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The Case for Event Ownership by Sponsors
Close your eyes and imagine a situation where you don't have to negotiate with a property, you receive premium sponsorship assets, and you get to call the shots on the strategic direction of the event. No, it's not an unattainable dream. In fact, event ownership is an option more companies are considering these days. While event ownership can be a significant undertaking, there are a great number of advantages to such a venture:
Financial Considerations: Owning the event sometimes makes more sense financially, especially if your company only considers expensive top-level deals such as title or presenting sponsorship. If you've got people resources and expertise in an events department, your costs associated with hiring event management agencies may be negligible, and you'll only need to bring in vendors who provide physical event resources. If you need to bring in other sponsors, make sure you have a dedicated, capable sales and sponsor service staff. An efficiently managed event that includes sponsorship and ticket revenue can also provide an additional source of income for your company.
Branding Control: Do you find yourself frustrated that your brand is lost in a sea of sponsors, especially on-site at sports and entertainment venues? If you own the event, you have control over the number and kind of associate sponsors connected to the property, and clutter issues related to signage placement and logo identification. Do not discount the fact that you and your team have the ability to develop the brand character of the property itself, ensuring that it shares attributes with your brand.
Less Complicated Activation: With assets under your control and direct relationships with the athletes or entertainers, you don't have adversaries on the property side (who sometimes have their own interests in mind) stymieing your activation plans. Since you don't have to deal with a property's rules and regulations, you'll likely be able to get more inventive with your activation plans as well. Needless to say, you're making a significant commitment to an event if you own it, so you should be prepared to fully exploit your association.
Flexibility: Wouldn't you want to stage an event when it makes the most sense? If you're planning a major product launch, acquiring another company, or re-branding your own company, the timing of a sponsorship in support of one of those activities is critical. If you have a multi-day event and you feel certain sponsorship elements need tweaking after the event begins, you have the ability to make changes quickly without having to consult with and receive approvals from property management. Finally, you don't have to worry about being forced into long-term commitments. If you haven't made a significant long-term investment and you've fulfilled your objectives, you have the ability to terminate the event at your discretion.
