The Business of Sport – Part I – Value Proposition

The question I so often get from athletes is how to find sponsors and start professionalising what has until that point been a fun pastime.  This is the first in a 3-part series where I talk about the business side of being a professional/sponsored athlete.   I will share what I found worked when racing professionally in Ironman, and also how to create the sustainable future in the sport you love.

The first topic is your Value Proposition as a professional/sponsored athlete.  Too many times I have seen athletes approach sponsors because they want ‘free stuff’ – I use gels all the time, surely a nutrition company would love to give me free stuff?!  Business does not work like this. They will ask: What are you offering my company? Why should I align with you and not someone else?  How will you enhance our brand?

By the way, product usage is not a value proposition. If you do get sponsorship this way, fantastic; however, it will probably end up being a short term arrangement. 

Firstly, figure out what sets you apart, what is your brand?  A good way to do this is to ask your friends, family, training partners and coach to give one word to describe you.  You’ll probably find this word follows a similar theme.  Keep this word front of mind when you talk to sponsors, write articles, answer interview questions, talk to people in your community.  Also ensure that the sponsors you are looking to approach fit with this word, for example if you word is health then going to Carls Junior for sponsorship would not be a good fit.

Secondly, find out what your value proposition is, an example from an Ironman athlete is below, this should be at the very top of your sponsorship proposal.

What can I offer you?

Alignment to an athlete dedicated to performing at the highest level, association with a positive role model and brand exposure both in New Zealand and Internationally.  Ironman Triathlon is one of the fastest growing sports in the world:

·       Triathletes spend on average NZD$4,500 per year on the sport

·       Mean income of Age Group triathletes is USD$125k

·       More than 50 million people worldwide watch the World Championship event from Kona on television

·       Advertising as part of my column in NZ Tri and Multisport Mag – readership 90,000 (bi-monthly publication across NZ and Australia)

·       Advertising through my website

·       Branding on race and/or training gear

Finally, develop different tiers of sponsorship based on what you can offer them, and what they can offer you.  This is a very good tool for when a Sponsor asks – ‘What are you looking for from us? What will we get in return?’  It is an awkward conversation to talk about what you want, but if you can outline exactly what you need from them, you will increase your chance of success inobtaining the sponsorship you require. 

When it comes time to renegotiate sponsorship contracts, you are able to go through each point in your value proposition and show how you have met (or exceeded) it. From there, you are in a much better position to retain that sponsor.  I firmly believe it is about creating long-lasting partnerships with room for growth, rather than short-term arrangements that put you in a worse position down the track.

Part II coming soon – Finding your brand