Partnership through sponsorship
A Royal & Sunalliance case study

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Page 3: Risks

No sponsorship is without risk. Whatever the form of sponsorship, it is important to ensure that the event is welcomed by the targeted audience and the partnership organisation is completely ethical in its activities. The sponsor cannot risk becoming involved with an event which is unprofessionally managed or one with a slightly dubious reputation. Then there are other forms of risk. For example:

  • the behaviour of a crowd or audience;
  • the actions of sporting or artistic performers;
  • the policies of the organisation being sponsored;
  • the weather (if the event is an outdoor activity);
  • accidents (injury or death to participants).

Even a low risk proposition such as the sponsorship of a concert is susceptible to poor ticket sales or the non-appearance of key performers. The receiver of the sponsorship will also be aware of changes to the donor’s image and reputation during the period of sponsorship.

Royal & Sunalliance | Partnership through sponsorship