Following on from this summer’s Euro 2016 football tournament, and with the Rio Olympics just around the corner, could your business benefit from sports sponsorship?
Sponsorship is a mutually beneficial relationship between a rights owner, such as a sports club, and a fund provider – a business. To many it may seem to be the hunting ground of large multinational corporations, but small businesses may also be able to benefit, and generate publicity for their business.
It can also be a way to generate trust and goodwill in the local community. Your sponsorship may be enough to buy kits and sports equipment for a local children’s football club, or maybe fund a coaching program at a junior athletics club. For smaller businesses, sponsorship is a good way to be seen giving back, by supporting sport at the grass roots level.
But before entering into a deal, remember that it is more than just a corporate exercise. You may well imagine your company logo appearing all over an event, but instead you can view it as an opportunity to engage with your target audience, use it to tell your story, encourage customer relationships and build your brand.
There are many things which need consideration before entering such agreements if tax relief is to be allowable e.g. company logo, advertisements etc. care needs to be taken.
For more information contact our Tax Department on 01633 871122.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.