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Author Topic: Pay back sponsor fees??  (Read 1274 times)

agroves

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Pay back sponsor fees??
« on: December 05, 2004, 11:11:29 PM »
My wife bowled in a Scratch Team tournament this weekend, which she(they) won.  The local center here paid $45 of each members entry(4).  On the drive to Fargo the team captain was informed that the winnings would be after the sponsor fee was returned.  Now, I have heard of this, but it is usually agreed upon by BOTH sides.  My wife said she would have rather pay full price and get back the money.  This way they wouldn't have to deal with this hassle.  

This center also paid money for other teams as well.  Those teams aren't required to pay anything back if they didn't cash.  

Is this normal??  I was always under the impression that a sponsor fee was just that a sponsor fee.  You didn't have to pay it back.  I know that we don't give sponsor fees back to the businesses, when league pay out at the end of the year.  

Andrew

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michelle

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Re: Pay back sponsor fees??
« Reply #1 on: December 06, 2004, 07:51:37 AM »
There are two different types of sponsor fees...this sounds like a business that has "sponsored" the team, and you are correct that there is often no return of the entire fee to them before funds get split amongst the team.

Individual sponsors in a tournament setting are often reimbursed for their trust in putting up the entry fee or bracket money.  Those arrangements often include a split of the proceeds between sponsor and bowler after bowler expenses are also removed.  Percentages may vary depending on the level of sponsorship...

Pinbuster

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Re: Pay back sponsor fees??
« Reply #2 on: December 06, 2004, 08:06:36 AM »
Like you said it depends on the agreements.

For leagues generally the sponsor provides the sponsor fee to the league (if any) and often one of more sets of shirts. Generally the sponsors don’t expect any return of these expenses figuring the advertising gained is worth it.

Tournaments are often a different matter. Our sponsor pays half of our entry fee and expects nothing in return. We generally enter our city tournament, ABC nationals, and sometimes the state tournament depending on its location. It is a wash for the sponsor in this case since they pay the entry fee in full and then we pay them the ½ fee, the tax savings for them gets most of the ½ fee back.

However I know of other sponsors in town that pay the full entry into tournaments and use the prize money to offset the expense. But this arrangement in known in advance.  

mumzie

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Re: Pay back sponsor fees??
« Reply #3 on: December 06, 2004, 11:40:20 AM »
I had a team that was partially sponsored by a local proprietor. We had no agreement in place regarding payback.
I felt I knew the gentleman well enough to ask. So I did. We cashed for exactly the amount he kicked in, so he asked us to split it with him, which we did. The team went along with it. If we'd won more than double what he kicked in, he would have only asked for his fees to be paid back. His way of looking at it was - you guys bowled, you did ok. This way the money will be in the pot to do it again next year.

I thought it was reasonable, since he was never asking for more than his original investment. That evens out completely - if I'd paid it myself, I would be keeping it.
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pin-chaser

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Re: Pay back sponsor fees??
« Reply #4 on: December 06, 2004, 12:59:55 PM »
Well, I never except any sponsership without knowing up front what the deal is and I never offer sponsership without clear expectations defined.

It is usual and customary (from my experiences) that sponsers get there money back first and then make a split of the profit. The higher percentage of the split usually goes to the bowler in such cases... I usually get 1/3 if I am sponsering and 2/3 if i get sponsered.

However, none of this is important since none of these was apparently decided up front and I believe you should bite the bullet and make the sponser happy and chalk it  up to experience.
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