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Sponsorships - 'Where'd All The Big Money Go?'
By Craig Altschul
December 11, 2006
By Craig Altschul
The recent failure to find enough sponsorship dollars to be able to bring the cancelled European Alpine World Cups to our little neck of the globe may not have been endemic to the tightening of sponsorship money in general. But, if nothing else, it served to illuminate the issue.
Jack Turner, the entrepreneur whose Snow Monsters and its siblings have been remarkably successful through persistence, a wonderful product, and admittedly," a lot of luck," thinks the World Cup problems were more related to timing and audience than anything else.
"European races probably couldn't use what the Americans could deliver, in terms of sponsor fees needed to make it work here, while American sponsors probably couldn't work it into timing for budgets on short notice," Turner says.
He believes sponsorship dollars are indeed getting tighter for a number of reasons. "There are so many events and media outlets, hundreds of TV opportunities, and billions of Internet options. Print is still in the mix as well. Essentially, there are lots of hands reaching into the pie." The real question Turner asks is, "Is the pie getting bigger?"
"There is an influx of some new funds, but with the consolidation of industries and retail outlets, advertising and sponsor dollars are getting tougher to find, especially for the niche and independent events."
Here's something else that's having an effect. Turner says it's very possible that Wal-Mart (and other super marketplaces) is changing the face of sponsorship because marketing for consumer products like soft drinks and the like is more a function of shelf-space than advertising.
"Look, if Wal-Mart doesn't carry your product in a prominent place, you don't sell it," Turner says. Soft drink and similar product manufacturers are spending lots of money discounting products in the battle over getting products on shelves. Race courses may not be their top priority these days.
How tough is the fight? "Well, partners such as the airlines are stingy with both cash and product," Turner says. "It's every man (and woman) for himself out there."
What's your take on the subject? Is the pie growing? Shrinking? Sitting on a shelf? Tell us.
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In addition to all this, as far as I can tell, there are no additional world cup races on TV in the USA for the rest of the winter.
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Posted by: zeno beattie WWSC | December 11, 2006 09:46 AM
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