How would you approach renegotiating a sponsorship contract that is no longer meeting the team's needs?

1. By identifying and being specific on the areas the deal is not meeting the current needs: Support, Association, VIK, Income?? 2. If your team lacks the competence to close or negotiate deals, bring a third expert and be specific about the expected outcome. 3. Justify your requirement with hard data or metrics. When none, bring a third party expert to run an audit and provide you with some to analyse performance. 4. Take in consideration if this is a long term Partner. Grass isn’t always greener on the other side and many times, you’re better off having an active partner that can help you reach your goals than a stronger funding partner with no loyalty. 5. Have clear and defined exit strategies and expected outcomes.

We have faced some similar situations when an elite sponsorship contract which is still delivering for the client has to be re revisited by the Brand and this may be due to various reasons beyond the control of the sporting body and to do with companies strategic change of approach or investor pressures etc. We believe long term commitments made must be done with absolute planning and ability to stay the minor ups and downs. There are very limited brands who envision the long run but for the rest it's euphoria at the start and then the domino effect of cost cutting starts....

Pinpoint exactly where the current contract is falling short in meeting your team’s needs, whether it's financial support, branding opportunities, activation rights, or other aspects. If possible, benchmark your team’s sponsorship deals against similar teams in the industry using specific data. Determine what you want from the renegotiation. This could include increased financial support, additional resources, brand visibility, or greater flexibility. Choose the right moment for the discussion, such as before the contract renewal period or after a significant achievement by the team. You could add performance-related bonuses based on the team's success or the sponsorship's effectiveness.

Para renegociar um contrato de patrocínio que não atende mais às necessidades da equipe, comece revisando os termos do contrato atual e identificando claramente os pontos que precisam de ajuste. Em seguida, prepare uma proposta detalhada que destaque as novas necessidades e ofereça soluções que possam beneficiar ambas as partes. Agende uma reunião com o patrocinador para discutir a proposta de forma aberta e colaborativa, enfatizando a importância de alinhar os termos ao valor atual da parceria. Esteja preparado para negociações e ajustes, e mantenha o foco em encontrar um acordo que fortaleça a relação e atenda aos objetivos de ambas as partes.

Letting the sponsor know your concerns may be all it takes to resolve the situation. If it's a beneficial relationship for them, they'll want to continue it and they'll want to keep your organization happy. Let them know your concerns, let them know your needs, and be willing to walk away if they are unable or uninterested in engaging.

I believe proposing a gradual approach to the renegotiation is key. Instead of presenting all the changes simultaneously, a series of phased adjustments over time could be suggested. This demonstrates flexibility and understanding of the sponsor's limitations and allows both the team and the sponsor to evaluate the impact of the changes before fully committing to new terms.

It's never one size fits all but to be fair a sporting body would have pre planned their sponsor tiers and deliverables. It's almost impossible to realign in a sold out situation. Also commercially if it's been acquired via a tender process, trying to renegotiate the financial investment is not the best strategy. Best approach for a brand is to have had the foresight at the start to add a right to assignment of rights to another Brand which has no category clash clause and a first right to extend.. It always works both ways..