How to Optimize Sponsorship

Issues in Sport Business:
How to Optimize
Sponsorships

Acknowledgements
I would like to thank Dr. Ketra Armstrong for her guidance and availability during the
capstone project period. Also, I would like to thank sport managers Zach Gano (Los Angeles
Clippers), Abigail Bennett (Los Angeles Galaxy), Keith Herbers (Chivas USA), Jenifer
Soliman (Los Angeles Angles), and Katie Ranne (Los Angeles Kings) for their participation
in this study and the useful information they provided. I would like to thank the sponsors as
well, Brad Nichols (LiveWire Energy) and Aurélien Lehembre (BNP Paribas) for their time
and participation. Finally, I would like to thank the participants of the study for their honest
answers and the time dedicated for the elaboration of this study.

Prefatory facts
Table of contents
Prefatory facts ............................................................................................................................ 5
Table of contents ........................................................................................................................ 5
Executive Summary ................................................................................................................... 1
Introduction ................................................................................................................................ 2
Literature Review....................................................................................................................... 6
Definition of sponsorship....................................................................................................... 6
Objectives of Sponsorship...................................................................................................... 7
Sponsorship differs from advertising ..................................................................................... 9
The advantages of sponsorship ............................................................................................ 11
Different options for sport sponsors..................................................................................... 11
Principal investors and investees.......................................................................................... 12
The interests of sponsorship................................................................................................. 12
Types of sponsorship contracts ............................................................................................ 15
The role of sport managers................................................................................................... 16
The mechanism of consumers’ perceptions and attitudes.................................................... 17
Literature review conclusion.................................................................................................... 19
Solution to the problem............................................................................................................ 20
Methods, procedures, and protocol .......................................................................................... 21
Instrumentation..................................................................................................................... 21
Data collection protocol ....................................................................................................... 21
Procedures ............................................................................................................................ 22
Delimitations and assumptions................................................................................................. 24
Results of Data Analysis .......................................................................................................... 25
Profile of Sample Participants.............................................................................................. 25
Sport fandom........................................................................................................................ 27
Perception of sponsorship in sports...................................................................................... 30
Attitudes towards sponsorship in sports............................................................................... 35
Qualitative Analysis ............................................................................................................. 39
Sport Managers ................................................................................................................ 40
Sponsors ........................................................................................................................... 43
Ways to Optimize Sport Sponsorship ...................................................................................... 47
1) What sponsors must know............................................................................................ 49
2) What sport managers must know ................................................................................. 55
3) Sponsorship activation process .................................................................................... 58
4) Enhance sport sponsorships ......................................................................................... 64
5) Measure sport sponsorships ......................................................................................... 66
6) Limits of sponsorships ................................................................................................. 72
Applications/Implications of project artifact............................................................................ 75
Practical applications to sports industry............................................................................... 75
Conceptual implications to sport management academe ..................................................... 75
Contribution to sport management career aspirations.......................................................... 76
Conclusions .............................................................................................................................. 78
Insight of the Capstone project............................................................................................. 78

Limitations and suggestions................................................................................................. 78
Concluding remarks and reflections..................................................................................... 79
References ................................................................................................................................ 81
Appendices............................................................................................................................... 85

List of tables:
Table 1: Top 10 U.S. Sponsors in 2001 ..................................................................................... 4
Table 2: The reciprocal system of the sponsorship exchange.................................................... 8
Table 3: Image’s exchange process in sponsorship ............................................................... 13
Table 4: Profile of participants................................................................................................. 26
Table 5: Sponsors elements sport fans remember the most ..................................................... 32
Table 6: Model of response process in AIDA model............................................................... 34
List of figures:
Figure 1: To what extent do you consider yourself a sport fan?.............................................. 27
Figure 2: Participation in sports ............................................................................................... 28
Figure 3: How often do you watch sports? .............................................................................. 28
Figure 4: Most used media platforms to follow sports............................................................. 29
Figure 5: Attention to sport sponsors ....................................................................................... 31
Figure 6: Sponsorship enhances brand and companies' image ................................................ 33
Figure 7: Frequency of association between sponsors and sport entities................................. 35
Figure 8: Acceptance of sponsors in sports.............................................................................. 36
Figure 9: How often do you get information about a company and its products from
sponsorship?............................................................................................................................. 37
Figure 10: What is your degree of interest for a sponsor because of sponsorship in sports?... 38
Figure 11: Do companies invest too much in sports sponsorship? .......................................... 39

How to Optimize Sponsorship 1
Executive Summary
Sponsorship in sports is a useful tool for companies among their communication
strategies. The sports industry is an economic sector that generates over $200 billion each
year. Sponsorships offer various opportunities for sponsors to differentiate themselves from
competition. The high number of different sports offers companies various choices, and
enables the targeting of specific audiences sharing similar values, demographics, and
purchasing behaviors sponsors look for. The current economic climate of the late 2000’s
forced companies to reduce and cut budgets to maintain their profitability. Consequently,
marketing and advertising budgets in which sponsorships belong suffered from the recession
and caused economic issues in sports. However, sponsorships remained a vital source of
revenues for sport entities. The purpose of the study is to determine important factors and
conditions sponsors and sport managers are seeking to achieve with the activation of
sponsorship as well as consumers’ perceptions and attitudes towards sport sponsorships. A
survey and interviews of sport managers from professional sport teams in the Los Angeles
area, and of sponsors in different economic sectors were carried out to provide insights
relative to the issues in this problem. Results showed that sport fans accept sponsors in sports,
and pay mostly attention to images and representations promoted with sport sponsorships.
Image and visibility of sponsors are two critical points. In addition, the interviews of sport
managers and sponsors demonstrated a lack of sponsorship measurements and highlight
several opportunities to enhance sponsorships and leverage brands.

Introduction
The sports industry is an economic sector that generates over 200 billion dollars every
year and attracts sport consumers and fans on a global, national, regional and local dimension.
Sponsorship has been an effective way for companies to reach their audience and to be visible
to millions of viewers on a global stage thanks to the diversity of sporting events. Sports have
always interested companies. The display of emotional, performance, effort, and ethic values
in sports are essential for sponsors. It develops positive image and promotes human values
that impact all social classes, and all ages. Sports were considered as a means of
communication for companies (Shank, 1999). Strong interests developed around the sports
industry. The emergence of companies in every economic sector, willing to invest in the
sports industry greatly impacted and generated revenues. From his study, Shank concluded
that an extreme competition emerged between sponsors.
Sponsorship is not a new phenomenon and has been widely used over centuries.
Sponsorship originated from the Greek and Roman empires. In 65 B.C., Julius César used a
financial source to finance gladiators fights and knew the positive outcomes of an entertaining
event for spectators (Tribou, 2007). This can be considered as a minimal action of
sponsorship with small investment for predictable results. However, a genuine action of sport
sponsorship emerged only recently. In his analysis of sponsorship, Tribou described the first
investment in a sporting event. It took place in 1852, when an American railroad company in
New England sponsored the transportation of Harvard and Yale sports’ teams. Sales from
train tickets sold to consumers allowed companies to make a return on their investment. In
1861, the British food company Spiers & Pond sponsored the first British national cricket
team tour in Australia and collected $20,000 (a significant amount at that time). By the late

1890’s many railroad companies sponsored baseball teams. Tribou’s analysis of sponsorship’s
history demonstrated that this communication tool was not a new phenomenon.
With the development of modern sport over the second half of the 20th century, the
number of investments greatly increased. The sports industry offered many different
opportunities and perspectives for companies and allowed for significant media exposure for
companies and their brands (Tribou, 2007). Many types of businesses joined the list of
sponsors such as banks, beverage and food industries, and high technology and electronics
companies over the 1970’s. However, the expansion of sport sponsorship occurred during the
1980’s and 1990’s. The growth confirmed this communication tool as an industrious strategy
for companies. Sponsors allocate colossal budgets for sports to ensure visibility and presence
with sport entities (see table 1). As illustrated in table 1, the largest corporations in the United
States highly invest in sports. In addition, the first six companies have no direct relations with
sports and the first sport manufacturer Nike is ranked only at the 7th
place. The table is 10
years old but provides some insights on the importance of sport sponsorship for major
companies. In spite of a difficult economic climate, sponsorships are still widely present in
the sports industry. The snowball effect of the 1980’s and 1990’s still continue due to the
necessity and opportunities to sponsor events such as the FIFA World Cup and the Olympic
Games, leagues such as the NFL and NBA, teams such as the New York Yankees and Dallas
Cowboys, and athletes such as Lebron James and Tiger Woods.

Table 1: Top 10 U.S. Sponsors in 2001
Amount Company 2001 Rank
$215M-$220M Anheuser-Busch 1
$190M-$195M
Philip Morris
PepsiCo
2
3
$165M-$170M General Motors 4
$130M-$135M Coca-Cola 5
$105M-$110M
DaimlerChrysler
Nike
6
7
$90M-$95M Eastman Kodak 8
$75M-$80M
Ford Motor
McDonalds
9
10
Source: IEG. (2001). Sponsorship Report.
The increased number of sponsors in sports may confuse consumers’ perceptions.
They observe sponsors in any sport via all the media platforms. The complexity of the sports
industry and the current global economic downturn complicate the relationship between both
parties and the activation of sponsorship. In addition, the reduction of consumers’ purchasing
power may have a negative impact on attendance of live sporting events. Companies need to
optimize their investments in sports and may question the validity of this tool of
communication tool. In-depth analyses must be carried out to provide necessary information
before launching sponsorship actions. It is necessary to evaluate sponsors and sport
organizations’ expectations with sponsorships before hand.
A general overview of the sponsorship elements enables a better understanding of how
this communication tool works for companies to leverage their brand and images. In addition,

sport managers must conduct a comprehensive analysis of potential sponsors before signing
sponsorship deals. Sponsorships generate sport entities significant and vital source of
revenues for sport entities. Companies do not necessarily evaluate the extent of their
investments. Complementary studies on consumers’ behaviors and perceptions towards
sponsorships would provide relevant and critical elements for sponsors. Based on the data
collected, sponsors could effectively reach the targeted audience that best defines their values
and develop their communication to obtain the expected associations with sport fans. Sport
managers need also to consider the validity of sponsors for their sport entity and select
companies to leverage and improve fan experience. Hence, elements of perceptions and
attitudes towards sponsorships as well as tools to evaluate and modify the actions could help
sport managers and sponsors to establish successful partnership terms.
The purpose of this study is to determine important factors and conditions sponsors
and sport managers are seeking to achieve with the activation of sponsorship. As a result, the
study provides sport managers and organizations with elements to best serve companies’
interests and needs and to develop their sport entities. Furthermore, the study presents
essential tools for sport entities and sponsors to measure the activation of sponsorship and the
images resulting from it.

Literature Review
A complete analysis of sponsorships, its effects and the different options available for
companies was developed to better understand the importance of this tool for sponsors.
Sponsorship has been part of companies’ communication strategies and has been included in
companies marketing plans. Similar to other projects in businesses, sponsorship in sports
needed before hand a depth analysis of potential opportunities for companies. Hence, this
investment in sports has not been a mere decision of the owner or CEO, but a financial action
well-considered.
Definition of sponsorship
The value of sponsorship as a marketing technique has been well documented and
studies have shown that sponsorship expenditure worldwide exceeded $25 billion in 2004
(Alexandris, Douka, Bakaloumi & Tsasousi, 2008). Various definitions have been used to
explain sponsorship. It has been defined as a communication tool which has allowed a brand
or a company to be directly associated directly with a sporting event for a targeted audience
(Sahnoun, 1986). Sponsorship was defined as a communication technique aiming to persuade
the audience of the particular relationship between the sporting event and the company, in
order to promote a brand and its products. (Derbaix, Gérard & Lardinoit, 1994). It is an
investment in terms of money, services, and/or resources in exchange of rights and an
association with a sporting entity that can result in a competitive advantage (Howard &
Crompton, 2004). The action of sponsorship enabled companies to develop a profitable
association in terms of visibility and image (Bühler & Nufer, 2010).
Sponsorship has included ads in sporting events, naming of public facilities,
representation of athletes, sporting goods and by-products, media rights, and every platform at
the sporting event that could be sponsored by a firm. The variety of sports allowed companies

to target one specific segment of the population according to sport fans’ preferences. Thus,
sponsors were able to identify homogenous groups that shared the same behavioral
characteristics and attitudes, which were more likely to have similar purchase behaviors.
Objectives of Sponsorship
Previous studies have analyzed the objectives of sponsorship. Sponsorship was
implemented to transfer the values of sports to a business institution, its products and its
different brands. It also allowed the transfer of some cultural aspects inherent of the sports
industry in order to answer consumers’ expectations and needs (Quester, 1997). The added
value of sponsorship was to drive the consumers apart from traditional advertising and link it
to particular sporting events, organizations, or players (Dambron, 1991).
Below is a scheme that explains how the reciprocal exchange works in sponsorship
between the sponsor and the sponsored (see table 2). The logic remains the same regardless of
the size of the company and the sport entity since the scheme exemplifies the general process
of the sponsorship action.

Table 2: The reciprocal system of the sponsorship exchange.
Source: Tribou G. (2007), Le sponsoring sportif, 3ème édition. Economica : Paris
Previous studies have shown that not only, sport appealed worldwide every social
class of the population, but also sport audiences were the highest on cable network (Tribou,
2007). In fact, the audience for the Super Bowl, NBA Playoffs, and global events such as the
FIFA World Cup or the Olympic Games gathered a significant number of spectators; all
potential customers for companies involved in sport sponsorship. Sponsors have had the
ability to use a wide range of platforms to transmit their message to the audience. Television,
internet, radio, newspapers, stadiums, arenas, billboards, among others constituted medium
for companies when implementing their sponsorship campaign (Stotlar, 2004). As a result, the
sports industry was considered as a unique economic sector.
Sport sponsorship is an expense for companies in which the best return on investment
is the main objective. It is also a communication tool, part of the marketing mix. Sports
developed an array of values that interested sponsors such as authenticity, competition, and
fair-play, among others. Moreover, it enabled people to share feelings and emotions. In
SPORT ENTITY
(event, organization,
athlete)
SUPPORT (financial,
equipment, know-
how).
SPONSOR
(business or non-
profit
organisation)
IMAGE,
REPUTATION, and
PROMOTION

particular, egalitarian competition, team spirit, performance and self-achievement were
fundamental characteristics in sports which attracted and explained why companies invested
millions of dollars in some sporting events.
The most popular sports in the United States benefited from wide coverage by the
media and as a consequence brought the largest amount of dollars from sports such as football
(NFL and NCAA football), baseball (MLS and NCAA baseball) and basketball (NBA and
NCAA basketball). Additionally, sports like NASCAR and hockey have appealed to regions
based fans, while soccer has been the popular among women. This being said, a large variety
of sports were available for sponsorship (Howard & Crompton, 2004). Sponsors appropriately
examined the different sports in the sponsorship decision process in order to effectively
transmit the message to their targeted audience. Furthermore, some niche sports such as
extreme sports and other non-traditional sports, offered additional options to sponsors and
enabled companies to differentiate from competition, allowing them to position their brand in
the consumers’ mind. In fact, competition was less fierce in some niche and non-traditional
sports than football, baseball or basketball, because of its lesser popularity and lower entrance
sponsorship fees. The lack of competition in some of the niche sports also provided better
visibility for the sponsors.
Sponsorship differs from advertising
Sponsorship differed from advertising in many aspects. Companies questioned the
credibility and effect of sponsorship on advertising campaigns. In some cases sponsorship
resulted in a negative association that poisoned the company’s image (Pope & Voges, 2000).
Advertising enabled to transmit a message and encouraged consumers to pay attention to
images, information, and messages that develop the features and inherent functions of the
companies’ products (Cornwell, Weeks & Roy, 2005). Sponsorship transferred a message
since only a logo or the sponsor’s name was visible to consumers. Advertising allowed longer

spots and promotional messages for companies than sponsorships, where the audience saw the
sponsor briefly. The presence of the sponsor could not provide a long and detailed message,
but only images, logos and various representations.
Sponsorship represented necessary revenues for sporting events and organizations.
The relationship was obvious and unconsciously forced the audience to see the sponsor.
Companies could directly target an audience which was not reached with traditional
advertising (Howard & Crompton, 2004). Sponsorship engaged with a particular sporting
event and companies expected positive associations from the partnership. Thus, the audience
was more likely to accept sponsors’ brands and products. This position developed a feeling of
goodwill or acceptance towards a sponsor that created likeness and purchase (Anne &
Chéron, 1990). This feeling was one of the main differences between sponsorship and
advertising which developed consumers’ reactions and possibly led to patronize sponsors.
(Meenaghan, 1998).
Sponsors believed advertising was not necessary because it would undermine the
credibility of the partnership with a sporting event. Sport sponsorships have been substantially
present in television, internet, and magazines. On the contrary, some companies thought
sponsorship was unnecessary and created redundancy with advertising. Advertising
campaigns suffered budget cuts because of sponsorships whose reliability and efficiency
remained unpredictable (Townley, Harrington & Couchman , 1998). However, many studies
demonstrated the positive outcomes of simultaneous advertising and sponsorship (Cégarra,
1994). Sport Sponsorship developed a closer and more intimate relationship with sports fans
than advertising; by sharing values and emotions related to sporting events. Traditional
advertising relayed the action of sponsorship by presenting companies’ products to the
consumers with whom they shared common values and emotions. Consumers who did not
like the brands’ products could change their mind and attitudes towards sponsors, and develop

positive associations with brands. Companies were able to exploit both communication tools
to reach its sales, profits objectives and reputation (Quester & Thompson, 2001).
The advantages of sponsorship
Sponsorship developed three main advantages which justified investments in sport
(Tribou, 2007). First, it positioned companies’ marketing strategy, and developed brands’
image and reputation. In fact, sponsors exposed their name, logo and images to consumers.
Second, it created a communication strategy intended for a segmented and targeted audience.
Sponsors could identify and define potential buyers. Lastly, it established a closer and more
personalized relationship with consumers watching sport events they liked. Therefore,
consumers paid more attention to sponsors and their message. Sport sponsorship brought
social and moral values to brands. It enabled the creation of a direct relationship without
talking about any product. Moreover, companies could express their thoughts, interests, and
strategies because sponsorship implied sponsors’ concerns about sporting events, teams, or
athletes. It increased authenticity for consumers’ perceptions.
Different options for sport sponsors
The activation of sponsorship enabled companies to reach various objectives and
utilize several platforms (Howard & Crompton, 2004). Sponsorship could be based on
visibility and frequency in order to develop reputation and sales. The development of
partnership with tangible platforms at sporting events and with sports organizations increased
the presence of a brand. Sponsorship could be based on image in order to refine brand’s
identity and in general its equity. A hospitality sponsorship in collaboration with public
relations department included a commercial approach of trade sponsoring and an institutional
approach called corporate sponsorship to improve companies’ image.

Principal investors and investees
Forty percent of the total expenses in sport sponsorship are located in the United States
(Howard & Crompton, 2004). Soccer remains in the global stage as the most sponsored sport
exceeding 1,500 billions of dollars in 2005 but football generates over 1,000 billions of
dollars solely in the United States. Various companies highly invested in the National
Football League and opted for this communication strategy, such as Gatorade ($393 millions),
VISA ($303 millions), Coors ($103 millions). These three examples demonstrated the critical
importance of football in sponsorship. Basketball and baseball in the United States also
massively attract sponsors; however to a lesser extent than football.
The interests of sponsorship
It could be possible to think that sponsorship was motivated by the sport preferences
and likeness of companies’ CEOs and managers for a sport, an event or an athlete. Actually, it
was an authentic investment where sponsors looked for returns on their investment and
measured the profitability of the actions in the sports industry (Shank, 1999). Alike any
business activity implemented by companies, sponsorship was a means to increase sales and
encouraged consumers to buy new products. Sponsorship developed an appropriate way to
communicate a brief and non-aggressive message to a specific audience. Consumers did not
feel an intrusive and intensive advertising campaign, and they were not directly conduced to
make a purchase. They accepted the sponsors’ message and presence with the sporting event
and were more willing to positively respond to sponsors’ images and messages. Several
options became available for sponsors to leverage their sponsorship such as point-of-sales
display at sporting events, exclusive and adapted sales promotion, and interactive games and
sweepstakes, among others.
Companies leveraged their brand image which is comprised by the conjunction of
associations connected to the brand, and is based on representations and images and not on

products (Keller, 1993). Sponsors tried to differentiate themselves from competition by
investing in sport entities where business rivals were not present, and with niche or non
traditional sports such as hockey, Nascar and extreme sports. A reciprocal exchange occurred
where sponsors benefited from inherent values of the sport entities and sport entities chose
companies that positively leveraged their organization, event, or athlete. As a consequence,
sponsorship improved both the image of the sponsor and the sport entity (see table 3)
Table 3: Image’s exchange process in sponsorship
Source: Tribou G. (2007), Le sponsoring sportif, 3ème édition. Economica : Paris
Sponsors were also very concerned about their reputation and customers’ perceptions
and attitudes towards their brands and line of products. Reputation was measurable by the
presence of brands in the consumer’s mind (Shank, 1999). It was critical and essential for
sponsors to be visible and obvious to a maximum number of consumers, so that consumers
would remember for longer periods of time brands and products associated with the sponsors.
Media ensured large coverage of the sporting events and allowed sponsors to reach a wide
targeted audience. Furthermore, sport entities ensured sponsors’ visibility and presence
according to attendance and media coverage (Desbordes & Falgoux, 2007). Sport entities also
IMAGE of
the sponsor
Image TRANSFER
Image RETURN
IMAGE of sport
entity

limited the number of sponsors to avoid confusion in the consumer’s mind. The multiplication
of sponsors associated with sporting events, leagues, teams, or athletes are detrimental to
sponsorship and its effects on consumers. However, sport organizations and managers
attempted to increase the number of sponsors associated with them to generate greater
revenues and to consolidate the image of their sport entity. This strategy was relevant for
sporting events lacking reputation, since the cost of sponsorship would reduce expenses and
enabled sport entities to be associated with renowned brands. On the contrary, large
corporations such as Coca Cola and McDonalds extensively invested in sport during the
increasing popularity of sponsorship.
The visibility and the presence of sponsors created a need for consumers and
encouraged purchase. Thus, it was another essential point to focus on when developing a
sponsorship proposal or package (Zinger & O’Reilly, 2010). Furthermore, companies created
and sold by-products from sponsorships which allowed expanding the life cycle of the
sponsorship actions even if sponsorship terms previously ended. The products would remain
in consumers’ mind as well as associations between companies and sport entities.
Alternatively, Internet offered another platform of communication for visibility objectives. In
fact, Internet enabled sponsors to establish and reinforce the relationship between consumers
and companies’ brands and products.
Sponsorship also affected companies’ employees. Sponsorship impacted on employees
as much as consumers (Lardinoit & Derbaix, 2001). Employees’ awareness and in-house
communication was vital in sponsorship in order to unite around a common project.
Sponsorship could be very expensive and employees could think this form of communication
was a useless investment that could be used differently and better. Lastly, sponsorship
positioned companies and their brands as an institution whose goals were not only business
related but also to develop good media and public relations, and to be closer to the targeted

communities to improve the brand’s equity (Lardinoit & Derbaix, 2001). In addition, sport
entities developed a reversed sponsorship where the sponsored become the sponsor. This type
of sponsorship was illustrated with the soccer team FC Barcelona and the non-profit
organization UNICEF highlighting a conscious act from soccer players.
Types of sponsorship contracts
Sponsorship allowed various levels of involvement for companies including naming,
title sponsor, official sponsor, and sleeping partner (Shank, 1999). Shank described the
different sponsorship platforms available for sponsors. Naming enabled companies to
associate the name of companies or brands with a stadium or an arena. The renovation and
building of new facilities for sport teams facilitated the expansion of this form of sponsorship.
Naming accomplished the objectives of exclusive and permanent visibility, positive media
communication, and public relations for sponsors.
Title sponsors enabled companies to enjoy exclusive image and presence rights.
Companies had the opportunity to make substantial financial profits by borrowing the image
of sport entities and relating it to a brand. Only one company per economic sector was
represented in this situation which prevented the entrance of competitors and guaranteed an
exclusive diffusion. Official sponsors involved companies to a lesser extent, since the
investments and financial risks were reduced. Sponsors offered services, products, equipment,
food and beverages, and knowledge to accompany the organization of the sporting events.
This type of sponsorship allowed the trial of companies’ products and persuading sport
managers and employees about the quality of the sponsored products. Companies assisted
sport entities with their marketing and communication resources to enhance the sporting
events. It enabled to operate a sober sponsorship action, unite staff, and it reduced the risks
related with the brands’ image and equity. The use of fixed platforms such as billboards, and

the association with sport shows on television and the internet also developed strategies of
sponsorship with lower expenses than primary forms of sponsorship.
The role of sport managers
Sport organizations, events, teams, and players selected companies and brands which
best represent the values of sport and sport entities’ image. The determination of the ideal
sponsor became more difficult when corporations intensively invested in sport. Sponsorship
was an asset for companies which decided to adapt a strategy of differentiation from the
competition. It resulted in a competitive advantage (Ricardo, 1817). Sponsorship became
necessary to finance sporting events. Sport entities had to define the profile of the sponsors
they wanted to be associated with. They made consciously choices to leverage the image of
their sport. Sport managers had to determine the profile of the ideal sponsors knowing that
contracts lasted on average two to three years. The knowledge of sponsors’ objectives became
fundamental to ensure a beneficial partnership for sport managers. Nevertheless, some sport
managers did not get the time to focus on this part and failed in the implementation of the
sponsorship action.
Sponsors altered the development of sporting events by requiring some features and
changes to have the opportunity to develop their message. Broadcasting is a main component
in sponsorships. The duration of time-outs lengthened to include more air time for advertising.
Companies invested millions of dollars in primetime sporting events. Furthermore, they
invested for commercial purposes and had the possibility to interfere with sporting events by
asking players meetings and changes in broadcasting to reach the largest audience possible
(Shank, 1999). Sponsorship developed a large industry with various intermediaries between
sponsors and sponsored. Studies demonstrated that companies collaborated with specialised
agencies to develop their and market research and sponsorship action. (Walliser, 2003). They

provided information to agencies about demographics, the media strategy, and the audience
targeted in their action. In some cases, two or more intermediaries offered their services to
guide sponsors in their investment. Intermediaries are generally sport marketing agencies
representing the rights of sponsors. Walliser (2003) examined the role of the agencies and
found out diverse functions. They allowed companies to delimitate their scope and select the
best communication strategy. They also facilitated the establishment of a relationship between
business and the sports industry. Sport agencies also determined the best sponsorship
platforms to obtain the required visibility and presence for the sponsors. Additionally, they
developed on-field operations including logistics, organization, and public relations. They
generally charged a ten to twenty percent commission to sell marketing rights to sport entities
(Tribou, 2007).
The mechanism of consumers’ perceptions and attitudes
Previous researches examined the reaction of consumers towards advertising and in
particular sponsorship. It was necessary to ensure the efficiency of sponsorship (Grohs &
Reisinger, 2005). The cognitive approach demonstrated attitudes towards brands and their
products, which created a sentiment of likeness that led to purchase (Lavidge & Steiner,
1961). Grohs & Reisinger also showed that the involvement of the audience determined the
efficiency of sponsorship and the opinions related to the message. Consumers’ perception was
also selective and the message was partially remembered (Gi-Yong, Quarterman & Flynn,
2006).
Consumers memorized images based on different factors such as colors, designs,
proximity between sponsors and sport entities, and surprise effect. Sponsors strived to
establish clear and short messages to be understood by their audiences. Studies also
highlighted the degree of acceptance of the sponsors. The closer the relationship was between

sponsors and sport entities, the easier consumers accepted associations and brands in sporting
environments. In some case, this relationship developed the credibility of brands and
companies used sponsorships to redefine their image and position in the market. Sponsorships
gave opportunities to change a negative image and generated positive attitudes and
perceptions about the brands.
Studies demonstrated the necessity to be creative and to remind consumers of the
action of sponsorship to attract a wider audience. In fact, the repetition and intensity of
sponsorship reinforced and convinced consumers (Zajonc, 1968). The creation of emotions
related with sport entities also developed positive attitudes toward sponsorship. The
understanding of the mechanism of consumers’ perceptions and attitudes toward brands
enabled sponsors to develop appropriate and target sponsorship actions.

Literature review conclusion
The analysis of the literature review provided an in-depth analysis of sponsorship and
the different objectives companies and sponsors are looking for. Sponsorship is not a new
phenomenon and has been utilized by most of the large corporations as a strategy of
differentiation from competition. Sponsorship is a marketing tool for companies which differ
from advertising. In sponsorship only brief images are visible and there are no incentives to
buy products. On the contrary, in advertising, a message is targeted to an audience and display
products characteristics to encourage purchase by consumers. Therefore, sponsorship enabled
sponsors to reach some objective they could not accomplish with traditional advertising
campaigns.
Sport managers have had an important role to play in the activation of sponsorship.
Constant communications with sponsors and full understanding of their objectives have been
fundamental points to ensure the success of sponsorship campaigns. The difficulties
encountered between both parties have led to the intervention of specialized agencies to act as
intermediaries. In fact, the different possibilities for the activation of sponsorship have
multiplied the number of sponsors. Sponsorship became a marketing strategy for many
companies which needed reliable information for the activation of their action in sports.
The next sections will present the necessary elements utilized to solve the initial
problem which was to provide guidance for sport managers and organizations with the
activation of sponsorship in accordance with companies’ expectations and needs to develop
their sport entity.

Solution to the problem
A constant communication between sponsors and sport managers is essential to
maintain sustainable and positive business relationships (Shank, 1999; Howard & Crompton,
2004; Tribou, 2007). Some sponsorship activation failed because of misunderstanding when
implementing the terms of contracts. Also, companies must remember that the initial
investment in the sports industry must be financially accompanied during the duration of
contracts. In fact, the accompaniment enables to strengthen sponsors’ investments and
reminds sponsorships to consumers. The difficulty and problem in meeting both parties’
interests can be solved with the creation of a handbook that will gather all the necessary
information and the details in the sponsorship process. It will help indentifying the best
suitable sport entities according to the type of companies. Furthermore, the handbook will be
critical for the activation of sponsorship and its financial measurement. For sport managers,
the handbook will reveal the different limits of sponsorship and the necessary points sport
entities have to follow to ensure the success of business collaborations. Several interviews of
sponsorship managers in different sports and companies as well as a survey allowed gathering
information and enabled the creation of the handbook to solve the problem.

Methods, procedures, and protocol
Instrumentation
A survey and several interviews were carried out to obtain relevant information. A
panel of companies and sport entities were also interviewed to obtain an insight of sport
sponsorship issues and challenges. On one hand, interviews of sport sponsorship managers of
the Los Angeles Clippers, Los Angeles Galaxy, CD Chivas USA, Los Angeles Angels, and
Los Angeles Kings, were executed. The interviews of sport managers in different sports
provided diversity to the study and enhanced its validity. It enabled to notify potential
differences in sponsorship activation between sport teams essentially in the Los Angeles
County. On the other hand, interviews of sponsors such as BNP Paribas, LiveWire Energy
were realized as well as excerpts from a radio show on sports economy with Dannon, Bel
Group, and Veolia were taken for the purpose of this study. The interviews with sponsors
were necessary to understand the conditions and terms sponsors are looking for when
investing in sports. The survey was also created to gather consumers’ perceptions and
attitudes towards sponsors. The answers determined whether consumers were likely to
patronize sponsors of sporting events. The instrument, based on a scaling rate and open-
ended question method was distributed to a representative sample.
Data collection protocol
The survey was created using an online platform called Quick Survey and was
distributed to a representative sample of sport fans via social media and emails database.
Respondents were required to answer with honesty the 17 questions of the survey. The survey
was divided in four different parts. The first part analyzed sport fandom and participation in
sports. The second section of the survey was composed of questions regarding consumers’
attitudes towards sponsors and sponsorships. The third part depicted consumers’ perceptions

towards sport sponsorships. The last part asked questions about demographics. Face to face
and email interviews with sponsors and sport managers were performed for the study. For the
podcasts, selected excerpts similar to questions in the interview were selected and provided
additional information. For convenience, executives of sport entities were asked to answer
nine questions while sponsors were asked 10 questions regarding sport sponsorship activation,
benefits, and values. Secondary data was used to complete the panel of sponsors’ answers. An
in-depth analysis was also performed to classify the answers. No incentives were offered for
completing the survey and a total of 140 respondents from various backgrounds completed
thoroughly the survey which ensured its validity and reliability.
Procedures
The data collected, on a five weeks period, from the interviews and the survey enabled
to develop a series of test to determine consumers’ perceptions and attitudes towards
sponsors, and issues and challenges regarding the activation of sponsorship. Descriptive
statistics were utilized to portray the results of the data collection. The measurements of scales
as well as frequency and tendency tables enabled to draw conclusions and determined the
different aspects consumers pay attention with sponsorship. Furthermore, tables and figures
enabled to establish relationships between the patronization of sponsors and the activation of
sponsorship. Interviews showed the different and common objectives sponsors are looking to
achieve with investments in sports, and explained the multiple challenges sport managers
have to cope with the activation of sponsorship. Interviews also showed the gap between
sponsors and sport managers’ perceptions on sponsorship activation as well as the necessity to
use intermediaries to develop a consistent and reliable relationship between both parties. The
comprehensive analysis of the representative sample enabled the creation of a handbook
which sponsors and sport managers could use for guidance in the sponsorship activation. The
manual included a credible analysis of different indicators of audience and exposure as well

as tests to evaluate the corporate image and memorization of sponsors. The limitations of
sport sponsorship were also examined. The handbook could be used for companies and sport
entities unfamiliar with sponsorships. It would help them in defining a sponsorship activation
process and guide them throughout the different steps in the implantation. Hence,
inconveniences and failures could be reduced and successes facilitated.

Delimitations and assumptions
Various delimitations need to be stated in this study. The survey was sent via email
and via other platforms to only researcher’s friends and network with different demographic.
Interviews of sport managers offer a panel of responses from executives in the Los Angeles
Area. Executives from different sports were chosen to provide diverse responses, and to
examine the similarities and differences between sport sponsorship managers in various
sports. In addition, only professional sport teams were chosen for the purpose of the study.
The interviews and podcast of sponsors were delimited to American and French corporations,
and offer insight on practices in four different economic sectors (bank, food industry, energy,
and environment). As a consequence, no latent analysis was conducted and only manifest data
was provided from the email interviews. Sponsors interviewed appear in different sports and
apply different types of sponsorship platforms. Thus, the study provides comprehensive
information about sponsorships.
Various assumptions were made during the conduct of the study. The researcher
assumed participants answered the questions of the survey with honesty and took an
appropriate amount of time to understand the questions. In addition, most interviews were
sent over emails and for the purpose of the study the researcher assumes sponsors and sport
managers also answered the questions with honesty and professionalism.

Results of Data Analysis
Quantitative and qualitative analyses were conducted for the purpose of this study.
The goal of the survey was to determine perceptions and attitudes towards sponsorships as
well as the degree of acceptance and patronization of the sponsors’ products. Results
demonstrated the acceptance of sport sponsorships and a positive impact on brand’s image
and recognition. The analysis of the data collected enabled to determine trends both sports
managers and corporate executives should follow when implementing sponsorship operations.
The purpose of the interviews was to determine important factors and conditions
sponsors and sport managers are seeking to achieve via sponsorship in order to establish a
successful and durable business relationship. Sport managers from different sport teams in the
Los Angeles area were interviewed, and offered a panel of different views and opinions
regarding their approach to sponsorship.
Profile of Sample Participants
The survey was conducted over a period of 5 weeks between December 2010 and
January 2011. A representative sample of 140 participants took the survey. All the
participants completed the survey. The electronic version of the survey was sent out via
different platforms including emails, social media, and sport forums. However, the number of
participants coming from these platforms was hard to evaluate since results cannot be traced.
The participants of the survey were closely selected among friends, family, and professional
networks. 62 % of the respondents were male, and 82% of the participants were between 18
and 40 years old including 48% between 26 and 40 years old. The majority of the participants
were professionals with financial stability. They constituted viable targets and potential
buyers. 31% earn a yearly estimated level of income between $20,000 and $40,000 , 25% of

the participants earned between $40,000 and $60,000 per year and 22% over 60,000$ per year
(see table 4).
Table 4: Profile of participants
Gender Participants Percentage
Male 87 62%
Female 53 38%
Age
18-25 50 36%
26-40 57 41%
41-50 15 10%
51-65 18 13%
65+ 0 0%
Ethnic Background
African American 5 4%
Asian 5 4%
Hispanic 13 9%
Pacific Islanders 1 1%
White 103 74%
Other 13 9%
Income Level
Less than $20 000 30 22%
$20 000 to $40 000 44 31%
$40 000 to $60 000 35 25%
$60 000 to $80 000 16 11%
$80 000+ 15 11%

Sport fandom
Sport fandom is an essential element of sponsorship’s attractiveness to consumers.
Sport fans are necessarily exposed more often to sports than non-sport fans that have no
interest for sports. As a result, they do not consume it. To determine sport fandom, an
evaluation of sport involvement was asked to the participants of the study with a scale ranging
from not a fan of sports to diehard fan. Overall, 82% of the respondents considered
themselves sport fans to a certain extent and 19% were diehard sport fans (see figure 1).
Figure 1: To what extent do you consider yourself a sport fan?
30%
19%
9% 9%
33%
0%
5%
10%
15%
20%
25%
30%
35%
Not a fan Rarely a fan Occasionally a fan Often a fan Diehard fan
Participation in sports is another way for sponsors to establish a closer approach with
potentials consumers. Sponsors can invest in sport facilities and be involved with the
community to develop positive attitudes. A frequency scale was used to determine the
participation in sports. The results showed a relatively high participation with 42% of
contestants regularly participating and following sports, and 35% who occasionally participate
in sports (see figure 2). The majority of participants of this study watched more sports than

practiced sports in general. 54% of the contestants frequently watched sports and 26% only
watched sports occasionally (see figure 3).
Figure 2: Participation in sports
15%
34%
4%
19%
29%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Never Rarely Sometimes Often Very often
Figure 3: How often do you watch sports?
Very often
21%
Never
4%
Rarely
16%
Sometimes
26%
Often
33%
Never
Rarely
Sometimes
Often
Very often

3%
60%
29%
6%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Live events Television Internet Newspaper/magazine Other
Among the different media available to follow sports, television was the most used,
reported by 60% of the respondents (figure 4). This high number was due to the proliferation
of sport channels on television and cable networks. This dominance is significant for sport
managers and sponsors. The use of television and the increased number of tools available for
sponsorships enable to target audience at a local, regional, national, and global level. Internet
gathered 29% of participants, and was the second most used platform to follow sports. It was
due to the high number of streaming channels that enabled sport fans to watch live sport
events via their computer anywhere with an Internet connection.
Figure 4: Most used media platforms to follow sports
As shown in figure 4, Television and Internet made up almost 90% of the platforms
used to follow sports, which proved the dominance of the two media in sport viewership. Print
media such as newspapers and magazines encountered difficulties used by only 6% of
respondents and 2% of respondents selected other media that could be radio. Apparently, the
importance of sponsorship in radio was minimal and consumers did not consider this medium

as essential to follow sports. Radio is a more convenient way to follow sports in motor
vehicles than a deliberate choice. Lastly, only 2% of respondents attended live sporting events
as a means of following sports. The economic recession could explain such a low percentage
of attendance of live sporting events as a preferred method.
Perception of sponsorship in sports
One of the purposes of this questionnaire was to identify and understand consumers’
behavior regarding sport sponsorships. Perception of sponsors is necessary to understand and
remember their presence. Consumers identify sponsors and create associations with logos,
brands, and products. These attitudes then determine the final decision leading to the
purchase. The survey demonstrated that 62% of respondents, to a certain extent, pay attention
to sponsors when they are exposed to sport entities. Although, the attention to sponsors’
message might be volatile, 23% of participants did often pay attention while only 7% never
considered sponsors in sporting events (see figure 5). In addition 32% of respondents rarely
paid attention to sponsors demonstrating the need of stronger images and presence with sport
entities to be recognized by consumers. This information is all the more important since
consumers’ consideration to sponsors is a critical element for corporate executives when
activating their sport sponsorship. Thus, consumers’ attention to sponsors even selective,
offers opportunities to get more exposure. Sponsors’ image and presence will be more easily
remembered which in turn will facilitate the association with sponsors.

6%
32%
4%
39%
19%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Never
Rarely
Sometimes
Often
Always
Figure 5: Attention to sport sponsors
Furthermore, 61% of sport fans paid attention and remember images related to
sponsors. Images were by far the most remembered element by sport fans while watching or
attending sporting events, while announcements, and music, are remembered by 13% and
11% of fans respectively (see table 5). These three elements make up the top three elements
remembered. In fact, images are one of the elements that sport consumers will recognize the
most. The visual aspect has the most significant impact on consumers’ perceptions. Sponsors’
visibility and presence with consumers enhance their image and develop positive attitudes. In
addition, television and the Internet were the two most popular ways of following sports.
Therefore, sponsors’ visibility and visual presence are critical during the activation of the
sponsorship action.

Table 5: Sponsors elements sport fans remember the most
Elements Participants (140)
Music 9%
Image 67%
Emotion 6%
Text 8%
Announcements 10%
Sponsorship enabled companies to transmit a message to a targeted audience and was
considered as a means of communication for companies (Shank, 1999). As a result, the
involvement of companies in sporting events, organizations, or athletes should develop their
image. Sponsorships, to a certain extent, also improve relationships with sport entities and
positively impact a sponsors’ image. In fact, 62% of the study’s participants agreed that
sponsors’ images were enhanced by sponsoring sports, while 27% of the respondents are
uncertain about the positive impact of sponsorship on sponsors’ image (see figure 6). In
addition, a mere 1% of respondents disagreed with the positive impact of sport sponsorship on
a brands’ image. This information is essential and very relevant for sponsors as it
demonstrates the importance of sport investment. Brands and companies benefit from sport
sponsorship in sports as they are able to position their brands and images among the public.
Sponsors also use this communication tool to diversify themselves from the competition.

27%
1%
9%
42%
20%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Strongly disagree Moderately disagree Uncertain Slightly agree Strongly agree
Figure 6: Sponsorship enhances brand and companies' image
27% of uncertain respondents were consumers who encounter difficulty associating
brands with sporting events. This portion of the population surveyed is also critical for sport
managers because these people are the ones sponsors need to convince. The agreement that
sponsors’ images are enhanced by sport sponsorship can develop positive attitudes and
perceptions towards sponsors’ brands and products. As exemplified in table 6, the AIDA
model was developed to represent the stages consumers successively pass through during the
selling process (Belch, 2007). The stages are attention, interest, desire, and action. According
to Belch, strong levels of interest should create desire to own or use the product. The
uncertain respondents are located in the cognitive stage. Therefore, an emphasis on doubtful
sport viewers is necessary to increase the benefits for sponsors because positive attitudes can
result in positive behavior towards brands.

Table 6: Model of response process in AIDA model
Stages AIDA model
Cognitive stage Attention
Affective stage Interest
Desire
Behavioral stage Action
59% of the participants associated sporting events, sport organizations, and athletes
with sponsors in general. It demonstrated a correlation between sport entities and sponsors.
Therefore, some brands and companies closely partnered with sport entities whose fans
remember the brand’s presence. This way, it becomes easier for sponsors to target their
audience and to identify potential consumers. Nevertheless, only 1% of respondents always
associated sponsors with sport entities while 28% rarely noticed the association, and 12% of
respondents never did (see figure 7). In fact, the proliferation of sponsors in different sports
could confuse consumers’ perceptions and interpretations. It becomes even harder for
consumers to remember since in some cases, the same sponsors invest in different sports,
leagues, events, and athletes. The increase number of sponsors using similar platforms to
communicate with their audience could result in negative perceptions and sponsorship rebuttal
from consumers. Consequently, the association between sponsors and the sponsored was
interfered with, weakening the effectiveness of sport sponsorship.

12%
28%
41%
17%
1%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Never
Rarely
Sometimes
Often
Always
Figure 7: Frequency of association between sponsors and sport entities
Attitudes towards sponsorship in sports
The analysis of consumers’ attitudes towards sport sponsorships depicted behaviors
and provided useful information for sponsors. 63% of respondents accepted the presence of
sponsors in sports. Companies are a vital source of revenues for sport entities, what is more
the sports industry could not be such a large economic sector without the investments of
companies. In addition, 25% of respondents strongly accepted the presence of sponsors in
sports while only 4% strongly reject their presence (see figure 8). Companies have widely
invested in the sports industry over the last two decades. The sports business represents more
than a $200 billion industry. As a result, the presence of sponsors associated with sport
entities has been standardized and common. For this reason, sponsorships’ perception in the
sports industry is mostly accepted by consumers.

25%
4%
12%
21%
38%
Strongly reject
Moderately reject
Uncertain
Slightly accept
Strongly accept
Figure 8: Acceptance of sponsors in sports
Sport sponsorship also results as an element of communication confusion for 21% of
respondents who declared being undecided regarding the acceptance of sponsors in sports. In
fact, consumers could question the validity of sponsors’ actions and the benefits resulting
from sports investment. Most of the investments are targeting sales, brand’s reputation and
image objectives; whereas only few sponsors invest in sports to establish an intimate and
more personal relationship with customers and their community. However, the undecided
respondents remain potential buyers and users of sponsors’ products who need to be
convinced by the positive presence of sponsors in sports.
The presence of sponsors did not stimulate the curiosity of sport fans to look for
information about the sponsors and its products. 35% of the respondents occasionally
obtained information about sponsors they identified in sports and 10% often do. 40% of the
surveyed rarely obtain information and 22% never do (see figure 9). The answers to this
question demonstrated the difficulty for companies to associate their attributes to sport

1%
9%
35%
18%
38%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Never Rarely Sometimes Often Always
entities. However, the more significant the association between sponsors and sport entities
was, the easier it is for consumers to remember.
Figure 9: How often do you get information about a company and its products from
sponsorship?
Sport consumers did not give significant importance to sponsors. The interest of
participants was determined with a scale ranging from not interested to very interested
Only 22% of participants are interested in sponsors and their brands, and 42% of
respondents are unconcerned (see figure 10). One of the main objectives of sponsorship is to
develop consumers’ interest and appeal for sponsors. The disinterest of consumers
demonstrated the difficulties in sponsorship activations. In addition, it also proved that
although consumers mostly accepted sponsors in sports, there are trends in consumers’
attitudes towards ignorance and indifference regarding sponsors. Consumers come to live
events, listen and watch sports because they are sport fans, and they can relate to sport
entities. Consumers share feelings and emotions promoted by the sports with a community.
However, they do not have a specific interest for sponsors but nonetheless they see their

presence. Visibility is an essential element of sponsorship activations for both sponsors and
sport managers. It ensures and enhances the association between both parties.
Figure 10: What is your degree of interest for a sponsor because of sponsorship in sports?
12%
22%
42%
22%
2%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Very disinterested
Somewhat disinterested
Neutral
Somewhat interested
Very interested
Investment of companies in sports has been common and is an element of the
marketing mix. Sponsorships enable to differ from competition and thus develop new markets
and potential audiences. Sport fans did not necessarily think sponsors invest too much in
sports. 33% of the contestants affirm companies did not allocate sufficient funds for
sponsorship, and 36% of the participants remained undecided regarding this matter (see figure
11). 34% of respondents rejected the investments of companies in sports. They believed
sponsorships could impede allocations of further funds by being used for advertising. The
respondents of the survey also questioned the validity of sponsors associated with sports and
the changes resulted from their presence in terms of rules, broadcasting, and time pressure
during sporting events.

Figure 11: Do companies invest too much in sports sponsorship?
7%
26%
33%
23%
11%
0% 5% 10% 15% 20% 25% 30% 35%
Strongly disagree
Moderately disagree
Uncertain
Slightly agree
Strongly agree
The amount of money invested in sports is colossal and companies such as Visa,
Gatorade, and Coors invested more than $100 million each in the National Football League
(Tribou, 2007). Sponsorship is a necessary source of revenue for sport entities. Most sporting
events could not take place without the financial support of companies. Companies not only
provide funds but also a savoir-faire and equipment. As a result, sport fans are not irritated by
the multiplication of sponsors which is a necessary source of income for sport entities.
Qualitative Analysis
The analysis of the survey answers offered critical elements regarding the perception
and attitudes of consumers towards sport sponsorship. The information obtained enabled for
the development of various conclusions that companies and sport managers can focus on
during the activation of sponsorship. In addition, interviews and secondary data analysis were
carried out for the purpose of the study. Selected sport team managers and sponsorship

executives were auditioned to provide insight on their perceptions and actions. Significant
similarities were identified between both sport managers and sponsors.
Sport Managers
Nine questions were asked to five sport managers for the purpose of the study. Sport
managers agree on the major importance of sponsorship for their sport entity. It constitutes a
vital revenue stream and occupies a large activity of the teams’ business. Furthermore the
investment of large and renowned companies enables the development of the team’s brand
and image. As mentioned by the executive from the Los Angeles Kings, “Sponsorship also
allows us to get the Kings out in the marketplace with joint marketing promotions we do with
sponsors”. The implementation of sponsors’ promotions and discount enhanced the
effectiveness of sponsorship and quality of the fan experience with the teams. Sponsors have
to be accurately selected in accordance with team’s values and interests.
Sport managers emphasized on the necessity to avoid the addition of sponsors from the
same economic sector and approaching partners’ competitors. It creates a negative and clutter
effect for consumers’ perceptions and also distorts the relationship between sponsors and
teams. The presence of two sponsors from the same economic sector weakens the credibility
of the sponsors’ image and sponsorship campaign. It also drives fans away from the teams
and potentially sports. They think sport entities are only motivated by generating revenues
rather than establishing a closer relationship with their sponsors and developing common
community outreach and charity programs. Thus, sport teams strive to offer exclusive
categories for their sponsors and minimize the number of small sponsorships to offer the most
marketing and promotional assets, and image for sponsors. They also focus on sponsors that
target the same audience similar to sport teams, which facilitates the associations between
sponsors’ products and sport fans. The length of sponsorship agreements is also critical for
sponsors and long-term partnerships are preferred to develop closer and personal associations,

and promotions. Sponsors’ interests vary according to their business, size and their purposes
when investing in sports. The sponsorship executive from the Los Angles Galaxy clearly
summarized this diversity: “Some partners focus heavily on media and hospitality for their
clients and employees while other partners concentrate on grassroots marketing and in-
stadium offers”. Thus, sponsors focus on different marketing options when developing their
sponsorship package but an appropriate communication is needed to meet both parties’
expectations. It is also important to “reach their ROI criteria” as suggested by the sponsorship
executive within CD Chivas USA
Brand image and exposure are vital points for companies investing in sports. The
primary goal of sponsors is to be seen by a maximum number of eyes and be placed in a high
exposed location. Sponsors looked to “align themselves with a credible team that gets positive
exposure” (sponsorship executive, Los Angeles Clippers). Thus, the role of sport managers is
to enhance sponsors’ image via the team’s platforms and develop positive attitudes towards it.
The sponsorship executive of the Los Angeles Kings also mentioned the importance of the
off-field presence within the community as a positive factor for consumers’ perceptions:
“sponsors also like to see teams that support the community off the ice as well”.
Sport managers were asked to evaluate the importance of team’s performance regarding
sponsorship investments. Responses to this questions showed that the performance of the
teams is correlated to sponsorship investments. Thus, winning years and playoff appearances
encourage the establishment of long-term associations between both parties and allow the
development of broader partnership agreements. However, as highlighted by the sponsorship
executive at the Los Angeles Angels of Anaheim, “The goal is to build a strong mutually
beneficial relationship so that you don’t have to worry too much about the team’s
performance”. Sport team managers strive to develop a positive and high-quality

environment for both their fans and sponsors which they can control to minimize the potential
negative effect of losing over which they have no control.
Sport managers were generally flexible about the possibility to offer customized
sponsorship packages for their sponsors. As mentioned by the Los Angeles Clippers, “pricing
is based on the market place” and discounts are given “for the more inventory that is
included”. Long-term deals also encourage the creation of discounted packages for sponsors
and loyal partners are more likely to receive preferred sponsorship packages. Furthermore,
sport managers established rate-cards to determine the price of each sponsorship categories.
The percentage of sponsorship renewal is significantly high for the panel of sport
managers interviewed including winning and losing teams. Sponsors evaluated the renewal to
be approximately 85%. Thus, team’s performance is not an essential element for sponsorship
investments but a factor of development for further opportunities. Sponsors’ structural and
strategic changes may also affect sponsorship renewal and is independent from sport
managers’ control.
The measurement of sport sponsorship is critical for sport managers and sponsors.
Numbers and figures justify the validity of the investments and the necessity to renew it
according to the sponsorship results. The Los Angeles Kings used a research tool called
Scarborough Research in order to “see the year over year percentage of fans that use the
sponsors’ products”. The measurement of sponsorship also depends on the type of sponsors’
investment into the teams. In general, sport managers strive to offer the best results generated
from sponsors’ investments in order to encourage long-term partnerships. However,
surprisingly, sport managers did not clearly evaluate the benefits for their sport entity, even
though it is one of the most critical aspects and will determine the continuation of
partnerships.

The recommendations of sport managers focused on a constant communication with
sponsors and the development of a successful partnership. Sponsorship represents a major part
of team’s revenues. It is critical to provide new marketing and advertising ideas for sponsors
to enhance partnerships. Sport managers must always have in mind companies’ goals and
objectives in order to develop appropriate strategies. As mentioned by the L.A. Clippers, “be
open to constructive criticism and be progressive”, sport managers may have to face some
difficulties during sponsorship terms. Companies’ structural changes and budget cuts also
have an impact on sponsorships. Sponsors are highly present among sport teams. Thus, the
volume of sponsorships requires quantity and quality of staff to be able to meet the needs of
sport fans. It is critical to evaluate the necessary resources to best activate sponsorship
agreements.
The interviews of sport managers demonstrated major trends followed by the majority
of the surveyed sport organizations as well. Flexibility, long-term association and sponsors’
expectations are significant and essential points sport managers focus on when activating
sponsorships. The evaluation of sponsors’ perceptions enabled the drawing of significant
conclusions and similarities with sport entities.
Sponsors
Ten questions were asked to two corporate sponsorship executives. Responses to these
questions and secondary data from a radio sport business show were used for the purpose of
the study. A total of five sources were used to draw conclusions on sponsors’ approaches to
sponsorships. Sponsors were first asked to identify the reasons behind the decisions of
investing in sports. The respondents stated that they sponsor sports to be in alignment with
their target market. Sponsors identify potential sport entities that share the same target
audience, and promote similar values and attributes. Thus, sponsors such as LiveWire Energy
tried to “reach the active lifestyle market segment” and invested in athletes to create loyal

customers who will become “advocates for our brand”. Companies also provide essential
financial support for the implementation of sporting events and they become of course sport
sponsors. Sponsors look for sport entities that will not only meet their financial objectives but
also transfer corporate image and values. Sport entities with similar core values facilitate this
association and therefore sponsorships are facilitated.
Sponsors invest in different sports to target a broader audience and to leverage their
brands. In addition, sponsors invest at different levels within the same sport. The bank BNP
Paribas illustrated this example in tennis. In fact, the bank sponsors professional tennis
tournaments such as the French Open and BNP Paribas Open; but also amateur leagues, youth
tournaments, and charity events. Thus, BNP has a dominant position from competitors and is
considered as a major sponsor in tennis. A close association with a sport sponsored enabled
the development of positive perceptions and attitudes which can influence fans and players in
their purchasing behaviors.
Companies sponsor different sport entities including leagues, teams, athletes, and
events. “This results in affordability and a grass roots growth for our brand and products”
(LiveWire). It intensified the media coverage and the presence of the brands with the sport.
Again, sponsors’ visibility is central in sponsorships and will justify a financial support.
Sponsors invested on athletes who represent the same values and image as the sponsors.
Athletes are great ways to promote shared opinions and common beliefs. They are popular
icons and endorse the brand to transmit the message to the targeted audience. As mentioned
by Dannon whose endorser is a famous retired soccer player, Zinedine Zidane. “Zidane is the
prefect ambassador for our brand and is significantly involved with youth who is our
principal target audience”. In addition, the English bank Barcalys invested in the English
Premier League whose image was tarnished by hooliganism during matches. This new
strategy enabled to develop positive attitudes and revamped the league which is now

considered as the most competitive soccer championship in the world. These examples
demonstrated the influence of sponsors and the support of athletes to draw positive outcomes
for both parties.
Sponsorships require the intervention of all platforms available for companies. It
includes all components of marketing, sales, public relations, and community involvement.
Platforms promote sponsorships and develop brand recognition and image in consumers’
purchasing behaviors. Companies can use intermediaries to activate their sponsorship. Sport
marketing and consulting agencies enables the implementation of sponsors’ strategies and
allow sponsors to meet their objectives. Many companies have their own sponsorship
departments and develop internal strategies to put investments into action. “We better control
our actions to establish partnerships” (BNP Paribas).
Companies benefited highly from sponsorships. “It develops a direct connection with
our target customer and helps us to build our brand position” (LiveWire). Sponsors
employed advertising to support sponsorships and also to maintain media and public relations.
It enabled to leverage the brand and creates positive images and representations. Sponsorships
created brand ambassadors who developed consumers’ interest and attractiveness, which
directly impacted on product sales. The study also showed that sponsors consider internal
communications essential to support sponsorships. The unification of employees and the pride
to see companies’ names associated with successful sport entities created positive attitudes
and behaviors for brands.
Measurement of sponsorships is critical to determine the effectiveness of investments.
An audit analysis of sales, image, brand recognition, reputation, and companies’ activity must
be carried out internally and/or externally. Sport marketing and consulting agencies provide
information regarding visibility and reputation index, and support the financial action through
its terms.

Sponsorships remain risky investments with independent factors. Sport entities’
performances, image, and behaviors influence consumers’ perceptions and attitudes, and can
create negative outcomes for sponsors. However, sport sponsorship is a useful tool of
communication and provides several advantages in terms of image and brand’s equity. The
qualitative analysis enabled the depiction of a few sport managers’ and sponsors’ perceptions
and attitudes towards sponsorship. It also offered an analysis of the critical points of the
sponsorship contract and the role of intermediaries between sport managers and companies.
The information collected via interviews and the survey allowed the creation of an artifact
which gathers the essential elements sport managers and companies must know follow to
implement sponsorship as well as information about consumers’ perception and attitudes. In
addition, it presents the tools available to evaluate the sports investment and limitations of
sport sponsorships. Thus, the artifact proves to be a useful tool and guide for both sport
managers and companies. It combines the elements both parties must follow and implement
with sponsorships, and the behavioral characteristics of the targeted audience. A good
understanding of sport fans is essential to ensure positive and beneficial sponsorship
activations.

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Introduction
Sponsorship is a useful tool of communication for companies and a vital source of
revenue for sport entities. Sponsorship in sports develops brand image and recognition,
enhances fan experience with sport entities, and creates community and charity programs. The
activation of sponsorship agreements may be complicated and requires the intervention of all
the companies’ resources to ensure successful partnerships. Furthermore, many internal and
externals factors have to be taken into account when activating these investments. Thus,
sponsorships are in line with companies’ strategies and should meet specific financial and
other corporate needs.
This handbook provides critical elements sponsors and sport entities must be familiar
with when establishing sponsorship contracts. It also explains the different business
opportunities with sponsorships and the differences between the platforms to sponsor. It seeks
to help with the establishment and activation of sponsorship contracts. Lastly, it provides tools
to leverage, optimize, and measure the investments in sports as well as a presentation of the
limitations and risks of this specific communication strategy.

1) What sponsors must know
a. Cost
Sponsorship has a price and it can be relatively high considering the sports or athletes
sponsored. A careful analysis of sponsors’ resources has to be carried out as well as an
evaluation of advertising and marketing budgets before hand. Thus, the evaluation minimizes
budget cuts generated by sponsorship and allows for the intervention of all companies’
resources. Sponsors must also add additional expenses to their investment. The investments in
sponsorship constitute the beginning of promotional and marketing campaigns. In general, for
$1 spent on sponsorships $2 to $3 must be allocated to leverage the brand and its image. The
substantial investments in sponsorships incite sponsors to create their own sporting events
rather than sponsoring an existing event. It gives better control over the organization of
sporting events and can reduce costs relative to high profile teams or athletes.
b. Time constraint
Sponsorship contract terms must follow companies’ objectives and strategies.
Sponsorships must coincide with the launch of new products, positioning and promotional
strategies, and corporate changes. The determination of sponsorships length is also critical for
companies. Sponsorship terms last in average 2 to 3 years but are rarely short-term. Thus,
sponsors need a visionary attitude to be able to cope with internal and external changes.
Short-term investments do not allow the leverage of the sponsorship action and reduce the
positive outcomes of an association with sport entities. The acceptance of sponsorships in
consumers’ mind is usually longer than its activation.
The first six months of the agreements allows the implementation of the different
sponsorship terms and conditions. Sponsors need to know sport entities, make minor
modifications, and position themselves with the sponsored.

The second stage of sponsorships enables the determination of potential positive
outcomes of the action and lasts a year or so.
The third and final stage develops the Return on Investments (R.O.I.) for companies.
Consumers recognize the association and accept the presence of the brand and its name
associated with sport entities. Consequently, positive perceptions and attitudes will be
generated, and media and public relations will follow by promoting sponsorships. Long-term
agreements allow companies to be present in consumers’ minds even after the end of the
investment because the action was long enough to be remembered and accepted.
c. Competition
Competition is an important factor for sponsors, and the multiplication of sponsorships
in sports requires a careful analysis and an appropriate communication strategy. Competition
in sponsorships is different from traditional competition related to companies’ activities.
Products, reputation, and resources differ but all compete at the same level as sponsors of
sport entities. Competition and sport entities’ success will increase the entry price for
sponsorships. Collaboration between sponsors is a most suitable term to define the
environment of sponsorships. Sponsors prefer to be associated with brands which belong to
the same product lines. Thus, top-of-the-range brands would like to be associated with other
sponsors in the same segment rather than with inferior brands.
d. Sport fans’ profile
Demographic of sport fans is critical for sponsors because they constitute their target
audience for sponsorships. Consequently, an analysis before hand is required to understand
the cultural and behavioral aspects of the target market. Sponsors need to know consumers’
lifestyle to better segment their communication with sponsorships and to invest on sport
entities that interest and attract fans. For example, adolescents comprise a significant
population for sports and sponsors. Sports are leisure where emotions, values, and efforts are

shared. It is consumed by a large part of the population. Consumers greatly participate in
sports (see figure 1). In addition, sports are related to entertainment and leisure. Sport entities
attract people’s interests (see figure 2). Sport fans can watch a variety of sports, all year long;
hence multiplying the number of resources and platforms available for sponsors to reach
potential customers.
Figure 1: Participation in sports
15%
34%
4%
19%
29%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Never Rarely Sometimes Often Very often

Figure 2: How often do you watch sports?
Very often
21%
Never
4%
Rarely
16%
Sometimes
26%
Often
33%
Never
Rarely
Sometimes
Often
Very often
The study of consumers’ purchasing behaviors would enable to draw conclusions and
better communicate. It is also critical to study demographic trends and developments to
transmit an appropriate message to sport fans. Demographic census also provides relevant and
useful information on a local, regional and national level for sponsors. DemographicsNow,
FactFinder, the US Census Bureau, Nielsen Company, Sport Marketing Surveys, and
Scarborough research among others are useful databases which supply necessary information
for sponsors about demographics, purchasing behaviors, and lifestyles.
e. The target audience
Sponsors target a specific audience with sponsorships called effective audience of an
event. It is the portion of sporting event’s audience that companies target. Here below is an
illustration of the effective audience for sponsors (see table 1).

Table 1: Sponsors’ effective audience
In this model, another communication action will be needed to reach the intended
audience not reached. The effective audience is determined by the information from the
analysis of demographics and allows sponsors to define their action in sports. It is essential
for sponsors to know the average audience of each media for different sporting events to
determine which platform sponsors will use to communicate between TV, Internet, signage,
newspapers, and radio among others. It will also enable sponsors to reach audience that are
not sport fans but have interest in sponsors’ products or services.
f. Applications
Companies must ask a series of questions when activating their sponsorship: How to
influence purchasing behaviors? How to create positive brand perceptions? What is the size of
targeted sport entities? What is brand’s reputation and image? What is the expected return on
investments? Which platform is the best to communicate its action? Corporate sponsorship
managers also have the possibility to create brainstorming sections with the staff to define
what type of sport entities (event, league, team, and athlete) sponsors would like to invest in.
The different applications enable to find common points between sponsors and sponsored, and
facilitate the development of sponsorships. Furthermore, sponsors’ image is fundamental for
consumers’ perceptions, and television remains the preferred means of communication to
Sponsor’s
communication target
Useless audienceEffective audienceIntented audience
not reached
Audience of sporting events

watch sports (see figure 3). The visual appeal is essential to captivate consumers, including
sport fans.
Figure 3: Most used media platforms to follow sports
3%
60%
29%
6%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Live events Television Internet Newspaper/magazine Other

2) What sport managers must know
a. Determination of sponsors
Similar to sponsors, sport managers must determine and define the type of sponsors
they want to associate their sport entities with. However, the attractiveness of sports
stimulates sponsors to allocate substantial funds to sports in order to have exclusive rights
with sponsors for national and global events. This element clearly influences sport managers’
decisions. Sport managers have to be able to determine target audience’s characteristics and
the demographics of their sport entities. It facilitates the research for sponsors sharing the
same target market. In addition, the representation of the sport entity is a critical element in
sponsorships and sport fans greatly remember logos and images associated with sponsors (see
graph 4). Sport managers would need to develop communication with sponsors focused on
image representations and illustrations
Figure 4: What sponsors’ elements consumers remember the most?
Announcement
10%
Music
9%
Text
8%
Emotion
6%
Image
67%
Music
Image
Emotion
Text
Announcement

b. Find information
Specialized Internet platforms such as Hoovers, Kompass, and D&B enable sport
managers to obtain critical information on businesses and help sport managers in their
decisions. These sites provide companies reports and extensive databases.
c. Sponsor’s coverage
Sport managers must determine the coverage of their sport entities and chose sponsors
in accordance with their geographic dimension. The determination of the geographic coverage
enables to find sponsors which share the same dimension and are present in the same market
either at local, regional, national, or global levels.
d. Sport entities’ image
Sport managers want to be associated with companies which promote their entity,
share the same values, and give a positive image. The image of sport entities can be tarnished
or leveraged by sponsors. In addition, sport entities can use sponsors to improve their image
in case of negative perceptions. Sponsors enjoy positive representations and perceptions
resulting from their involvement with community or charity programs. Thus, Thus,
transferring these positive elements to sport consumers, which benefit sport entities (see
figure 5). There are reciprocal goals between sponsors and sport managers in terms of image.

Figure 5: Sponsorship enhances brand and companies' image
27%
1%
9%
42%
20%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Strongly disagree Moderately disagree Uncertain Slightly agree Strongly agree
e. Changes due to sponsorships
Sport entities need to modify some aspects of their activity to meet with sponsors’ needs
and make it more attractive to consumers. Television broadcasting enables sponsors to target
a mixed audience of different classes and ages, and modify sport entities by giving more
promotional time to sponsors. Sporting events are also scheduled at different times during the
day to reach the largest audience possible. In addition, competition with other sports or events
requires sport entities to modify trainings and game schedules. Sponsors might provide
equipment which they require sport entities to use and wear. They also organize meetings and
conferences with sport organizations. Thus, sport managers have to take into account
sponsors’ requirements and always focus on communication with sponsors to make sure their
goals and objectives are carefully maintained.

3) Sponsorship activation process
a. Sponsorship contract
Sponsorship contracts are composed of seven parts which cover the entire contract.
1) Purpose
 Present both parties engaged in the sponsorship
agreement. It defines sponsors and sport entities.
 Includes a detailed description of the contract elements
(event, location, dates, services, etc)
2) Terms and conditions  The length of partnership and the right of first refusal
have to be stipulated in this part.
3) Commitments
Sponsors must follow a series of commitments
 Financials commitments (down payment, due date)
 Services and equipment provided related to sponsorships
(transport, catering, I.T., services, etc.)
 Bonuses, allowances, and penalties must be established.
Sport entities must also follow a series of commitments
 Exclusivity clause for sponsors in specific economic
sector
 Ensure sponsors communication, visibility, and presence
 Promote sponsors (autograph, training sections, press
conferences, public relations, etc.)
 Utilization of materials and equipment
 Participation in scheduled events
Image rights are critical in sponsorships and must abide

4) Image rights
to different rules.
 Mention in the contracts the differences between
representation of a sponsored players, and representation
of entire teams
 Conditions of image rights: during sporting events,
training, media, public relations, and licensed products
 Ensure sponsors’ visibility and description of the use of
sponsor’ logo and image
 Visibility includes size, location of logos, signage and
duration of presence.
 Terms of image rights: media promotion, hospitality and
community programs, sponsors’ title
 Licensing rights: Redistribution commissions relative to
sales of licensed products.
5) Product portfolio
 An array of products is also concerned with sponsorship
activities and includes TV shows, movies, DVD’s,
internet websites, and video games among others where
sponsors’ names and/or logos are mentioned.
6) Breach and contract
termination
 Breach of contract terms must be stipulated for both
parties
 Compensation fees must be mentioned.
7 Terms renegotiation  Based on results: objectives, quality of representation,
sales, public relation, and time among others

In addition few other critical points are mentioned below when activating sponsorships.
 State the purpose of sponsorships and determine strategies to reach objectives
 Description of sport entities’ mission statement and history providing a better
knowledge and understanding before the activation of sponsorships.
 Dates, locations, exposure, visibility, and expected attendance which enable
companies to construct their action and develop specialized sponsorship offers.
 The structure of companies’ distribution channels and logistics
 Expected revenues generated from sponsorships, but also in terms of brand’s
equity
 The appropriate strategy to ensure the best communication with the target market
 Delimitate promotional and advertising opportunities for sponsors and also for
consumers
 Protection from ambush marketing. It consists in developing advertising and
promotional campaigns for sporting events without title or official sponsor rights
and without sponsorship fees.
b. Differences in sponsorships activation
Sponsorships in the sports industry offer numerous opportunities and options for
companies. It includes sporting events, leagues, teams, and athletes. In addition, it follows a
defined strategic plan.
Sporting event sponsors
Sponsorships in sporting events allow visibility and presence from the beginning to the
end of the events. Thus, competition to be associated with sporting events is fierce. The
variety of events at different geographic levels attracts many sport fans who share different
demographics and purchasing behaviors. The interests of sport fans also attract media to
ensure the broadcasting and coverage of events. In addition to on-site visibility, it offers

sponsors a broad range of platforms to expand their sponsorship, including television,
internet, newspaper/magazine, and radio.
As a consequence, the audience of sporting events is not only duplicated, but also
different target market can be approached. Sport fans who attend events, and sport TV or
Internet viewers have different perceptions and attitudes toward sponsorships which are keys
for sponsors’ actions. Companies may only choose to sponsor at sporting events and not use
media or vice-versa, both to target specific market segments and develop promotional
strategies.
Companies can also create their own sporting events. The creation of sporting events
requires the intervention of all the company’s resources, offers total control of the
organization, and choice of the participants. Corporate events enable the establishment of a
closer relationship with consumers who are both viewers and participants, and unite
employees towards common goals and objectives.
League and team sponsors
Similar to sporting events, league sponsors enjoy visibility from the beginning to the
end of leagues and championships. Leagues enable sponsors to have a longer presence than
during sport events. Leagues are spread out through an entire season, whereas sporting events
are covered on a short period. There are fewer leagues than events available in sports for
sponsors, and competition is high.
Teams offer sponsors the possibility to be associated with image, values and team
success. It ensures visibility every time the team sponsored is presented, and participates in
community and charity events. As a result, sponsors can transmit their message to many
different consumers in different locations when teams travel. The increase in number of eyes
watching allows for different communication strategies since consumers’ lifestyle and
purchasing behaviors differ from place to place. The high number of games in major sport

leagues offers multiple possibilities on regional, national, and even international levels, with
team tours in different continents. The expansion of team tours throughout the world offer
global opportunities for sponsors to target consumers with different cultures who do not
necessarily know the sponsoring brands and its products. It can have an impact on
exportations and market penetration.
On a local level, sponsors can establish close relationships with sport fans and profit
from local media coverage. Some limitations are related to sponsoring teams and the
performance of teams. Has a great influence. Sponsors may suffer from uncompetitive teams
or if teams are eliminated in the early stage of tournaments. However, sponsors and sport
managers must focus on sport fans’ experience and on-site sponsorship activations to provide
the best services and to develop positive attitudes.
Athlete sponsors
Sponsorship investments in athletes are called endorsements and can be combined
with team sponsor agreements. Endorsements offer opportunities for companies to associate
their brand and logo to athletes who develop different values. Thus, it enables the promotion
of a more specific association with a target audience than teams which are group of athletes
with different values and beliefs. Athletes are considered icons and are very famous among
the population including sport and non-sport fans. Their aura surpasses the boundaries of
sports and creates significant competitive advantages. Companies, whose activities greatly
differ from sports, have opportunities to install a legitimate presence in sports by investing in
athletes.
Endorsement of athletes is defined by two target market segmentations according to
consumers’ profiles.
 Geographic segmentation: Sponsors will select athletes familiar to targeted regions
in order to facilitate the transfer of messages to local sport fans.

 Segment market under first segmentation: Athletes promote values and image that
are aimed at different categories of the population. They represent symbols for sport
fans and are identified by non-sport fans.
Sport athletes transfer different perceptions and attitudes to consumers. They are famous
icons who enable sponsors to target several social and demographic classes. They are a
brand’s spokesperson who transfers positive attributes to consumers. Popular athletes are
involved in community and charity events which offer sponsors other opportunities to benefit
from endorsed players’ image.
The role of athletes goes beyond their sport performances. There is a harsh price
competition between sponsors to get the most famous athletes because they are significant
assets for companies. The endorsement of several athletes reduces the risks related to image
and athlete’s performance, and allows balancing potential negative perceptions. Companies
with smaller budgets can also concentrate on promising talents whose image is less expensive.

4) Enhance sport sponsorships
The enhancement and leverage of sport sponsorships will develop brand’s equity and
acceptance by sport fans. There are essential points that sponsors must follow.
Communication of sponsorships, before it occurs, is necessary to inform employees,
distributors, and clients, as well as to attract the interest of media. Media will spread out the
information and create a buzz.
a. Media relations
Media are extremely important for sponsors’ communication and have a significant
impact on image. Good relationships with journalists are required to leverage sponsorship
actions.
b. Public relations
Public relations are also important for sponsors and concern hospitality events. These
activities will enable sponsors to develop positive perceptions and enhance their image. It
includes three different categories:
 The facilities (suite and show invitations, on-arena reserved seats, partner stands,
conferences)
 The staff ( in-house communication and incentives, hostesses for partners)
 Additional operations (newsletters, autograph sections, prizes, events with
sponsored)
c. Promotional activities
Promotional activities offer sponsors additional opportunities to leverage their
sponsorship. Promotion can take place during the events and in the facilities using a push
strategy to attract consumers’ attention and interest. It includes radio announcements, sample
and giveaways distributions, banners, and coupons among others.

Sponsors can also continue promotional activities after sporting events took place,
which reminds consumers of sponsorships. In general, consumers accept the presence of
sponsors and understand the necessity for sport entities of their presence (see graph 3).
Packaging, advertising operations, entertainment, and interactive games may serve to
maintain the association between sponsors and sport entities in consumers’ minds.
Figure 3: Acceptance of sponsors in sports
Strongly accept
25%
Strongly reject
4%
Moderately reject
11%
Uncertain
21%
Slightly accept
39%
Strongly reject
Moderately reject
Uncertain
Slightly accept
Strongly accept
d. In-house communication
In-house communication is extremely important for sponsors but often neglected. It
enables the gathering and motivation of staff towards common goals. In addition, it develops
pride and a positive image for sponsors. Communication about sponsorship activities starts
before the activation to unite and inform employees. During the sponsorship terms, in-house
communication develops corporate culture and stimulates employees. Lastly, after the end
sponsorship terms, various operations are possible to maintain the association. For example,
the creation of events with sponsored sport entities, corporate newsletter, and athlete
invitations of at the companies’ site.

5) Measure sport sponsorships
The measurement of sponsorship’s effectiveness is imperative for sponsors in sports. Only
30% of companies measure their investments in sports and analyze the impact on overall
performance including sales, image, media relations, and awareness among others.
a. Sales and business indicators
Sales and business indicators allow sponsors to measure the return of their
investments. Description of the target market, economic structure and climate, and
competition are various factors which have to be taken in to account because they will have
an impact on the results. Hence, the increase of sales and the action in sponsorship is
correlated. However, budgets for sponsorships is not only limited to the activation, it includes
additional expenses. It encompasses public and media relations, leverage of sponsorship via
by-products, videos, and corporate events among others.
b. Exposure indicator
Exposure is divided into three different levels (see table 5). The first level of exposure
is concerned with the participants of the sporting events. Participants can make up a broad
target for sponsors in the case of marathons, triathlons, and other similar events.
The second level includes spectators of the sporting events. Their presence at events
location demonstrates their interest and enthusiasm for sporting competitions.
The third and last level includes viewers of sporting events via all media platforms.
Each element must be thoroughly studied to enhance companies’ investments.

Table 5: Exposure in sporting events
First level Participants of sporting events (marathon, triathlon, cycling)
Second level Live spectators (in stadiums, arenas, outside events)
Third level Media spectators (live broadcast, highlights on TV shows,
Internet, press and newspapers)
c. Audience indicators
Audience can be measured using total sales of tickets and frequency analyses.
Sponsors can also use observation analyses and examined various demographic characteristics
of sport fans at events.
Tracking:
Tracking measures the presence of sponsors on media and communication platforms
as a whole by counting the number of times sponsors were mentioned and visible. For
newspapers and magazines, the impressions data (tracking) are calculated by the product of
the number of times sponsors are visible with the number of readers and circulation rate. For
television and Internet, the sport eye tracking method is used to determine the number of
viewers, the popularity of TV channels and announcers, and the time of broadcasting. These
elements provide tools to measure sponsors’ performance.
GRP Sport:
GRP Sport (gross rating point) measures the size of an audience reached by specific
media. It is the product of the percentage of the target audience reached by sponsorships,
times the frequency it has been seen in a given action. Also, it can be calculated by dividing
gross impressions by the target population and multiplying the result by 100.

Media promotion:
This method enables companies to compare cost of sponsorships with the use of
traditional advertising. It includes prices for TV, internet, radio, billboards, and print ads.
Hence, sponsors can measure the profitability or additional costs. Sponsors have widely used
sponsorships to develop new promotional strategies and launch new products and logos.
Sponsorships and advertising differ but must not be considered separately. Advertising
enables the transmission of a message with text, and highlights product’s features and
advantages. Advertising enables to relay sponsorships in consumers’ minds.
d. Memory and reputation indicators
Several factors influence the memorization of sponsorships. The time for
measurements is critical because sponsors’ recognition and reputation increase with the
intensity of their presence. Hence, sponsors may want to wait a few months until they have
been incorporated into sport entities’ environment. In addition, sponsors need to measure
memorization before the end of sponsorship terms because the association with sport entities
in consumers’ minds will be less significant.
The importance of sporting events impacts on consumers’ memorization. Events with
significant media exposure, and on national or international levels, attract more viewers and
create a larger appeal. Television is the most useful tool for consumers’ memorization of
sponsors because visual and auditory aspects are memorized longer than with other platforms.
e. Image indicators
Several tests of associations are available for companies and provide a large source of
information regarding consumers’ perceptions and brand’s effectiveness. They examine
attitudes, observational capacity, and emotional responses (see table 6).

Table 6: Image and representations tests
f. Quantitative and Qualitative studies
Quantitative
Surveys on representative samples examine perception and attitudes, values and
beliefs, and a large variety of a population’s characteristics and demographics. Hence, surveys
are critical to measure the success of sponsorships. Sponsors can use their website, send
questionnaires to clients, conduct in-house surveys, and offer incentives to optimize the
number of sport fans’ answers.
Surveys must include different scales regarding acceptance, interest, frequency, and
appreciation among others to measure participants’ opinions (see tables 7 and 8). The Likert
scale evaluates appreciations and acceptance whereas the Stapel scale asks participants to
determine an opinion regarding variable(s). Semantic tests are based on multiple ways where
participants are asked to select answers corresponding to various criteria established by
researchers. The study is based on agreement variables (table 9).
Thematic Aperception test (Murray)
Ask participants to associate various images with
sports and comment on them
The shuffle cards test
Ask participants to select cards and classify
symbols with sports
Words association test
Ask participants to complete sentences and
answer questions to define sports.
The Rozenzweig test
Create stories with images related to sports and
asks participants to comment and complete
stories

Table 7: Example of Likert scale:
Strongly reject Slightly reject Neutral Slightly accept Strongly accept
Table 8: Example of Stapel scale
Very bad Bad Slightly bad Slightly good Good Very good
Table 9: example of semantic test
Sponsors in sports To what extent do you agree or disagree with the following
statements?
Improve sponsors’
image
Strongly
disagree
Slightly
disagree
Neutral Slightly agree Strongly
agree
Enhance quality of
fan experience
Strongly
disagree
Slightly
disagree
agree
Enable to develop
promotions for fans
Strongly
disagree
Slightly
disagree
agree
Enable the
development
community and
charity
Strongly
disagree
Slightly
disagree
agree
Develop sport fans’
interest for sponsors
Strongly
disagree
Slightly
disagree
agree
Qualitative
Interviews and others qualitative examinations provide different perceptions and
provide useful information. Participants must be selected thoroughly to obtain representative

samples. Contrary to surveys, qualitative analyses do not require a large number of
participants but participants who respond to the target market and will offer significant
answers for sponsors’ strategies. Qualitative analyses are based on the exchange of ideas and
reflections. They must be conducted in favorable environments, and relieved from stress.
Incentives and prizes should be rewarded to participants.

6) Limits of sponsorships
Sport sponsorships are widely used and are effective investments for large
corporations. The large audience of major sporting events and organizations allows targeting
new markets and developing closer relationships with consumers. Small corporations also use
this opportunity to create brand awareness and attract consumers’ interest by investing in
smaller structures. However, sponsorships remain risky investments for companies and
present limitations. These risks are, for the most part, beyond the control of sponsors and can
promote negative images.
Limitations to athletes’ endorsement
Endorsement of athletes presents the most risks because the sponsors are associated
with athletes whose performances, health, and behaviors evolve. The presence of sponsors is
reduced when athletes are injured, and damaged with bad behaviors and trials. Poor
performances also negatively influence on sponsors’ image and perceptions. Athletes also
decide to change sponsors and reduce partnership terms. Athletes with strong personalities
can also limit perceptions, making it difficult for consumers to remember sponsors. In
addition, the large appeal of popular athletes may attract too many sponsors. Consumers are
led to confusion by the number of sponsors associated with extremely popular athletes such as
Lebron James (see image 5). Their performances, the exposure received, and behavior on and
off-field are elements that influence on consumers’ perceptions and acceptance of athletes as
sponsors’ ambassadors
Image 5: Lebron James as brand endorser

Limits of teams sponsored
Teams promote common values of unity, determination, and effort. They develop a
less emotional relationship with consumers than athletes’ endorsements. Consumers who
appreciate in particular a selection of athletes will have better perceptions and behaviors
towards sponsors than those with teams. The multiplication of sponsors, associated
simultaneously at sporting events, mixes up and confuses viewers. There are multiple
sponsors in sports teams and it can distort perceptions and memorization. A strong visibility
as official partner allows reducing this inconvenient.
Limit at sporting events
Sporting events depend sometimes on the weather and outside events may suffer from
unexpected bad weather, facilities and structural problems, and bad location. Hence, the
numbers of eyes watching decrease, since TV and Internet ensure a smaller coverage of
sporting events. Competing events in other sports which take place at the same time can
reduce sponsors’ impact. It depends on competitors’ size, appeal, and significance for sport
fans. Scheduling is also an essential part in sponsorships.

List of tables
List of figures
List of images

Applications/Implications of project artifact
Practical applications to sports industry
The project artifact serves as guidance for sport managers and companies willing to invest
in sports. The artifact offers a comprehensive analysis of sponsorships and the different
options available for both parties involved in this investment. It describes essential points that
sport managers and sponsors must follow to reduce limitations and optimize sponsorships.
The artifact also provides a description of sponsorship contracts and its activations. Hence,
companies not familiar with sponsorships could use this handbook and follow these steps to
determine the characteristics of their action in sports.
The artifact defines options for sport managers and sponsors to enhance sponsorship
activations and maintain a successful two-way relationship between partners. In addition,
tools for sponsorship measurements are provided and enable for the evaluation of financial
benefits from sponsorships as well as the evaluation of companies’ image, reputation, and
equity. For sport managers, the artifact renders the comparison of methods and techniques in
different sports, and establishes tools to improve and leverage their sport entity. Lastly, the
artifact presents limitations of sponsorships and risks sport managers and sponsors must take
into account when activating sponsorships. Hence, a pro-active approach is described to
prepare for potential issues that may arise by this investment in sports.
Conceptual implications to sport management academe
The project artifact finds has its foundation in the different academic courses studied over
an 18-month period focusing on sport management principles and business applications.
Insight from various classes facilitated the elaboration of the project. Sponsorship is part of
companies’ marketing strategy in sports and represents a large part of companies’ budget. The

financial aspect of sponsorships was approached during finance classes with creation of
events, and the description of expenses that sponsors must carefully calculate when investing
in sports. In addition, statistics class provided measurement tools further explained in the
artifact.
Sports in US culture drew conclusions on sport fans and consumers’ demographics and
lifestyle in this country. For this reason sponsorships in soccer were not used for the purpose
of the study. Although, soccer is the most popular sports in the world, it lacks popularity in
the United States and does not attract as many sponsors as it does in Europe or Latin America.
The importance of media and public relations is also significant in sponsorships to promote
and leverage investments. The knowledge of both fields is necessary and was studied in class.
Internship experiences with sponsorship departments, such as within the Los Angles
Clippers and SUSA Everton, also provided a personal insight on sponsorships’ importance for
sport entities. Sponsors represent a large part of sport entities revenue and are essential. They
not only provide funds but also equipment, products, and skills which are extremely valuable
for sponsored entities. Hence, my personal experience in sponsorship departments gave me a
better understanding of the process of sponsorships at local, regional, and national levels, and
ultimately aided me with the creation of the project artifact.
Contribution to sport management career aspirations
The artifact is part of a personal and professional portfolio, and can be presented to sport
managers during interviews as well as inserted in my resume. It can provide actual results and
explain the process of sponsorship activations companies and/or sport entities would need.
Thus, it constitutes a qualitative element which can add value to job interviews and
applications. Sponsorship is relative to my goals in the sports industry and implies a great
knowledge of sport entities’ business and activities. I interviewed sport managers specifically
in the Los Angeles area because I pursue a career in professional sport teams in this location.

Soccer is also my passion and main focus on sports. Hence, I managed to interview executives
from both professional teams in this particular sport (Los Angeles Galaxy and CD Chivas
USA). I also used my professional network with the Los Angeles Clippers to obtain the
interview of the sponsorship executives at this organization. Overall, this study enabled the
development of a professional network and reminded sport managers of my presence and
aptitude for potential jobs.

Conclusions
Insight of the Capstone project
The interviews of sport managers provided unexpected results regarding measurements,
since the majority of respondents did not provide a substantive explanation on how they
measure sponsorship actions. In addition, most sport managers asked me to present the results
of this study and the different conclusions I could draw from it. It gives me the opportunity to
offer a professional presentation to sport managers and possibly position myself for job
openings or offers. This project also asks the researcher to cope with time constraint and meet
deadlines for the various parts of the projects. Academic rigor is determinant in the
professional context and develops time management skills. It also allowed me to provide a
foresight approach for diverse issues, and to appropriately plan the different steps in the
elaboration of the artifact.
Limitations and suggestions
The study includes various limitations. The researcher could not have control of the
response rate since the survey was sent via emails and posted on social media sites and on
sport forums. It was impossible to track the exact number of respondents from each platform.
The profile of participants would need more ethnic diversity since 82% of respondents are
white. As a consequence, a more diverse sample is necessary to draw further conclusions. The
sample used was not exclusively composed of sport fans and further research must be
conducted to reach a statistically sound conclusion. An ideal representative sample would
include surveying identified sport fans as for examples season ticket holders, recreation center
users, and other locations where sport fans can be found. Time was a major inconvenient for
the study. Only 140 participants completed the survey which does not allow for extrapolation
of the data collected for the analysis. Also, respondents are mostly based in the USA and

France essentially, failing to provide perceptions and attitudes of consumers from other
developed countries.
Five sport managers were available to participate in this study. More time would have
allowed interviewing more sport managers including the richest sport teams in the world
including the New York Yankees, Dallas Cowboys, New York Knicks, and Manchester
United among others. Other sport managers in NFL and NBA were also unable to complete
the interviews, thus reducing the number of respondents. Only four sports were selected and
interviews of other sport managers from different sports would have enriched the diversity of
responses. Further interviews must be conducted with sporting events, leagues, and athletes in
order to collect answers from all types of sponsorships. Similar to sport managers, a more
comprehensive study of sponsors would be needed to increase the reliability of the studies.
Large sponsors such as Visa, Gatorade, Staples, Home Depot, and Anheuser-Busch among
others were contacted but did not wish to answer the questions of the interviews. Insight on
large corporations would also be necessary to able to entirely complete the study.
Hence, time constrain was a major issue in this study. More data collected would draw
stronger conclusions and would increase the credibility and validity of the study. In spite of
these limitations, the survey and the interviews provided enough data to draw significant
conclusions on consumers’ perceptions and attitudes towards sport sponsorships.
Concluding remarks and reflections
The sports industry attracts many sponsors and the majority of multinational
corporations have invested in sports over the last decades to face with competition. Sports
promote different values and images which enables for different associations with sponsors.
The popularity of sports among the population and the broad coverage by the media offer
much visibility and a sustainable presence for sponsors. Clearly, a world without sponsors in

sports could not exist because of the significant and positive outcomes developed from
sponsorships.
However, the difference in goals and understanding does not facilitate the development
of a successful collaboration between sport entities and companies. Sponsors must find
benefit from sponsorships and sometimes they do not understand how it can help promoting
their brands and image. Throughout my experience I had the opportunity to apply the
principles of sponsorships. The negative economic climate and the lack of available funds for
this type of communication demonstrated the difficulties sport managers can encounter with
sponsorships. Nevertheless, the durability of sponsorships in sports is not questionable and
budgets allocated to this domain remain high.

References
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85
Appendices
A) Powerpoint presentation slides

Interview with [insert name of executive and sponsor here]
Greetings! Thank you for agreeing to participate in an interview that is part of a student
research project for a Sport Management Graduate Course at California State University,
Long Beach. The purpose of the study is to determine important factors and conditions
sponsors are seeking to achieve with sponsorship in order to establish a successful and
durable business relationship. This interview will be recorded and transcribed for analysis;
however, you will not be asked to provide any personally identifying information during the
interview and you may omit any question you are uncomfortable answering. You must be at
least 18 years of age to participate in this study. If you consent to participating in this project,
please indicate so by signing the consent statement below.
Research Participant Consent Statement: I understand the purpose of this research study. I
know that it is a part of a Graduate Class Project for California State University, Long
Beach. Although the interview will be recorded, my personal identity will not be revealed or
reported in the interview or in the final written document.
Printed Name: _____________________________
Signature: _________________________________
Date: _____________________________________

QUESTIONS:
 How do you consider the importance of sponsorship for [insert name of team here]?
 Which elements are important in the selection of potential sponsors?
 What terms of contract sponsors focus on?
 What is the attitude of sponsors regarding image and exposure?
 How do sponsors react with team’s performance? Any promotional/advertising
changes?
 How do you determine the price of sponsorship? Do you create packages, allow
discounts? If yes, please explain
 What is the percentage of sponsorship renewal? What are the determinants?
 How do you measure the sponsorship benefits for [insert name of team here]?
 What are your recommendations to improve the business relationship with sponsors?
Thank you for taking the time to answer the questions

Interview with [insert name of executive and team here]
Greetings! Thank you for agreeing to participate in an interview that is part of a student
research project for a Sport Management Graduate Course at California State University,
Long Beach. The purpose of the study is to determine important factors and conditions sport
managers are seeking to achieve with sponsorship in order to establish a successful and
durable business relationship. This interview will be recorded and transcribed for analysis;
however, you will not be asked to provide any personally identifying information during the
interview and you may omit any question you are uncomfortable answering. You must be at
least 18 years of age to participate in this study. If you consent to participating in this project,
please indicate so by signing the consent statement below.
Research Participant Consent Statement: I understand the purpose of this research study. I
know that it is a part of a Graduate Class Project for California State University, Long
Beach. Although the interview will be recorded, my personal identity will not be revealed or
reported in the interview or in the final written document.
Printed Name: _____________________________
Signature: _________________________________
Date: _____________________________________

QUESTIONS:
 Why does [insert name of company here] invest in the sports industry?
 How do you choose the sport to sponsor? Do you sponsor several sports?
 Do you invest in several platforms of sponsorship (event, league, team, athlete, etc...)?
 What are the levels of the sponsorship activation (title, official, presenting sponsor)?
Why?
 Do you use intermediaries in the activation of sponsorship? Please explain
 What are the benefits/expectations of the relationship with sports?
 How do you leverage your sponsorship?
 How do you measure the sponsorship benefits for [insert name of company here]?
 Does the economic climate impact on the expenses related to sponsorship? If yes,
why?
 What are your recommendations to improve the business relationship with sport
entities?
Thank you for taking the time to answer the questions

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