In an extremely over-crowded market, sourcing sponsorship requires skill, patience and of course, research. The majority of rights holders looking for sponsorship will approach a brand and tell them how their event is the best, but do they know that for sure.
Scope it out
There are thousands of sports teams, events and charities all competing for the same sponsors, therefore, it is crucial to actively look at what others are doing in the market.
If a company were looking to release a new product, the first thing they would do is ensure the market is thoroughly analysed, assessing what their competitors are offering and at what price.
What’s in their basket?
Understanding your competitors offering is the best start point for any rights holder. In this cluttered market, it is important to know what you are up against and how you can then position your own offering, focusing on your unique assets.
Go along to events, visit other teams/properties and even try to get your hands on their proposals. If you do this and find that you haven’t got any unique assets to offer then you need to invest time into uncovering them, as every rights holder will have something unique to offer. Without this insight, you will be entering the market blind, with no idea of whether you are over-selling, under-selling, or if your offering can provide a brand with something no-one else can.
Make sure you identify the correct competitors when doing research. It isn’t just cross-industry or direct competitors; sponsorship is a universal industry so you will be competing with rights-holders from multiple sectors. A local sports team might be competing with a national event, if they approach the same brand. Think outside the box and broaden your research.
The Price is Right
Although valuation is determined on numerous methodologies, the rights fee is also impacted based on the competitive landscape. If your rights fee is to too high then brands will be put off, too low and your platform is undervalued, reducing the revenue you can gain.
Right’s holders need to ensure their whole package is priced correctly within the market, so it is vital to benchmark this against industry standards.
Within a competitive landscape, any rights holder regardless of industry or size, should first research the market, make adjustments and ensure their platform stands out for the right reasons.