Mg road 98 eng

MARKETING APPENDIX Principles and Procedures for marketing related issues, during the 1998 World Road Championships

1 -

Marke t i n g & Sponsorship rights

1.1

The Organising Committee accepts that all marketing rights to the event shall be the exclusive property of the UCI. Furthermore the OC acknowledges the Guide to Practices and Procedures to be integral part of the agreement between UCI and OC.

1.2

For the 1998 World Road Championships, the UCI and OC have agreed on a profit- share, on terms as described under the agreement between UCI and OC.

1.3

The OC hereby acknowledges that ISL has been appointed by UCI as its exclusive marketing agency and as such is authorised to give on UCI’s behalf all approvals, consents and instructions pursuant to Marketing & Sponsoring related issues. This authority shall continue as long as UCI has not expressly notified OC otherwise. Under no circumstance can the OC involve another agency for marketing- related issues.

1.4

On behalf of UCI, and therefore indirectly OC, ISL will handle the sales of all marketing related issues, unless specifically excluded below. Such activities to include all levels of sponsorship (Major, Main, Official Supplier, Local Service Partner), as well as the sales of VIP packages, public catering and appointment of a specialised merchandising company. The OC will be consulted in the appointment of public catering and merchandising company.

1.5

The OC of the World Road Championships cannot participate in any activity not directly linked to the World Road Championships, without prior written approval from UCI. Furthermore the OC acknowledges that any activity organised under the control of the OC falls under the stipulations as set out within the UCI / OC agreement, and as such form integral part of the marketing agreement between UCI / OC / ISL. Under no circumstances can the OC participate in or assist activities that are damaging to the overall UCI marketing program of the event.

1.6

UCI and ISL will have authority for the correct implementation and interpretation of the Guide to Practices and Procedures, as well as updating it.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 2

1.7

For reasons of clarification, some issues mentioned in the Guide to Practices and Procedures will be specifically dealt with below. Furthermore, an update on the packages will be provided.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 3

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Marke t i n g proper ti es handled by OC on behalf of UCI (and OC) OC will directly handle the following marketing properties on behalf of the common interest of UCI and OC :

2.1

Ticket- sales, taking into account the principles as mentioned in the Guide to Practices and Procedures. Amongst other issues, UCI / ISL need to give written approval on the distribution of the ticket- sales.

2.2

Official Program. The OC has the obligation to produce an official program as set out in the directives from the UCI. Official Sponsors will receive an advertising page free of charge. In some cases sponsors are entitled to exclusivity in the official program.

UCI, OC and ISL will discuss if and how separate advertisements will be sold for this program. In principle the sales for such program will not start before October 31 st 1997. ISL will assist the OC in appointing the company which will produce such program, in an attempt to limit the budget allocated to it.

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Explana tion of merchandising

gener al

principles

linked

to

catering

and

With the purpose of avoiding any confusion with regards to the appointment of companies, that will be granted the right to exploit the catering (public and VIP) and merchandising of the event, the following procedures / rules need to be respected : 3.1

Merchandising



under no circumstances can the Merchandising activities conflict with the overall UCI / ISL marketing program of the event. This also means that no merchandising articles will be sold to companies, not being an UCI / ISL sponsor of the event. This to avoid that such companies would develop a sales- promotion program around the event and thus conflict with the official sponsors.



no company will be approached for a contribution in the form of sponsorship, unless with the written approval of UCI / ISL.



the OC’s share of the revenues from merchandising rights will be terminated on December 31 st , 1998.



the OC accepts that UCI has the right to exhibit and/or sell its own licensing products on the circuit. Such sales not to be part of the profit- share.



unless decided otherwise, the merchandising program will consist of ‘neutral’ products only. This means that no mark or label will be used with the product.



in principle there is an obligation to source products from the official UCI / ISL sponsors for all merchandising activities.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 4 ď Ź

within the agreements between UCI and Sponsors, latter have the right to use the Event and UCI marks with their products and are entitled to develop a premium program.

ď Ź

in Appendix B a clear indication of Merchandising Articles will be given, as well as the different obligations and/or rights with regards to these articles.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 5

3.2

Catering



Within the agreement between UCI and OC, latter has the obligation to provide VIP catering for officials and sponsors. Therefore, it will be OC’s responsibility to provide a VIP catering of sufficient quality. As sponsors form an important part of the overall VIP catering needs, OC will consult ISL on this subject.



With the assistance of the OC, ISL will appoint a company which will handle the public catering of the event. OC will ensure that this company will receive all necessary legal permits and protect the interests of such company for the duration of the event.



When negotiating with Sponsors, UCI / ISL will take into consideration the fact that OC will need infra- structures to execute the catering, will try to obtain free products from sponsors and negotiate purchasing prices, in consultation with the OC, which are usual for major sporting events



In both, the VIP and Public catering, only official sponsors’ products can be sold and/or served. This obligation needs to be included in the agreements that will be concluded with the subsequent companies.

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Product Service and Suppor t from Sponsors & Local Compani es UCI / ISL fully understand the importance to involve the local community to help making the event a full success. Furthermore, the value of services provided by such community and/or companies can substantially diminish the organising budget of the event.

UCI / ISL accept that the OC might have contacts to the local community and/or companies that could diminish the overall budget for the event and generate additional revenues for UCI and OC. Provided that such activities do not conflict with the overall UCI / ISL Marketing and Sponsoring program, UCI / ISL are ready to accept the following principle:

4.1

Products and Services in Kind UCI accepts that the OC is entitled to the products and services that can be obtained as part of the agreement with sponsors, for the duration of the event. Apart from commissions due to ISL, the OC will not need to compensate the UCI for such products or services, as both parties will directly benefit from this situation. Therefore, OC needs to communicate to UCI / ISL as soon as possible the products and services which are needed.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 6

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Marke t i ng co- opera tion during the event All general principles of the co-operation between UCI / OC / ISL are described in the Guide of Practices and Procedures. Below we have highlightened some important details:

5.1

ISL is the sole responsible for placing advertising on the circuit. The OC will provide at its own expense 8 - 10 people to install and protect banners on the circuit.

5.2

OC will submit all layouts for printed materials to UCI / ISL before printing. OC to communicate reasonable deadlines for such printing materials to ISL.

5.3

UCI / ISL will co-ordinate the advertising for Podium, Start- and Finish Banners, starting ramp for the time- trials and metric boards. The actual infrastructures are completely the responsibility of the OC.

5.4

OC to carry all costs for the UCI tent and VIP catering for UCI Officials and Sponsor VIP’s in this tent - part of the cahiers- de- charges and contract UCI / OC.

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Gener al Procedur es The general procedures are of utmost importance in our efforts to build a coherent marketing program, avoid confusion on the market- place, obtain the best overall financial results and allow for complete transparency. Below you will find the procedures which refer to all contacts with companies, whether or not they involve

6.1

As Major and Main Sponsors represent the largest financial potential and Official Suppliers might reduce the organising budget considerably, these categories will be the first priority of the sales process.

6.2

All Official Sponsoring agreements are based on exclusivity within a certain product- category. To obtain the best results it is important that the initial level of sponsorship is established prior to contacting the company.

6.3

UCI / ISL will have full authority regarding any sponsor- agreement (price, contents, etc) and negotiating tactics.

6.4

Any agreement will be directly between sponsor and UCI. In case it directly involves the OC, then OC will witness the agreement. ISL will draft all agreements.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 7

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Commissions Payable and Receivabl e Below you will find the general principles for commissions.

7.1

ISL’s commissions on Cash amounts for UCI sponsors, will be paid directly by UCI

7.2

OC will pay a commission of 20% to ISL for products and services rendered by sponsors, provided they effectively diminish the budget of the OC. The OC will establish a complete overview of all the services needed and a reasonable budget will be established and approved of between UCI / ISL and OC. Such list to be attached as Appendix D. Until such needs are quantified and approved of, the services will be estimated at Fair Market Value of goods and/or services provided by a sponsor. Fair market value means the published wholesale or equivalent cost of leasing, whatever system is more applicable.

All these commissions will be paid under the umbrella of the UCI: OC pays UCI, UCI pays ISL.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 8

APPENDIX B: Merchandising 1 - UCI has existing obligations towards Sponsors for the following products : Watches Maillots Cuissards Collants Vestes Thermiques Impermeables Casquettes Chausettes Body contre la montre Gants de course

Tissot Santini Santini Santini Santini Santini Santini Santini Santini Santini

2 Products that in principle will carry no brand and/or mark F.i. if a World Championships T-shirt is to be developed, then it cannot carry the label of the producer (Nike, Adidas, Reebok, etc) on the T-shirt. This rule applies to all products, unless specifically excluded in writing by UCI / ISL. As means of indication of products that the OC might consider to produce: - Poster - American Cap - T-shirt - Polo - Helmet - Bidons - Glasses - Pins - Umbrella - Pen / stylo - Key- rings - Cigarette lighter

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 9

APPENDIX C Updated Market ing Packages On the following package you will find the standardized packages for the following sponsor levels: 

Major Sponsor (4)

550,000 CHF



Main Sponsor (6)

225,000 CHF



Official Supplier (6 - 10)



Local Service Partner

75,000 CHF based on individual discussions

The overview concentrates on the major rights. If it is indicated that companies have the right to be included in most Official UCI Documents, this includes one page in the Official Program.

UCI / ISL have the right to update such packages or to adept them in such a way to better reflect the local sponsor market. In addition to these package, UCI / ISL have the right to create a VIP / Hospitality package.

UCI / ISL Sponsors will receive all those (VIP-) accreditations and tickets necessary stipulated in the agreements between UCI / ISL and sponsor free- ofcharge.

UCI / ISL to regularly receive updates on OC’s activities, scheduled press conferences , social activities (f.i. official gala, official opening, etc). UCI / ISL sponsors to be invited for such activities if requested by UCI / ISL.

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 10

ROAD Official Rights

Exclusivity Logo

PRESENTIN G

MAJOR

MAIN

SUPPLIER

 

 

 

 

PRESENTIN G (0)

MAJOR

MAIN

SUPPLIER

(4)

(6)

(6-10)

80 m 60 m 50% 50% 50% 50% 4 at least 200 m 50%

40 m 30 m 25% 25% 25% 25% 2 at least 100 m 25%

30 m 1 at least 100 m -

at least 50 m

PRESENTIN G (0)

MAJOR

MAIN

SUPPLIER

(4)

(6)

(6-10)

Presents 

Credit 

Credit 

-







-

50 100

25 50

10 20

5 20

Adver t i si n g Rights

Last 100 m 100 - 300 m Metric Boards Start & Finish Podium Numbers Sponsor Areas Circuit Road Painting

-

PR & Pr o m o t i o n

Poster Intervie w Area Off. Documents VIP Tickets Normal

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 11

Tickets Franchise / Exh. Hospitality Tent Social Function









T.B.D.

50 m2

25 m2

9 m2









M AJOR SPONSOR Official Rights  Official Supplier of the Event  Exclusivity on Product Level  Right to use the World Championship Logo ,

together

with the UCI Logo in all advertising

Advertising Rights  40 metr es Banners (5 x 0.8 m) in the last 100

metr es

 30 metr es Banners (5 x 0.8 m) betwe e n 100

and 300

metres before the finish  2 separate COMPANY sponsor areas (at least 6

banners each)

 25% of the Metric Boards  mention on 25% of the Numbers and Bibs  at least 50 metr es Banners on the Circuit  25% of the Road Painting  25% of the advertising on the Podium  25% of the advertising on the Start & Finish

Banner

PR & Promotion

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 12

 credit on the poster  Company name & logo on all official UCI

documen ts (headed paper, accreditations, etc)

 25 VIP tickets per day  right to place a Hospitality Tent of 50 m2  50 normal tickets for the Road Events  opportunities to attend social functions  Franchise / Sampling opportunities

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 13

M A I N SPONSOR

Official Rights  Official Supplier of the Event  Exclusivity on Product Level  Right to use the World Championship Logo ,

together with the UCI Logo in all advertising

Advertising Rights 30 metr es Banners (5 x 0.8 m) betwe e n 100

and 300 metres before the finish  one separate COMPANY sponsor areas (at least 6

banners)  at least 100 metr es Banners on the Circuit

PR & Promotion  Company name & logo on official UCI

documen ts (headed paper, accreditations, etc)  10 VIP tickets per day  20 normal tickets  right to place a Hospitality Tent of 25 m2  opportunities to attend social functions  Franchise / Sampling opportunities  credit in the Intervie w Area

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 14

OFFICI AL SUPPLIER Official Rights  Official Supplier of the Event  Exclusivity on Product Level  Right to use the World Championship Logo ,

together with the UCI Logo in all advertising

Advertising Rights  at least 50 metr es Banners on Circuit during the Road

Race  at least 50 metr es Banners on Circuit during the

Individual Time Trials

PR & Promotion  5 VIP tickets per day  20 normal tickets for the Road Events  right to place a Hospitality Tent of 9 m2  opportunities to attend social functions  Franchise / Sampling

Subject: Marketing Procedures 1998 Road World Championships j June, 1997 Page 15

APPENDIX D Overvie w of Product & Service Require m e n ts

SERVICE or PRODUCT

NUMBER

VALUE (SwF)

100

85,000

Timing Cars Computers Accreditation TV Monitor Copiers Telefax Printers Walkie- Talkies GSM’s Radio Tour Clothing for Officials