One crucial aspect to understand in global sports and sports management is sponsorship. Anyone interested in sports management education or online sports management education needs to understand the value of sponsorship.
A sponsorship is an agreement between a corporate organization and a given sports organization. Any given sponsorship opportunity offers an exclusive partnership deal between a sports organization or, in some instances, the sports venue and the organization. For example, when Madison Square Garden makes a sponsorship deal with Pepsi, Pepsi gets a number of things in return. For starters, Pepsi gives Madison Square Garden a financial investment.
This gives Madison Square Garden an extra source of revenue. Pepsi also gets a number of different opportunities. One example would be a product trial, so consumers now have an opportunity to only try Pepsi at Madison Square Garden.
Now, while Pepsi might be an example of something that’s widespread and everyone’s possibly had, there could be a certain pizza company that few have ever had. If that pizza company makes a sponsorship deal with Madison Square Garden, every single individual who’s now visiting Madison Square Garden has a new opportunity to try out this pizza company.
The sponsorship opportunity also offers viewership ability. Pepsi or the pizza company might have ads up all over the stadium, which will be seen by thousands of people who are coming to Madison Square Garden. This is a great benefit in addition to the product trial. Not only are visitors getting a chance to see the signs, but they’re getting a chance to perhaps consume Pepsi or consume any given new pizza company that has signed a deal with Madison Square Garden.
