Sponsorships

[CrazyGoofyWeirdGuy]

I have been long time friends with a record company called Road Runner Records.  They produce bands such as Nickleback, Fear Factory, Slipknot, Kill Switch Engaged, Coal Chamber, Bio-Hazard and more.  Lately the idea of a sponsorship has come to play.  They, as well as I, are brand new to the sponsorship game and we need to know how to go about this.  As far as I know, the main sponsor of said car covers a certain percentage of the cost for modifications to the car.  I suggested I send a request of "job x" for y ammount of money to the record company, they then confirm the job and send me check for the agreed percentage of y ammount of money.  So for example; the front-end conversion is $3,000.00 dollars, the company agreed in the beginning to cover 40% of cost for modifications, they would send me $1,200.00 and I would pay the remaining $1,800.00 to cover the complete $3,000.00.

Does this sound about right? Can someone with REAL HARD KNOWLEDGE of or with a main sponsor tell me how to handle this.  What to ask or expect?

®

[rotaryknight]

Every sponsorship is different.  Some companies will give you budget/money, parts, discount, or technical support.  My experience comes from industry companies your situation is a little different but I hope this helps.

For example if you are looking for an sponsor within the import industry you will have to send a proposal stating what you have done, what you are going to do, awards won, articles done and the MOST important what press can you guarentee.

Bottom line is it is a business and no one wants to hear "oh i'm going to turbo," or "I plan to do such and such."  That's why the same cars or the same people who just switch cars tend to keep gettin sponsored keep getting sponsored....they are tried are true proven.

No sponsor wants to invest money or product in someone that falls through or takes 6 months extra to turbo their car.  Doesn't matter if you have financial problems, its their investment and they want it on a car that will guaretee them press right now.

Also if you get a sponsor make sure that you keep them up to date on ALL shows, appearances, articles etc.  Send them a letter and photographs, or the articles so they know that you are working for them in promoting their products.  Trust me it helps later on down the line if you want something else or switch cars..

The bigger the company the harder the sponsorship....yea it's easy to get stuff like Ichiban or Tenzo R...all the accessory companies and ricer companies give their stuff like candy.  But if you are going for a Tire company or Performance company it is a whole different approach.

You have to make your car sell to them and appeal to them.  HKS wouldn't sponsor a vehicle with hydros and neon....because it does not fit the image that they want.  Also remember they have a stack of proposals that they get everyday....what makes your car worth sponsoring.   It's plain business....if you can honestly step back and look at your car from their point of view what make it worth sponsoring.

Also the car is a big issure.  Right now WRX, RSX are HOT to sponsor....why?  Because it is the new marketable car.  240sx i will honsestly say are gettin popular due the the interest in the swaps but you will be surprised how many peopoel in the industry have a s13 or s14 as a primary or secondary car.  So that is a big issue too.  Most companies would rather keep sponsorships close.

The bigger companies will also put you on contract.  You will be expected to attend a certain amount and specific shows.  Magazine articls must be takes within a certain period of time and other conditions.  They don't joke around either.  Toyo Tires takes your credit card information and if you do not follow the terms of the contract you are billed FULL RETAIL for the tires.

I hope I helped a bit.  If you have any other questions I can try to help.

[CrazyGoofyWeirdGuy]

This company has no affiliation with cars or racing what so ever. They are stricly a record company, www.roadrun.com. This is something that came to me when searching for a sponsor. I have been friends with a higher up in the company for over a year now and I sent him an email with my thoughts about a sponsorship, and he is now taking the idea to his higher up tommarow and would like something to work with. I am all aware of promotions, that is my job with the record company. I have been and still am the number one promoter in southern New Jersey for about a year and some odd months.

My proposal

Road Runner Records will pay 40% of total cost for labor and parts for the vehicle at the time parts and/or labor are to be purchased and/or applied. It is understood that all parts and/or labor request will be sent to Road Runner Records via e-mail prior to purchase for approval with visual example(s) and specific cost of three different competing companies which offer identical parts and/or labor. Road Runner Records will also cover 25% of travel cost for travel to exhibition and/or garage work which is located outside a twenty-five (25) mile radius of the home of Robert John Stires. This excludes normal maintenance or any form of work needed due to gross negligence or avoidable mechanical difficulties for said vehicle. In recompense, said vehicle will display only material approved by both parties. Material includes stickers, graphics, and paint jobs . Both involved parties, Robert John Stires and Road Runner Records, will have an even 50/50 hold over voting for materials. In the case of indecision a compromise will be needed to be meet by both parties. The material will generally follow the Road Runner Records theme of material of bands signed to Road Runner Records and material advertising the Road Runner Records company, but must be allowed to add material of other sponsoring companies. If at time the sponsorship is to stop for any reason, parts/vehicle will remain sole property of Robert John Stires and will not be returned to Road Runner Records. At such a time no money paid by Road Runner Records for labor/parts/travel will be returned to Road Runner Records, however sponsorship must remain active for no less then twelve (12) months and no longer then twenty-four (24) months without agreement from both involved parties from the start of such a contract. A total of no less then five (5) shows must be attended and judged wherein the car is presented to the public for exhibition and judged by appointed officials. Pictures, article(s) and/or a summary of the show written by Robert John Stires (no less then two of the said criteria must be met) will follow no later then two weeks after attendance at such a show. If said vehicle is granted first prize/place in any of the classes at such an event, Road Runner Records will consider extra incentive(s) paid/given to Robert John Stires. Magazine or television appearances are not a requirement however a minimum of three (3) proposals to show/display/advertise the vehicle for no cost should be sent to television or magazine companies, with a copy of each proposal sent to Road Runner Records.

I am not a lawyer, this is all straight from me, Robert John Stires. This is simply an outline of such a contract, and is absolutely negotiable. There is much more to be considered between both parties. This is simply a proposal to show what is normal in such a contract or agreement for sponsorship. I am sure there are many things you would like to add, amend, or edit. It would be wise for all involved parties to have a face to face meeting to discuss such a proposal.



Help me with this, if you want to edit this, plese change the text which you have editied. <img src="http://www.zilvia.net/f/iB_html/non-cgi/emoticons/sigh.gif" border="0" valign="absmiddle" alt=':rolleyes:'>

[rotaryknight]

If you can actually get a company to do this good for you. &nbsp;The thing is more in your favor since i see nothing that financially binds you or any penalties going against you.

I just glanced at it but basically it says if you flop out you still keep everything....so don't see any legal action they can push on you if you do not do any shows.

[CrazyGoofyWeirdGuy]

</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote (rotaryknight @ June 05 2002,12:35)</td></tr><tr><td id="QUOTE">If you can actually get a company to do this good for you. The thing is more in your favor since i see nothing that financially binds you or any penalties going against you.

I just glanced at it but basically it says if you flop out you still keep everything....so don't see any legal action they can push on you if you do not do any shows.</td></tr></table><span id='postcolor'>
The binding is here

</span><table border="0" align="center" width="95%" cellpadding="3" cellspacing="1"><tr><td>Quote </td></tr><tr><td id="QUOTE">however sponsorship must remain active for no less then twelve (12) months and no longer then twelve (12) months from the start of such a contract without agreement from both involved parties .</td></tr></table><span id='postcolor'> - edited

Basically saying, it is term comtract like that of a athelete. &nbsp;The sponsorship will not continue after the second year with out an agreement from both parties". I will also add "Not meeting any of this criteria can result in termination of this sponsorship at the discretion of Road Runner Records." or something to that effect.

[rotaryknight]

Yes I read that part.

Like I said...if they are going to help you pay up front then it's a win win situation for you. &nbsp;There is nothing that says if YOU fall down on the deal that there is any financial obligation for you.

Basiacally if they agree to this contract then great for you...they obviously do not know what they are doing.

If I were them I would state that you would have to pay the company out of your pocket back whatever they initially paid if you break the sponsorship contract before it's agreed termination. &nbsp;There is no risk for you at all in this contract. &nbsp;Unless they have no idea what they are doing this is a win/win situation for you.

[CrazyGoofyWeirdGuy]

I in NO way wish to "shaft" this company. &nbsp;What would you suggest I add? &nbsp;Something along the lines of:

If this contract is broken by Robert John Stires by not meeting the aformentioned criteria, all money paid by Road Runner Records for said vehicle is to be returned to Road Runner Records. &nbsp;However, if an agreement is not reissued after the first twelve (12) months or an agreement is made by both involved parties to terminate this agreement, no money is to be returned, and all parts and the vehicle become property of Robert John Stires. &nbsp;

You seem to have a better knowledge of this then I do. &nbsp;Is there anyway you could script a outline of things I should cover? &nbsp;I don't want to bring the lawyers into this just yet.