Rationale for the use of sports sponsorships

Develop a comprehensive 2-3 page paper on the motivations and rationale for the use
of sports sponsorships, licensing agreements and endorsements by brands and corporations.
There are many reasons why corporations should use sports sponsorships, licensing
agreements, and endorsements. One of the biggest reasons is that it can bring in a lot of money
for both parties involved. The sports organization, the athlete, and the company the sports team is
partnering with. Another motive for the use of sports sponsorship, licensing agreements, and
endorsements is that it is a way for companies to get their name out in the community. If they
can establish their brand with a , or athlete this can help their
business tremendously and potentially bring worldwide success.
Sports sponsorship is the promotion of a company in association with property or event.
Sports sponsorships can offer many benefits to both the sponsor and the sponsored.
For the sponsor, it can help increase a companys branding, improve sales by creating interest in
products and/or services, and enhance image through association with an athlete, team, or event.
The sponsored benefits include generating funds for all facets of the sporting venue, helping to
raise the sports organizations’ standards, and it can help increase their status. A big motive for
companies to have a sports sponsorship is that they can be flexible. A company could sponsor the
entire event or just a portion of the event. An example of this is the name of an arena or stadium.
Most stadiums and arenas are named after big companies via sponsorship. Another example is
This halftime performance is brought to you by…. or AT&T Player of the Game.
Sponsorships can be anything from signage, facility entitlements, or product exclusivity.
Overall, sports sponsorships have many benefits and there are many motives as to why a sports
organization and businesses would want to create this partnership.
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Endorsements are statements of approval concerning products or services made by
individuals or organizations on behalf of the producer. (Schwarz and Hunter)
Endorsements can help to generate publicity through an organization or the use of a celebrity via
advertainment. Endorsements can also help increase familiarity and the credibility of a product
by helping to make it relatable to the consumers. An example of an endorsement would be Nike.
Nike has endorsements with big-name athletes, , Lebron James, and
Serena Williams. Also, Peyton Manning has many endorsements with many different
companies, including DirectTV and Master Card. One of the motives for creating an
endorsement is that it is an agreement where a contract is signed. This agreement has benefits for
both the business and the athlete. It can help both the business and athlete increase sales and
help both the business and the athlete to become more well known.
A licensing agreement is what gives a company the right to use another brands name,
patent, or other intellectual property for a royalty or fee. (Licensing Basics) There are many
benefits for the licensor and the licensee. For the licensor the benefits include: making a profit, it
is a , free adverting, and brand building. For the licensee, the benefits
include an increase in revenue, more retail opportunities, brand building, and positive publicity.
While there is the potential for risk with licensing, there is also the possibility for a big profit.
The potential for a big profit is one of the main motives for licensing agreements. Wimbledon
makes almost $100 million annually in licensing revenue. (Schwarz and Hunter)
Sports sponsorships, endorsements, and licensing agreements all play a vital role in sports
organizations. It is a way to help the teams make more revenue and a way for them to partner
with the different businesses in the area. It is also a way for a team or business to get their name
out in the community and potentially have global success. There are many reasons and benefits
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as to why all three of these elements are important and should be considered by almost every
business. A business located in a big city should consider doing a sports sponsorship,
endorsement, or licensing agreement to help bring them more success and money.
Works Cited
Licsening Basics . LAP Leadership, Attitude, Performance …!,
Marketing Education Resource Center, 2004, www.Mark-ED.org.
Schwarz, Eric C., and Jason D. Hunter. Advanced Theory and Practice in Sport Marketing.
Routledge, Taylor & Francis Group, 2018.
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