SEM II2 01 Negotiate SportEvent Contract Selling a

SEM II-2. 01 Negotiate Sport/Event Contract & Selling a Venue

Goal of Sport/Event Contract Negotiations �Ultimate goal is gain the sponsorship contract! �Build Trust with the sponsor �Make sure both parties are “winners”

Ground Rules for Effective Negotiations � Do your homework • Know your alternatives or BATNA (best alternative to a negotiated agreement) in case the deal does not happen. • Know your counterpart • Know the Standards � Double and Triple Think-anticipate what the other party wants (double) and anticipate what the other party thinks you want (triple).

Ground Rules -Con’t. �External listening-actually listen to the other party. �Make an aggressive first offer. �Present multiple, equivalent, simultaneous offers. �But NO more than 3 offers at once!

Negotiation Fear �Move beyond “positions” �Not be intimidated or intimidating �Own you Power-”position power” never assume because someone has titled position that he/she is the “all power”

Factors to Research before Negotiating �Always know the BATNA, in case you aren’t successful. �Trademarks �Merchandising �Company status �Terms of contracts �Past sponsorships

Items to be Included in Negotiations �Fee and Payment Schedules �Exclusivity �Lead time �Reach �Brand Positioning �On-site sales �Signage �Product Placement �Ticket Discounts or Premium Tickets

Considerations in Selling a Venue Sportscape is the physical surroundings of a venue that impact spectators’ desire to attend, stay at, and ultimately return to a venue and/or event. Factors impacting the overall sportscape of the venue: �Newness of the venue �Aesthetics or beauty of the venue �Seat comfort (Comfortable seating draws more fans) �Ease of layout (i. e. , degree to which spectators can move freely about the venue) �Cleanliness of venue (Fans are more likely to attend a clean venue) �Perceived crowding (Fans less likely to attend crowded event) �Adequate parking, access to public transportation �Reasonably priced snack foods

Incentives to Offer When Selling a Venue �Sponsor naming rights for venue �Signage and exclusive advertising (i. e. , sponsor’s competitors are not allowed to advertise at the venue) �Information booths/tents, which are a source of sales leads for the sponsor �Activity centers promoting the sponsor’s goods or services �Exclusive sales rights of sponsor’s products or services (e. g. , a beer company sponsor being the only vendor of beer at the facility)

Procedures to Follow When Selling a Venue When presenting a venue to a sponsor, emphasize the following: �Sportscape of the venue �Match-up between event’s needs and venue’s assets �Giveaways (e. g. , special seating, event apparel, VIP lounge, etc. ) �Ability to match sponsor’s objectives with layout of venue �Signage promoting sponsor �Sponsor as sole advertiser �Naming rights given to sponsor �Uniqueness of venue