Wallace urges mutual value at SDF, PSOJ ‘Master Class’

KINGSTON:
The Sports Development Foundation (SDF) and the Private Sector Organisation of Jamaica (PSOJ) hosted a “Master Class” recently to unveil the “real world of marketing” for sporting associations that are constantly challenged in the competition for limited corporate funding, 
The “Master Class” is another in a series of forums by the SDF to professionalise sports administration. By creating a better understanding, the SDF believes that organisations driving the advancement of sport will enhance their capacity to generate funding critical in carrying out their programmes.
Among experts sharing insights on what to do, and what not to, when writing proposals was Sean Wallace, head of commerce, Red Stripe. He explained why many sponsorship proposals failed and how administrators could build more effective, professional relationships with the private sector through mutual engagement.
A very common mistake made by sporting associations, he said, is the view that sponsorship is a one-way donation rather than a strategic partnership.
“You’d be surprised at how many proposals I get where the organisers only consider their own financial needs,” said Wallace.
He related several instances where proposals lacked beneficial offerings, noting one in particular that he termed a ‘horror story’ given the nature of its one-way pitch.
It involved a bar owner sending an invoice for a $7.3 million elevator, with expectations that his company would co-brand the cost to set it up with no clear return on investment.
Proposals that end up getting approval, he stressed, prioritise mutual value because corporate entities see these requests as investments.
Wallace remarked that this was key as administrators must be able to articulate exactly what the company receives in return for its support.
He emphasised that preparation is critical to success as this provides guides for pitching proposals, some of which fail because they are sent to the wrong audience.
“Do your homework,” he urged.
Wallace recounted a failed pitch involving an association requesting sponsorship for an international tournament’s after-party, citing the benefit of reaching 30 international guests. His company’s target market, he emphasised, is local.
“Red Stripe is only responsible for marketing and promotions here in Jamaica,” he said, pointing out that the brand’s target is the 1.7 million people of legal drinking age in the country. To be successful, he advised sporting bodies to align their events with a sponsor’s specific target demographics and legal marketing guidelines.
From a legal standpoint, he explained that “as responsible marketers, Red Stripe cannot sponsor children’s sporting events” regardless of how many parents might be in attendance.
Reputational risk, he says, must also be taken into consideration, warning that individual athletes, particularly the young ones, are often viewed as “risky” investments due to potential maturity issues and that credibility issues are among sponsors’ areas of concern.
For instance, an event affected by violence is likely to damage its sponsors’ reputation.
Wallace noted a shift in the industry where professional organisers now proactively submit a security plan with their proposals rather than waiting to be asked.
“I’m not going to partner with somebody I cannot trust,” he stated, sharing that professional integrity is non-negotiable as it relates to corporate support.
Highlighting how a bad experience with one company can impact receiving corporate support, he observed that information on character practices is not difficult to get because “Jamaica is a small community where everybody knows everybody”.
Associations that succeed with business commitments, he said, deal with sponsors as long-term partners, focusing on experiences that create beneficial experiences both ways.
““You cannot operate transactionally,” said Wallace.