Sir Keith Mills , Team Principal of TEAMORIGIN, Great Britain’s America’s Cup entrant, has identified several reasons to be cheerful for both rights holders and sponsors in the current economic downtown. Speaking at the recent FT Sport Industry Summit in London, Mills was quick to offer words of encouragement for the nation’s governing bodies and various sporting institutions. “It’s a well-researched truism that,
in an economic downturn, the last thing you do is turn the tap off on your marketing budget,” said Mills.
“An industry leader may be able to ratchet it down to some extent, but for most companies - embroiled in heavy competition - turning off the marketing tap would see them eaten alive.”
However, Mills acknowledged that changing global forces will necessitate a change in policy from rights holders. He emphasised the importance for rights holders in haveing an ability to invite potential sponsors to ‘test the water’. Proposals must be much more exciting and attractive for companies to get involved, he said. “If we stick our heads in the sand, we’ll come a cropper. We must also ensure that our team/sport is not prone to excess - let’s face it, some sports have been and it is a guaranteed way to put investors off, considering the current mood around the country. “Sport’s unique ability to create passion and emotion gives it significant leverage over other forms of marketing when trying to attract sponsors.

If as a rights holder, you have a unique proposition to sell - such as the America’s Cup - you will attract sponsors.” Mills cited the recent Beijing Games as a prime example that sponsors are not being put.

If as a rights holder, you have a unique proposition to sell - such as the America’s Cup - you will attract sponsors.” Mills cited the recent Beijing Games as a prime example that sponsors are not being put off. “During Beijing, we at [London] 2012 had a deluge of offers from companies who were moved by what they were watching.”
If rights holders play on
this unique selling point, he
suggested, then even smaller sports and brands can benefit from sponsorship deals. Although there is a widespread belief that in such a competitive sector, smaller organisations will be pushed out of the marketplace, Mills said that this was not necessarily inevitable. “The reality is that sponsors that remain loyal and get the most out of their packages are those that
put the most in,” he said. “British sailing has had some really strong interest on the back of Beijing. This is because of the strategy employed to offer value to our sponsors.
“More recently, Artois dropped out of its deal with the Lawn Tennis Association and was replaced by Avon. The package put together by the LTA was very sophisticated and it looks very likely that both parties will get great returns on it.”
Mills asserted that small sports often make the mistake of not focusing on their aforementioned, unique selling points.

Events, he said, are not as restrictive as other assets, such as advertising rights. “Because people are so engaged with sports events, heavy involvement by brands can produce serious results. BT is changing its consumer business from a telephone company to a digital roadband/telephone/TV provider and it is going to use London 2012 to showcase the new technology
and services.”

There were stark warnings though, for anyone who still thinks that it is all plain sailing in the world of sports sponsorship. Mills
stressed that rights holders will now be forced to take the initiative throughout negotiations and
build relationships with sponsors - making the deal more attractive.
“I had a breakfast with a potential America’s Cup sponsor where I
offered them a small involvement in 2009, with the option to ramp it up in following years. I also offered them the chance to use different brands from their business in different parts of the sponsorship.
The point is, that by getting close to the sponsor, listening to their needs and reservations, and being creative about what sort of involvement you are offering them, you as the rights holder have a better chance of reaping the benefits. This is pivotal in this day and age.” Mills’ views were echoed by one of the world’s leading sport
business experts, Professor Simon Chadwick, speaking at the launch of Weber Shandwick Sport.
Chadwick said: “In some ways, the downturn is not just a challenge, but also an opportunity for the smartest sports, teams, companies and investors. It is forcing us to examine how things can be better run, better managed and better organised, for a brighter future for sport.”