Why Shirt Sponsors Should Insist on Performance Clause - Benson Chukwueke Explains the Mutual Benefits

Eunisell is the first Shirt Sponsors that is known to ever rewarded a club in Nigeria for good performance.

 Eunisell rewarded Rivers United with NGN10 million for coming second in NPFL and winning the Super Four Tournament in 2016.

Brands advertise on a club's shirt without any clear measurement parameter to determine the success or failure of their investment. Shirt Sponsorship are most time measured based on exposure rate rather than positive impact rate.

In football winning is the name of the game. As long as a club is winning, the media will be willing to freely give them more exposure in their headlines, montage, talkshow, video clips in their various sports programs in several media.

Sponsors like BUA enjoyed a lot of positive impact, both in Nigeria and in the continent of Africa, during Pillars three years reign as NPFL Champions.

The fans also reacts positively... buying the club's shirts and proudly wearing it to almost every occasion. They have positive memories of the team and begin to respond likewise to anything that's associated with the club, especially their Shirt sponsors.

In Nigeria, many analysts report shirt sponsorship of NPFL Clubs like a Corporate Social Responsibility (CSR) donation from a brand. Perhaps, this is reason most brand managers shy away from it.

Shirt Sponsorship is not a charitable donation, it is a commercial  investment made from a brands promotional budget...that is expected to yield a measurable result.

Indeed, as the interest of football consumers contonue grow towards NPFL, the value of Shirt Spomsorship in Nigeria will be appreciated the more.

 In 2015/ 16 NPFL season, their where many wasted opportunities. Corporate brands couldn't take advantage of the overwhelming crowd followership and responses towards teams like Enugu Rangers, Kano Pillars, MFM...

It was only Eunisell that took advantage of the positive impact of Rivers United and the incredible responses of their fans. I don't know if their was a way they were able to measure the success of lasts season's Shirt Sponsorship, but I knew they gladly renewed the sponsorship deal this January.

How Does Performance Clause Work in Shirt Sponsorship?
Performance clause is a way to pass on the Sponsors expectations to the club and motivate them to achieve it.

 When a Corporate brand advertises on a club's shirt, they must motivate the club to achieve fans growth and positive responses.. Through different kinds of reward system... A one lump sum donation for meeting targetted performance level like what Eunisell did to Rivers United, should be one way to motivate the club.

The popular performance clause is the "Stick and Carrot" reward system. If the club meet or surpass a set target, the Shirt sponsorship amount is increased the coming season. But if the club fall below average in it's overall participation, then the Sponsorship fee is reduced. But if the club is relegated from NPFL like Ikorodu United, the sponsor has the right to withdraw it's Sponsorship association with the club.

The performance clause can work based on the Corporate Objectives of sponsors. The truth is,  corporate brands have different goals for entering to sponsorship association with a club. Sometimes, it's beyond just commercial reasons. It could be social or political reasons or other subjective reasons...

For further inqury on the case study, contact the writer. Benson Chukwueke
 is a Sponsorship Consultant and CEO, GreenHunters Sport Marketing International, based in Lagos Nigeria. Call: +234 809 877 2556 or Email: gh.sports1@gmail.com