Sponsor Ready

Hi,

The real estate development company I work for is in the final stages of sponsoring a professional race team. The main motivation behind this initative is to activate the streets around a new development by leading rides and races through our projects in the area. They will also be traveling and, of course, marketing our properties. We are having them sign a release waiver and a simple contract outlining what we have agreed on.

Is there anything else I should be thinking of? We are giving them $5k and hope to get our monies worth!

Thanks

merlinextraligh

Are you sure your sponsoring a Professional team? I'm pretty sure $5000 wouldn't get you title sponsorship of many amatuer teams.

I would make sure you spell out exactly what they're obligated to do, i.e. what races or events they're going to put on in your area, what races they're going to do.

Amongst other things, You need a right to cancel. You need a morals clause regarding their behavior. You need the waiver, an indemnity clause, and insurance provisions. You need provisions regarding your intellectual property (i.e. your copyrights, and trademarks on their jersey's) and approval of the jersey designs.

You should get a few example contracts and take a look at them. The team itself would be one place to start.

It would be worth using your in house counsel, or spending $500 to have a lawyer inyour jurisdiction review your deal.

Sponsor Ready

Yea not sure if actually a "professional team". They are about 15 cat 5 riders who have done well around the region. they were previously sponsored by a bike shop where most of them work and were looking for a real sponsor.

I will have our attorney take your suggestions in consideration... Does anyone have a sample contract?

dstrong 

I hope you mean Cat 1...as Cat 5 is the entry level.

Garfield Cat

You mean real estate development is still going on?

merlinextraligh

^ Pulte Homes was our title sponsor a couple of years ago. They didn't re up; imagine that.

ahsposo 

Cat 5s are interesting to watch.

You might buy a copy of Roadie: The Misunderstood World of a Bike Racer by Jamie Smith for some insights into what you are attempting.

Psimet2001 

Only do it for the love of the sport. There is no other real payback. Goodwill does come back around but the timing is extremely slow. It takes forever.

Congrats on taking the step. I can assure you that you will get a lot of visibility.

aham23

a bike shop sponsoring a race team doesnt get any more "real." later.

cappuccino911

This sounds a little bit more like a bar sponsoring a local mens baseball league. It can work out quite well. It was sort of like getting a loan from them. Their lump sum payment helped us get our equipment, league fees, and umpiring fees taken care of in fell swoop at the start of the season. In return we had our asses in their bar drinking up a storm, especially after friday night games. I'm sure they made their investment back and then some, especially since sometimes our friends that didn't play but would meet us out there. Some of the best times of my life were on the ballfields and bars in Southie and Dorchester in the early 2000's.

I would say first and foremost, if anything goes wrong, don't expect to get your 5k back. But certainly give yourselves an exit strategy in case things blow up in your face but I think it sounds like good inventive and creative marketing, especially when you factor in what print and mass media advertising can cost you. Good luck.

urbanknight

We just looked into new condos in Granada Hills.

merlinextraligh

$5,000 to the local guys at the LBS probably doesn't need quite the formality of a pro sponsorship deal.

I would still want some form of a contract, setting out expectations, giving your a right to cancel, release and indemnification language, and language making it clear that you're giving them a limited license to use your trademark, and you get to approve designs.

Don't you love how lawyers take some simple and f it up.

Garfield Cat

Did it require Melo Roos?

urbanknight

Not as far as I could tell, but they have an HOA.

VA_Esquire

not trying to thread hijack, but how much does a professional team spend in a year?

mike868y

Pcad sponsors a local racing team, talk to him.

caloso

Mind if I ask where your development is?

Nachoman

Don't know, but I seem to recall that OUCH Medical Center paid one or two million to sponsor the the team when Floyd was on it.

aboss3

Granada Hills is a nice neighborhood We're looking closer to Encino/Tarzana area....don't want to move too far from Hollywood

Sponsor Ready

They were only getting discounted kits and no actual $ to cover expenses... Thats what I meant.

Sponsor Ready

Washington, DC

sbxx1985 

As merlin has mentioned, just be careful you're protected. Sponsoring a team sounds like a great idea until the pedestrian that gets hit during a training ride sues the sponsor.

But that's your attorney's job, not yours.

urbanknight

Heh. We also prefer Encino, but anywhere in the West Valley will do.

The condos are up in the hills behind the Odyssey. Beautiful view of the whole valley, decent prices in the 3's and 4's. We just don't like the idea of the kid's room having an exterior exit, and the stair climb to get to the main level might be difficult on my mother-in-law (who will be babysitting weekdays) and her multiple knee surgeries.

Hollywood, eh? Are you a stripper or a panhandler?

nhluhr

As employees of a bikeshop, they all get that anyway. It's standard industry practice. All the big manufacturers offer employees of their dealers a prodeal which is typically in the 20% off wholesale price. This deal is direct between the employees and manufacturers. Most shops will also provide wholesale+10% or similar deals to employees for things in the store or purchased from distributors.

As a sponsor, I would also think you should avoid giving them lump payments and instead provide reimbursment of actual equipment with a limit of some set amount.

Nachoman

If stripper, please pm me pics. If panhandler please pm urbanknight pics.