Professional Documents
Culture Documents
Sport Organizations
Attila Kajos Assistant Lecturer
Institute of Physical Education and Sport Sciences
Course Objectives
Basic Management Knowledge
Sport Management
Sport management elements and its environment. The three
sectors of sport.
Sport and Government. The role of state in sport development
(state and the three sectors). Reason and effect of state
intervention.
2
Course Objectives
Managing Sport Organizations
The sports clubs environment. Sport and non-profit sector.
Professional sport. Media, Sponsorship, Player
management (With case study).
The role of Strategy in Sport
Tasks of a sport manager
Case study
Sport Marketing
Sport as a Complex Product
Creating the Marketing Strategy (STP)
Creating the Marketing Mix (7P)
3
Introduction to
Management
Organization
Organization
A social unit of people, systematically structured and
managed to meet a need or to pursue collective goals on a
continuing basis.
Organizations
Institutes
Clubs (amateur/profressional)
Firms
Multinational companies
Management
To Manage means
all the activities and tasks undertaken by one or more
persons for the purpose of planning and controlling the
activities of others in order to achieve an objective or
complete an activity that could not be achieved by the
others acting independently. (Koontz et al. 1980)
Managemenet contains
Planning
Organizing
Staffing
Directing/Leading
Controlling/Monitoring
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Types of management
Strategig Management
Operations Management
Human Resource Management
Marketing Management
Financial Management
Information Technology Management (MIS)
Political environment
Economic environment
Technological envoronment
Social environment
2. Inner Factors
1.
2.
3.
4.
5.
6.
7.
Size
Information technology
History
Terms of employees
Geographic dispersion
Resources
Rate of cooperation
10
Professionalism
Leadership knowledge
Authority
General directing and planning objectives
The capability of coping with conflicts
Tha ability and willingnes to communicate
Tha ability and willingnes to cooperate
Role flexibility
Motivational and interest structure
11
Diversity
Verticality
Complexity
Durability
Freshness
5. Strategy
6. The current Organizational Structure
12
IV. The
characteristics of
the main functions
V. Strategy
III. Characteristics
of the Org.
Environmental attributes
1. Political environment
Political environment can be analysed as all the
Government measures that can affect directlyor
indirectly the development of a company's business
and may influence negatively or positively on their
performance.
Some political Factors
Taxation Policy
Trade regulations
Governmental stability
Unemployment Policy
15
2. Technological environment
Characteristics
The frequency of new scientific results
The practical adaptation of such technology
The predictability of the development
The complexity of the technology
Complex
Simple
16
3. Economical Environment
Most important characteristics
Volatility
Dynamic
Static
Complexity
Simple
Easy to forecast
Stabil plans available
Task are easy to set
Specialized items
Formalized, strict rules
Strict hierarchy (autocratic)
Complex
Uncertain environment
Decentralized decision making (democratic)
Particpative
17
4. Socio-cultural environment
The characteristics of
The labour market
The consumers
Sex
Age
Income
Education level
Power distance
Uncertanity avoidence
Indidualism/collectivism
Masculanity/Feminity
Long-Term Orientation
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No. of employees
Assets
Annual Revenue
Annual Income
Division of labour inside the organization
History
Establishing cicumstances
The organizations connections to a single person or
some persons
The age of the organization
The most important episodes in the life of the
organization
Geographic dispersion
21
Structural attributes of an
Organization
Attributes
1. Division of labour
2. Division of competences
1. Span of control
2. Hierarchy of Authority
3. Line vs. Staff
3. Coordinational tools
4. Configuration
23
1. Division of labour
Dividing the original working into smaller specialized
pieces, untill last process
Defining and arranging these task to individuals
(everyone has to know his/her job in the
organization)
This is one of the basics, when structuring the
organizaton
Department establishing is mainly done through
these principles
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1. Division of labour
Main dividing factors
Functions
Material (Products / Product lines)
Regional
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2. Division of competences
Span of control
A wide span of control: a large number of employees
reporting,
A narrow span of control: a small number employees
reporting
The appropriate span of control depends on the
experience, knowledge and skills of the employees and the
nature of the task.
26
2. Division of competences
Line vs. Staff
Line positions are those in which people are involved in
producing the main goods or service or make decisions
relating to the production of the main business.
Staff positions These are positions in which people make
recommendations to others but are not directly involved in
the production of the good or service
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2. Division of competences
Categories
Line
Staff
28
Staff
Pros
Hierarchy
and
competencies
and Large scale of specialization through the
responsibilities are clear and certain. The division of functions. The instruction and
connections are easy to overview and informational ways are direct. Its a creative
simple. The hierarchy avoids the fraud from and open environment, where productive
outside.
conflicts may occure.
Cons
Much of the time from the higher
The distinction of competencies and
manageent is used for coordination tasks.
responsibilities can be hard in the view of
The process of instructions and informations the entire organization.
can be very slow and roundabout, with a
The conflicts can easlily became personal.
deep horizontal structure.
It can cause personal dependence between
manager and staff.
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3. Coordination
Meanings
The act of state of coordinating or of being coordinated
Proper order of relationship
Harmonious combination or interaction, as of functions or
parts
30
Coordinational tools
Type of coordinational tool
Structural
Koordincis eszkz
Hierarchiy (vertical coordintion)
AdHoc and regulal commitees,
teams, projects
Product managers and matrix type
solutions
Technocratic
Person orientated
Conflict solving
Manager recruitment
Organizational structure
Organizational Culture
Training
Etc.
31
4. Configuration
The organizational structure derived from the
previously mentioned
The materialization of the organization
Characteristics
Depth (the number of vertical hierarchy levels)
Width (the number of horizontal levels)
Size (the number of staff under a certain manager)
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Structures
Functional structure
CEO
Manufacturing
Sales
R&D
Accounting &
Finance
Requirements
Static environment, narrow product-line
Characteristics
Strict hierarchy, regulation, centralization, mainly vertical
coordination,
Advantages
Efficiency, easier communication
Disadvantages
Isolation of units, Egoist units, coordinational problems
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Divisional structures
Product Structure
CEO
Soup
Division
Manufaacturing
Nuts
Division
Sales
Manufacturing
Sales
Market structure
CEO
Corporate
Customers
Sales
Customer
Service
Individual
Customers
Sales
Customer
Service
34
Divisional structures
Geographic Structure
CEO
West
Sales
Customer
Service
East
Sales
Customer
Service
35
Divisional structure
Characteristics
Wide range of heterogeneous products, product lines,
dynamic environment
Decentralized by primer functions/products/geographicly
and centralized inside the dimensions
Horizontal coordination between groups is not typical
Coordinating with mainly technocratic tools
Advantages
Strategic and Operative tasks are easy to separte
Strong market orientation, Low horizontal coordination
costs
Disadvantages
Division egism, Harder integration of strategic and
operative goals, duplication of effort, paralell functions
36
Matrix structure
37
Matrix structure
Characteristics
Dynamic and heterogeneous environment, complex and risky
tasks, developed communication skills
Not strictly regulated
Two dimension working together on the problem in the point
of intersection
The managers of the dimensions must have the same
competences
Mainly personal orientated coordination is used
Advantages
Adaptivity, Innovative, Higher performance
Disatvantages
The delimination of competencies is hard, Rivalry of managers,
Overlaboured groups, Decision avoidance, Responsibility
avoidance and devolution, Needs good skills from the staff
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PEST analysis
Political trends
Political, legal and regulatory issues affecting the comany
Identifying political trends, rules, etc.
Economic trends
Macroeconmic (Prosperity,Recession,Depression,Recovery)
Smaller trends (Change in income,
Technology trends
On and off-market technology innovation and technology
acceptance
40
Micro Environment
Suppliers
Customers
Consumers
Audience
Company
Distributors
General
Public
Competitors
Value net
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Competitor analisys
1. Identify
Monitoring system
Strategy, goals, strong and weak points, reactions, etc.
3. Competitive strategy
42
SWOT analysis
Whai is it?
A scan of the internal and external environment
an important part of the strategic planning process.
It is used by
Management
Marketing
Finance
Logistics
etc.
43
Process of SWOT
Choosing the Environmental
characteristics
Environmental
Opoortunities
Analyzing the external (macroand micro) environmnet
Environmental
Threats
Organizational
Strengts
Organizational
Weaknesses
Acting possibilities
-Choosing the decisive alternatives
-Comparing analyss
-Decision making
44
Strenghts
A firm's strengths are its resources and capabilities
that can be used as a basis for developing a
competitive advantage.
Examples
patents
strong brand names
good reputation among customers
cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
45
Weaknesses
The absence of certain strengths may be viewed as a
weakness.
Examples
46
Opportunities
The external environmental analysis may reveal
certain new opportunities for profit and growth.
Examples
47
Threats
Changes in the external environmental also may
present threats to the firm.
Examples
48
49
50
Strategy
Strategy
Strategy is
the determination of the basic long-term goals and
objectives of an enterprise, and the adoption of courses of
action and the allocation of resources necessary for
carrying out these goals (Chandler, 1962)
Strategic management
analyzes the major initiatives taken by a company's top
management on behalf of owners, involving resources and
performance in external and internal environments. (Nag
et al., 2007)
52
55
56
57
Mission
The key question of the mission
What is the main mission and goal of the organization (an
abstract value: creating
What are the main (core) values of our organizations?
What behavioral norms it follows?
What sort of political and social role it tries to fulfill?
58
59
Strategy
Types of strategies
Corporate strategy (the overall strategy of the company
stated in the mission and vision)
Business strategy (strategy of a single firm or product
line/product, etc.)
Functional strategy
Marketing strategy
60
Tactics
Are the smaller, and mid term components of the
Strategic Goals
It gives us the answer to How?
Eg. Strategic Goal - Increase revenue
Increase productivity
Increase marketing/advertising activity
Give some reduction for regular/big customers
Increase effectiveness (with managerial tools eg.
Motivation)
Etc.
62
Class Objectives
Sport Management
Sport management elements and its environment. The
three sectors of sport.
Sport and Government. The role of state in sport
development (state and the three sectors). Reason and
effect of state intervention.
Tasks of a sport manager
strategic planning,
manage large numbers of human resources,
deal with broadcasting contracts
manage the welfare of elite athletes who sometimes earn
100 times the average working wage,
and workwithin highly integrated global networks of
international sports federations, national sport
organizations, government agencies, media corporations,
sponsors and community organizations.
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68
72
74
75
76
78
81
82
83
85
The Market
Civil society
informal, non-market relationships that are mainly situated around
households, neighbourhoods and local communities.
87
88
Four Sectors
Nonprofit public sector
Driven by the state
Informal sector
Driven by civil society
Voluntary sector
driven by aspects of all three social orders
89
90
91
92
93
94
95
Nonprofit sport
98
100
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Governing bodies
Sport clubs compete against other clubs in
competition structures provided by regional or
state/provincial sporting organizations.
State-based teams compete in competitions
facilitated by national sporting organizations, and
nations compete in leagues or events provided by
international federations of sport (e.g. UEFA or FIFA)
102
Governing bodies
Mission
Promote sports at all levels in a given territory and sport
discipline.
Goal
the management,
administration
and development for a sport on a
global,
national,
state/provincial,
or regional level.
Main activity
Govern one or more sport disciplines.
103
Example
The Portuguese Football Federation
Organises the Segunda Diviso and Taa da Liga (The
Primeira Liga Liga ZON Sagres - , Liga de Honra - Liga
Orangina and Taa da Liga BWIN Cup - is organized by
LPFP /Liga Portuguesa de Futebol Profissional/
Taa de Portugal
Supertaa Cndido de Oliveira
Youth levels
Womens football
Beach Soccer
Futsal
National football teams (both men and women)
104
105
Role
developing athletes skills and knowledge, in
helping them learn tactics for success,
and enjoy their sport.
107
General volunteers
Some roles
Fundraising
Managing
Other minor work (lawn mowing, sewing, washing the
jerseys, etc.)
108
109
Professional sport
111
112
The process
Foundation
The sport emerges through ancient folk tradition
(e.g.soccer)
Codification (Revolutionary)
Codification may take place as a formalisation of practice
(e.g. cricket), as the outcome of an organisational
breakaway (e.g. rugby league) or through the need to
define the game at the time of invention (e.g. snooker).
Stratification (Evolutionary)
As a sport grows, the body responsible for codification sets
up or administers through merger a variety of leagues,
typically with an element of promotion and relegation, and
normally characterised by a regional dimension, especially
at lower levels. In this phase, the sport remains amateur
113
The process
Professionalisation
As a sport gains a popular appeal, the willingness of spectators
to pay to watch, and the willingness of investors to support
clubs, for altruistic reasons as well as commercial ones, allow
the payment of players.
Initially payment is in terms of expenses. This may extend to
payment for loss of earnings.
Post-professionalisation
During this phase, a senior game which is professionalised
typically sits alongside an amateur junior game.
Commercialisation
As the sport develops an overtly business context,external
organisations see the opportunity of using the sport for their
own purposes, typically marketing in the forms of sponsorship
involving governing bodies, leagues and clubs and
endorsement involving players.
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115
116
Professional sport
117
1. Manchester United
2. Real Madrid
3. Arsenal
4. Bayern Munich
5. Barcelona
6. AC Milan
7. Chelsea
8. Juventus
9. Liverpool
10. Internazionale
119
David Beckham
Cristiano Ronaldo
Lionel Messi
Wayne Rooney
Kaka
John Terry
Yaya Toure
8. Fernando Torres
9. Frank Lampard
10. Steven Gerrard
12,000,000
10,500,000
10,000,000
10,000,000
9,500,000
9,000,000
9,000,000
8,500,000
8,000,000
8,000,000
8,000,000
7,500,000
7,000,000
6,000,000
6,000,000
5,500,000
5,500,000
5,500,000
5,000,000
121
Sport
Lenght
Contract
Value
Averge /year
Averge/
game
1. Alex Rodriguez
Baseball
10 years
275 M
27,5 M
169,7 K
2. Albert Pujols
Baseball
10 years
240 M
24 M
148 K
3. Joey Votto
Baseball
10 years
225 M
22,5 M
138 K
4-8
Baseball
8-10 y
180-225 M
9. C. Ronaldo
Soccer
10 years
170 M
17 M
400 K
10-13
Baseball
20 M
3 years
(Ferrari)
153 M
51 M
2,9 M
8 years
148,8 M
18,6 M
500 K
Basketball
7 years
136,4 M
19,5 M
237 K
Am. Footb
8 years
132 M
16,5 M
1M
29. M. Schumacher F1
4 years
124 M
31 M
1,9 M
30. A. Ovechkin
13 years
124 M
9,5 M
116 K
Ice Hockey
122
Sponsorship management
Funding
Players sponsorship
Teams sponsorship
Leagues sponsorship
Events sponsorship
Buildings sponsorship (Emirates Stadium, Allianz Arena, etc.)
Player Management
123
1960 Rome
1964 Tokyo
1968 Mexico City
1972 Munich
1976 Monreal
1980 Los Angeles
1988 Seoul
1992 Barcelona
1996 Atlanta
2000 Sydney
2004 Athens
2008 Beijing
1,200,000 USD
1,600,000 USD
9,800,000 USD
17,800,000 USD
34,900,000 USD
286,900,000 USD
402,600,000 USD
636,100,000 USD
898,300,000 USD
1,331,600,000 USD
1,494,000,000 USD
1,739,000,000 USD
124
Sponsorship revenues
125
Sport Management 3.
Course Objective
127
Human Resource
Management
129
HRM
is a central feature of an organizations planning
system.
It cannot be divorced from other key management
tools, such as strategic planning, financial planning or
managing organizational culture and structure.
can both drive organizational success, and is a
consequence of good management and planning.
It involves a process of continual planning and
evaluation and is best viewed as part of a cycle in
which an organization aims to meet its strategic
goals.
130
HRM
For professional sport organizations
successful human resource management is equated with
profitability, long-term growth and success (on and off the
court, diamond and rink).
Better behaved athletes mean greater profitability and
overall success for professional sport teams and franchises.
131
Essentials of HRM
132
Job description
a document that covers the job content and context
Job specification
a document that covers the job requirements, especially
skills and knowledge base
134
job rotation
partly a remedy to the boredom and dissatisfaction that can result
from simplification.
involves workers swapping jobs on a periodic basis, in order to keep
fresh and stimulated, although clearly a sport organization will only
have a finite range of jobs through which employees can rotate.
Job enlargement
the process by which employees are encouraged to enlarge their work
and add tasks, even if they are simplified and specialized. The benefit
of this approach is a happier workforce, but the downside is the
perception of overwork.
job enrichment
refers to the structuring of the job so that it maximizes employee
motivation and involvement.
135
2. Recruitment
Refers to the process by which an organization tries
to find the person most suited to the job that has
been designed.
The greater the pool of applicants, the greater the
chance the organization will find a suitable
candidate.
136
3. Selection
Selection and screening is the process condensing
the candidates that applied for the position during
the recruitment phase to a short-list.
137
4. Orientation
This phase of human resource management is
important, as
a good quality orientation and induction programme
can make an employee feel both welcome and
empowered,
but a poor programme, or no programme can make a
new employee feel as if they have travelled to a
foreign country, in which they cant speak the
language, dont know where to go and cant read any
of the signs. In short, being in a new organization can
be a daunting and frightening experience.
138
139
140
3. Validation
staff are trained (this could be anything from a one day short course,
through to a two year Masters programme).
5. Evaluation
Successful or unsuccesful
141
6. Performance appraisal
It must be approached carefully by sport
organizations and human resource managers within
an organization must seek to develop a collaborative
process in which the employee, as well as the
manager, feels empowered.
Appraisal process within sport organization
Athletes and coaches are constantly rated on their
performance. In basketball the number of points,
rebounds, assists, turnovers, steals, fouls and blocked
shots are recorded meticulously.
From year to year, goals are set for athletes and their
ability to meet targets in key performance indicators can
result in an extended contract with improved conditions.
142
6. Performance appraisal
Not meeting the targets can mean a player in a sport
like baseball has to return to the minor leagues, to
return to form or to see out their playing days.
For coaches, performance appraisal is often based on
one statistic alone, the win-loss record.
143
planned for,
recruited,
selected,
Orientated
trained
and appraised its staff
HRM
The first six phases of the human resource
management process all contribute to retaining staff.
Poor orientation, training and performance appraisal
programmes in particular can all have a negative
impact on staff retention.
145
Leadership
Leadership
getting things done through people
exercising power in order to influence others
envisioning a bright future and taking others by the
hand towards it
leaders are made, they are not born; and they are
made just like anything else has been made in this
country by hard effort. And thats the price that we
all have to pay to achieve that goal, or any goal
(Westerbeek & Smith, 2005)
147
Leadership is:
goal oriented;
about influencing others
about empowering others
about seeing the big picture
about needing others
about strength of character
148
149
150
151
Organizational culture
Organizational culture
Culture tends to be inflexible and resistant to easy or
rapid change.
Culture is shaped by an organizations circumstances,
its history and its members.
Culture is learned and shared by members of an
organization and is reflected in common
understandings and beliefs.
Culture is often covert; the deep values and beliefs
causing behaviour can be hidden from organizational
members making them difficult to identify.
Culture is manifested in a variety of ways that affect
the performance of an organization and its members.
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
Performance
management
171
172
Strategic perspective
We should initially focus our attention on what the
organization wants to achieve.
Performance management system should be linked
to an organizations vision, goals and objectives.
Main question
What is the main goal of the organization?
Profit
Winning games
Promotion
173
174
175
176
177
178
Dimensions
Financial Perspective
financial measures are nevertheless a fundamental starting
point for evaluating the economic sustainability of an
organization.
They can range from total sales, operating income and net cash
flow, to return on assets, debt to equity ratio and net profit.
This dimension answers the question how do we look to
shareholders?
Customer Perspective
identifying the customer and market segments in which the
business will compete
and to develop measures that will indicate how well the
organization competes in these segments.
These measures will include total sales in each segment, market
share, customer acquisition, customer retention, and customer
satisfaction.
This dimension addresses the question how do customers see
us?
179
Dimensions
Internal-Business-Process Perspective
This requires management to identify the critical internal
processes in which the organization must excel in order to
secure a competitive advantage.
This dimension addresses the question what must we excel at?
Case
182
Case
184
Sport Marketing
Marketing Orientation
Successful marketing programmes are market driven.
In other words, you must find out what your
stakeholders want from their sport and respond to
those needs.
To be market driven means developing client
information surveys, including client information in
planning and decision making, investigating the
competition and developing market strategies.
186
Product
Price
Promotion
Place (distribution)
188
189
Sport product
A good, a service or any combination of the two that
is designed to provide benefits to a
Sports spectator
Participant
Sponsor
190
191
192
Hardgoods:
equipment, accessories
Softgoods: apparel, clothes & footwear
Collectibles and Memorabilia
193
Price
Pricing sport effectively is difficult and complex.
Consumers make decisions about whether to buy
the sport based on perceived value, comparison with
other competitive products, what friends think of it,
whether it is unique or a copy, and other factors.
Players, coaches and officials also have to consider
the cost of their sport against the benefits of being
involved.
195
Factors
Like any business, sport has production costs what it
takes to put the sport package together. Consider all of
these factors when determining a pricing formula or
pricing policy.
Market research has found that price does not generally
have a major influence on the decision of the passionate
consumer to attend a fixture. But pricing must be in line
with the pricing of other similar events.
Consumers also equate price with value: discounted or
free products can be equated with little or no value, so
run the danger of cheapening the product. Consider this
whenever applying a pricing formula, particularly if you
are thinking about offering freebies as incentives.
196
Factors
Players, coaches and officials will weigh up the
benefits of being involved against the cost.
Look at this from their point of view, and think about
what is in it for them rather than what is in it for your
sport/organisation. There are many competing
leisure activities for the active participant nowadays,
so consider how cost might negatively affect their
involvement in your sport
197
Promotion
Promotion is often seen as the exciting part of the
marketing mix but can be confused with marketing
itself.
This occurs because promotion is the most visible
part of the process.
Promotion is often wrongly portrayed as being
advertising only.
The main aim of promotion is to inform those you
are targeting and to encourage involvement in the
sport.
198
Place
Place relates to where and how consumers buy the
product (also called the distribution function.) How
do your target market get tickets or get involved in
the sport?
Your sports place concerns the facility (location,
layout, access, and amenities), rather than the
physical channels of marketing (wholesales and
retailers) which is primarily the sport spectator
marketing are.a
200
Public Relations
Public relations help determine the position of your
sport: it is a long-term means of building the desired
image for your sport or organisation.
Public relations play a crucial role in the way your
sport is received by consumers.
Building good relationships with the media are vital
in public relations.
201
Marketing Strategy
202
204
Price
What is the cost of your sport, including membership?
How does this cost compare to other sports or alternative nonsport or leisure activities?
How have you arrived at these prices? (For example, historical,
market rates ability to pay?)
What ideas or practises/policies have you regarding a graduated
pricing system for spectators?
Are there different rates for different participant segments?
Are there benefits for volunteers, such as free entry to big
events?
205
Place
Are there any barriers to access?
206
Example
A public swimming pool is a good example to
illustrate market segmentation. The different users of
a swimming pool are:
210
b. Identifying Objectives
Develop targets or results that focus on specific
market segments, andaim to reach the objective you
have identified. These should be SMART:
Specific
Measurable
Attainable
Realistic
Time framed
212
214
215
Sponsorship
Corporate supporters (also known as sponsors) need
to be encouraged or convinced to buy or join up in
the same way as other stakeholders.
Asking for sponsorship is not enough; you have to
offer something in return.
The benefits that sponsors are looking for will be
different from those sought by other stakeholders.
Members seek immediate service such as
competitions and social activities.
Sponsors, however, will want to use the sport to
promote its product to the market the sports
organisation appeals to.
216
Sponsorship
Promotions should be pitched at highlighting the
commercial value to a sponsor: the more a sports
organisation can attract an appropriate market, the
more attractive they will be to a corporate sponsor.
Sports sponsorship is the support of a sport,
organisation, event or competition by an outside
body or person for the benefit of both parties.
Additional funds, or a wider market, are the obvious
benefits to the sports body.
The benefit to the sponsor is often less tangible.
The sporting body usually makes the sponsorship
approach, not the potential sponsor.
217
Sponsorship
To establish what you could offer a potential sponsor,
consider the following:
Name
Image
Goodwill
Personality
symbols/logos
Synergy
Audiences
a market
heroes
218
Sponsorship
219