Sport Funding and Sponsorship Deal - Case Study Example

Sport Funding and Sponsorship Deal Name Institution TABLE OF CONTENTS Introduction ….................................................................................................................. 3 Executive Summary............................................................................................................ 4 Cover Letter ….................................................................................................................... 5 Sport Property …………………………………………………………………………….. 5 Target Markets …………………………………………………………………………….. 6 Promotional Plan …............................................................................................................... 6 Benefits ……………………………………………………………………………………… 7 Creative Leverage ………………………………………………………………………….. 8 Budget, investment and evaluation ……………………………………………………….. 9 Marketing Plan for Property ………………………………………………………………. 11 Inventory of Assets ………………………………………………………………………….. 11 Reference ….............................................................................................................................. 13 Introduction Sponsorship Application Date of application 5th May 2016 Area of Specialization Football Sponsorship Period Four years Contact details Organisation seeking sponsorship Melbourne City Football Club Contact name Khaldoon Al Mubarak Position Chairman Phone number Email address Postal address MELBOURNE CITY FOOTBALL CLUB SPONSORSHIP Executive Summary Description of Project Melbourne City Football Club can be described as a professional football club, which is located in Melbourne, Victoria, Australia (Danforth, 2001). A very competent football club takes part in the Australian football league competition. The club was founded in the year 2009 when it was known as “Melbourne Heart” until it was renamed in 2014. The club’s location is strategically placed in the city (Hay & McDonald, 2007). To the advantage of this, the club needs to maintain an active record of winning most of the matches that will be played at the home ground to reach international standards. To keep a winning team it requires spirited effort from the technical bench and the management team. The management team is charged with the responsibility of ensuring that the technical bench and players’ financial and other essential needs are covered thoroughly (Borland & McDonald, 2003). It is for this reason that the management team is requesting for a sponsorship deal that will help to maintain and retain the team. In 2014, the sponsorship deal summed to a total of about $ 48 billion. The Club is applying for the sponsorship for the sole purpose of replacing the soccer grounds that has since become old. The engineer who was contracted requested an estimate of $ 670,000 to come up with a completely new structure that will match the international standards. Other sources for the project includes fees from the members to the tune of $ 100,000, banking savings to the tune of $ 20,000. The local government funds to the tune of $ 500,000. Cover Letter On behalf of the Melbourne City Football Club’s players and officials, I would like to point out that the Club has considered its options and decided to form a partnership deal with Vodafone. The partnership will see the club gaining from the massive sponsorship benefits in the sense that we could meet all our financial obligations in real time. The deal will enable the club to accomplish they key objective, which is to take an active part in the continental football arena by getting the required facilities. As a club, we will make sure that the Vodafone company gets all marketing rights as stated in our cooperate affairs article. It, therefore, means that we will be responsible for advertising your products in an effective and professional fashion. This objective will be achieved through active participation in the continental football arena and the cities in Australia when we play against other local clubs. Sport Property One of the key properties that the Melbourne City Football is the new training and administrative facilities that cost about $15m. The facilities are developed on the leased land in the precinct to the LaTrobe University. Thus, the clubs ‘City Football Academy” is one of the main properties of Melbourne club. The Melbourne Rectangular Stadium is also part of the sports club properties for the football matches. The club’s long-term goal is to become an excellent and leading football club that makes good use of its readily available pool of talents (Clarke, 2005). Most clubs in the region are known to recruiting renowned football stars for helping them to achieve success and honors. Melbourne City Football Club is striving to nurture its talent from the junior academy right from early childhood to professional football career without recruiting services of established players. Other goals that may not be ruled out include the need to dominate the international football arena as a highly competitive football entity in the area. It is, therefore, vital that the club gets an outstanding sponsorship deal that will enable it to achieve and maintain the goals and aspirations as stipulated in the mission and vision statements. As the primary sponsor, the club will strive to uphold sound standards that are in line with the sponsoring company’s goals and aspirations to ensure that the corporation remains beneficial in the deal as well. Target Markets Currently, the efforts of the club require new business models that involve running its events on multiple continents. The target market of the club is to reach international matches. Thus, all its objectives and activities are linked to ensuring that the club attains the international standards. That is; the club intends to run its events in the global world in the future. Once it has broadened its territories by reaching other football clubs where it may leverage other new markets such as the Middle East where it will attain numerous dividends for the sports club. The Melbourne Football Club seeks to build the international enterprise where it will acquire other teams and players to grow the club into important markets. Promotional Plan Melbourne City Football Club has a highly placed number of objectives, which will be achieved if our sponsorship request is granted. The club seeks to scout and nurture brilliant local talents that will be useful in making the National Football team to stand out and perform competitively at the international football arena. The process of nurturing these talents needs to be transformed into a professional activity in the sense that our talented young players can receive some wages at the end of training sessions (Andrews, 2000). Another objective that has been on the club’s list is the ability to compete actively at all the domestic tournaments. The club is also seeking to participate and compete actively in the continental football arena. Competing at such levels will require lots of support to ensure that the team travels far and beyond to play. It will also need a proper medical attention due to change of weather patterns that may affect some of our players and the injuries that they are most likely to incur when playing away from their normal field (Murray & Murray, 1998). Continental football will require that the team travels a lot, and therefore, we will be in dire need of support when it comes to meeting our traveling demands. Benefits of the Sponsorship Deal The club is seeking a sponsorship deal that will cover the duration of five years. The five-year period will enable the club to put its act together and deliver positive and desirable results. Such a deal will see the club handling the both the youth and senior team in an efficient manner. The duration will also see the club unveiling both home and away kits that will have the sponsor’s name embedded on the jerseys. The duration will also be favorable for the club to organize and run the sponsorship’s tournament by inviting other teams to compete in the mini tournament. Such a move will be beneficial to the sponsoring company in the sense that the corporation will market itself as an important partner in the sporting events and the process, end up attracting potential customers and establishing a reliable customer base (Nauright, 2004). The duration will also be enough to determine the team’s effort towards achieving success and fame. Therefore, the five-year duration should be enough to enable the club to get quality products that will motivate the players and the entire technical bench to pull a spirited performance and win all the competitions (Hallinan et al, 2007). The duration is, therefore, justified and deemed useful for a club that is seeking to dominate the local football scene and the continental football honors. Creative Leverage Melbourne club creative advantage is perceived on the fact that it has young players whose talents can be developed. Once the skills are developed, the sports club can brand the players to benefit and improve the reputation of the club. An active part in the top football league recognized football club takes off the Australian league tournament. The club is home to junior team and senior team members. The junior team members are facilitated at the club’s soccer academy where they get to gain skills and experience before joining the top team (Vamplew, 1998). The senior team is made up of members who graduated from the junior team and fresh recruits from other clubs. Apart from taking part in the top league, the club also takes part in charitable events and community service events as a way of helping and giving back some extra services to the community. The act of having a close relationship with the community contributes to enabling the club to get extra support from the community. The vision of the club is to strive and become the best football club that understands and satisfies the primary objectives as outlined in the club’s top agenda and players individual goals and aspirations. To achieve this, the club’ stakeholders including the sponsor and the fans must come together and support the players and the technical bench so as to become the best football club not only in the country but the continent (Melnick & Wann, 2011). The players and the technical bench have their goals and aspirations that need to be achieved. For example, it is the wish of each football player to win the domestic competitions and major tournaments in the continental arena. Such goals will enable the player to earn himself a place in his National Football team squad. The technical bench also wants to earn itself outstanding state commendations for having guided a club all the way to national and international honors. The club has its own Television Company. Therefore, the company will also market its products free of charge as a way of reaching the larger market in an efficient manner. The club’s home and away kits will have the company’s logo inscribed as a way of selling the company even further (Kelly, 2014). The club will be in a position of achieving this objective because it has so many away matches that are played far away from Melbourne City. Such a move will be very useful in the sense that the product will be marketed to other cities that have a high population (Elsahn et al, 2012). Therefore, by accepting our sponsorship request, the Vodafone Company stands to benefit by acquiring and maintain a new market for the sole purpose of improving its business network not only in Australia but also in other countries where our club will be having a series of matches to play. Budget, investment, and evaluation The club is in dire need of a massive sponsorship to the tune of up to one hundred and seventy million dollars on an annual basis. The amount will be necessary for taking care of some responsibilities (Ameri& Bashir, 2010). It will enable the club to offset its outstanding debts that amount to seventy-five million dollars. The amount will also be channeled towards settling the players’ salaries and wages with the highest player being paid three million dollars after every two weeks. The lowest paid player takes one million dollars. The amount will also cater for the salary and wages of the technical bench with the coach receiving five million dollars per month. The amount will also provide for other needs that may include the acquisition of both home and away kits and unique kits that will be required for different tournaments (Copeland et al, 1996). The amount will also take care of the teams’ traveling expenses that will include both local and international travel arrangements. The amount will also be used to pay our stewards who are charged with the sole responsibility of providing security during our home matches (Abratt et al, 1987). The international governing body of soccer dictates that all home teams must ensure the safety measures during their matches’ failure upon which the club will be held responsible for any damage that may occur because of insecurity. Such expenses will also include surgical operations and maintaining a specialized team doctor. The club is ready to ensure that the Vodafone Company’s members of staff are fully involved with the management and efficient running of the club. The club is willing to make sure that the Company gets two slots on the governing council (Cornwell, 2005). The club will also avail the post of an executive accountant to one of Vodafone’s staff members. The position will ensure that all matters that are related to finance are taken care of by the Company’s official as a way of enhancing and maintaining a conducive working relationship (Roy & Bettina, 2003). To enhance the club further, it will assign one of the Company’s officials the role of printing the club’s tickets that will also have the Company’s trademark logo inscribed as part of the marketing strategy that the club is ready to follow (Crompton, 2004). The newly appointed officials will also be on hand to supervise the gate collection exercise. Lastly, the club will organize an annual tournament that is named after the Company itself. For example “Vodafone Cup Tournament,” will serve as a marketing tool in the sense that other teams from other regions will participate, and it will attract many fans to the tournament. As a club, we will do everything within our disposal to retain the cup at all events. The move is aimed towards ensuring that the club remains competitive and upholds the goals and aspirations of the Vodafone Company in reaching out to the global market. Marketing Plan for the Property The marketing plan of the club is to understand that the marketing goal of the club is to use its properties and advantages to attract the investors. The messages to be advertised to the sponsors include the benefits they will receive once the club has succeeded in all different markets it intends to grasp. On the stipulation that the anticipated benefits are not reached, the value of the clubs property stipulates that the investors would be compensated. However, the chances of failure of the sports club are low. Therefore, the investors will benefit from investing by sponsoring the football clubs. The media plan of the marketing plan is to use all channels to improve public relations of the club. Thus, the club plans to advertise using the Vodafone telecommunications plans, as well as other sources such as printed media, radio, and online advertising among others. The club owns its television company, which provides it exclusivity rights and ensures it dominates the advertising of the club. Thus, it will be easier to attain sponsorship as it continues advertising the competitive advantages of the business. Inventory of Assets Vodafone Company is a renowned and leading telecommunication company that has millions of subscribers all over the world (Ziegelschmidt et al, 2005). As a football club based in Australia, we are very much aware of the kind of merger that Vodafone has made with Australian’s Hutchison Company thereby forming the “Vodafone Hutchison Australia.” Vodafone Hutchison Australia has strived to become one of the leading brands in Australia. It has over seven million registered subscribers in the country. The club is acutely aware of Vodafone’s corporate goal of becoming the best and outstanding telecommunications company in not only Australia but also the world. It, therefore, means that the corporation is seeking to attract new markets that may be economically viable (Daly &Moloney, 2004). Australia is a country that has a growing market demand for telecommunications since its citizens are in the ore front of adopting the new form of technology advancements that have been witnessed in the telecoms sector. Because of this, Melbourne City Football Club is ready to come on board and help the company to realize its goals and aspirations not only in Australia but also through the continent (Marshal & Cook, 1992). The club is willing to help the company to get new clients on an annual basis. It will strive to maintain our winning formula in the domestic league as a way of attracting many followers and members to the club. No one is ready to be associated with a losing side. In line with the corporate agenda, we will convince to become registered members of the club (King, 2000). Membership to the club will demand that each person moves to Vodafone as a way of becoming a full member of the club. The club’s stadium has huge billboards that are situated outside, and some are placed inside. We will avail these giant billboards to the Vodafone Company to advertise Vodafone related products free. Exclusivity is attained through the right of the sponsee to use images and trademarks among other logos to improve the standards of the club. It also offers a variety of tickets that meets the needs of the spectators such as preferred seating’s, luxury tickets and reserved seatings among others. It also has a venue that is used to improve the competitive advantage of the business. Reference Abratt, R., Clayton, B. C., & Pitt, L. F. (1987). Corporate objectives in sports sponsorship. International Journal of Advertising, 6(4), 299-312. Ameri, M. S., &Bashiri, M. (2010). Evaluation of sport sponsorship as an element of sport marketing mix. World, 3(1), 17-27. Andrews, I. (2000). From a club to a corporate game: the changing face of Australian football, 1960–1999. The International Journal of the History of Sport, 17(2-3), 225-254. Borland, J., & MacDonald, R. (2003). Demand for sport. Oxford review of economic policy, 19(4), 478-502. Clarke, S. R. (2005). Home advantage in the Australian football league. Journal of Sports Sciences, 23(4), 375-385. Cornwell, T. B., Pruitt, S. W., & Clark, J. M. (2005). The relationship between major-league sports’ official sponsorship announcements and the stock prices of sponsoring firms. Journal of the Academy of Marketing Science, 33(4), 401-412. Crompton, J. L. (2004). Conceptualization and alternate operationalization is of the measurement of sponsorship effectiveness in sport. Leisure studies, 23(3), 267-281. Copeland, R., Frisby, W., & McCarville, R. (1996). Understanding the sport sponsorship process from a corporate perspective. Journal of Sport Management, 10, 32-48. Daly, A., & Moloney, D. (2004). Managing corporate rebranding. Irish Marketing Review, 17(1/2), 30. Danforth, L. M. (2001). is the" world game" an" ethnic game" or an" Aussie game"? Narrating the nation in Australian soccer. American Ethnologist, 28(2), 363-387. Elsahn, F., Eman, N. M., &Tantawi, P. (2012, October). Team Identification Model: Antecedents and Outcomes of Football Sport Sponsorship in Egypt. In Proceedings of 18th International Business Research Conference. Hay, R., & McDonald, H. (2007). A Victory for the Fans? Melbourne's New Football Club in Recent Historical Perspective [1]. Soccer & society, 8(2-3), 298-315. Hallinan, C. J., Hughson, J. E., & Burke, M. (2007). Supporting the ‘world game’in Australia: A case study of fandom at national and club level. Soccer & Society, 8(2-3), 283-297. King, S. P. (2000). Merger Policy in Australia: Introduction; Mergers between major firms are often controversial. This policy forum considers the theory and application of recent Australian mergers policy. Australian Economic Review, 33(1), 65-66. Kelly, P. (2014). Vodafone PLC. Business Ethics. GRIN Verlag. Marshall, D. W., & Cook, G. (1992). The corporate (sports) sponsor.International Journal of Advertising, 11(4), 307-324. Murray, B., & Murray, W. J. (1998). The world's game: a history of soccer. University of Illinois Press. Melnick, M. J., & Wann, D. L. (2011). An examination of sport fandom in Australia: Socialization, team identification, and fan behavior. International Review for the Sociology of Sport, 46(4), 456-470. Nauright, J. (2004). Global games: culture, political economy and sport in the globalised world of the 21st century. Third World Quarterly, 25(7), 1325-1336. Roy, D. P., & Bettina Cornwell, T. (2003). Brand equity's influence on responses to event sponsorships. Journal of Product & Brand Management,12(6), 377-393. Vamplew, W. (1998). Facts and artefacts: Sports historians and sports museums. Journal of Sport History, 25, 268-282. Ziegelschmidt, H., Koutsogeorgopoulou, V., Bjornerud, S., & Wise, M. (2005). Product Market Competition and Economic Performance in Australia. Read More