Negotiating a sponsorship deal

Résumé du document

Sponsorship is often set up in order to establish long term relationship and agreement between a rider and a company. Here is our negotiation folder on how to negotiate a sponsorship.

We choose to base our research on the snowboarding area because we think it is very popular in today's world. Moreover, it is the representative of a sponsorship negotiation because it bonds economic, marketing and communication stakes.

Dana Scavo is working for Freeride Inc and is in charge of hunting new talent in order to set up new sponsorship. She went to a contest and saw a young man called James. She believes that he could be interesting for the communication strategy of the brand, therefore she contacted his manager, Anna Finch, and decided to offer her to meet sometime soon in order to discuss about some potential agreements between the two parts. Anna accepted and now the negotiation between them is launched.

Extraits

[...] Here is our negotiation folder on how to negotiate a sponsorship. We choose to base our research on the snowboarding area because we think it is very popular nowadays. Moreover, it is representative of a sponsorship negotiation because it bonds economic, marketing and communication stakes. The context of the negotiation here is the following Dana Scavo is working for Freeride Inc and is in charge of the hunting of new talent in order to set up new sponsorship. She went to a contest and saw a young man called James. [...]

[...] That negotiation point leads to the second one which is the negotiation of an exclusive contract. The exclusivity James has already been showed off by other professionals. As matter of fact he is working with two other brands which are sponsoring him. The manager feels good about this relationship and feel more free to choose between those two, and that is why she is happy to be able to work with a third one. She does not want to work exclusively with one brand. [...]

[...] He made rapid progress through the ranks of US boarders and that's how Hannah discovered him. He has already won 4 titles and medals in national competitions. His aim is to turn pro and win a gold medal at the Olympics. Aims and benefits of looking for a sponsorship for James The job of sports manager is very complete. They have to co-ordinate marketing and publicity; recruit, train and manage staff; control a budget; analyse sales figures and set business targets etc . That is why they need money from companies. [...]

[...] That is the fourth point of negotiation. Contract length Hannah proposed a 2 years contract to begin. She thinks it's a good start to see how the agreement works, if the company fulfils its duties and if James is progressing. Result of the negotiation: Freeride Inc disagreeded with this proposition because they think its a too long period. They want a one year contract first, to see how the sponsorship works and what are the feedbacks for the brand, if their sales are increasing. [...]

[...] That is what they usually do when they believe in someone. And they really do with James. Result of the negotiation: The manager agreed with the exclusivity contract because she realized that working with a big name such as Freeride Inc would be a great opportunity. Moreover, their offer seems good and liable. But she has some other points that she wants to negotiate in their favour, that are going to be explained further on. The trainings Hannah has accepted the contract of exclusivity but with compensation. [...]