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Poll: Is sponsorship advertising?(19 posts)

Poll: Is sponsorship advertising?PODIUMBOUNDdotCA
Feb 20, 2003 2:17 PM
I'd just like to hear peoples opinions on what exactly sponsorship is. Is it simply advertising or is it more?

jesus nick, are they having air supply problems up in canada?collinsc
Feb 20, 2003 2:22 PM
wtf is wrong with you today.

yes its advertising. what the hell else is it? corporations dont get into cycling just because they think bikes are cool...
Advertising, of course. nmRJF
Feb 20, 2003 2:22 PM
I sold "Sponsorships" for the 1998 Goodwill games...Uprwstsdr
Feb 20, 2003 2:36 PM
Yes, it is simply advertising tied to a specific program. This program/event/competition/feature/team/athlete etc. is brought to you (sponsored) by company x. The comapny gets the added benefit of goodwill (an ad term meaning warm fuzzy feeling) by being associated with whatever it is they are sponsoring. The sponsors are interested in getting exposure. Sorry to burst your bubble but they generally don't have much concern for those receiving the sponsorship dollars beyond the impression created by being associated with them.

This is supported by the fact that during financially hard times, sponsorship budgets are usually one of the first to be cut.
I can assure you that there isn't anybody in the board room saying, "but if we cut those dollars then event/team/athlete x will not be able to train/compete".

Sorry, but it's the truth.
advertising, plain and simple. (nm)brider
Feb 20, 2003 3:16 PM
Holy ****, dude.czardonic
Feb 20, 2003 3:18 PM
Companies don't spend money for any other reason than to make money. That is their job, and their responsibility to their owners, stockholders, employees, etc. They wouldn't sponsor sports if they didn't expect a return for it, and I don't mean the warm fuzzy feeling of knowing that they helped a young, idealistic athlete realize his dreams.

They sponsor pros because pros will put their logo or their name in front of the public eye. If amatuer sports had huge spectator appeal, they'd sponsor amateur sports just as heavily. They sponsor amateurs and grass-roots programs so they can publicly pat themselves on the back for "giving back the the community" or "helping the heros of tomorrow realize their dreams", i.e. to foster good will in the marketplace towards their brand.

Is that cynical? Yes. But so what? What athlete is going to turn down money because the company offering it is doing it for some reason other than pure altruism? Besides, if the companies just gave a way money with no thought about how it will make it back to their bottom line, eventually they'd no longer be in the position to give away that money.

At the end of the day, sponsorship is payment for a advertising service. They aren't interested in your career or your progress beyond the degree to which those things increase the likelihood that someone will see their logo or somehow associate your success with their product. Like it or lump it. No one is ever going to force you to accept money if you don't feel that the sentiment behind it is sincere enough. Then again, you are limiting your value to sponsorers if you don't recognize that your job is to be an advertisement.
Feb 20, 2003 3:31 PM
Yes, of course it is advertising. That is the whole purpose of sponsoring someone. If the point wasn't to get their name on your jersey and/or bike so they can advertise to potential buyers, then they probably wouldn't do it. took my answer. n/mBonked
Feb 20, 2003 5:18 PM
If it quacks like a duck then its a...nmzooog
Feb 20, 2003 3:46 PM
Narrow mindedPODIUMBOUNDdotCA
Feb 20, 2003 7:59 PM
Heres a good point made on the Canadian Commonwealth Games website:

Amateur sports properties in Canada may be denying themselves sponsorship revenue by stubbornly trying to position themselves as strong marketing vehicles. Quite often they're not, says George Heller, President of Hudson's Bay Co. and a strong supporter of amateur athletics. That doesn't let prospective sponsors off the hook. In fact, with the right approach it should make it more difficult for them to say no.
And its true in some cases. A lot of car dealerships donate (sponsor) money to sports teams that will give them little to no return on their investment. But then they can show this to people when they ask how the company gives away part of its profits.

But the line is blurred in a case like buying the naming rights to a stadium. I have no info on whether they used this as a tax write off or not but most sponsorships I know you can write off. This is where a line needs to be drawn between supporting profession sports and amateur sports if only a 5-10% difference in the tax break. It would be a good first step to helping people overcome the exact anxiety a lot of people showed to support amateur athletics in the post below. Australia a country of 19 million people is pumping a lot of money into their infrastructure and programs and they are beating even the states with 15 times the population!!!

Narrow mindedUprwstsdr
Feb 20, 2003 9:15 PM
In the case of the car dealership, this is an example of goodwill. Consumers have many options open to them in making purchasing decisions. Sometimes other factors besides price play into that equation. You read it here all the time in the online price versus LBS service discussions. Recently, somebody commented that they supported a particular LBS because the shop in turn supported local teams and events. Did this person learn of the shop as a result of seeing their name on a jersey? Probably not, but the fact that they sponsored teams and events earned the shop goodwill (that warm fuzzy feeling I mentioned earlier) and thus a customer.

The sameholds true for the car dealership. A consumer gets satisfaction from the fact that by purchasing their car at that dealer they are helping to support a cause. This influences their decision. Markting = Influence.

Tax write-offs are not as much of (if any) an influence in stadium naming rights as exposure. " Tonight at Podium Bound Arena - The Canadian Track Nationals". Millions of TV viewers are exposed to the Podium Bound brand.

As far as government support, there are many benefits to this. Not the least of which is National Pride. One benefit of which is,that it helps the domestic economy as it influences people to but local products. Also, strong international sports teams can actually help tourism. The country's name is mentioned a lot, and is associated with winning. People making vacation plans may consider the country as a vacation destination because it is top-of mind. Obviously there are many non-economic reasons for a gov't to support its athletes, but things like this are part of the decision.

I am an idealistic person, and as much as I hope for there to be greater, more virtuous reasons behind the decisions that people, business' and governments make, at the end of the day, it generally comes down to money. This realization does not make me happy.
Sideline on Arena Naming...Spunout
Feb 21, 2003 4:25 AM
Let us say that the Podiumbound arena has been operating for years on government handouts, bake sales, parents' money, and non-affiliated unadvertising donations.

As a numbered corporation that never has a chance in hell of making a profit, you suddenly become the target of a takeover battle for the years of stacked ABIL (Allowable Business Investment Losses) that will flow through to the buyer(a profitable company). Therefore, Nick's $1M velodrome comes with a $5M tax credit, giving it considerably much more market value.

Unfortunately, Canadian tax laws don't help amateur sport because it is very difficult to call a team/organization a charitable or not-for-profit entity if someone is getting paid to ride a bike. Let's face it Nick, you're already a pro even if Mom & Dad are paying.
How am I getting paid?PODIUMBOUNDdotCA
Feb 21, 2003 9:50 AM
I'm 19... still live at home and am going to school. Whether I was riding or not I'd still have a place to live, food on the table and my schooling paid for. But because I am riding my parents won't pay for everything so I have to have a job on the side. Its not a rough life but its far from the life of a pro.

So basically I think with some effort the tax laws could distinguish between a professional sport and an amateur (charitable ) sport. Like a car company here in Calgary is "sponsoring"/donating the lease of a car to Jarome Iginla... a guy who next year will be making 7.5 million. Is this crap? Absolutely. Why the heck does a guy with such a large income need a car handed to him.

Because people WANT to be like IGINLA. nmSpunout
Feb 21, 2003 10:45 AM
When have you ever heard Jerome Iginila in a chevy? nmPODIUMBOUNDdotCA
Feb 21, 2003 12:09 PM
Tax write-off, yes: Advertising Expense. 'Nuff said. nfmSpunout
Feb 21, 2003 4:19 AM
Professional sponsorship =tyrius
Feb 21, 2003 8:21 AM
Advertising Expense.

Companies can use Expenses to lower their income to avoid paying taxes, but it isn't really a tax "write off". They give away a car or something of that nature and call it an expense if given to a professional team and may be able to call it a donation if given to an amatuer. Regardless the net is the same lower taxable income.

Also, someone talked about "goodwill" and while that isn't technically the right term it is the right idea. If giving away a car to a sports team makes that company look like they are giving away their profits and are charitable and giving then that is the return on investment.

And to answer your question clearly Sponsorship Is Advertising. Why else would they do it? Not many companies are in the business of giving away money.
Then why do I have product sponsors?PODIUMBOUNDdotCA
Feb 21, 2003 9:44 AM
I don't get paid to use the stuff but they give it to me... I use it... both the company and I are happy. Realistically do they expect huge gains from this?

Its only really Rudy Project that has the "team" colors that might benefit from this "advertising" since a fair number or people are racing with the white/silver glasses.

So it comes back to that sponsorship should be goodwill and not an endorsement on the part of the athlete. When that line is crossed there should be a tax penalty. A clear line is getting an amateur athlete to support something as opposed to a pro.

Let's say you do end up on the Olympic Podium..Uprwstsdr
Feb 21, 2003 10:35 AM
Chances are you will thank "endorse" the companies that helped you along the way. This is an investemnt on the part of the manufacturer. People see you using the products, assume they must be good, certainly good enough for an Olympic Medalist, and they buy it.