"Sports sponsors are having a ball"

From The National



Review by Ali Noel in KIN 435 (section 1)

The Volvo Ocean Race is a very well known, global yacht sailing event where some of the world’s top professional sailing teams compete in nearly a yearlong sailing marathon. The article “Sport Sponsors are Having a Ball” states that as of January 13th the Abu Dhabi leg of the Volvo Ocean Race was complete meaning the competitors continue to progress to the finish. Since the Volvo group is the main sponsor of this race the company expects to see immense increases in its projected sales in the near future. This company and many others including Prism and Standard Chartered that are involved in sponsorships all expect to see jumps in their forecasted revenues thanks to their branding to the public. For instance, the two-week period when the Volvo Ocean Race took place in Abu Dhabi brought in over 100,000 spectators. The Volvo Group designed a destination village as a marketing tool, which provided the company with a huge opportunity to get their name out to the public and all of the spectators that come out to view the race. Even having the Volvo name in the title of the race provides superior product placement and publicity. The marketing team at Volvo targets a specific demographic for this event. Their objective is to represent a fighting spirit and the goal to strive to be number one according to Anders Orsberg, the chief financial officer of the Volvo group. Because this tournament is an international event, the Volvo group is able to amplify its exposure in many countries around the world. The Volvo group is participating in numerous activations throughout the ocean race allowing people in this target market to touch and feel their current and upcoming products. The Volvo Ocean Race is a great example of how sponsorship and marketing can play a major role in impacting and persuading people to buy their high-quality products. In order to sell their products the Volvo group must engage with their target market to stimulate an interest and desire for people to buy their products. Through sponsoring this lengthy tournament, the Volvo group will be able to globally increase product awareness and therefore establish an emotional link for potential customers.

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Review by Wesley Goodman in KIN 435 (section 1)

According to the article “Sports sponsors having a ball," sports sponsorships are on track for a raise in spending this year. This in large part due to the number of prominent tournaments being help around the World, specifically in the United Arab Emirates.

The Volvo Ocean Race, a yacht race around the world, is a great example of this as The Volvo Group has spent more money than in recent years in order to market for such events. The Volvo Group always hopes to see a financial profit and this year they are expecting sales to increase thanks to their promoting for such events. Volvo has done a great job preparing for this event by advertising worldwide as well as building Destination Villages in passing cities, which are expecting to produce about 100,000 spectators. This easily expands The Volvo Group’s authority throughout their target market worldwide. 

The Volvo Group crafted their sponsored event around their values and morals as a company. A competitive attitude mixed with their organizations core values make up the Volvo Ocean Race’s principles and policies. This permits Volvo’s target market around the world to understand the Volvo Group’s morals and values and allows them to feel more involved with the company. 

Other companies are also spending more in sponsorship deals this year. Last year, Prism, a Middle Eastern sports marketing company, spent about $2 Billion last year and that number is expected to continue to grow as such opportunities as the Olympics in London come along this year. Even more companies such as Standard Chartered, a bank based in the United Kingdom, and Dubai Duty Free, an airport retailer, have been increasing it sponsorships over the past few years and that trend will continue this year. 

All in all sponsors are progressively spending more money to market themselves as revenue is due to increase this year.

"Selling Sponsorships"

From 2011 Fundraising and Promotions Guide

Review by Jessica Staten in KIN 435 (section 2)

The story is about the Corporate Sponsorship Program at Conway High School in South Carolina. This program has been used at Conway since the 1980s when Chuck Jordan, the Athletic Director and Head Football coach, first came to the school. The athletic program needs money so it uses its Booster Club and Letterman Association to attract local business and organization to become sponsors. Matt Varnadore, the Associate Athletic Director of Marketing at Conway, says that the program is all about the students. The Booster Club, made of about 30 volunteers, helps athletics also by fundraising throughout the year. The CHS Letterman Association is made of previous varsity athletes that want to help support the Athletic Program and for an annual fee can receive Letterman Lapel Pin and their name in the Football Program. Each year Conway High School has around 30 corporate sponsors each year. Corporate sponsors pay $500, while Non-corporate sponsors pay $1000. Some of the benefits from a sponsorship include signage on one of three scoreboards in football, baseball, or softball; a sponsor can also purchase an annual sponsorship which gives them the opportunity to advertise at numerous events, become a football game sponsor, and purchase membership into the Booster Club and Letterman’s Association. On special deal that Conway High offers is the Football Game Sponsorship Program. In this program, a business can pick a specific home game to sponsor and have the entire night focused on their business. They are given 12 general admissions tickets, use of the view box, four public address announcements, and can set up a booth to have giveaways, raffles, and other promotions. By using the Booster Club to solicit local business and organizations and networking through the CHS Letterman Association, Conway High School has successfully kept their athletics program running successfully. By giving the sponsor many benefits in their packages, they make the business or organization feel like they are the top priority. This strengthens their relationship with the school over time.

"More College Athletic Departments Partner With State Lotteries"

From Athletic Business


Review by Justin Thorpe in KIN 435 (section 1)

The article I reviewed was entitled More College AD’s Partner with State Lottery. This article went into detail explaining how the state lottery has certain sponsorships with NCAA football teams and is expanding their reach across the country. For example, the article talks about Oregon State and the University of Oregon and how they are somewhat involved with the lottery. Oregon State chose to allow the lottery to use their trademarks in the lottery’s promotion of the “Civil War” and allows the lottery to set up displays and advertisements on only two game days; whereas the University of Oregon did not chose to lend their trademark to the lottery yet allows them to promote the lottery at all of their home games for the season. By teaming up with the lottery both Oregon State and the University of Oregon will gain roughly $60,000. Since 1990, the University of Oregon has received around $11.3 million and Oregon State has received around $10.9 million dollars in lottery proceeds. The article also talks about hypocrisy among some of the colleges in that they are willing to receive money from the lottery proceeds but do not want to allow the lottery to use any of their trademarks that may come from their football program or school.

Some college athletic departments think that there is no harm in teaming up with the lottery and allowing them to use their trademarks whereas others think that they may either not be ready to take their program to that level or do not want to be promoted in that fashion. Although the lottery can provide some benefits to colleges and/or universities such as money and promotion, not all are willing participants of using the lottery as a way to portray their image.

My take on College programs being sponsored by their state lottery is it SHOULD NOT be used at all. The NCAA is strict on ever other subject that involves players gambling, receiving extra benefits, or getting paid for play, college teams should in no way be affiliated with a corporation that promotes gambling. There is no way that the NCAA should allow college football rivalries like Oregon and Oregon state be used to promote gambling on a scratch ticket. I was intrigued by this quote in the article; the lottery is an advertiser, and the sports networks that carry the games reach an audience all across the state," says Mary Neubauer, the Iowa Lottery's vice president for external relations, adding that lottery proceeds benefit the Iowa Veterans Trust Fund and the state's general fund, which benefits education at every level. "So advertising obviously is a big component of it, but the opportunity to spread the word about good things in our state is another, and that's what we're doing with this current promotion." I feel as if that quote is a cop out for the state lottery because in actuality all they want to do is sell lotto tickets with the college programs on them so that they can increase their revenue. That’s my take on College Athletics being involved with state lotteries.

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Review by Daniel Marchesani in KIN 435 (section 2)

I’ve never seen a state university partnering up with the state lottery, and after reading this article I think it is a great idea. I find that it is beneficial to both organizations because the schools are getting money and advertising out of it and the lotto is getting free advertising. For example over the past 20 years Oregon has received more than 11.3 million dollars and Oregon State has received 10.9 million dollars from the state lottery. Along with all that money, they have gotten ton of free advertising having its rival football game, the “civil war” written on thousands of lottery tickets. In return the lottery is allowed to advertise at the team’s home games. This is a great marketing strategy for both organizations (the lottery and whichever university they are with at the time) because they are mutually helping one another out to benefit themselves while doing know harm to anyone. "The lottery is an advertiser, and the sports networks that carry the games reach an audience all across the state," says Mary Neubauer, the Iowa Lottery's vice president for external relations. The lottery proceeds benefit the veterans in Iowa through a trust fund and go towards the states general fund which is money that goes to the education department. Mary goes on to say, "So advertising obviously is a big component of it, but the opportunity to spread the word about good things in our state is another, and that's what we're doing with this current promotion."

While others and I feel positively about this, some are against the fact that the lottery and Universities are working together. Michael O’Hara a longtime psychology professor at Iowa stated, “Gambling has been a big problem in sports, particularly college sports, and I would consider it a public-health issue.” He is strongly against the fact that State Universities are starting to associate themselves with such an issue. He believes it may end up hurting the Universities in the long run rather than continue to make it money.

Universities and the lottery working together seem to be working for both sides, while it is a great promoter for both organizations it is also a great money maker for both the school and the lottery.

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Review by Tommi Nissinen in KIN 435 (section 1)

The article discusses the recent trend of college athletic departments partnering up with state lotteries in an attempt to raise more money for their programs. While some universities are seizing the opportunity with little hesitation, others don’t feel as comfortable about getting involved. Since many schools have been accepting indirect lottery proceeds from their states for years, it seems rather hypocritical not to get involved with the latest trend.

According to the article, one of the latest examples of the phenomenon is the Civil War scratch-it lottery ticket, which is based on the rivalry game played every year between two Oregon powerhouses, Oregon State and the University of Oregon. While the lottery ticket clearly displays the trademarks of Oregon State, the University of Oregon chose not to lend its trademarks to the state lottery. Hypocritical, some might say, especially after receiving more than $ 10.9 million from the Oregon state lottery since 1990.

Chris Bjork, an Oregon IMG Sports Marketing senior account executive, helped draft a contract which allows the lottery a promotional presence at all seven home games of the season, but doesn’t allow the school trademarks to be used in the Civil War scratch-it ticket. “Hey, you know what? We don't feel as comfortable yet. We understand that the lottery does provide the university with some significant dollars, but we're just not there yet."

Despite of denying the use of the school trademarks on the actual lottery ticket, allowing state lottery to promote during the home games brings in $ 60,000 from the state lottery, which is the very same amount that is received by Oregon State for allowing using their trademark in the scratch-it. So basically both universities are getting the same amount of money from the same sponsor. The only difference is the way they choose to represent their brand image. Oregon State is fine with having their trademarks on a lottery ticket, whereas Oregon is fine with having the state lottery promote on their campus.

Despite of their different approaches to marketing and strengthening their brand image, there is one aspect of the story both schools seem to have very few problems agreeing with.

And that is exactly 60,000 dollars.