Finance & Funding
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SponsorshipSponsorship is a mutually beneficial partnership between a business and a club. It usually comes in form of a cash and/or in-kind contribution paid to a club in return for access to the commercial potential associated with the club. Sponsorship is not a donation. FINDING SPONSORSWhile having sponsors is a great way to increase financial stability of the club, a club needs to be strategic when approaching potential sponsors. A club should approach sponsors who align with club values e.g. the local pub may not be the best sponsor if your members are mostly junior participants. Start by asking your club members if they have relationships with existing businesses that may be open to sponsorship partnerships, and if they can introduce you to the right person. An internet search of local businesses may also help you find potential sponsors. Clubs may wish to reach out to their State body to identify if there are opportunities to have shared sponsors or supply agreements to obtain better prices or support. DRIVERS - WHY SOMEONE MIGHT SPONSOR THE CLUBIt is important to remember sponsorship is not a donation. The sponsor needs to get value in return. Understanding the sponsor’s drive will help tailor an effective sponsorship proposal. A business may sponsor the club or event for reasons like:
CLUB ASSETSClub assets refer to what the club can ‘sell’ to the sponsors. Some assets the club may offer include:
A sponsorship asset register will help the club determine what assets are available for the club to sell. Remember you are only permitted to sell or include assests that are owned by you or you have direct permission to include; for example national or state competitions/programs/events are not owned by your club therefore sponsorship rights to or activation at these events cannot be sold. Also, rights to your membership details also must be in accorance with The Privacy Act. SPONSORSHIP VALUEUnfortunately, there is no one formula to determine sponsorship value as it will vary depending on several factors. Answering the following questions may help establish a value.
It is recommended that the club keeps detailed records of past sponsorship agreements to help evaluate the worth of new agreements. A club will get a better idea of sponsorship worth as time goes on. SPONSORSHIP PROPOSALThe sponsorship proposal includes the background of the club, club values and expectations and provide a snapshot of the club including the demographics, audience, and club successes. The club’s strategic plan should provide most of this information. The proposal will also list the benefits of the partnership for the sponsor. This should include what assets the sponsor will receive and how success will be measured. The proposal should also include the length of the term, the value of the sponsorship and the best contact for more details. The details captured in the proposal can then form the base for the sponsorship contract. SERVICING THE SPONSORThe club will need to deliver on the deliverables stated in the sponsorship agreement to ensure the agreement is of value to the sponsor. Clubs should expect to spend up to 15% of the sponsorship value on servicing and supporting the sponsorship agreement. Going the extra mile for your sponsor may also help renew the partnership at the end of the deal. This could include:
Keep a spreadsheet tracking what the club has done to service the sponsorship deal. This will be a useful document when discussing renewing a partnership.
GUIDE Sponsorship Do's and Dont's TEMPLATE Sponsorship Coordinator PD TEMPLATE Sponsorship Agreement TEMPLATE Sponsorship Policy and Agreement
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