Structural Business Model Based on Cooperation between Sports Organizations and Sponsors

Abstract

Direct government investments in sports infrastructure influence general development of the sports business sector. However, governmental funding is usually not able to equip fully the sports sector. In order for the sports sector to be less dependent on government politics and finance, it is necessary to find ways, how sports organizations could themselves create possibilities for the development of their work. To achieve it, there is a need to analyze the cooperation peculiarities of the sports organizations and sponsors and prepare new cooperation management models. The efficiency of the sports organizations depends on the popularity of certain products within the market, target audience as well as business partners or sponsor organizations. To attract more sponsors and make effective and beneficial cooperation for both sides, it is essential to analyze the options for the creation of cooperative business relationship model which would lead to the development of more effective cooperation. The sports organizations and sponsors cooperate in order to strengthen the image of sponsors and reinforce certain social values through consumers caused by associations. The products of the sports organization, its target audience and the scale of product use, determines the outcome of sponsors and the size of the sponsorship program. This topic is significant in the following three problematic aspects: first – the reduction of corruption in the sports sector, second – the need for the sports organizations to be able to support themselves within the development of sports products and to strengthen the competitiveness of the sponsors, third – the development of the sports organizations’ activities in order to maximize their potential opportunities. However, as the effective cooperative model has not been constructed yet, it is still difficult to achieve these goals. In order to implement these and other decisions, the article proposes to form a structured business model that is based on the major business elements and their links that ensure the effectiveness of this cooperation for the development of common products for the general market. The model includes the combination of the sports organizations and sponsors potentials at one general activity. The cooperation between the sports organizations and sponsors is underway in order to create symbiosis and synergy effects. This type of cooperation efficiently helps to exploit the potential of the sports organizations for their own benefit and the creation of greater value. DOI: http://dx.doi.org/10.5755/j01.ee.25.1.2680