3 Risks to Managing Your Sponsorship Solo

Properties have come a long way in their sponsorship support as the relationships evolve into more technical partnerships. They understand that at renewal time, they must deliver the unique value the sponsor needs to continue the relationship. Our agency has noticed there can still be a gap in these relationships, and here are some things to consider when your brand decides not to consult expertise beforehand.

1. You risk being sold only one, potentially narrow, solution

You will often be offered a portfolio of assets the team wants to provide you and not what you actually need, especially if it involves assets out of their control. The team is in business to make them successful and perform well, as it should be. Teams want to think they can offer you everything a company would need to succeed, but how would they know right away?

They won't have the staff to provide you with 100% focus and do what’s always best for you when in reality, the team must do what’s best for them. As it should be. If you are new to the sport, negotiating with a team may be difficult since you are not sure what a good deal is and what assets are usable for what you want to accomplish.

2. You might not get many options or much flexibility

One particular property will want you to spend your entire budget with them. That may seem convenient, but you need a mix of optimized assets from what a team, track, or sanctioning body can provide. Properties also do not consider the budget you need for proper brand activation or the programs that are the real drivers of ROI.

Know what you want to address your objectives, then create a holistic motorsports sponsorship program that provides the best mix of useable assets to meet your goals. We always recommend starting small, and growing where you see results.

3. You don’t know what you don’t know

If you go to only one property directly, they will tell you what they want and what they have to sell. In a presentation or introduction, it's a cordial and inviting environment that makes it all feel right. What is often missing is an understanding of the uniqueness of racing and the value equation for what is being presented and is part of the sponsorship. Some assets cost teams money, but many do not, and that is where their perceived value can be boosted.

With a sanctioning body, for example, they push hard to sell their logo rights, which although has value, really does not cost the sanctioning bodies to “provide” those rights. However, things like annual credentials, access to B2B meetings, and introductions within the sport can mean a ton of value to you - but also carry a cost to the property. Knowing how to negotiate within these categories is key to constructing the most ideal program for your needs.