Managing Sport Sponsorship Programs - Article Example

A rather shortsighted tendency exists where clubs look at the contracts as an easy source of revenue while clubs also go into the contracts as a tactic for marketing communication. The objective from both parties ought to be building relationships, and acquiring, and developing resources, and strategies for networking. But many corporates as well as clubs have continued to view the sponsorship contracts as short-term hence failing to strategically evaluate the kind of contracts they go into. Corporates in most cases have tendencies of hurrying into contracts with clubs without proper negotiations, hence failing to develop and manage the relationships.

There is, therefore, a need to proactively monitor the contracts on the side of sponsors especially, negotiate properly, enter the contracts for reasons more than just communication, make rational decisions on the same and ultimately enter into relationships that add value. With the growth in the value of sponsorship programs not being questionable organizations must think broadly and consider the contracts as strategy, networking, and relationship-building avenues. There is a need to leave the short-term perspective of the transactions and embrace a long-term value approach in signing the sponsorship contracts. Read More