Factors which influence corporations to discontinue sport sponsorship agreements

The purpose of this study was to determine the reasons that North American corporations have canceled sport sponsorship agreements and to develop a profile of the respondents taking part in this study. The survey instrument used was a modified version of Irwin and Assimakopoulos' Sport Sponsorship Proposal Evaluation Model. The instrument was designed to evaluate those factors which corporations considered important when canceling a sponsorship agreement. Participants were identified through the International Event Group's Sponsorship Report. Of the 112 Corporate Sport Sponsorship Questionnaires distributed to corporate participants, 81 were returned, of which 52 were completed and useable; thus, providing a 46% rate of response.;Part I of the questionnaire requested corporate respondents to rate items on their importance in selecting and canceling sponsorship agreements. Part II solicited information regarding the effects of sponsorship selection and cancellation, particularly on the reallocation of funds. Part III of the questionnaire requested information utilized for developing a corporate profile of respondents. The results of this study indicated that corporations consider many factors important when selecting a sponsor but only consider the cost effectiveness and affordability of the sponsorship to be significant when canceling. Respondents also gave consideration to the following items: event sales/retail tie-in, image target-market, and demographic fit with the immediate audience. It appears that corporations must accomplish corporate objectives to fulfill the exchange process and increase the chances of maintaining a successful sponsorship agreement. Therefore, event organizers must focus less on sponsorship acquisition and more sponsor retention. Collaborative goal setting and evaluation between the sponsor and event organizer may serve to satisfy mutual exchange and sponsor retention.