Optimising a Leading Sport League’s Sponsorship Model for Maximum Revenue
June 2022
Commercial Strategy

What was achieved

Developed a new sponsorship model with clearly defined tiers and the number of sponsors and pricing in each.
This was informed by evaluating the sport’s existing sponsorships and an analysis of potential future sponsors’ ability and propensity to reach the minimum investment thresholds required for each tier.
Delivered a detailed transition roadmap to the future sponsorship model, optimising revenue growth.
The renewal and expiry dates of existing agreements were mapped to ensure future annual budget targets could be reached by planning for the transition of current sponsors to the new model and identifying when discussions should be initiated with businesses in specific target growth categories.
Upon adoption of the new model, the client has exceeded its budget targets and is achieving continued growth whilst attracting and retaining leading brands to its sponsor family.
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The challenge

  • Does the existing sponsorship model allow the sport to achieve its long-term budget goals?
  • How effective is a scarcity model in maximising returns?
  • What is the optimal model for sponsorship revenue?

How we helped

  • Conducted a thorough commercial model review and valuation against global benchmarks.
  • Designed and tested new sponsorship models based on investment capacities of a large sample of businesses.
  • Provided strategic recommendations for transitioning to the optimised sponsorship model.

Our impact

alacria have worked to delivery great outcomes for their clients

Maximising Sponsorship Value for a Premier Sports Organisation
alacria’s HxR model valued the a premier sports organisations sponsorship portfolio and naming rights partnership, offering tailored strategic recommendations for optimised pricing and sponsor education.
Maximising Sponsorship Value for a Premier Sports Organisation
alacria’s HxR model valued the a premier sports organisations sponsorship portfolio and naming rights partnership, offering tailored strategic recommendations for optimised pricing and sponsor education.
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