Objectives. Determine the value received by the sponsor for a clothing endorsement contract of a PGA Tour member.
Challenges & Methodologies. Estimating sponsorship value is one of the most difficult, yet important, aspects of sports marketing. A direct assessment of coverage in various media outlets was carried out to learn the value of the media exposure the sponsor received during the life of the sponsorship contract. A comparables analysis was also conducted for the sponsorship contracts of other players ranked near the subject player to determine how the level of media exposure from the sponsorship compared with similar caliber players.
Outcomes. The client used the findings as the basis for legally pursuing the matter further. Additionally, a follow-up expert report was written for an arbitration hearing related to the contract dispute.
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