Sponsors Need to Focus on Measuring Impact - for Rights Holders

Sponsorship
Sport

Sponsors Need to Focus on Measuring Impact - for Rights Holders

In the world of sponsorship, the focus on measuring impact has become a one-sided affair.
By  
Speaker  
By  
Lauren Estwick
Published on
December 10, 2024

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Most conversations revolve around what the partnership delivers for the sponsor. But there’s a glaring omission: the mutual value that can be created when sponsors think beyond their own goals and consider the impact of their work on rights holders.

This isn’t just an oversight; it’s a missed opportunity. Sponsorships are relationships, and the best relationships are reciprocal. When sponsors prioritise mutual benefit, they unlock new creative possibilities and set a higher bar for the industry.

Rethinking Value: The Sponsor's Role

How many times have you heard a sponsor complain, “The rights holder won’t approve that idea”? It’s a common refrain, often uttered in frustration. But here’s the real question: how often do sponsors actually take the time to demonstrate the value of their ideas for the rights holder?

Let’s be honest—sponsors rarely do. They focus on justifying the spend to their own stakeholders, overlooking how their campaigns could deliver tangible benefits to the property they’re partnering with. This needs to change. Sponsors should come to the table prepared to prove how their ideas can align with the rights holder’s objectives, whether that’s expanding audiences, boosting sentiment amongst fans, or even driving ticket sales.

Take Paddy Power’s Save Our Shirt campaign with Huddersfield Town as a prime example. The campaign was a bold move, stripping the club’s shirt of traditional sponsorship branding and using the stunt to call out the over-commercialisation of football. At first glance, it seemed like a sponsor-driven agenda. But behind the scenes, Paddy Power worked hard to convince Huddersfield of the campaign’s value. They demonstrated how the campaign would generate massive PR for the club, resonate with fans who were fed up with shirt sponsorship clutter, and position Huddersfield as a progressive force in football. It worked—and the campaign became one of the most talked-about sponsorship activations in recent years. Huddersfield sold more shirts that year than Spurs.

The Operational Barrier: Silos Within Rights holders

One of the biggest barriers to unlocking mutual value lies within the rights holders themselves: the organisational silos between their partnerships and marketing teams.

Typically, sponsorship ideas are vetted and approved by the partnerships team. Their KPIs often revolve around revenue generation—closing deals, selling assets, and maximising immediate financial returns. Meanwhile, the marketing team, which ultimately realizes the long-term value of great sponsorship ideas, operates with entirely different goals: sentiment, audience growth, and brand building.

This disconnect creates a fundamental misalignment. A groundbreaking idea that could drive audience engagement or elevate the rights holder’s brand might get rejected simply because the partnerships team doesn’t see how it translates into immediate revenue. The reverse is also true: marketing teams may lack visibility into the deal-making process and miss opportunities to push for campaigns that align with their broader objectives.

This internal fragmentation snuffs out creativity and prevents rights holders from fully capitalizing on sponsor ideas that could have genuine impact. While many organisations may have a Head of Commercial who is responsible for both brand and partnerships, there are still cultural and operational walls that leave many potentially transformative ideas relegated to ‘what could’ve been.’

Rights holders Need to Loosen the Reins

To overcome these barriers, rights holders must rethink their internal processes. Rather than allowing partnerships teams to run riot over the approval process, they should create cross-functional teams that include marketing, partnerships, and even external sponsor stakeholders. This ensures that ideas are evaluated holistically, with an eye toward their broader impact.

Rights holders also need to give sponsors more creative freedom—but with one crucial caveat: sponsors must show their work. Prove the idea’s value. Explain how it aligns with the property’s goals. Share evidence of potential impact, whether that’s in terms of revenue, brand equity, or audience growth.

A case in point is Formula E, which has embraced creative freedom to attract innovative sponsors. Instead of offering traditional logo placements, Formula E works closely with brands to develop activations that align with their shared sustainability mission. BMW’s Race to Road campaign didn’t just promote their electric vehicles; it reinforced Formula E’s position as a platform for advancing electric mobility. The result? A partnership that drove value for both sides.

The Call to Action

When sponsors and rights holders shift their focus to mutual value, the potential for great work skyrockets. Instead of transactional deals, you get partnerships that feel authentic and meaningful. Instead of cookie-cutter activations, you get bold, headline-grabbing ideas that move the needle.

The sponsorship industry is at a crossroads. Brands are under increasing pressure to justify their investments, and rights holders are grappling with changing audience expectations. The answer isn’t more metrics or tighter controls—it’s a fundamental shift in mindset and operations.

Sponsors: Stop treating partnerships as a one-way street. Come to the table with ideas that benefit both parties, and be prepared to prove their value for both parties.

Rights holders: Break down your silos. Build collaboration between marketing and partnerships teams to ensure the best ideas get greenlit. Loosen the reins to give sponsors creative freedom—but hold them accountable for delivering ideas that align with your goals.

When both sides embrace this approach, the result is better creative work, stronger relationships, and a sponsorship industry that feels less transactional and more transformative.

The question isn’t whether this shift is possible—it’s whether we’re ready to make it happen.

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