Page 121 - DMGT304_EVENT_MANAGEMENT

Event Management

Notes
Table 5.1 : Categories of Event Revenue

Government Government grants to assist with the running of events are not easy to obtain. To
Grants be successful, applicant organisations need to demonstrate that the event has
strategic regional importance. For example it may increase overseas tourists to the
region.
Sponsorship Despite the prevalence of event sponsorship in the sport and recreation
marketplace is increasing, many organisations have great difficulty in achieving a
significant amount of sponsorship. Competition between sport and recreation
organisations for sponsorship is intense. Organisations need to be very
professional in their approach to sponsorship and to be able to offer sponsoring
companies outstanding value in promotional services. Event Directors need to
exercise some realism and caution in relying to heavily on sponsorship.
Merchandising The term merchandising applies to the sale of a range of products that may be
Sales strongly identified with the event or the organisation hosting the event. A
common example of merchandising is the production and sale of T-shirts, polo
shirts, caps and other forms of clothing that are screen printed or embroidered
with a design or trademark of the event. Participants tend to purchase such
articles for their commemorative value. Other typical forms of merchandise
include glassware, pens, dish cloths, drink bottles and badges. Merchandising
may be a form of income suitable for events that have larger numbers of either
players or participants.
Participant The charging of fees to participate in the event is perhaps the most common form
Fees of event revenue.
Sport and recreation events are a service provided and it is reasonable to suggest
therefore that all basic costs of the event should be covered by participant fees.
These "basics" include the hire of the venue, provision of appropriate equipment
and the administration of the event.
Sponsorship and government funding, if it can be achieved, allows the
organisation of the event to go beyond the basics. The event budget should be set
so that if sponsorship and/or government funding is not forthcoming the event
does not have to be canceled.
Raffles It is common to find that recreation organisations employ "on-the-day"
fundraising strategies. The most common example is the raffle and a small
amount of income can be achieved this way. Whereas it is difficult to achieve cash
sponsorships, it is easier to obtain goods from sponsors which can be raffled.
Event Directors should identify and research legislation in their own state/nation
that pertains to raffles and other similar forms of fundraising. Raffles are often
regulated by governments because of the potential for fraud and
misrepresentation.
Spectator Fees In some cases, events are sufficiently popular and entertaining to attract paying
spectators. However it can be difficult to obtain money from spectators in
circumstances where there no restriction of access(for example an outdoor event
with no perimeter fence). If this is the case it may be better to make off-street
parking for a fee.

Task Study some more sources of event revenue.

!
Caution It can be difficult to obtain money from spectators in circumstances where there
no restriction of access.

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