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23-607: Discovery Zone was the first corporate sponsor of the PBS children’s program Sesame Street , breaking the show's 30-year-long sponsor-free status in 1998. In 2020, a new center using the Discovery Zone name opened in the Cincinnati suburb of Union Township , Ohio at the Eastgate Mall ; it is not affiliated with the original company, but is heavily inspired by it. A second location

46-583: A commercial return. While sponsorship can deliver increased awareness, brand building and propensity to purchase, it is different from advertising. Unlike advertising, sponsorship can not communicate specific product attributes. Nor can it stand alone, as sponsorship requires support elements. Proponents of sponsorship would, however, point to its unique position in the marketing mix. A sponsorship program can include all other marketing elements including advertising, promotions, merchandise, hospitality, PR and social media. This allows sponsorship to be used to address

69-415: A much wider range of business objectives. For example, a sponsor buying the rights to a sports team or competition could achieve increased brand awareness through high profile signage, but might also use hospitality tickets for staff motivation programs or to host key trade customers. On-pack promotions could be linked to the sports property to create a much more compelling consumer proposition and to associate

92-435: A sports challenge area and laser tag area themed to third-party properties and a karaoke stage, while arts & crafts activities were placed in the former Quiet Zone. On April 20, 1999, Discovery Zone, Inc. re-entered Chapter 11 bankruptcy protection. Discovery Zone abruptly closed 106 of its locations on June 25, unable to alert visitors with reserved parties, while its remaining 22 locations closed throughout 1999. Twenty of

115-515: A sports event. Work by Cornwell and colleagues however, has shown that brands that don't have a logical match can still benefit, at least in terms of memory effects, if the sponsor articulates some rationale for the sponsorship to the audience. All sponsorship should be based on contractual obligations between the sponsor and the sponsored party. Sponsors and sponsored parties should set out clear terms and conditions with all other partners involved, to define their expectations regarding all aspects of

138-449: A year and sellers report spending anywhere between 1–5 hours researching each company that is viewed as a potential prospect for sponsorship. These are the terms used by many sponsorship professionals, which refer to how a sponsor uses the benefits they are allocated under the terms of a sponsorship agreement. Leveraging has been defined by Weeks, Cornwell and Drennan (2008) as "the act of using collateral marketing communications to exploit

161-522: Is a multibillion-pound industry. For example, Adidas became the sponsor and supplier of Manchester United's kit for ten seasons, in a 2014 deal with a guaranteed minimum value of £750 million (more than US$ 1.1 billion). As it has in most years over the past two-plus decades, sponsorship's growth rate will be ahead of the pace experienced by advertising and sales promotion, according to IEG. Benefactor (law) A benefactor (from Latin bene  'good' and factor  'maker')

184-437: Is a person who gives some form of help to benefit a person, group or organization (the beneficiary ), often gifting a monetary contribution in the form of an endowment to help a cause. Benefactors are humanitarian leaders and charitable patrons providing assistance in many forms, such as an alumnus from a university giving back to a college or an individual providing assistance to others . This legal term article

207-658: Is the largest source of sponsorship spending, with €26.44 million (US$ 29 million) in just the EU member states in 2014, followed by North America, the Asia Pacific region. Growth in Central and South America during 2010 did not materialize to the extent projected—3.8 percent versus a forecast of 5.7 percent—despite the FIFA World Cup and Olympic Games in Brazil in 2014 and 2016, respectively. With

230-510: The Mighty Morphin Power Rangers television series at the play centers. Discovery Zone had also planned a new family entertainment center to compete against Dave & Buster’s , which was dubbed “Metro Zone”. The new complexes would have included dining, drinking, mini golf and VR games in addition to the indoor playground equipment that Discovery Zone is known for. Stretched thin by expansion, changes in management tried to save

253-545: The NASDAQ exchange, raising $ 55 million (~$ 105 million in 2023) on the IPO . The stock rose 61% in the first day of trading. Under the leadership of then CEO Don Flynn, in July 1994, Discovery Zone bought 45 Leaps and Bounds stores from McDonald's for $ 111 million in stock and 57 franchised stores from Blockbuster Video for $ 91 million in stock bringing the total stores to almost 300. At

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276-548: The 2010 World Cup concluded, sponsorship activity should begin to heat up, thus the region is projected to be the fastest-growing source of sponsorship dollars outside North America, with a forecast growth rate of 5.6 percent for 2011. Relaxed television industry legislation surrounding product placement has led to a small but increasing rise in TV programming sponsorship in the UK. However, commercial sponsorship of British sports teams and players

299-415: The brand can evoke these associations, influencing consumer perceptions and behaviors. Cornwell, Weeks and Roy (2005) have published an extensive review of the theories so far used to explain commercial sponsorship effects. One of the most pervasive findings in sponsorship is that the best effects are achieved where there is a logical match between the sponsor and sponsoree, such as a sports brand sponsoring

322-474: The brand directly with a sports property which has much greater image attributes than the sponsoring brand. Various psychological and communication theories have been employed to elucidate the mechanisms by which commercial sponsorship influences consumer audiences. Many theories posit that sponsorship creates a cognitive link between a brand (sponsor) and an event (sponsoree), leading to the formation of event-linked associations in memory. Consequently, thinking of

345-643: The commercial potential of the association between a sponsor and sponsee" while activation has been defined as those "communications that promote the engagement, involvement, or participation of the sponsorship audience with the sponsor." Money spent on activation is over and above the rights fee paid to the sponsored property and is often far greater than the cost of the rights fee." IEG projects spending on sponsorship globally to grow 4.5 percent in 2018 to $ 65.8 billion, including $ 24.2 billion in North America alone (a 4.5% increase from $ 24.1 billion in 2017). Europe

368-518: The company; however, Discovery Zone filed for Chapter 11 bankruptcy protection on March 26, 1996, in Wilmington, Delaware , with debts of up to $ 366.8 million. They emerged a year later on July 30, under the private ownership of Wellspring Associates LLC . Wellspring Associates invested $ 20 million towards improving Discovery Zone's fun centers starting in 1998. The size of the "Mega Zone" play structure and toddler play area were decreased to make room for

391-436: The latter locations (thirteen owned and seven leased) and the company's intellectual properties and trade names were sold to CEC Entertainment, Inc., owner of Chuck E. Cheese's , who attempted to accommodate last minute party reschedulings over the following days. Ten locations were converted to Chuck E. Cheese's while the others were sold to third-parties. In June 2000, Discovery Zone's bankruptcy court judge ruled that there

414-485: The same time, Blockbuster bought more shares of Discovery Zone giving it 50.1% of the stock. Blockbuster took total management control of Discovery Zone in April 1995. Viacom had plans to cross market Discovery Zone with its other businesses, such as Nickelodeon , Paramount Pictures , and Showtime . By the time Viacom took control of Discovery Zone, the company signed a deal with Saban Entertainment to include characters from

437-402: The sponsorship deal. Sponsorship should be recognisable as such. The terms and conduct of sponsorship should be based upon the principle of good faith between all parties to the sponsorship. There should be clarity regarding the specific rights being sold and confirmation that these are available for sponsorship from the rights holder. Sponsored parties should have the absolute right to decide on

460-406: The support, similar to a benefactor , is known as the sponsor . Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property. While the sponsoree (property being sponsored) may be nonprofit, unlike philanthropy, sponsorship is done with the expectation of

483-450: The value of the sponsorship rights that they are offering and the appropriateness of the sponsor with whom they contract. The sales cycle for selling sponsors is often a lengthy process that consists of researching prospects, creating tailored proposals based on a company's business objectives, finding the right contacts at a company, getting buy-in from multiple constituencies and finally negotiating benefits/price. Some sales can take up to

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506-560: Was added in Florence, Kentucky , at the Florence Mall on July 23, 2021. Founded in 1989, Discovery Zone grew quickly, opening 15 stores in 18 months. In April 1993, Blockbuster Video invested $ 10.3 million (~$ 19.6 million in 2023) into Discovery Zone to purchase 20% of the company with an option to increase its stake to 50.1 percent in June 1994. In June 1993, Discovery Zone went public on

529-414: Was no feasible way for the company to be profitable, and their bankruptcy was converted into liquidation . By the end of 2001, Discovery Zone went out of business completely. Sponsor (commercial) Sponsoring something (or someone) is the act of supporting an event, activity, person, or organization financially or through the provision of products or services. The individual or group that provides

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