Sponsorship Evaluation: Agency Theory, Performance Measurement, Expert Consultation, Case Studies, and a Process Model

The application of and investment in sponsorship globally has been increasing rapidly for over 20 years while the theoretical development and practical ability to evaluate its effectiveness has lagged behind. A strong theoretical foundation and improved evaluation tools are required. Agency Theory and Performance Measurement are adopted in this regard; articulating the sponsor-sponsee relationship as an example of the principal-agent relationship. This book recognizes the importance of the explicit (formal) and implicit (unwritten) objectives of both sponsor and sponsee in effectively evaluating a sponsorship and focuses on the evaluation of the sponsorship contract in both its explicit and implicit forms. A review of the literature and a series of expert interviews and consultations were used to explore the sponsor- sponsee relationship, and provide the basis for the construction and development of a sponsorship evaluation process model. The process model was then tested by adopting it to evaluate two major sponsorships: Kanatek?s sponsorship of an expedition to Mount Everest, and ATB Bank?s sponsorship of the Edmonton Grand Prix.