Corporate sponsors

Sports sponsors typically want to raise their profile and associate their business with success. Offering bonuses helps achieve both these goals, as it enables highly incentivised deals to be structured with an actual cost much less than the headline value. Whilst sponsors still want the teams and players they endorse to win, the benefits of success are intangible and can be hard to value.

SportingWins enables sponsors to offer significant performance bonuses and, at the same time, exchange these inherently uncertain liabilities for an agreed cost a fraction of the headline figure. SportingWins’ hedging contracts match exactly the sponsor’s bonus liabilities and bring financial certainty over the contract’s life. Incentives can be linked to a single event or to multiple events over a number of years. For example:

• A sponsor could offer a Ryder Cup golfer £80,000 a year over a five year sponsorship deal.
• Instead, they offer £500,000 for the first Major the golfer wins in that period, £1 million for the second and £2 million for the third and each subsequent win.
• SportingWins prices an agreement to cover a bonus based on one Major win at 33%, two wins at 7% and the third and each subsequent win for a total of 1.5%.
• For consideration of £265,000 (33% of £500,000 plus 7% of £1 million plus 1.5% of £2 million), a Hedging Agreement exactly matches the sponsor’s obligation to pay bonuses to the player.

The sponsor is therefore able to offer £ multi-million headline bonuses for a fixed cost of £53,000 a year over the term of its sponsorship agreement. As well as the main team sports, SportingWins can hedge bonuses dependent on success in professional sports including:

• Golf Majors, PGA, European and other Tour events
• Tennis Grand Slams, ATP and WTA Tour events
• Formula 1 motor racing.