How Sports Sponsorship is helping to bring Communities together 16th May, 2013

Last Thursday I attended the Innovation in Sports Business Summit, which was focused upon the theme of last weekend’s Euroleague Final Four. It brought together sports experts from various fields such as media, gaming, digital content, marketing, sponsorship and social responsibility. In times where marketing and CSR budgets increasingly overlap, the second panel, “The Power of Sport. How can Sport create a legacy?” was especially poignant . Headed by former Chelsea FC legend Graeme Le Saux and Simon Cooper, Head of Sport at Mayor’s London Office, the panellists discussed the influence and more importantly, responsibility that sport has on communities.

The European Sponsorship Association’s market trends survey revealed that CSR is increasingly becoming an integral part of sponsorship campaigns. Whereas in the past businesses and brands tended to spend their CSR budget on supporting arts or environmental based causes,  they are beginning to acknowledge the power that sport has in terms of reaching and engaging with people on an  emotional level.

There are many examples of how sports rights owners and brands are beginning to collaborate as a means to make a difference in people’s lives rather than just purely about the sponsorship – which in turn, is creating true value within the campaign. Here are three of my favourite sports sponsorship & CSR partnerships.

1. One Team – Euroleague Basketball & Turkish Airlines

The One Team CSR Marketing Programme was, of course, a focal point of the second panel at the Innovation in Sports Business Summit. Launched in 2012 in collaboration with Euroleague’s main sponsor, Turkish Airlines (their Founding Patron), the programme is additionally supported by eight Founding Partner Clubs and seven further Euroleague basketball clubs (by 2014 this will be extended 24 clubs in total).

The aim of One Team is to use the power of basketball to change lives. All 15 clubs involved in the initiative tailor and invest their community outreach with the aim to challenge key social issues faced by their communities. The clubs use an innovative methodology of assessment, outreach and results oriented analysis to create the maximum impact and results.

When discussing the success of the programme, panellist and architect of this European-wide development programme, David Butler, pointed to the importance of having the right measurement: “When asked ‘how is it going’, organizations tend to talk about increasing numbers, more children, more projects, more people, more scale, more geography. But that does not answer question properly. The question should be asked: ‘how much impact are you having? And how much positive change is happening?'”

Each one of the clubs works with disadvantaged individuals from their communities, with basketball as the integrating tool. An overview of all the different projects can be found here.

Temel Kotil, CEO of Turkish Airlines, expressed the importance of initiatives such as these stating “At Turkish Airlines we believe that sport is a unique language that can inspire and One Team uses that language to talk to those who most need to hear its message of positive values.”

2. NBA Cares – NBA & Kia

One of Euroleague’s benchmarks was the NBA Cares programme. Similar to Euroleague’s One Team programme, NBA Cares is a community outreach initiative that addresses important social issues such as education, youth and family development as well as health and wellness. Since 2005, the league has partnered with NBA teams in order to support a range of programs, partners and initiatives that strive to support children and families on a global scale. So far, more than $210 million have been raised for charity and more than 2.3 million hours of hands-on service has been provided by the National Basketball Association and its clubs. Through TV-Spots (such as this one featuring Miami Heat’s Dwyane Wade) at every NBA game, the league uses this content as a marketing tool to raise awareness about the issues surrounding many communities. Click here to see how the different teams and players are currently supporting NBA Cares.

Due to this success, the NBA has created a new sponsorship platform within the NBA Cares programme: the Kia Community Assist Awards that honour the NBA player who best reflects the passion that the league and its players have for giving back to their communities. This sponsorship deal is one step ahead of Euroleague’s partnership with Turkish Airlines as it engages with fans on a far bigger scale using Social Media channels such as Facebook.

3. Hamburger SV – “Hamburger Weg”

Football is probably the sport which has naturally the strongestbond to local communities. Hamburger SV is a very traditional football club in Germany and was one of the first clubs in the world who integrated sponsors into its CSR plans. The “Hamburger Weg” is a partnership between the football club Hamburger SV and local companies. The programme combines classical sponsorship with CSR, through donations. The club donates 1/11 of its sponsorship revenue to local organisations and charities to help them find the right footing in life. Hamburg’s sponsors are specifically branded with white logos on a blue perimeter advertising background which adds an additional affiliation between brand, charity and club.


Lessons the Sponsorship Industry should Learn from Kickstarter 15th May, 2013

Continuing from Jackie’s most recent blog, which expressed the inherent need for an understanding of sponsorship in every industry, I wanted to lead this blog in a similar vein. The past couple of weeks have seen the re-emergence of the platform Kickstarter into the blogosphere – a crowd-funding site that offers entrepreneurs, film-makers, artists, techies etc. a platform through which they can raise funding for specific ideas and projects.

Until a few weeks ago, many were unaware of Kickstarter until Mr Zach Braff (of Garden State and Scrubs fame) launched a campaign on the website to generate funding for his new movie Wish I Was Herea kind-of-but-not-really sequel to Garden State – find his campaign video here.  Through the website, and by the click of a button, anyone is able to become an investor in Braff’s film.  What is more, those willing to sponsor are offered some pretty hefty benefits – ranging from larger investors being treated to a character in the film being named after them, to escorting Braff as one of his personal guests to the premier and after party – not bad.

Within only 3 days, Braff’s target of $2 million was smashed.  Of course this was due, to a large extent, to Braff’s extensive networks (1,099,497 Twitter followers) and celebrity pals who helped him reach this goal.  Yet despite the project’s success, Braff’s use of the site has come under immense scrutiny, with many citing this project to be one of (soon to be many) Hollywood overhauls on the website – which they believe will overshadow projects that really need to use the site to create contacts and source funding.

Despite the Hollywood backlash, the success Braff has gained through Kickstarter and the buzz his project has generated; has led me to identify 3 things the sponsorship industry should take away from this case study:

1) It is imperative to tap into passions – Sponsorship should always be about tapping into people’s interests and passions.  As a marketing tool; the brands and rights-holders that have the most success, are the ones that really connect with what the consumer wants and understand what it is they need.  Braff was able to build on the cult success of Garden State and use the affinity his fans have towards the film to help fund a new project, giving fans the opportunity to join him in the films journey.

2) Not just about the idea – Despite the success of Braff’s Kickstarter campaign, an overwhelming majority of Kickstarter projects lead to failure.  As Michael C. Neel’s research shows, the campaigns that are the most successful are the ones that are able to promote and leverage networks, exercise connections and generate as much buzz as possible around the project.  In essence, this is similar to sponsorship – those that are deemed ‘successful’ are the ones that are able to utilise every aspect of the relationship at hand – not just rely on the basic sponsorship or ‘idea’ itself.

3) Corporates should learn from crowd-funding – Some of the best ideas and projects gain fruition from smaller, grass-root platforms like Kickstarter; and it is important that these projects are able to gain funding.  Sponsorship should be accessible and understood by all; not just large corporates – the funding of such projects will in turn help generate an already stagnant economy.  Websites such as Kickstarter also offer first-hand insight into projects that are succeeding and those that are failing – offering corporates in real time, trends within specific industries.

Despite the criticism surrounding Braff’s use of Kickstarter, the re-emergence of the platform has emphasised once again, the need and capacity for sponsorship in all industries whether big or small.

Why Big ATL Agencies Can’t Crunch Numbers 5th April, 2013

Walking into a fabulous advertising agency the other day, I will admit, I was envious.  Envious of the beautiful office building, elevators, stairwell, art work, great tea  – even the receptionist wooed us with her timely wit. There were whispers of “…and they also have a free cafeteria!” when we entered the large doors into a reception area that is bigger than the entire Slingshot office.  It was hard not to be smacked in the face  by success the moment you walked  through the front door.

And yet, the meeting with over 15  bright young things – planners, account managers and creatives left me feeling slightly underwhelmed when it came to brainstorming ideas for driving additional revenue to a project and it got me thinking about sponsorship and the future of the agency model (which I will also be discussing at the ESA Summit, read more here).  Now I am not saying that all creative media and marketing agencies and the people that work in them can’t understand sponsorship – many of them can.  The point really is that they don’t have to.  They don’t spend an agonising amount of the day working client budgets to meet targets through multiple revenue streams.  They don’t spend hours on the phone negotiating media rights and convincing brands to provide free products in order to drive the event forward.  They don’t have midnight calls with overseas clients on how to then find a way to pay for the distribution of said product.  Unfortunately, this is my job.  Again, cue my envy.

Yet envy aside, I have come to the conclusion that the thousands of hours I have spent agonising over a successful route has inevitably given me a very strong aptitude for understanding how to generate revenue – effectively and sustainably.  These hours spent have gifted me the ability to valuate a platform fairly quickly, just by a call, because this is what I do – day in and day out.

I can whole heartedly admit that I cannot come up with the creative idea.  I cannot even draw stick people properly. Of course, I  recognise the huge value in the idea and implementation  – but I think the tables are turning.

The Mad Men days where creativity is king is difficult to validate in an era where ‘Charlie Bit My Finger’ has over 520 million views.  Where budget cuts, the economic recession, and overall increased scrutiny on budgets continues to rise.   I think it is time to recognise that it is now the era of ROI.

As I am in the business of ROI, I am sure you’d expect me to say that. However, look around you – it really is everywhere.  From the daily Groupons, to free content on ITV player, value is something we are all looking for and delivering that value can be a difficult challenge.

I truly believe the way forward is  through building partnerships – creating true synergies between organisations, understanding all parties objectives, and working together to reap mutual rewards.  The shift has already begun with major brands pulling funding out of the major kit deals in favour of smaller, more integrated campaigns and partnerships.  It can also be seen with the huge success of our own agency, which has doubled in the last year purely through the increase of new incoming business. People are beginning to recognise (whether forced or not) the value of building lasting commercial partnerships.

Now I am not claiming that I am the next Sir Martin Sorrell, David Ogilvy, or William Bernbach – but I do see a future  that features free meals for Slingshot employees.

My Top 3 Digital Sponsorship Campaigns 25th March, 2013

Sponsorship campaigns have always relied on brand synergy and mutually benefitting concepts but now it is imperative to incorporate the partnerships through a digital platform. Here are three of my favourite digital sponsorship campaigns…

Nike and Apple (Nike+)

The Nike+ sponsorship campaign stands out for simply the sheer size of the two brands involved, as corporate logos go, few are as identifiable. For Nike and Apple there was no case of ‘clash of the titans’- merged products (shoes, sensors, kit) allowed joggers to be notified of progress by iPod prompts as well as tracking distance and duration. The data could be uploaded to a Mac or PC, and then on to Nikeplus.com, giving people the chance to record progress, set targets and share results.

For Apple, the sponsorship allowed them to target consumers from a different angle and created a much more fulfilling exercise experience thanks to their technology. For Nike, the sponsorship helped them shift their brand image away from bad press concerning labour ethics and high-profile court cases previous to 2006. Aligning to Apple, which had a very clean reputation at the time, aimed to help add credibility to some of the promotional tags that Nike were trying to shed.

Vice and Intel

Vice is brash, incisive and radical, which is exactly why Intel bit, their aim was to diversify their brand image. John Galvin, director of Intel’s partner marketing group, admitted that “if we give music fans the opportunity to have this amazing experience, maybe they will think about Intel differently, becausewithout our technology, this wouldn’t be possible.”

Having Intel as a sponsor not only associates Vice to a global brand but it also acts as a service for their multiple digital ventures. Intel has now partnered with Vice on two of their most impressive subsidiaries, The Creators Project and Noisey. The collaboration has a real sense of synergy – Vice finds fresh talent and creative pioneers in order to distribute the content and footage while Intel supply cutting edge ways for fans to engage digitally.

Kopparberg and Spotify

Independent cider brewer, Kopparberg partnered with Spotify and Last.fm in 2012 to create the Kopparberg Festival Player, which helps UK festival-goers plan their schedule of bands they want to watch over the summer based on Spotify playlists, the app featured playlist sharing and chances to win tickets to the most sought-after festivals in the UK.

The appeal of this campaign is Kopparberg’s chance to connect with fans through music, rather than direct, brash marketing which festival-goers tend to disapprove of. Furthermore, the partnerships drives awareness of the brand and drinking Kopparberg before they even get to event, which cuts out the competition and resonates with the customer. With their involvement at more than 15 UK festivals and major events in 2012, this became a key reason for their sales success.

Corporate Sponsorship Of The Arts: Double-Double Oil Is Trouble 10th December, 2012

Following my recent visit to the Tate Britain, sponsored by BP, I wanted to delve further into the energy giant’s return to the media spotlight after outlining its controversial plans to continue funding the arts.  The company has reiterated that it wishes to use sponsorship, alongside advertising, as a tool to improve brand reputation.  Since 2010, BP have been haunted with repercussions within the media, being named, shamed and fined ($4.5bn to be exact). Now, almost 3 years later, the company has emphasised that after its hiatus from the media, it wishes to increase its social responsibility initiatives, returning with a campaign showcasing contributions the company makes to society; all in the hope that it will ‘make people feel more positive’ about the brand.

To do this, BP intends to build upon its long-standing cultural sponsorships that were renewed last December with the Royal Opera House, British Museum, The National Portrait Gallery and the Tate. Yet one year on, despite BP’s hopes, protests are still occurring across the Capital.  

Only a few weeks ago, the ‘Reclaim Shakespeare Company,’ protested outside the British Museum to intervene in the BP-sponsored exhibition ‘Shakespeare: Staging the World.’  Indeed, BP is not the only oil giant receiving criticism; Shell’s sponsorship of London’s South Bank Centre, and Lundin Petroleum’s sponsorship of the Astrup Fearnley Museum in Oslo have both been under media fire.  In light of these protests, I want to raise the question, will there always be cynicism attached to sponsorships of this nature or can brands such as BP do more to demonstrate the benefits of their funding?

The rationale behind the cynicism shown by protestors is by no means unreasonable.  BP caused a disaster, and the damage that was created is irreparable but should this still be associated with their philanthropic initiatives? The brand is coming into its 21st year sponsoring the Tate and 11th year sponsoring some of the other most treasured cultural landmarks in the UK.  Through their continued funding, the British Museum is able to further cultural programmes, and the Tate Britain, for example, is able to extend it’s access to wider audiences (the Tate alone attracts 5 million visitors each year).

There is no doubt that BP’s decision to continue its various cultural sponsorships is driven by the motive of improving brand perception via ‘contributions to society’. Whilst this could be, and is by many, perceived as a way of averting attention from BP’s previous mistakes, there is no denying that the money donated through these cultural sponsorships supports the sustainability of British cultural heritage.  Indeed, the arts have endured serious government funding cuts over recent years, with a call from many, including the National’s Nicholas Hytner, for the government to reconsider its decisions.  Only last week, it was announced that the Newcastle City Council plans to cut its entire arts budget, with landmarks such as The Sage and Baltic Gallery wondering what to do next.  So long as this continues to be the case, cultural institutions such as these will have to consider alternative sources for revenue, Corporate sponsorship being one of them, and I’m all for it.

Red Bull Challenges F1's Sponsorship Stallion 5th December, 2012

In the last couple of weeks, the Red Bull Racing and Sebastian Vettel vs. Ferrari and Fernando Alonso rivalry has dominated sporting headlines. In the end it was yet again the former who took both the Constructers’ and the Drivers’ World Championship titles in the thrilling Formula 1 season finale in Brazil. This nail-biting end to the season has prompted a closer look at the team’s and driver’s success off the track and their contention for the commercial crown.

The Constructers’ (Sponsorship) Championship:

Despite prize money being in the millions, sponsorship is by far the key source of revenue for both teams and their drivers which begs the question: who is leading the commercial championship?

According to Forbes’ latest list of the ‘Formula One’s Most Valuable Teams’ Ferrari’s total revenue is estimated to be around £240m with £190m being generated from sponsorship alone. Nearly £155m is generated via three major deals with Shell, Santander and title sponsorship partner Marlboro. These three deals are worth more than any other team’s total sponsorship revenue.

But what about Red Bull Racing? Out of all teams on the grid, they are surprisingly down in fourth in the overall revenue standings at £100m in 2011. 60% of this revenue comes from Red Bull’s success on the track earning them more prize money than any other team in the championship however the contribution from sponsors falls significantly shorter than Ferrari, coming to £38m positioning the team in the middle of the sponsorship field. The main reason for this is that the brand does not seek sponsors for most of their advertising space as this is generally used for self-promotion. As opposed to Ferrari (whose title sponsor is Marlboro at £100m) and other leading teams like McLaren Mercedes (Vodafone, £47m) and Mercedes AMG F1 (Petronas, £35m), Red Bull is sacrificing a significant amount of commercial opportunity in this area. However, this may all be about to change with the constructors’ champions securing their first title sponsorship deal with Nissan’s luxury arm, Infiniti.

When reviewing the revenue potential of both teams, Ferrari should still be out of reach in the short-term with regards to team value however with Red Bull being the fastest growing team in the paddock, the commercial gap is certainly narrowing.

The Drivers’ (Sponsorship) Championship:

Are Vettel and Alonso also competing for a sponsorship title? In his latest blog post, Mark Mylam asked whether sports men and women as brand ambassadors were really worth the money from a sponsor’s perspective as there is always a risk associated with their image deteriorating and affecting the image of the endorsed brand. An almost risk-free sportsman for instance could be Sebastian Vettel. The driver is unarguably one of the most charismatic Formula 1 drivers, as demonstrated at last year’s Autosport Awards and although his interview at the podium ceremony of Abu Dhabi included some strong words, nothing seems to be able to tarnish his image. This is why Sebastian Vettel, who manages his endorsement deals himself, enjoys lucrative sponsorship deals with Casio and Procter & Gamble’s Head & Shoulders worth around £2m in total, according to a study carried out by Sport + Markt.

Fernando Alonso, on the other hand, seems to have a completely different persona. One could perceive him as being rather introverted although he is not one to shy away from commercial opportunities with earnings upwards of £6m through his deals with Santander, Tag-Heuer and Puma in 2011. This positions Alonso at the top of the sponsorship leaderboard with Michael Schumacher way behind at £3.5m and Lewis Hamilton (£2.5m) ahead of both Sebastian Vettel and Jenson Button, both at £2m. Marcel Cordes, Executive Director at Sport + Markt, points out that it is unlikely that Vettel will be able to close this gap as “he (Vettel) is already very strongly associated with the Red Bull brand”. Also, Sebastian Vettel is not interested in signing sponsorship deals just for the sake of securing a higher income. He’s already stated in the media: “It is not a goal for me to earn more money. For me, it is important that the brand is ideally suited to me”.

Compared to other sports stars like Roger Federer or Kobe Bryant, sponsorship earnings of Formula 1 drivers are minimal because in most cases, the teams control almost all of their driver’s sponsorship rights.

It is interesting to see that championship wins have by no means been reflective of either team’s or drivers’ respective commercial successes but will this continue into 2013? With the pressure mounting on Sebastian Vettel, could we see Ferrari’s sponsorship stallion overtake the Red Bull both on the track as well as off or will the power of the ‘Vettrick’ prove too much to contend with? Let us know your thoughts!

Should Alcohol Sponsorship be Banned? 26th November, 2012

The level of irresponsible drinking amongst young people in the UK is an area of constant concern for many with statistics reporting 945,000 hospital admissions a year related to alcohol abuse or injury. Following the ban of tobacco sponsorship in 2005 arose the debate as to whether alcohol sponsorship should follow suit and whether partnerships between alcohol brands and sports events influence young people to drink in excess.

At the Think!Sponsorship Conference on Wednesday 14th November leading sponsorship professionals and representatives from alcohol brands considered the increasingly important topic of whether the alcohol sponsorship ban should be bought into place within the UK. With alcohol sponsorship banned in France, this prompted me to consider whether the UK will be next to follow suit and what impact this could have for the sponsorship industry.

The Argument

There is little doubt that sporting events have a strong association with alcohol. Sports such as rugby and football in particular lead people to view alcohol consumption in a negative light with fans often rowdy and drunk. Alcohol sponsorship could be said to reinforce the association of alcohol with events that are often considered family days out whilst watching sport for many comes hand in hand with enjoying a drink. With this connection already firmly in place it is argued that alcohol sponsorship only encourages young people to view alcohol brands and excessive consumption of their products in a positive light.

However, the opposing argument is that the problem with binge drinking amongst young people in particular at sporting events is as a result of cheap drinks deals and the traditional macho sporting culture rather than the presence of alcohol sponsorship. Furthermore, alcohol sponsors place a strong emphasis on drinking responsibly. The European Sponsorship Association has put numerous guidelines in place to introduce a notion of best practise with alcohol brands, for example, rights holders are advised to only allow sponsorship from alcohol brands if the audience are assumed to be older than the legal alcohol purchase age.

How Would the Alcohol Ban Affect Sponsorship in the Future?

It is estimated that £800 million a year is spent by alcohol brands on sponsorship, if this money was no longer channelled towards sponsorship what would this mean for the sponsorship industry as a whole? Sponsorship agencies could lose key clients and rights-holders would lose a vast amount of revenue and the ability to hold events to the scale and quality they currently are at.

However, through dynamic and creative thinking this could also be an opportunity for new brands to get involved with sport sponsorship.

Whatever the future holds for alcohol brands, I believe the sponsorship industry will have no problem continuing to thrive as seen previously when we encountered the ban of tobacco sponsorship.  If anything it will only force sponsorship professionals to continue to drive innovation forward.

Slingshot Sponsorship is Shortlisted at the Camden & Islington Business Awards 11th October, 2012

Jackie Fast, Managing Director of Slingshot Sponsorship has been nominated for the second consecutive year at the Camden & Islington Business Awards for the Young Entrepreneur of the Year Award. The category is open to business owners who have shown exceptional business acumen and achieved consistent business growth since launching.

Slingshot Sponsorship delivers and develops long-term brand strategies that engage targeted audiences through sponsorship rights. Integrated and tailored in each approach, Slingshot diversifies across a range of industries with an extensive client list that includes Red Bull, Caterham, Outlook Festival and BBC Worldwide.  Since its launch less than 3 years ago, the sponsorship agency has grown dramatically in Islington moving offices over 3 times in less than 8 months due to its expansion.  Slingshot currently employ 10 staff and are looking to recruit additional team members to fulfill the new clients that continue to look for sponsorship services that are more innovative in their execution.

Jackie Fast is thrilled to be nominated, commenting:

It is an absolute pleasure to be nominated again, for the Young Entrepreneur of the Year Award.  Since launching Slingshot Sponsorship three years ago, our business has grown exponentially – which truly shows how valuable our unique business proposition is.  It’s a real honour to be recognised by the local community.

The awards celebrate the work and efforts of businesses across Islington and Camden and look to recognise those who have successfully grown and maintained their business positioning throughout 2012. Miss Fast’s repeat nomination illustrates Slingshot Sponsorship’s capabilities in creating successful partnerships as the company continues to go from strength to strength.

The winners of the Camden & Islington Business Awards will be presented at the Islington Chamber of Commerce on Thursday 1st November 2012.

What Car? Awards Safe and Secure with TRACKER 8th August, 2012

TRACKER, the leading provider of vehicle tracking and telematics systems, is to be an associate sponsor of the annual What Car? Car of the Year Awards, which takes place on January 9, 2013. TRACKER will also sponsor the luxury car category.

What Car? publishing director Andrew Golby said: “It’s great news that TRACKER is to be involved with the What Car? Awards again next year. The Awards grow in importance year on year and the influence of any company being involved is hugely beneficial and far-reaching.”

The What Car? Car of the Year Awards are the most coveted accolades in the automotive industry. They are presented to cars that set the highest standards in their sector after being put through the toughest, most rigorous tests by the most experienced team in the business.

TRACKER managing director Stephen Doran said: “TRACKER is proud once again to be involved with the What Car? Car of the Year Awards. What Car? has long since promoted the power of working together to beat car criminals and our sponsorship of the Awards enables us to reinforce our message to its growing readership of the importance of vehicle security.”

“Our recently launched Mesh Network is the latest innovation that places TRACKER at the forefront of stolen vehicle recovery solutions.  It brings together the motoring community to support the police in identifying stolen vehicles and returning them to their rightful owners.”

TRACKER has been leading the way in the field of vehicle tracking and telematics since 1993, with more than a million market-leading security and award-winning fleet management systems fitted to vehicles including cars, motorcycles, HGVs, LCVs and plant and construction equipment.

The What Car? Car of the Year Awards event is attended by more than 1000 leading industry figureheads alongside the most influential motoring correspondents from the wider media.

The event is to be held at the Grosvenor House in London on January 9, 2013. For more information and table bookings visit www.whatcarawards.com.