LSU KIN 3802 Mid Term

Event Management
* Venues
* Rules
* Event Setup
* Common Practices
Sports events are unique in that every SPORT is different in terms of:
* Region to Region
* Country to Country
Even some events in the same sport are very different from:
* Special Events
* Event Bids
* Recurring Events
Three types of sports events?
* New Events
* Existing Events
What are two types of special events?
New Events
* An event created from scratch
* Always most difficult to execute
Existing Events
* An event that has already taken place
* Experience and expectation exists
* Pressure is to improve and grow
Event Bids
Local Organizing Committee that creates a proposal to conduct an event for a national governing body
* Usually long term process (can be 10 years out or more)
* Can be expensive to secure depending on the event
* Competition for events can be fierce
Event bids characteristics:
Recurring Events
* Teams, Leagues or Conferences that produce a schedule of competitions over a certain time period
* Essentially the same event executed many times
* Generally spectator-based
* Variations can be difficult to manage and communicate with fans and spectators
Event Terminology
* Common terms and concepts that are germane to the special event industry
USO Philosophy
* Understanding Stakeholder Objectives
* “Golden Rule” of Sports Events
* Success in events requires a true desire to understand the stakeholders’ objectives
* Cities/Venues
* Sponsors
* Media
* Broadcasters
* Community
Major Stakeholders
* Fans
* Athletes
* Spectators
Most Overlooked Stakeholders
* Value Added Activation/Branding Sponsorships
* Sponsor Owned Events
* Corporate Event Groups
* TV Considerations
* “Buying” Events vs Hosting Events
Current Trends and Concepts
Event’s Objectives, Strategies, Tactics
Start with a single, primary objective
First Law of Event Management
* Clear
* Simple
* Easily Communicated
Primary objective is….?
How “player friendly” they are.
How is event success or failure commonly determined?
Both care and behavior of the athletes
What influences the personality of the event?
Have stronger player fields resulting in greater satisfaction and higher revenues.
Player-friendly events are more likely to have what?
Primary Event Objectives
* New (First Time) Events
* Existing Events
* Event Bids
* Recurring Events
* Promotion
* Audience
* Partnerships
* Environment
* Revenue
What does the P.A.P.E.R. Test stand for?
Promotion
* What essential message or important information do I want to communicate to the public about the event, sport, or organization
* Can I build interest in my sport or organization before, during, or after the event? By what
measure can this increased interest be demonstrated?
* How do I want the event to position our sport in the community, and what kind of legacy should
it leave?
Audience
* Who is our target audience for the event, the people who are most likely to participate, attend,
or purchase a ticket?
* Beyond the most likely target, what audiences with similar interests can be attracted or invited
to increase attendance, interest, and relevance for our event and further our organization’s
overall objectives?
* Is there an opportunity to win entirely new fans or enthusiasts to our sport by encouraging their
attendance?
Partnerships
* Can we use the event to develop, maintain, or strengthen relationships with our organization’s
partners and supporters (fans, athletes, members, donors, sponsors, community leaders, local
government)?
* What kind of experience do we want to leave our athletes and partners with? How do we want
them to feel before, during and after the event?
Environment
* Who are our competitors, and what do we want to communicate to differentiate our sports
organization from theirs, and our event from the programs they stage?
* Do we need to set ourselves apart from other similar organizations operation in our community
or business environment that compete for a share of available dollars, time or attention?
* What do we need to communicate about the positive attributes of our sports event that sets it
apart from other leisure activities similarly competing for the public’s, or a potential sponsor’s,
attention?
* Do we need to address a perceived time or economic inconvenience that attendees,
participants, or partners may encounter when deciding to attend?
* Do we need to address a preconceived notion about our sport, or organization, that makes it
more difficult to generate attendance or participation?
Revenue
* How much revenue do we need to generate for the event and/or for the organization?
* Do we want or need to generate revenues in excess of expenses? Is this potential profit
essential to growing the event in the future?
* How much money can we invest beyond expected revenue to achieve our objectives?
* Is, or should, our event be associated with a community cause or charity? How much money do
we need to generate for that cause?
Maximizes event value by revealing ALL possible secondary objectives
What does the P.A.P.E.R. test analysis maximize?
Strategy
Best, most realistic, most cost efficient plan
Tactic
* The actions that cost and (potentially) make money
* The event itself
Sports events
Companies use these to meet their business goals.
* Product Launches and Re-Launches
* Increasing Sales
* Branding
* Marketing Lifestyle Programs
In what ways do companies use sport events to meet business goals?
Dew Tour
What is an example of a sport event as a business solution?
* Less financial commitment up-front
* Does require monetary investment however
* Allows for creative control and design
Why should one CREATE a new event?
* Acquisition usually means buying for history/prestige/title/date
* Sanctioning can play a big role
* Study the event’s financial results
Why should one ACQUIRE an existing event?
* Always start with focus on objectives
* Design of the event is your chance to be creative, build a personality of the event, and the process of defining the event
* Participants
* Geographic Reach (Its impact on local, regional, national, or international)
*Branding
What is the checklist for creating an event?
Brand
A title and image/logo that reflects mission and garners the appropriate attention.
* Alter or not Alter? (If it ain’t broke, don’t fix it)
* Sponsor Acquisition (Leveraging value of sponsorship)
* Re-branding events to past glory
* Sanction acquisition (Moving events to new venues/cities)
How to execute an event acquisition?
Managed Event
****************************************
Sanction
* An official approval for your event from a National Governing Body
* Standardizes the conditions under which competitions are executed
Event Planning Process
Putting strategies and tactics together with a support organization
Budgeting and Financial Considerations
What are the financial goals?
Where are we going to “play”?
Determining event location that best fits our event design
Event Planning Process
Proper Preparation Prevents Piss Poor Performance
What are the 6 P’s?
Production Schedule
Covers everything you need to do and when you need to do it.
* Elementary Tasks
* Begin with developing a list of elementary tasks
* Review the event’s primary/secondary objectives
* Examine the TACTICS needed to meed the objectives
* Your elementary tasks are designed to ensure the objectives are met
* Elementary tasks are broken into “key activities”
Where do we start with a production Schedule?
“Supportive tasks” and “decision points” that precedes the completion of each activity
What is successful execution dependent on?
The structure
Define areas of responsibility and accountability for each individual in the event organization
Decision Making Process
*****************************
* Full-time
* Part-time
* Volunteers
* Outsiders
* Consultants
* Vendors
* Sponsors
* Stakeholders
* Agencies
Organizations are traditionally a combination of:
Handle events year round
What do professional event management companies do?
Seasonal Organizations
Small core staff with combination of outside resources
Grassroots organizations
Traditionally consist of volunteers only
* Operations
* Competition
* Marketing
* Guest Services
* Presentation
* Hospitality
* Broadcasting
* Business Affairs
Functional Areas of an event organization:
Operations
* Facility Management
* Transportation
* Office Services
Competition
* Scheduling
* Site Preparation
* Equipment
* Officiating/Timing
* Training/Medical
Marketing
* Sponsorship
* Creative Services
* Advertising
Guest Services
* Ticketing/Registration
* VIP Management
* Hotel Management
Presentation
* Creative Production
* Stage Management
* Scoreboard Operations
* Video/Technical Production
* Make registration easy
* Communicate details and expectations clearly
* Provide incentive upon completion
* Value added items and rewards
What are keys to a great volunteer program?
* Fans of the sport
* Community based
* College/University Sports Admin programs
* High schools
* Service organizations
* May need to advertise
Where to recruit volunteers?
Event Budget Management
Line Item Budgets
The simplest form of budgeting
* List of Revenue/Income
* List of Expenses/Costs
What are two components of Line Item Budgets?
Profits/Losses
Subtract expenses from revenues =
Experience
What is critical?
* Venue Costs
* Player/Game Related Expenses
* Event Operations
* Marketing & Promotions
* Sponsor Fulfillment
* Guest Management
* Event Presentation
* Contingency Funds
Specific Event Costs include:
Reviewing venue options
Where does budget construction begin?
* Rent
* Facility Labor
* Commissions
* Ticket Sales Tax
Types of Venue costs
* Significantly impacts/dictates rest of event budget
* Every facility has different financial goals
* Facilities will request information about the event to put together a proposal
* Events with large numbers of hotel room nights may be eligible for significant discounts
*Review the final facility proposal (have an attorney review all terms before signing)
Rent does what?
* Front of House vs Back of House
* Conversion Charges
* Union vs Non-Union Labor
Facility Labor
* Significantly impacts/dictates rest of event budget
* Every facility has different financial goals
Commissions
Ticket Sales Taxes
* Significantly impacts/dictates rest of event budget
* Every facility has different financial goals
Player/Game Expenses
* Must recognize participants or players in some way
* Be sure to set aside funds for prizes, appearance fees, and winner pools.
Event operations
* Insurance
* Staffing Expenses
* Legal Services
* Communication Tools
* Volunteer program
* Venue Infrastructure
* Storage/Warehousing
* Shipping & Freight
* Permits/ Regulations
Marketing & Promotions
* Advertising
* Publicity
* Promotions
* Graphic Design
* Entities to manage these functions
Sponsor Fulfillment
* Sign Design & Fabrication
* Comp Tickets
* VIP Receptions
* Gifts
* Premium Items
* Labor for Product Sampling
Guest Management
* Gifts
* Suites/Premium Seating
* Guest Transportation
* Parties/Receptions
* Hotel Accommodations
Event Presentation
* Production specialists are needed to plan and stage the entertainment portions of the program
* Entirely dependent on the event
* Event Producers
* Stage Managers
* Technical Directors
* Lighting Designers
* Script Writers
Event Presentation includes:
10%
Less than $50,000 Budget
7.5%
$50,000 – $250,000 Budget
5%
Budget of $250,000 or more
Revenue Overview
What is always more difficult to forecast?
* Type/Nature of Event
* Venue
* Income Objectives
Revenue forecasting depends on:
* Ticket Sales
* Sponsorship & Advertising
* Merchandise
* Food and Beverage
* Broadcasting
* Tournament Fees
* Grants & Donations
* Miscellaneous Revenue
Event Revenue includes:
Ticket Sales
Brings in the most amount of money
$49,000
What is the Gross Potential of….
* 2,000 Lower Level Seats @ $10
* 5,000 Middle Level Seats @ $5
* 2,000 Upper Level Seats @ $2
Sponsorship
What is the most overpriced?
Per Cap
* Amount of money the organizer expects to realize in merchandise sales, on average, from each person at the event site
* Heavily dependent on understanding your audience
Best fit your audience/event
Provide the types of food/beverage items that do what?
Second Law of Event Management
Transfer risk of loss in merchandise and food & beverage to a third party
Broadcasting
Very small percentage of events are desirable enough to attract broadcasters willing to pay for broadcast rights
Tournament/Entry Fees
Grassroots events routinely do not charge admission but do charge registration/entry fees
Miscellaneous Revenue
* Parking/Valet
* Coat/Bag/Packet Check
* Sales of Passes to VIP/Exclusive Access Areas
* On-Site Fundraising
* Raffles/Lotteries
Seed Money
* Capital invested in an event early in the planning process
* Covers early costs before revenues are generated
* Sponsors/Partners
* Equity Investors
* Host City
Sources of Capital/Seed Money:
Seed Capital
Serves as initial “cash flow”
NEVER
__________ dip into your own pocket.
* Develop your budget as soon as possible
* Base almost every decision on it
* Review of the budget should be ongoing
Key Budget Points:
Key Budget Points
Budget + Mission Statement =
Event Location
* Economic Impact
* Hotel Room Occupancy
Two Main Factors for Host Cities
Opportunity Period
Time of year when hotel occupancy is traditionally low
Media Coverage
Showcases city or region to outsiders who otherwise wouldn’t be there
* Resources and Support
* Bid Solicitation with a Request for Proposal
* RFP Evaluation
* Bid Fees
* Host City is Selected
What events want from a host city?
Bid Solicitation with a Request for Proposal
Sports events test the market place with high demands in RFP’s
RFP Evaluation
Contrasting each market on a number of criteria
Bid Fees
Fees paid upon submitting a RFP or upon being chosen for event
Host City is Selected
* Confirms what organizer and city have agreed to provide AT THIS POINT
* Should include important deadline dates to any areas not yet confirmed
* Letter agreement or contract is written up
Bid Solicitation
Asks host city to ensuring the success of the event
* Privately Owned
* Publicly Owned
Two event facility types
University Owned Facilities
Limited Availability
Recreation Facilities
Allocate certain time and space for special events
* Parking
* Seating Capacity
* “Part of the Town”
* Weather Options
* Traffic/Travel Times
Physical Characteristics of the Facility
* Time Requirements
* Labor Costs and Considerations
* Venue Promotion
* Sponsor Considerations and Exclusivity
* Hospitality Options
What Events Want From Facilities
Lease Agreements
Very detailed, negotiation continues to work through all points
* Costs
* Facility Capacity
* Reputation and Geographic Desirability
* Sponsor Relationships
Factors to weigh before making a decision
Legal Counsel
Essential to have ______ ___________ review and make any necessary changes
* Sampling
* Broadcast Rights
* TV Capacity
* Program (Creative) Approval
* Damages
* Cancellations (YOU and VENUE)
* Interruptions
* “Force Majeure”
* Indemnification
* Assignment Clause
* Evacuation of Facility
Contract “Boilerplate”
Sponsorship Sales REVISED
* Qualifying Prospects
* Designing a Sponsorship Program
* Present the Opportunity
* Revise the Proposal
* Close the Deal
The Sales Process
* Those that will generate expenses against the event budget
* Those that can be provided without the organizer’s encountering any out-of-pocket expenses
Types of Sponsor Benefits
Sales Commissions
Hire an event marketing agency to sell sponsorship?
Sales Expenses
* Travel
* Accommodations
* Printing
* Multimedia
Market Research
* Researching your participants/spectators
* Measuring effectiveness of sponsorship, advertising, and promotional programs
* Results can drastically improve sponsorship sales
Fulfillment Costs
Costs of selling and fulfilling the package of benefits offered to sponsors
* Complimentary Tickets
* Signage and Displays
* Program Advertising
* VIP Receptions
* Sponsor Gifts
* Sampling/Giveaways
* Discounting/Coupons
Types of Fulfillment Costs
USO (Understand Stakeholders’ Objectives)
Philosophy means we focus on understanding what sponsor’s want from sports events
* Qualify and Target Prospects
* Design a Sponsorship Program
* Present the Opportunity
* Revise the Proposal
* Close the Deal
Five Step Process to the Sales Process
Qualify and Target Prospects
Narrow potential partners to qualify prospects that perceive sponsorship of an event is an effective marketing opportunity and cost efficient business solution
Shotgun Approach
Common to see attractive but generic presentations with standardized packages for everyone
Rifle Shot Approach
A precisely tuned campaign to reach specific target markets
Slide 9 Chart
Design a Sponsorship Program
Title Sponsorship
* Powerful, Far-reaching tool for corporate partner
* This is worth a significant premium
* Chick-Fil-A Bowl and Zurich Classic
Most benefits and most valuable solutions compared with other corporate partners
Sponsors can expect to reap what?
Inclusion sponsor identity in the event title and graphic representation in the event logo
What is a critical component to title sponsors?
Presenting Sponsorship
* Generally priced lower because it is easy for fans/media to remove the corporate identity from the event name
* ESPN College Gameday (Built by The Home Depot)
Exclusive Sponsorship
* Largest number of sponsor companies and brands
* Critical to providing a respectable amount of revenue and promotional activation
* Some will seek ways they can “standout” or exhibit more event ownership
* Sponsors buy into events to convert the benefits they provide into business solutions
* Protects sponsors from their competitors within the category
* Essential to define what category is being granted exclusivity
How are exclusive sponsorships exclusive?
* Beer
* Soft Drinks
* Wireless
* QSR
* Airline
* Credit Cards
* Computer
* Automotive
* Outfitter
* Financial Services
* Fuel/Energy
* Timepiece
* TV Station
* Talk Radio
* Music Radio
* Print Media
* Retailers
Most Commonly Found Product Categories
Non-Exclusive/Official Supplier
* Not practical for grassroots organizations such as Little League or high schools to have exclusivity for sponsors (Multiple insurance agencies/restaurants sponsoring the same event)
* Media partners are good targets for non-exclusive partnerships as well (Multiple radio/TV stations in a market)
* An opportunity if no other companies in a category want to enter into an exclusive arrangement
Business Solutions
By matching the menu of event sponsorship resources to the business needs of the prospect, the events organizer is no longer selling just benefits.
Be flexible with crafting packages
What is the key for the event organizer?
* Craft a proposal that will catch the eye of a decision maker
* Clearly and inarguably illustrate the value of the event
* Take possible questions/objections out of play by anticipating and answering them before they surface
Objective of obtaining a partnership
* In Person, Verbal demonstration that your event meets the needs/wants of the sponsor
* Physical, leave-behind materials that keep selling well after the meeting
Sales presentation has two components:
* Essential that the presentation be done in person
* Include images that illustrate the strengths and visual attractiveness of the event
* Use plenty of visual aids into your live presentation
* Bring inexpensive gifts of event merchandise to the first meeting
* Leave copies of the visuals behind
Factors that go into the actual presentation
Sponsorship Deck
* Widely used term for the written presentation of sponsorship opportunity
* Overview
* Introduction
* The Event
* The Opportunity
* Next Steps
Five Distinct Parts of Writing the Sponsorship Deck:
Overview of the Sponsorship Deck
* Establishes the attractiveness and legitimacy of the event by portraying its past history and its growth in popularity, scale, and scope
* Includes brief quotes from media coverage
* Provide a brief statement identifying the event organizer
Introduction of the Sponsorship Deck
* Demonstrates the attractiveness of the event’s audience demographics and lifestyle characteristics
* Disclose the name of past and/or current sponsor companies and brands
The Event of the Sponsorship Deck
* Fully describe the program (“W” questions answered)
* Include a facilities map, a schedule of activities, illustrations, photographs, and graphics
The Opportunity of the Sponsorship Deck
* Present the series of business solutions, entitlements, and benefits the event can provide to the prospective sponsor
* Offer a series of customizable packages
* If you know what the prospect wants from an event marketing partnership, demonstrate how the opportunity can help that company to achieve its marketing objectives
Revising the Proposal
Taking all questions and feedback into consideration, and adding some creativity, flexibility and intuition
Sponsor Relationship
* Revenue
* Activation
* Cost Avoidance
Three main elements a sponsor can provide:
* Intrinsic attractiveness to a sponsor
* Demographic compatibility between event and sponsor
* Potential effectiveness in achieving the sponsor’s business objective
Amount of revenue that sports event organizers can demand is a function of the event’s:
VIK (Value in Kind) Sponsors
* Provide products and services to an event and value them at the retail price an organizer would expect to pay if the organizer had to pay for cash for them.
* Can be incredibly valuable to decrease costs
– BUT these should be products/services YOU ACTUALLY NEED
-AND you want to negotiate with terms that include wholesale costs to the sponsor, not RETAIL costs
Event Management Law #3
Sponsorships are effective or ineffective based on one thing only: how they are activated.
Activation
* When Sponsors invest dollars beyond their sponsorship fee to promote their relationship with a sports event
* Important to build awareness of the event, drive ticket sales, and promote the purchase of merchandise
Activation Only Associations
* Guarantees valuable adverting and promotion not otherwise available or affordable to the Organizer
* If you do agree to activation only deals, ensure that you can generate needed cash from other sources
Multi-Year Deals
* Reduces the expenses and effort involved in selling each and every year
* Provides degree of certainty to achieving at least a portion of the future revenue goals
Continuity
* Sponsor’s involvement year to year builds a strong, valuable association with event and event’s consumers
* Targeted, Opportunistic, High-Impact Advertising Vehicles
* Platforms for Promotion
* Product Demonstration and Sampling
* Sales Generation
* Forms for Customer Interaction
* Fundraising for Company’s Charitable Endeavors
Sponsors understand that sports events can deliver benefits:
* Exposure
* Product Placement
* Promotion and Publicity
* Customer Hospitality
* Sales Opportunities
* Fund Raising for a Cause
Benefits derived directly from the event
* In-Event Advertising
Advertising mediums available during events entirely dependent on the event itself
Off-Facility Advertising
* Exposure in ads bought by the organizer
* Exposure in conjunction with grassroots promotion efforts
Direct Sales
Events can provide direct sales opportunities (Expos, Food/Dringk Exclusivity, Apparel)
Product Demonstrations & Sampling Opportunites
Product demonstrations and sampling put the product/service right into the consumers hands
* Exclusivity
* Ownership (Actual or Perceived)
* Prestige and Presentation
* Pass-Through Rights
Associative sponsor benefits include:
The price tag of the Sponsorship
What determines the level of exclusivity?
They can’t accept revenues from any other company or brand in that category
What is the drawback of exclusivity for the event manager?
Actual Ownership of an Event by a Company
Publishing industry, especially special interest magazines, routinely own their events
Perceived Ownership by a Sponsor
* Sponsors that have a strong branding connection with a particular event
* Spectators/Participants believe that the sponsor owns the event
Intangible Benefit
The value found in simply being associated with an event considered highly attractive by the sponsor’s most valued customers
Event Prestige
Adds to the effectiveness of consumer promotions and also increase the likelihood of media coverage
Pass-Through Rights
When a sponsor offers a portion of its contracted entitlements to a third party
Positives of Pass-Through Rights
Advantageous if they provide the potential for ticket sales, promotions or exposure opportunities beyond those available in the market
Drawbacks of Pass-Through Rights
Quick service restaurant enjoys an association with an event through rights from an event sponsor, the organizer will have a difficult time getting a different QSR
* Event Demos
* Existing Customers
* Target Markets
Sponsors will compare your _______ _________ to their _______ _________ or _______ _______
Year Round
Continually build list of possible sponsors ______ _______
Culture
ID Sponsors that fit with the _________ of your event