Should You Opt-Out of Your Sports Sponsorship Agreement?
You invested millions of dollars in a four year sports sponsorship agreement. You included the right to opt-out of the deal after two years. The agreed upon deadline to opt-out is quickly approaching. What should you do?
Sound familiar?
First of all, do you know all of the deals across your sports sponsorship portfolio that include opt-outs? Do you know when all of the specific deadlines are to make decisions to opt-out?
Second of all, if you have the right to opt-out, do you know what factors you should consider in order to make an informed decision?
What is the annual value you receive from the sponsorship compared to the annual cost of the sponsorship? What factors are considered to generate the total value? How does this value compare to similar deals across your portfolio? Does the existing sponsorship still enable you to execute marketing plans that will address core, annual goals defined by the business?
The only way to answer all of these questions is to be able to organize, manage, illustrate and analyze everything about your sports sponsorship portfolio in one place.
If you are flipping through paper copies or PDF files of your contracts, you will not be able to quickly locate and accurately assess specific information about your existing deals and overall portfolio. If you are logging into multiple third party websites or clicking through emails to retrieve media and asset valuations, you will not be able to accurately combine and analyze all outcomes. If you are using static spreadsheets to aggregate all of your data, you will not be able to easily illustrate real-time comparisons and project future outcomes to help make informed decisions.
In today's day and age, companies are leveraging technology to enable efficient management and accurate analysis of their investments.
Now there is a cloud-based asset and event management solution dedicated specifically to the sports sponsorship industry, enabling you to make informed decisions regarding upcoming opt-outs as well as anything else related to your sports sponsorship investment.
