Tiered Sponsorship Essay

Tiered sponsorship plays an important part for the successful business development of sponsors as well as those who are sponsored. In this regard, tiered sponsorship is particularly important for sports franchises because sponsorship brings substantial financial resources that help sport franchises to perform successfully. At this point, it is possible to refer to the recent contract signed between GM and Manchester United, according to which GM sponsors MU to promote its Chevrolet brand for seven years.

Tiered sponsorship like GM sponsorship of MU may be at three levels: platinum, gold, and silver. Each level has its advantages as well as limitations and sponsors naturally look for the level that matches their interests the best. In case of GM and MU contract, this is the platinum level contract which is the largest contract in Premier League so far. GM has agreed to pay the highest price for the contract and GM received lucrative sponsorship funds for seven consecutive years of sponsorship from the part of GM. The major advantage of platinum sponsorship is the long lasting contract that provides the sponsor with exclusive rights, such as the right to name stadium of the sponsored sport franchise. However, exclusive opportunities obtained by sponsors at the platinum level increase drastically the price of the contract. Such sponsorship is extremely costly for sponsors. Nevertheless, platinum sponsorship brings the maximum marketing effect because it makes the sponsor the major sponsor of the sport franchises for years and often sponsors may have preferences to prolong the contract compared to other potential sponsors.

The gold level is another level of tiered sponsorship which is less costly but also less attractive for sponsors. To put it more precisely, the gold sponsorship provides sponsors with the leading position as the main sponsor but, as a rule, the time of such sponsorship is limited, and sponsors do not have preferences to prolong the contract with the sponsored sport franchise like MU. In case of the contract of GM and MU, their contract signed at the gold level would be less costly for GM but MU would have more freedom in the choice of sponsor and less dependence on the sponsor, who could not interferer into its marketing strategy and branding policies. For example, the gold level sponsorship does not allow the sponsor to name the stadium of the sponsored sport franchise.

Finally, the silver level of sponsorship is the lowest in the tiered sponsorship. Nevertheless, this level is also attractive for sponsors because they can still benefit from their sponsorship because they promote their brand and attract new customers. At the same time, they do not invest substantial funds into the sponsored sport franchises. On the other hand, the sponsored sport franchise, like MU, is free in choosing their marketing and branding policies and may even have an opportunity to involve more sponsors. 

In such a situation, sponsors should choose the level of sponsorship that matches their needs and interests the best. In this regard, the platinum level is preferable for sponsors, who want to hold the dominant position as a sponsor of the target franchise to promote its brand and even have influence on branding and marketing policies of the sponsored sport franchise. The gold level is preferable for companies, which want to have the large scale promotion and ready to pay the high price. The silver level is preferable for companies seeking effective promotion at low cost, but they should come prepared that the sponsored sport franchise will attract other sponsors as well.

Thus, tiered sponsorship is important but sponsors should assess adequately their needs to choose the right level of sponsorship.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 29, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]
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