Ambush Marketing

The Legal Framework and Financial Aspects of Sponsorship Warren Phelops
The Legal Framework and Financial Aspects of Sponsorship

Warren Phelops
Partner, Head of International Sports Group K&LGATES LLP
www.klgates.com

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2007/08 Season highlights
Media rights Corporate

Sponsorship

Regulatory/Brand protection

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The sponsorship market
Global value of sports sponsorship in2007 valued at over $40 billion; predicted to be just under $60 billion by 2012 “I am sure that sponsors will come to influence things more than they do now… but we have to make sure we get the balanceright between the integrity of the sport and the importance of funding”
- Mark McCormack

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The screen versions of these slides have full details of copyright and acknowledgements

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TheLegal Framework and Financial Aspects of Sponsorship Warren Phelops
Overview
• Motivation and financial rationale • Valuing sponsorship • Different types of sponsorship • Ownership of sponsorshiprights • Key issues • Threats to sponsorship

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What is sponsorship?
• “An investment in cash or kind in an activity in return for access to the exploitable commercial and marketing potentialassociated with that activity” Attractions • Defined targeting
– The accurate targeting of defined groups of people – Can be more cost-effective than other types of marketing

• Prominence
– Example:Nike’s 42.5 million Euro a year deal with the French Football Federation

• Passion
– Sport evokes the inner-core of peoples’ passion, emotion and loyalty

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Sponsorship value
• An inexactscience • Sponsor’s objectives are key
– Widest audience? – A ill Ancillary rights exploitation? i ht l it ti ?

• Event owner’s perspective

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The screen versions of these slides have fulldetails of copyright and acknowledgements

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The Legal Framework and Financial Aspects of Sponsorship Warren Phelops
Types of sponsorship
• Stadium or venue • Title or event • Secondary...