Common Issues with Revenue Generated from Broadcasting Right
February 12, 2025
In the previous few articles, we have already studied the concept of automation as it related to retail warehouses. However, it is important to realize that warehouses are not the only place in the retail sector where automation is possible. Over the past few years, the usage of technology in the retail space has rapidly […]
The United States of America is full of people who have huge student loan debt, credit card debt, and mortgage debt. There are many reasons which can be attributed to this massive increase in personal debt. However, the inability to completely understand and apply the concept of earnings power is also an important reason which […]
Just like we have the single stage Free Cash Flow to the Firm (FCFF) model, we also have the Free Cash Flow to Equity model. This model also is not used by analysts in advanced calculations. Rather it is used for the most rudimentary back of the envelope calculations for deriving the equity valuation of […]
In the previous article, we explained the concept of cost overrun. We also explained how cost overruns have a negative effect on the finances of the entire project. However, it is strange that despite being so harmful to infrastructure projects, cost overruns are still ubiquitous. It is common for more than 50% of megaprojects to […]
There have been many economic theories developed in order to understand how and why human beings save and spend their resources. Up until now, most of these theories have been developed based on the principles of theoretical finance. The first theory to be put up in this regard was developed by Modigliani in the year […]
In the previous article, we have already understood the meaning of title sponsorship. We also know why it is one of the most coveted forms of sponsorships.
We are aware of some of the prominent disadvantages associated with title sponsorship.
However, it needs to be understood that there are more advantages to title sponsorship as compared to the disadvantages. This is the reason that there are many high-profile sports leagues across the world that use title sponsorship to raise money and also there are many high-profile corporations across the globe that sponsor such events.
In this article, we will have a look at the advantages related to title sponsorship.
Also, since the name of the sponsor is associated with the title itself, it is mentioned almost every time someone talks about the league. As a result, the name of the brand gets repeated over and over again within a relatively short span of time. This leads to higher brand recognition. Title sponsorship has been successfully used by companies who have been trying to access a large market.
The end result is that the sponsoring company gets a lot of media attention. This ends up building a positive image since viewers start viewing the company as being cash-rich.
In the process, they also negotiate priority rates with their media partners for their title sponsors. However, this also means that the title sponsor needs to agree to minimum media spending while signing the contract. The media spend amount is generally separate from the paid sponsorship amount and can be quite significant.
For instance, it is common for automobile companies to place their new and upcoming models at such events. As a result, the product also gets covered by electronic as well as print media and is viewed by the public at large.
Many times, the commentators of the event will also be instructed to mention the product in their commentary so that it registers more clearly in the minds of prospective viewers.
In some sporting leagues, all participating leagues are required to carry the logo of the title sponsor on their uniform and kits. The size of this logo is prescribed by the league management. However, it is generally smaller than the logo of the sponsor of that particular team.
Along with uniforms, the title sponsor may also be entitled to project their logo and signage in the stadium as well as on electronic media. For example, they can project the logo at the boundaries of a cricket field or at the signboards behind the goal post in case of a soccer game.
The sporting league may require the celebrity to appear in some advertisements or endorse certain products for the title sponsor. These endorsements allow the brand to leverage the contracts that the league already has in place.
Since these celebrities have a huge fan following, the brand ends up getting both monetary as well as non-monetary benefits.
The title sponsor gets the right to place their signage and brand logo at such events. This can be quite valuable since such events receive a lot of viewership as well as press coverage. As a result, the awareness objective of the title sponsor can be met fairly easily.
The bottom line is that there are several advantages to title sponsorship. Sporting leagues across the world try to give the best deal to their title sponsors. This is because they invest the most amount of money and do so at the earliest stage possible.
The various types of media exposure that title sponsors get can be quite useful if a brand is cash-rich since it reinforces the brand. This is because each exposure that the public receives about the brand reinforces its image in the long run.
Your email address will not be published. Required fields are marked *