After numerous meetings with companies, the miracle happened: reaching an agreement.
The brand likes the project and is willing to invest.
We have already started to imagine how it will be activated and how the contract will help us meet this year’s goal. Pure dopamine!
But, when the agreement reaches the boardroom, CEO, or president, the problem comes.
It’s too little money.
Now, it’s not a priority.
It has too many rights.
After a titanic effort for months, we panic.
I’ve walked into an office with a negotiated proposal and left with the mission of asking for triple the fee for the same rights. And I received a denial of renewing a long-term main sponsorship without many reasons.
At that moment, it seems a problem of our organisation. But the truth is, it’s common.
What can we do?
First, accept that this is part of our day-to-day. Second, understand what our board or president really want.
Typically, they want to be able to say: “we signed a good contract, necessary for the current situation and relevant for internal and external stakeholders.”
With that, we need to be prepared:
01 Investment. With data, justify how the value is positive within the market reality. No club wants the worst contract in a category.
(We can only justify a smaller investment if the project strategically compensates with high reputational value).
02 Timing. Whether it’s valuable because of an upcoming competition, the relationship with fans, or the organisation’s situation, the project must solve a current challenge.
03 Stakeholders. Fans, press, board, or council. The contract should be good news for the audiences impacted by the sponsorship, whether through image, engagement or business.
04 Risks. We need to reduce the perception of risk. For example, with upfront payments, shorter terms or exit clauses for poor reputation or performance.
05 Opportunity cost. Show the scenarios of not signing now, such as losing sponsorship to competitors or what will not be done with the resources.
Not signing means renunciation, and renunciation generates tension.
Media return reports like Nielsen, Ibope Repucom, Kantar Media, among others, help calibrate expectations about the investment.
There is no certainty or total control over the situation, but we must do everything within our power.
If it were easy, someone else would be in our seat.
Receive my weekly post