Structural Business Model Based on Cooperation between Sports Organizations and Sponsors

Abstract

Direct government investments in sports infrastructure influence generaldevelopment of the sports business sector. However, governmental fundingis usually not able to equip fully the sports sector. In order for thesports sector to be less dependent on government politics and finance,it is necessary to find ways, how sports organizations could themselvescreate possibilities for the development of their work. To achieve it,there is a need to analyze the cooperation peculiarities of the sportsorganizations and sponsors and prepare new cooperation managementmodels.The efficiency of the sports organizations depends on the popularity ofcertain products within the market, target audience as well as businesspartners or sponsor organizations. To attract more sponsors and makeeffective and beneficial cooperation for both sides, it is essential toanalyze the options for the creation of cooperative businessrelationship model which would lead to the development of more effectivecooperation.The sports organizations and sponsors cooperate in order to strengthenthe image of sponsors and reinforce certain social values throughconsumers caused by associations. The products of the sportsorganization, its target audience and the scale of product use,determines the outcome of sponsors and the size of the sponsorshipprogram.This topic is significant in the following three problematic aspects:first - the reduction of corruption in the sports sector, second - theneed for the sports organizations to be able to support themselveswithin the development of sports products and to strengthen thecompetitiveness of the sponsors, third - the development of the sportsorganizations' activities in order to maximize their potentialopportunities. However, as the effective cooperative model has not beenconstructed yet, it is still difficult to achieve these goals. In orderto implement these and other decisions, the article proposes to form astructured business model that is based on the major business elementsand their links that ensure the effectiveness of this cooperation forthe development of common products for the general market. The modelincludes the combination of the sports organizations and sponsorspotentials at one general activity. The cooperation between the sportsorganizations and sponsors is underway in order to create symbiosis andsynergy effects. This type of cooperation efficiently helps to exploitthe potential of the sports organizations for their own benefit and thecreation of greater value.