Avoiding Divorce

The Redmandarin Guide to a Successful Sponsorship Marriage

"Marriage has many pains, but celibacy has no pleasures"
Dr. Samuel Johnson 1709-1784

Aware that the days of simply signing the contract and banking the cheque are now over, rights holders are increasingly referring to their commercial sponsors as partners. The International Olympic Committee recently renamed its TOP programme from Total Olympic Programme to The Olympic Partners, in an effort to demonstrate the longevity of its deals and the importance of its sponsors in bringing the Olympics Games to life. Sponsorship is dead. Long live the partnership.

A successful partnership is akin to marriage. It requires commitment, patience, time, energy, communication and trust. A "partnership" might look good in a proposal, but to what extent do rights holders adhere to the marriage vows once the money is in the bank? Here are our tips on making the marriage work, and how to divorce with dignity:

1. Find the right partner to start with

Understanding the compatibility of image, target audience and relevance of product fit are key to a successful sponsorship marriage. There are many examples of rights holders dazzled by the draw of the dollar and signing inappropriate sponsors, unwilling to exploit and invest in the equity of the relationship. There are also plenty of sponsors who tie up with events whose image is at odds with their own, more often than not through the personal preferences of the decision makers. In either case the marriage is likely to be short-lived and divorce bloody.

2. Make sure your partner spends time with other friends

Spending time with other people brings added stimuli to the marriage and stops boredom. Encouraging interaction between co-sponsors can result in highly cost-effective promotional activity that enables a long-term sponsorship agreement to remain fresh and innovative. Even the best relationships can become faded and dusty if the routine is the same, month in, month out.

3. Trust each other

Keep promises and a lid on expectations. Be honest with data and realistic with achievable goals. Being economical with the truth can finish off an otherwise perfect partnership very quickly, and over-promising on event attendees, media coverage expected or exploitation budget planned swiftly reduces the expected value of a sponsorship contract to either partner.

4. Communicate, communicate, communicate

The more that partners feel involved in making decisions and planning for the future the greater the likelihood of a long-term relationship. Rights holders have historically been poor at providing the right level of service and day-to-day contact with their sponsors - resulting in the sponsor feeling unloved and unwanted. Sponsor workshops, brainstorms, presentations, newsletters, Intranets and regular briefings on the development of the event can ease and speed up the communication process.

5. Don't take each other for granted

Partnerships fail when either party believes the other will be supportive of them regardless of their behaviour. Never regard the signing of a sponsorship contract as akin to the final consummation of the marriage. The relationship requires dialogue, attention, care and servicing, and sponsors should be the first to know of any imminent crisis about to affect the event. Reading about it in the press will not a happy marriage make.

6. Understand each other's differences

Good partnerships acknowledge eachother's similarities and respect each other's differences. Whilst in a sponsorship agreement it can be argued that both the corporate and the organisation are mutually dependent on each-other for competitive edge, the rights holders' priorities will generally be on increasing financial support, increasing promotional reach and increasing media coverage of the event. Sponsors, on the other hand, will have a different set of needs which might include image enhancement, product trial and hospitality. A sponsorship marriage can quickly break down if either party tries to interfere too greatly in the agenda of the other, and equally lose the support of the fan and consumer base which is integral to the success of the event for both parties.

7. Protect your partner

Ambush marketing is regarded as shrewd business practice in a competitive world by some, and as unethical parasitic marketing that erodes the value of the sponsorship market place by others. Either way, the rights holder has an obligation by way of the marriage vows to ensure that the interests and rights of its partner are protected.

8. Divorce with dignity

Not all good things have to come to an end. Coca-Cola has had a relationship with the Olympics for over seventy years, and Cornhill Insurance has sponsored English cricket for over twenty. But brand personalities mature and change, marketers leave, new regulations restrict, new technologies alter the media landscape and audience reach, and the law of diminishing returns may force a sponsor not to renew or reconsider.

A divorce needs careful planning and communication. Any relationships which come to an abrupt end reflect badly on both parties. Build reasonable negotiation periods into contracts, agree on who says what to the outside world, and begin early in finding new partners or new opportunities. Seek impartial advice if an impasse is reached. After all, a dignified divorce is infinitely preferable to a public bun-fight.

Sally Hancock
Chief Executive Officer
Redmandarin