IEG IEG SPONSORSHIP REPORT SPONSORSHIP REPORT

1 IEG SPONSORSHIP REPORTR aising The Bar On SponsorshipFulfillment ReportsAs sponsors and properties have grown more sophisticated in their approach to the medium,many of the essential elements of SPONSORSHIP , from the sales process to negotiating strategies to valuation to benefits, have undergone major changes to meet includes post- SPONSORSHIP recaps, which not that long ago were not even considered essential. Today they are an expected deliverable, and the type of informationthey need to contain must go beyond an overview of an event and directly relate tohelping corporate partners determine their return.

2 You should not be in this business if you don t do them. They are as important as the contract or the event itself, said Kathy Emery, president of The Sponsor PlacementCo., a sales agency that represents Taste of Minnesota, Detroit s Comerica Cityfest and other civic festivals. Especially in tough economic times, properties that don t produce reports, or provideonly superficial summaries, are at risk of losing their sponsors. There is a lot of pressure on corporate budgets. If you are not offering post-eventsponsorship reports, you are opening yourself up to being replaced by a property that is, said Kyle Caddell, director of sponsor sales and services with the NFL Carolina Panthers.

3 Slingbox Goes National, YoungerWith Latest SponsorshipA year after being acquired by satellite TV provider Echostar Communications Corp.,Sling Media, Inc. has chosen American Collegiate Intramural Sports as its first nationalsponsorship for its flagship Slingbox product. Slingbox will title ACIS Football, which encompasses 200 college campuses and culminates in a national championship tournament Dec. 28-31 in New Orleans. The company began sponsoring for Slingbox a device that lets consumers watch livecable, satellite and DVR-recorded TV programs on Web-enabled computers, PDAs and mobile phones two years deals focused on pro sports teams and collegiate sports properties, and were primarily located in the tech-savvy Bay Area.

4 They include the MLB San Francisco Giants,NFL San Francisco 49ers including titleof the press box at Candlestick Park University of California-Berkeley athletics,and the MLB New York Mets. Sling Media is adjusting its portfolio inthe wake of last year s $380 millionMARATHON ROUNDUP 3features highlights from new Subscribers Onlyonline contentTRANSITIONS OPTICAL 7looks to grow SPONSORSHIP program on the heels of PGA Tour deals; targets running and cycling properties nextARMOUR-ECKRICH 8adds new deals to college and pro sports portfolioASSERTIONS2 SELLINGE conomic RecoveryPlan: Sell SmarterWhat will be the impact of the currentfinancial crisis on the SPONSORSHIP market?

5 Outside of financial services, which companies and industries will be mostimpacted to the point of making significantchanges to their marketing plans?Those are just two of the many questionswith which SPONSORSHIP sellers not tomention their colleagues on the buyingside find themselves preoccupied amidnews of stalled bailout plans, companycollapses and unforeseen takeovers of major aside the immediate concerns of properties currently sponsored by thelikes of AIG, Merrill Lynch, Wachovia andWaMu, the best advice for rightsholdersto follow at least for the time being is to put their heads down.

6 Try not to bedistracted by the headlines and rememberthat deals got done during previousrecessions and in the wake of 9 belts may be tightened and buying decisions more difficult tomake, the need for companies to markettheir products and services will allocate the budgets In DepthStrategyInside This IssueIEGSPONSORSHIP REPORTThe latest on sports, arts, causeand entertainment marketingOctober 6, 2008 Volume 27: Number 19 Published biweekly by IEG, Smarter continued on page 2 Preparing SPONSORSHIP Fulfillment Reports continued on page 4 Slingbox and ACIS continued on page 6 WHOS lingbox and ACISTAKEAWAYHot mobile TV brand steps up activity.

7 Property findssuccess conducting audience research for SPONSORSHIP REPORTO ctober 6, 20082 Sell Smarter continued from page 1 AssertionsAccentureis not renewingits titlesponsorship of the ChicagoTriathlon, but is interested in maintaining a lower levelposition, most likely as official technology provider, continuing to supply itspopular alert system that allows friends and families to track theirfavorite participants, among other benefits. Don t be surprised if the company makes the same decisionsoon around its title of San Francisco s Escape from Alcatraz Triathlon.

8 In fact, look forother naming rights or high level sponsors to explore the option ofdowngrading. More than outright dropping of existing deals, downsizingmay be one of the main effectsthe current economic crisiswill haveon SPONSORSHIP in the short-to-mid term. In good times, a companymay be willing to spend the extra dollars for the presumed prestigeof having its name on an event or venue, but smart sponsors recognizethat most of their returnsare earned around activation and leveragingrarely hingeson title status. Given that fact, the feesmany propertiescharge for naming rights are disproportionateto the benefits, particularly for well-established brands that don t need exposure and sponsors targeting niche likely impactsof the financial, credit and housing crises and the overall economic malaisewill be a reduction in activationspending (because it is easier to cut those budgets than completelyexit SPONSORSHIP agreements)

9 And a lengtheningof the time it takes to get deals negotiatedand changemade by Congress to the tax codecould require a littlemore workfrom the folks responsible for SPONSORSHIP at nonprofitorganizations. The change does not effectthe regulationsregardingsponsorship revenue. Rather, it relates to potential penalties imposedon those who preparetax returns. The upshot for preparers: The IRSwill now hold them more responsiblefor the positions taken in tax filings, including determinations of whether specific revenue streamsare taxable as unrelated business income.

10 The upshot for nonprofitsponsorship personnel: Your preparers will be paying closer attentionto how your organizations determine whether your SPONSORSHIP revenuefalls under safe harbor or cannot be excluded from UBIT. So don t besurprised when they start asking to see SPONSORSHIP contracts, andbe prepared to make those documents availableand to answerquestions about specific benefits and giant Continentalis crediting its SPONSORSHIP of FIFA World Cupand UEFA soccerwith helping the company become the globalmarket leaderin passenger tires for the first time in its history,earning a 25 percent market share as of the beginning of the s primary objectivefor the 2010 World Cup is morefocused.