Before You Buy a Pre-Packaged Hospitality Program from an Outside Service

Sports marketing firms are third party firms that work directly with arenas, teams and associations to obtain tickets and customized on-site hospitality at major events. They are event marketing firms that provide corporate clients with access to tickets packaged with high end hospitality.

A note of caution: don't believe most of their claims of high end on-site event catering...

Whether it's for an incentive program or a client appreciation event, everyone enjoys traveling to see the game live. Sports marketing firms typically create packages that include:

• Hotel accommodations (e.g., 3 days/2 nights)
• Tickets to the sporting event itself
• Pre- and post-event parties
• Transportation to/from the event
• Meals related to all hosted events
• Hospitality gifts
• On-site event program staff
• Taxes and gratuities

A local package typically includes tickets to the main game, event parties, most ground transportation, all promotional gifts, taxes and gratuities. However, local guests don't invest the same level of time and commitment to the event as those who attend from out of town. Therefore, unless the sports marketing firm is offering a one of a kind experience -- such as top name celebrity participation, it may be more effective for an event planner to create his or her own program.

Sports marketing firms present standard pricing packages and attempt to lure clients for early contracting by hyping the event. Packages include the total number of days for the event itself. These are extremely expensive packages, and both parties should show flexibility. Suggestions:

• Firms don't like to break up packages, so event planners should first request a reduction in the per person pricing.
  
  
• Ask the firm to come back to you at a later stage in the selling process, but to keep you updated about availability.
  
  
• Shop several sports marketing firms.

A sports marketing firm will present a client with its standard contract to represent its interests. Work closely with your legal counsel because most language is negotiable. Watch for these items:

• Cancellation policy items that give the firm flexibility to change prices at any time.
  
  
• Alterations of advertised package that eliminate firm liability for client repayment should the event be cancelled, merged with another event, or postponed.
  
  
• Indemnification/hold harmless agreements should be mutual.
  
  
• Service charge line item if already included in price.
  
  
• Jurisdiction location should be convenient to client.

Watch out for these:

• Anything that allows the firm to cancel its clients bookings at any time, at its own discretion, allowing the firm to calculate costs to date.
  
  
• Anything that allows the firm to charge legal, collections and others fees should the client not pay; however, be willing to accept the firm's interest accrual rate.
  
  
• Anything that allows the firm to retain client information for database, marketing and distribution to third parties.