chosen playing field, and your logo's doing a victory lap alongside the event's branding. You're the official beverage or automobile, and that's a power move.
- Presenting Partner: Almost like a title sponsor, but your name doesn't get to be in the event's title. Still, you get the spotlight, and your brand's front and centre in all the event buzz.
- Official Supplier: You provide specific products or services to the event. A behind-the-scenes MVP, and you get a nod for your contribution, but your branding's a bit low-key. Like "Canon Official Camera Supplier of the Tokyo 2020 Olympics."
Legal takeaway: if you've paid top-dollar for an exclusive, official, prime sponsorship position, what contractual comfort do you have that the event/team you're sponsoring won't put you on a roster with your rival? Or that they'll take action to stop unofficial freeloaders? Are you sure your contract gives you all the rights you need? Think duration, territories, products, marketing channels, etc.
4. Activation
Once you've secured rights, how are you going to make the most of them? We're talking about engaging with the event's audience, boosting your brand, and creating memorable experiences. This covers everything from pre-event preparations to on-site activities and post-event follow-up, for example –
- How are you going to use your sponsorship to forge a real connection with the event's crowd / team's fans, boosting your brand recognition, and earning their loyalty?
- What activities are going to drive engagement? Should you be considering any collaborations?
- What physical and electronic/virtual real-estate do you need to ensure maximise your brand's visibility?
Legal takeaway: there's an awful lot to think about in terms of activating your campaign and ensuring strong visibility, recognition, and fan engagement. And timing's a critical component. If you want to engage talent (e.g. influencers, sports stars, etc.), have you left yourself enough time to agree a contract with them? If you want billboards in tube stations, when do you need to sort your contract for that? Negotiating and agreeing contracts can be quick – but can also take longer than you think. Make sure you get ahead of the game and engage your lawyers early on to remove an unwanted timing headache!
There are a lot of rules relating to advertising and the Advertising Standards Authority (ASA) makes sure to enforce them! To save yourself from any avoidable ASA-related own-goals, speak to your lawyers early on about your proposed campaigns so you can get the legal all-clear before you go live with campaigns.
5. Trade mark and other IP Usage
Navigating the world of trade marks and intellectual property is like playing a strategic game within the sponsorship arena. It's crucial to safeguard your brand, maintain that exclusive edge, and ensure a successful and legally sound sponsorship journey.
- Before you start waving event-related trade marks and logos like a banner, make sure you've got the green light. Get proper permission and licenses from the event organizer and follow event-specific brand guidelines.
- Know the lay of the land. Understand the scope of your trade mark usage rights; it might cover certain promotional materials or specific marketing channels, not the whole field.
- Don't throw fans a curveball – use the event's trade marks wisely and clearly indicate your brand's role as a sponsor.
- If co-branding is permitted, make sure your brand and the event's branding play nicely together. It's a partnership, not a rivalry.
- When it comes to athletes, make sure to secure the appropriate rights and permissions, including rights of publicity, if you plan to use their likeness or image.
- Similarly, protect your own intellectual property, trade marks, and copyrights. Make sure your brand's rights are watertight during the sponsorship, and ensure the event organizers respect your IP rights.
Legal takeaway: intellectual property is a particularly complicated area of law. Consult with specialist lawyers to make sure you avoid straying offside or leaving yourself exposed at the back.
6. Contractual Agreement
Finally, a rock-solid sponsorship agreement – make sure it's all in writing!
- Draft a sponsorship agreement that's as comprehensive as a championship season. Lay out the rights and responsibilities for both teams – that's you and the event organizer / team you're sponsoring. Cover everything from the sponsorship scope to the nitty-gritty details like sponsorship fees, duration, exclusivity, branding, and even how things wrap up.
- Clearly outline the financial plays, including the total amount, payment schedule, and any extra costs or fees.
- Have contingency clauses ready and account for unexpected curveballs. In most cases your sponsorship will represent a collaborative relationship between you and the event/team that brings success for both parties. However, in a worst-case scenario, you may need to quickly distance yourself from an event and/or its stakeholders to avoid adverse PR and safeguard you own brand's reputation. So your contract should address both how your relationship will work if everything goes well, but also what will happen if it does not, e.g. can you exit quickly, have you got suitable contractual protections against damage/losses you incur, etc.
In the world of sporting event sponsorships, success is a blend of strategy and compliance. Remember, it's not just about the game; it's about playing by the rules. Whether you're aiming for the winner's podium or an unforgettable experience, these tips and legal insights have you covered.
With careful planning and a keen eye on the legal scorecard, your brand can truly shine in the spotlight of sporting events, hitting home runs that resonate with fans and stay within the bounds of the law.
Our expert IP and Commercial team are here to guide you through the entire journey, ensuring your brand's success and compliance every step of the way.
Want to hear more from us? 
