Investing in Sports Sponsorship? Engage an Agency Before You Sign

Many times, a brand reaches out to an agency for support after they have signed a sports sponsorship deal. This might work out just fine for some brands, but... there are certain advantages to bringing an agency on board prior to reaching out to a team, league or event organizer. I have been doing this for decades and I have to say that having an agency at the table can save you millions. Not kidding! Not to mention the added value they can deliver in the negotiation phase.

As President and CEO of POV Sports Marketing, my role is to understand a brand’s goals before a sponsorship negotiation begins. Why? Because I spent my career in the seller's seat, developing brand partnerships for properties like the NBA Detroit Pistons (Palace Sports & Entertainment), NFL Philadelphia Eagles, WNBA, Learfield and various IMG properties in the early 1990s. Believe me, I know how it works, and I know the dance well.

Pictured: Firstrust Bank signage at Lincoln Financial Field. Photo credit: Joe Bradley

I founded POV with the mission to optimize partnerships between brands and sports properties. In other words, I work hard to get my clients the BEST deal with the BEST results, without alienating the team. After all, partnership takes two to be effective. During negotiations, our team outlines the deal points that are going to offer the highest value for that brand and provide the most flexibility over the term. Then, when the deal is done, we guide them through the activation process on those assets. 

The reality is that without agency representation at the table, the balance of leverage in a deal might just be tipped in favor of the property. Allow me to explain.

AGENCIES BRING CROSS-INDUSTRY KNOWLEDGE AND UNIQUE CATEGORY INSIGHTS TO THE TABLE.

Good sponsorship agencies possess cross-category knowledge. My team of agency vets, team service specialists and career sellers (like me) have been around the block across multiple categories and sectors of the industry. We have seen good deals and bad deals, and we know what works.

An agency (particularly one that is versed in sports sponsorship) has a finger on the pulse of the entire landscape, and this sets the table for a cleaner negotiation, leaving any fandom or emotion at the door. We guide the focus of the discussion toward securing assets that will prime the sponsorship deal for success up front, while allowing for evolution of activation over the term of the deal.

SPORTS PROPERTY ASSETS ARE NOT CREATED EQUAL.  

Without clear goals and objectives, a brand will be at a disadvantage entering a sponsorship negotiation. The more defined the goals and objectives are, the better the deal will be, period. There are lots of shiny objects to look at in the sports marketplace. They all have value. We help brands stay focused and on strategy. Part of the negotiation process is understanding the leverage a brand has to create unique platforms and drive creative inventory, while securing assets the brand can easily activate. 

Team intellectual property and player image rights have their nuances across the leagues. The investment threshold in one category can be 5x in another based on the history of that category’s average spend. Seriously! Buying these assets is not a one-size-fits-all kind of deal. Knowing the rights that exist at each investment level is key to executing a solid activation strategy.

AGENCIES CAN PLAY POKER WHERE A BRAND CANNOT.

For me, the leverage point of having a team that is well-versed on the agency side (like SVP, Greg Coleman) is that when I call a team and inquire about a deal, the team has no idea of my client’s interest level and, in some cases, they may not even know which client I’m gathering information for. If the brand calls direct, the team immediately knows the interest level is real. And guess what? The price just went up.

Brands do not have the time to find contacts within teams or leagues to randomly check the cost of a partnership. That’s why we're here. That's what we do. Our team members have worked on big brands like Wawa, Verizon, Pepsi and Subaru -- four distinctly different categories. We can navigate the landscape within the leagues, identify assets that may be available, and leverage our knowledge to get the assets that make sense for the brand and the best deals for our clients.

AGENCIES SMOOTH OUT THE NEGOTIATION PROCESS.

Most properties would like to go direct to the brand to minimize potential third-party leverage of an agency. However, many properties recognize the importance of having the brand’s sports agency partner at the table -- simply because of how a good agency can streamline the ebb and flow of a negotiation.

We look at which assets are a fit for our client and which are not. We cut out the fluff, and we move forward to the activation strategy which, by the way, is equally as important as the deal assets. When we go to the table with a brand, all of those details are ironed out up front. Getting this right from the start of the deal is time and energy saved for both the team and brand in the long-term.

THE RIGHT AGENCY NEGATES THE LEVERAGE DANCE.

POV Sports Marketing brings 30 years of experience on both sides of the sponsorship negotiation table (our team has 80 years of combined industry experience). This means that we can squeeze every bit of juice out of a deal on behalf of our clients and leverage is zeroed out. After the deal is done... that is when the fun begins, the activation starts, and the investment comes to life. #brandhappiness

Interested in learning more? Email us at info@povsportsmarketing.com and we'll treat you to a cup of coffee at Wawa (one of our clients)!

Molly Arbogast is the President and CEO of POV Sports Marketing. Connect with Molly on LinkedIn.