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SAM 450 UNIT 8 - Assignment Example

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In fact, Stier (2011) observed that corporate sponsorships appear to be everywhere in the world today. This is particularly evident during sporting in fields where banners of many corporations that sponsor…
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SAM 450 UNIT 8
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Corporate Sponsorships al Affiliation Corporate Sponsorships Corporate sponsorship has been on the increase in the recent times. In fact, Stier (2011) observed that corporate sponsorships appear to be everywhere in the world today. This is particularly evident during sporting in fields where banners of many corporations that sponsor events and athletes are displayed almost everywhere. Organizations, usually, sponsor sporting clubs and athletes to enable them advertise their products and build critical relations. On the other hand, the sponsored also benefit from the funding received from the corporate sponsorships (Stier, 2011). However, there are certain fundamental elements of corporate sponsorships that are worth noting. These include advertising and sponsored property. In this regard, whereas the sponsor agrees to sponsor an athlete or sporting club, the sponsor also benefits through television adverts, which are aired during the programme breaks. Accordingly, it becomes clear that corporate sponsorship aims to create a mutual benefit between the sponsor and the sponsored.
However, before entering into a sponsorship agreement, there are certain fundamental considerations that an athlete or a sporting club and the sponsor should take into consideration. Firstly, both parties must ensure that the sponsorship agreement being entered into will create mutual benefit (Stier, 2011). In this case, the sponsored party must ensure that the sponsor is worth the money. Similarly, the sponsor must also ensure that the athlete or the sporting club to be sponsored can attract large audience viewing to enable its product brand reach many people. Secondly, the parties to the sponsorship agreements must ensure that they all the terms of engagements, including the sponsorship duration, circumstances that might result into termination of the agreements and renewal terms. Thirdly, it is critical for the parties to sponsorship agreements to agree on the sponsorship fees before entering into a written agreement. Lastly, the parties to the sponsorship agreement should ensure that the obligations of both the athlete or sporting club and the sponsor are clearly defined and documented to minimize chances of disagreements.
Stier, Jr., W. F. (2011). Fundraising and promotion for sport and recreation programs (3rd ed.). Boston, MA: American Press. Read More
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