Market your business through sponsorship
What is sponsorship?
Sponsorship is a marketing and communication operation (often linked to an event).
A contract is signed between:
- A sponsor: a person or a company
- The sponsored: another person (an athlete or an artist very often), a sports club, an event (sporting or cultural), a venue (museum, stadium or hall)
The sponsor is committed to:
- To pay money to the sponsored
- Provide him goods
- Perform certain services
Sponsorship aims to ensure the promotion of a brand (exposure), product or service. It is used by companies in three main situations.
The most common sponsoring a sports club. For example, you are a car dealer and you want to enhance your reputation in your town or in your area. You can become the main or secondary sponsor of the local football team. The players will wear a shirt with your logo. It will also be displayed around the stadium. All spectators necessarily see your brand every time they attend a game. Your logo will also appear on photos taken by journalists and shown in the local press.
Improve your image, pass a message
It is important to share common values with the event or club you want to sponsor. For example, if you have a bookstore, you can sponsor a local art exhibition or book fair. The goal is to show you are a perfect partner for this type of cultural event.
If you are a banker, you can sponsor a rugby club. Your message: you are a solid structure and your customers advisors demonstrate internal cohesion.
Some sports have a more higher image, such as golf or sailing. These disciplines can be interesting to sponsor when you are in the luxury segment.
Sponsoring allows you to increase awareness and enhance your brand image while saving you money. In many countries, sponsoring is eligible for tax deductions.
Sponsorship and taxation
Tax cut deduction
In many countries, sponsorship expenses are deductible from taxable results as they are "exposed in the direct interest of exploitation."
NB: We recommend each case to be properly assessed according to local law and rules in each different case.
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