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Forum Index: DISCUSSION: Dock Talk:
Regatta Sponsorship - Point/Counterpoint
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The Publisher
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May 14, 2009, 11:21 AM

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By Bill Sandberg, WindCheck magazine:

Sponsorship Is Not A Dirty Word
In Europe, sponsorship is de rigueur for both regattas and individual boats, yet it is still an emerging phenomenon in the U.S. Hard to believe that there are still a number of clubs and organizations that view it as a horrid thought that would demean them or their events. I’ve even heard that it might lower volunteerism, as those volunteers would expect to be paid if they know money was coming in over the transom. I have two words to say about that — horse hockey.

The reality is that with costs to run even the simplest regatta going up — fuel, boat maintenance, trophies, etc. — additional monies are needed to make it a first class event. Of course, the event organizers can always raise entry fees, but in this economy, with regatta participation down, that will kill your regatta faster than anything.

What do sponsors want in return for their investment? Has anyone thought to ask? I know from my days at Rolex that I got a huge number of sponsor requests asking for money. In return for that, they would do “whatever we wanted.” It was the usual spots to watch on a sponsor boat, tickets to parties, etc. Not what we needed. Our customers (jewelers) had no desire to go watch a sailboat race. Truth be known, most of them got seasick. Tickets were equally valueless. -- Read on: http://tinyurl.com/WindCheck-5-13-09




The Publisher
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May 14, 2009, 11:22 AM

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By Thomas G. Donlan, Barron's Weekly:

Responding to Bill Sandberg's article in "WindCheck" promoting regatta sponsorship, which was quoted in
Scuttlebutt 2844:

It seems Bill's perspective is distorted by having worked at Rolex, and being disappointed when the company wasn't even mentioned in magazine and news reports of the regattas it sponsored. I guess he felt used.

Well that's the way I feel when a regatta requires me to put advertising on my boat as a condition of entry. It's the way I feel when I see corporate banners all around the regatta party site. It's the way I feel when I see a competitor who happens to own a small business putting advertising on his boat so he can write off some of his sailing expenses. It's the way I feel when I get a bunch of useless freebies in a goodie bag, when all I really wanted was the sailing instructions. (Yes, I'm talking about the red hats too, Mount Gay.) I feel used, by the sponsors of course, but also by the regatta administrators.

As Bill acknowledges in a part of his essay that didn't make it into Scuttlebutt, the sponsors are in it to get their names and logos published. As a professional journalist, I am all too accustomed to being used this way. The flacks (which is what we call PR professionals) call it "free media." They use it and pay for it with sponsor bucks because they think free media is more credible than a paid ad. Bill's right that magazines and newspapers sell ads; but why would he think that we would encourage that kind of underhanded competition? If I ran a sailing magazine, I would never mention a sponsor and I would use Photoshop to blur the ads on boats' bows.

Wake up, sponsors; you are being used also. Nobody buys a Rolex watch because Rolex sponsors a regatta. Nobody drinks Mount Gay rum instead of gin just because they have sixteen red hats in the closet. (Fair disclosure: I don't drink rum of any kind, even if it's free.)

Bill says that sponsor money is necessary to put on a first-class regatta. This is just like saying that sailors have to be professionals in order to reach the top tier of their sport. We should redefine our ideas about "a first-class regatta" and "the top tier of the sport." At the very least, our yacht clubs and racing associations and US SAILING should put a fence around sponsors and professional sailors. They fit together beautifully--let them play by themselves.





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May 14, 2009, 11:54 AM

Post #3 of 15 (6017 views)
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From Derek Bouwer:

What do sponsors want? At Algoa Bay Yacht Club (Port Elizabeth, South Africa) we organized and ran very successful sponsored regattas four years with Continental Tyres (1995-1999) and four years with General Motors (2003-2006). The secret? Bring them onto the organizing committee and they will tell you what they want out of the deal and you organize sailing around this need. Although trips to see the racing may be great, what the sponsor wants is brand exposure to as many people as can be! After all it is a form of advertising! Please, please do not see sponsors as merely cash cows.


The Publisher
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May 14, 2009, 3:38 PM

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From Yacht Sponsorship website:

What do Sponsors Want?
Our regular readers may not be surprised that sponsorship in sailing has a way to go. There are a few reasons for this - some cultural, some historical and some based on the perception of sailing as a niche activity with not enough ‘coverage’. For an in depth look into some of these issues, get yourself a copy of ‘Getting on the Plane‘.

One of the strangest incongruities is that the country that brought us NASCAR and NFL and NHL and branded up Tiger Woods with Accenture logos struggles with the concept of sponsorship being attached to sailing. Not everyone - Alphagraphics powers the US Sailing Team, Rolex sponsors a ton of activity and obviously BMW gets something out of its participation with the GGYC America’s Cup challenge.

More people visit this website from the USA than any other market. The message is getting through and it seems others are coming around to our idea. In a media love-in, an article called Sponsorship is not a Dirty Word published in Windcheck that mentions Scuttlebutt and Sail-World has been picked up by Scuttlebutt and Sail-World. -- Read on: http://www.yachtsponsorship.com/2009/05/2222/




MrPilsner
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May 15, 2009, 8:57 AM

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Thanks for your cogent response. I can not disagree more strongly with Sandberg. NASCAR is one blatant example but MLB and even NFL and NCAA have pursued dollars at the expense of "sport" or "competition". The very best aspect of sailing is our delightfully accurate concept; Corinthian.
3° of heel


Rob Britton
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May 15, 2009, 8:59 AM

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Does anybody else remember "Corinthian" sailing? Damn it was fun, if you fouled out you went home, so the rules were followed. Nobody got paid, so even sail makers crewed for the all amateur fleet. Winning was great, but nobody forgot that the respect of your competitors was the most important thing. And the sport was growing, because the public envied, admired, and wanted to join with the “high class” sailors; who were certainly not in it for the money. Now I too wear a Mount Gay hat, but I dream of the old days when the entry fee for the Hot Rum Regatta was--a bottle of Rum.

Rob Britton
sv Aldebaran, SDYC


The Publisher
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May 18, 2009, 6:04 AM

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* From A Christopher Bulger: Actually sponsorship is a dirty word. I agree with you - the expenses to run a regatta have soared over the last ten years. The only costs that have risen faster are the costs to compete! Disposable carbon sails, pro’s on board, boat captains, coaches, hotel rooms, crew gear....the list goes on. Hell, the average 2008 Opti event had a larger payroll than the 1983 America’s Cup.

It is understandable that everyone who is making money from sailing thinks that the answer is “more revenue.” Don’t hold your breath. There is a reason that J Class Boats and mansions fell out of fashion for 50 years after the Depression. Sailing sponsorship is not demeaning in the US, it’s just hard to justify on any significant scale. We’re not amateur on principal – it’s economics. This isn’t Europe – Americans buy power boats and think football is played with helmets on. It was hard for CEO’s to justify significant sponsorship of US sailing in the best of times and times have changed.

The answer to the problem of regatta expenses is not to pray for revenue, but to cut costs. I know that this will be difficult for the coaches, sail makers, race management companies, gear makers, media folks that are trying to make living off the sport. But I’m pretty sure that your average Opti sailor will have more fun at a regatta without his/her personal coach, boat tuner and fitness coordinator. I’m also betting that a few older amateurs will find themselves having more fun.


* From Michael Borga: In response to the letter to the editor from the individual who works for Barron's Weekly, as someone who feels used every time I open Barron's and see another advertisement in a publication I paid for, if I ran Barron's I would use photoshop to change every advertiser's logo to be unrecognizable, oh wait, guess I wouldn't have much in the way of advertising. Well, ok, then I wouldn't use any company's name in an article since that would undermine my advertising, oh wait, that wouldn't leave much to write about and my subscription base might get a little smaller.

I have organized and run participant events for more than 25 years and have run into this kind of thinking many times, the "Why do I need to advertise the sponsor or have their advertising near where I am participating?" and the simple answer is, "You don't!" You can make the choice to participate or not but you do not get the choice of deciding how the event will be conducted.

Sponsorship is just another name for advertising and for someone from Barron's to not see the business connection flabbergasts me.




tgdonlan
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May 18, 2009, 8:10 AM

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To Michael Borga:

My remark about Photoshopping out the logos was ill-considered and intemperate. But we still have a strong difference of opinion.

As you say, there's no difference between magazine advertising and regatta sponsorship--from the point of view of the advertiser or sponsor.

The difference, which I am disappointed you fail to see, is that almost every magazine, including the one I work for, is in business to sell ads and make profits doing it. They provide content in order to attract advertisers. (Notable exceptions are Consumer Reports and Practical Sailor.) Until recently, regatta managers were not in that business. Now, all too many of them seem to be running regattas in order to attract advertisers. I think that's a darn shame.

Tom Donlan




dbuckstaff
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May 18, 2009, 3:02 PM

Post #9 of 15 (5820 views)
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"But I’m pretty sure that your average Opti sailor will have more fun at a regatta without his/her personal coach, boat tuner and fitness coordinator."

Christopher, in response to your quote regarding Opti's, I think you should attend some Opti Regattas to refine your observation. Sure, some kids train really hard (is that so bad?), however, the vast majority of Opti participants across the country are beginners/green fleeters, and kids sailing in local events. And these kids are supported by countless volunteers helping others learn the sport.


The Publisher
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May 19, 2009, 12:36 PM

Post #10 of 15 (5689 views)
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* From Peter Harken: Michael Borga put it best regards "Sponsorship". I have found in my many years of regatta experience throughout the World, the French are by far the best at understanding the word "sponsorship" and how to use it and deliver to the sponsor so they keep coming back and back and creating fantastic events with huge public spectatorship. We in the US sailing community, in general, still don't seem to really know the difference between "sponsorship" and a "gift".

Sponsorship is simply a business transaction - you ask a company for a dollar and in return you need to give a dollar's worth back. Fair is fair! If you ask for a dollar and give nothing back, you simply are asking for a "gift". So, if a yacht club is asking a company like mine to be a sponsor for so much money or like kind, we need a like's worth return or we are stupid and deserve to go broke!

In such cases in our sponsored sailing world, a company’s return is in advertizing or exposure - like 99% of all sponsored sporting events. If you don't want to so call "clutter" your yacht clubs with advertising banners and such, then pay for the event with your own monies, but don't ask a company for Sponsorship and offer bad value return. I "gift" to charities and ask for no return. Yacht clubs and regatta events are not charities! Good sponsorship is okay, and if not pay your own way. The Corinthian spirit with good club volunteerism plus some sponsorship makes regattas very affordable so both are A-OK!


pdwarren
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May 19, 2009, 10:14 PM

Post #11 of 15 (5626 views)
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Let me throw out a few benefits to sailors of regatta sponsorship, based on my own experience as a regatta organizer:

1. Thanks to Cadillac's involvement (thru Gary Jobson), as sponsor of the 25th Anniversary Kennedy Cup Intercollegiate "Big Boat" Championship, collegiate sailing was featured on national TV (ESPN) for the first time. The event was at the U.S. Naval Academy in Annapolis. Cadillac bought a substantial amount of television advertising time to fund the broadcast; they also provided team shirts for all (12) the collegiate teams (10 crew member each), and they hosted a VIP reception (funding all the food and beverages for the evening.) In return, they positioned several current-model Cadillac cars in downtown Annapolis, took some local dealers and guest on a chartered yacht to view the regatta and built good-will for all involved with the regatta.

2. Free regatta parties: whether thru Mount Gay or the local Budwieser (or other) beer distributor, sponsors help to make the social aspect of sailing more affordable and fun. Without sponsorship, we might see a $10 per person (or more) fee for attending each of the social activities we all like to participate in at a regatta. Sure. 10-bucls is cheap, but multiply it by 3 nights for a 10-person crew and it becomes a bit more precious, if you're the skipper who's expected to pick up the tab for your crew (after all, they're volunteers.)

3. Free/Low-cost Regatta Souvenirs: Red hats, tee shirts, canvas bags, belts, etc. all cost $$. Many regattas provide participants with a quantity of free hats, shirts and other apparel related to the regatta. These "free" commodities are available because of the sponsors' contributions to help underwrite the overall costs of running the regatta.

Otherwise, your entry fee either stays the same (and covers the basic costs of the regatta: RC boat fuel, food for RC, trophies, printing, Web site, insurance, travel expenses for judges/umpires) or your entry fee increases to cover the costs of tee shirts, bags, a cook-out party or regatta costs.

4. Heightened awareness of the sport: inherent in event sponsorship by companies is an effort to maximize the exposure/awareness relatiing to the event and (ultimately) the sponsorship. This involves event-related publicity. Whether it's getting the event on TV or just coverage from the sports page in the local newspaper, coverage of a regatta raises public awareness of the sport of sailing and , if presented correctly, increases interest in participating in the sport. This is how we draw new participants into our sport. Our sponsors have a direct influence on creating and enhancing the publicity for our sport.

5. Incentives for current active sailors: Sponsors help elevate the level of regattas at all levels. At Key West Race Week, major sponsors have a "full blown" presence: Mount Gay sponsors the after race parties; rigging companies provide on-the-spot repairs for broken rigs and spars; gear manufacturers like Speery Topsiders show off their wares at the parties, Lewmar holds a competition for the "fastest grinder" on their winches. The key, here, is active participation by the sailors.

Same is true at local regattas: Instead of a simple cook-out where regatta sailors provide all their food & beverages, sponsors can provide lunches, dinners, and drinks for regatta guests. Maybe the sponsor is a local BBQ chain who provides ribs and salads. Or, it's a local beer distributor who provides complimentary suds for dinner/party attendees.

Bottom Line: sponsors help defray the costs of putting on a "first class" event. It's not too much to provide our sponsors with a decent return on their investment, in the form of promotion opportunities, signage and acknowledgement of their contribution -- as well as our ongoing support of their products and services. Honor our sponsors!


dmfreedom
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May 21, 2009, 3:14 AM

Post #12 of 15 (5489 views)
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A couple of weeks back I spent the day in Nafplio, a little town on the Peleponese just south of Corinth. My guide, an Athenian who had shown me through Athens' great arceological museum the day before, had no idea why sailing (sport) might use the word 'Corinthian' to describe the more amateur side of the sport. I've tried to determine exactly why this phrase is used but with not much luck.

There is, my guide told me, a phrase in greek: that it is impossible to sail to Corinth, but that doesn't explain why it has been adopted by other sports. Is it something buried in Paul's letters? e.g. Those who live in the spirit, like Paul himself, do not derive their identity in any way at all from what others think, whether they praise or condemn, because the identity is purely given by the Lord (1 Cor 4:1-7). Therefore there is no boasting...

How does my point relate to the discussion of sponsorship? Well I am questioning whether people have any idea what they really mean when they use the phrase 'corinthian spirit'.

I believe that amateurism and professionalism can sit side by side, as they do in golf. I agree that sponsorship is not a donation. It requires the sponsor to receive value for their investment. Some events and teams learn this more quickly than others.

Oh, and if anyone can explain the derivation of Corinthian, I would be very grateful.

www.yachtsponsorship.com
http://www.yachtsponsorship.com




The Publisher
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May 21, 2009, 6:33 AM

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* From Geri Conser, Aerial Yacht Photography: Peter Harken... you have it so right. I have been around about as long as you and seen my fair amount of sponsorships treated as a gift. Major American companies happy to SPONSOR a sailing event: provide yacht club top of the line autos for everyone from commodore to club manager, money for all parties and firmly asked not to display any banners or ask for top line on the event program. Americans just do not get it. If the event is non-commercial and really no advertising, then ask for donations and no professionals on the line. It is so bogus to see sails, the loft big guns on the new boat, and new yacht club non-sailor parading as an amateur. There is nothing so wrong with having a great sponsor putting on a great sailing event and getting the fun of sailing out to the public.


* From Mark Lammens: I find this discussion about "Corinthian spirit" interesting and confusing. Advertising and dropping out of races because of a mistake are very different.

RRS Rules have evolved such that if you make a mistake today you can do a 360 or 720 and still play. Going to the dock early, the "sail of shame", is not fun, especially if you drove long distance, etc to race. If you did break a rule back in the day, when the rules required you retire for hitting a mark or fouling someone, then based on the rules of that time you did as required and were a good sport/showed fine Corinthian spirit. You are noble and still not racing.

Having a sponsor for your event does not mean you are reducing the value of the Sport and are less 'Corinthian'. Harken would seem like a very good fit of likeminded efforts. The regatta and the sponsor are into racing sailboats and doing their best. However, I would suggest having Rothmans (cigarettes) sponsor your regatta would be sending a very different and less appropriate message, and the club may have an issue of that banner flying at the club, especially with the new accepted norm. This is when I would be in favour of the Corinthian approach.


The Publisher
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May 24, 2009, 10:24 AM

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* From John Harwood-Bee, Project 100 Ltd: Thankfully Peter Harken understands sponsorship and makes a good case. However there is one point on which I should like to comment. A good experienced sponsorship management company will expect to achieve a far better than 1 to 1 return on the $ spent. Obviously, it will depend on the event and the co-operation of all involved but we expect measurable returns in excess of 3 to 1 for our clients and in certain cases far in excess of that.

In terms of appropriate sponsors (Mark Lammens - Butt 2849), cigarette promotion is no longer allowed in western Europe so the matter does not arise. Even if it did, the press would refuse to run images. Sponsorship has become far more scientific in recent years and it is advisable to consult experts when considering where to spend the money. There is still the odd case of support for Ballet because the Chairman’s wife loves it, or a racehorse named after the company because the boss loves the nags. Good luck to them, but in the main, companies have a responsibility to obtain a quantifiable return on their investment.

Most event organizers are grateful for the financial support and both parties work together for the benefit of each other. Sponsorship is not a dirty word. Without it we would see the demise of many classic events. Rue the day that only the mega wealthy can afford to participate to the detriment of others.


The Publisher
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May 26, 2009, 6:46 AM

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* From Gene Hinkel: Peter Harken has it right from what I have seen at World Championships for Paralympic inclined sailors. Without the sponsors it would be difficult if not impossible to hold events of this nature. I had the honor of being the TD for the IFDS 2007 Worlds at the Rochester Yacht Club and know Tom Roth and mainly Keith Burhans worked hard to get donations. It was a great success and thanks to Harken for support in all the Disabled Events and sailors like John Ruf. I also thank Neil Harvey and Neil Evans for their support and help in my developing adaptive aids. In Europe all the teams have sponsors and carry their logos on hulls, sails, and other gear. In North America we have not developed into this yet, a pity for those teams that need help.


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