e) How to value sponsorship packages

Of all the questions we get asked at Sports Community, the question most asked is:

“How do we value sponsorship packages?”

Traditionally, sponsors of local sports clubs generally don’t seek to receive real commercial value from their sponsorship other than the feel-good knowledge they are supporting their local community.

Today though, sponsors of local clubs are becoming more sophisticated wanting to receive a return on their investment (ROI). Sponsors of local clubs are now moving in the same direction as those businesses who sponsor professional sporting teams. Sponsors may seek:

• Brand awareness through media and social media exposure

• Generation of leads

• Sales of products and services

• Entertainment of staff and customers at club events

If you understand what a sponsor is seeking to achieve, and your club’s ability to deliver, valuing your sponsorship packages becomes a lot easier.

Factors Which Create Sponsorship Value

From our experience, we believe there are five components that come into play when seeking to value sponsorship packages:

1. What are sponsors willing to pay?

2. How big is your club’s audience?  (Including participants in club activities, followers on social media, club databases, spectators, users of the club facilities, website visitors, email newsletter subscribers and the local/broader community.)

3. What is your club’s ability to engage with its audience?  (For example, match day speeches, newsletters, posters, brochures, flyers, signage, media releases, websites, email newsletters, social media, podcasts, YouTube and live streaming)

4. What is its ability to influence the behaviour of the audience?

5. How do sponsors value the sponsorship and its inclusions?  (Inclusions as well as simple signage can also include additional opportunities such as hosting client entertainment/hospitality or staff parties/social events.  This allows for the business to sponsor with money from additional budgets, not just the marketing budget)

Club Assets

The key determinate in valuing sponsorship is your club’s ability to influence the behaviour of its audience, or putting it from a sponsor’s perspective, your club’s ability to promote and sell their products and services.

Let’s look at the wide variety of assets your club has to offer sponsors.

  • Club Websites – From a sponsorship perspective, the people visiting your website page are called your ‘website traffic’ and depending upon the number of visitors to your site your website traffic may be very valuable to the right sponsor.
  • Email Newsletters – An email newsletter allows clubs to both grow and influence their audience. The two major determinants of sponsorship value.
  • Social Media – Social media can be used to take the messages of your sponsors to your social media audience in a really effective manner. Like email newsletters, social media is a great way to maintain relationships with people who may have moved away from the club but still want to maintain a relationship.
  • Club Competitions, Events and Social Activities – Your sponsors can take advantage of these large groups by bringing their products and services to the events.
  • Bringing Your Crowd to the Sponsor – The ability to take a large group to your sponsors’ is a huge benefit because it gives the sponsor the opportunity to build relationships with your audience and showcase their facility, products and services.
  • Bring the Sponsor to Your Club’s Audience– The idea is to bring your sponsor directly in front of your members and broader audience.  This can be invaluable for businesses as it provides an opportunity to build a relationship with your club’s audience in person.
  • Exclusive Supplier Contracts – A great place to start when looking for sponsors is your suppliers.
  • Naming Rights and Branding – A sponsor can purchase the right to have their name attached to any of your club’s physical assets, players, teams or programs.  Signage, branding and sponsor’s logos can be put on just about anything and anywhere.
  • Street Signage – Many clubs are located in prime locations within their community and often on very busy roads. If your club is located on a major road or intersection then you may well be able to create a very valuable asset in the form of street signage.


More about Attracting Sponsors:

a) What is sponsorship?
b) Why do clubs seek sponsors?
c) Understanding why businesses sponsor local clubs
d) How do we best approach sponsors?
f) How to create value from your club’s assets to attract and keep sponsors
g) How to prove your club’s value to sponsors
h) Sponsorship Do’s and Don’ts
i) Engagement strategies that make your sponsors feel valued and ensure multi-year commitments
j) Creating the perfect sponsorship proposal