Is sponsorship retention dependent on the geographic location of the sports facility?

Abstract

This study tested the hypothesis that 'revenue maximization of the tenants of sports facilities is dependent on the geographical location of the facility (location of distribution)'. Revenue maximization was operationalized pertaining to sponsorship. A survey instrument was sent to all sponsors of a Melbourne-based football club. The sponsors were grouped as location dependent and location independent based on the location of their head office and financial turnover achieved in the area around the sports facility. The survey collected information on three different steps in the sports consumption process including 'coming to the sports facility', 'being in and around the sports facility' and 'being serviced in the sports facility'. t-Tests were run for most items of the questionnaire in relation to location dependency. Indicative evidence was found in support of the general hypothesis. In particular, direct sales (turnover) in the area around a sports facility were found to be an important factor when considering the issue of location dependency. Smaller, lowspending sponsors with an important percentage of turnover in the area around the sports facility were less likely to move with the football club to a (remote) new facility. In relation to sponsors' objectives, it was found that the objectives of location-dependent sponsors are directed more towards direct sales (or product /brand related as defined elsewhere), whereas location-independent sponsor's objectives seemed to be indirectly related to sales (or corporation related and generation of media benefits as defined elsewhere).