Advertising during sporting events is another sponsor benefit.
Sports sponsorships are when a company or organization sponsors an athlete or team in exchange for brand recognition. The company may provide a team or individual with sports equipment, new uniforms or sponsor events, though the company brand is undoubtedly displayed on team jerseys and in promotion booths. Sponsorships are generally mutually beneficial, and there are numerous reasons a business or organization may want to sponsor a team or athlete.
Criteria for Sponsorship
Before sponsoring a sports team, a company or organization must determine if the sport fits with the company brand. The partnership must align with the company's mission, according to U.S. Legal, which also states that a company or organization must believe it can achieve optimal business results through the sponsorship.
Advertising
Sponsoring a sports team is a way for a company to advertise its product or services. The company name is displayed on most items an athlete or team wears or may use, such as sports jerseys, cleats and other sports footwear, sports towels, race cars, bats, helmets, jackets and post-game gear such as sweatshirts and sweatpants. Sponsorships can help a company reach its target audience in a way it may not otherwise. For example, a company seeking to obtain a rich clientele may want to back golf tournaments, horse derbies, polo matches and yacht races.
Image and Visibility Benefits
Sponsorship can result in improved company image and visibility, according to U.S. Legal. In terms of visibility, sports sponsorships can help a company stand out from its competitors and compete with bigger companies (with bigger budgets) in a more effective manner. Company image can improve with the development of closer relationships between current and potential customers. Image within the company itself can improve thanks to the use of sporting events tickets as incentives for employees, customers and vendors, which can ensure company loyalty.
Other Benefits
Additional benefits from sports sponsorships include the ability to showcase products or services at sporting events, festivals and other community events, and the opportunity to get rid of inventory that is outdated or otherwise not profitable to the company. Such inventory can be given away as free gifts for participation or as part of a larger event gift basket.
