IMG & Sponsorship Sales

1. IMG & Sponsorship Sales Presented to: York University November 3, 2009

2. Company background ~50 YEARS OF LEADERSHIP AND INNOVATION 1960 today

3. IMG Worldwide Overview • IMG is the global leader in sports and, entertainment management and marketing, and represents the world’s most prominent athletes, artists, models, celebrities, speakers, literary figures and events. • Pioneered by Mark H. McCormack, its Founder, IMG was created in 1960 and currently employs a global staff of more than 3,000. • IMG Worldwide -- offices, sports academies and IMG managed real estate facilities -- is represented by more than 66 offices in 33 countries. • IMG Media produces and distributes over 22,000 hours of programming to more than 200 countries worldwide. • Every day of the year, IMG is involved in an average of eleven major events around the world.

4. A truly global company EUROPE/MIDDLE EAST 33 offices/ ~1,300 employees AMERICAS 30 offices/ ~1,200 employees ASIA-PACIFIC 15 offices/ 250 employees London New York Hong Kong

5. IMG Worldwide Overview Production television-film- broadband-mobile Global cross-platform sales & distribution Rights consulting & representation Media ventures Talent brands Event properties Media Global services Golf Brand licensing Tennis Consulting Sponsorship sales Fashion Event management and hospitality US College Professional Sports & Cultural Properties

6. Client Representation IMG talent management - highlights Diverse segment appeal - demographic, mindset, category, affinities, e.g. Young adult Young male Ethnic groups Beauty-conscious Fashion forward Sports fans Men Women C-Suite Golfers Other athletes Tennis players Models Celebrities Alek Wek Carolyn Murphy Daria Werbowy Gemma Ward Gisele Bündchen Heidi Klum Jaquetta Wheeler Kate Moss Lauren Hutton Liya Kebede Naomi Campbell Shalom Harlowe Stephanie Seymour Jessica Stam Shalom Harlowe • Broadcasters • Bob Costas • Charles Barkley • Tom Bergeron • Phil Keoghan • John Madden • Jim Nantz • Film/TV actors • Angie Harmon • Billy Bush • Drew Barrymore • George Lopez • Hilary Duff • Liv Tyler • Mischa Barton • Justin Timberlake Adam Scott Anthony Kim Arnold Palmer Camilo Villegas Colin Montgomerie Jack Nicklaus Luke Donald Paul Casey Sergio Garcia Tiger Woods Trevor Immelman Stephen Ames Mike Weir Steve Stricker Annika Sorenstam Morgan Pressel Natalie Gulbis Lorie Kane Paula Creamer Michelle Wie Carlos Moya James Blake John McEnroe Pete Sampras Roger Federer Rafael Nadal Tommy Haas Billie Jean King Chris Evert Lindsay Davenport Jelena Jankovic Maria Sharapova Monica Seles Nicole Vaidisova Venus Williams • Football • Eli Manning • Joe Montana • L. Tomlinson • Peyton Manning • Emmitt Smith • Action Sports • Shaun White • Other Sports • Carly Patterson • Jeff Gordon • Danika Patrick • Jonny Moseley • Steve Nash • Kristi Yamaguchi • Alex Ovechkin • Picabo Street • Brian Orser • Sale & Pelletier • Jeffrey Buttle

7. Client Representation

8. Corporate Sales and Marketing • Highlights of IMG owned/managed events: Diverse segment appeal - demographic, mindset, category, affinities, e.g. Young adult Young male Ethnic groups Beauty-conscious Fashion forward Sports fans Men Women C-Suite Other sports Golf Tennis Fashion Eco Style (Kuala Lumpur) Fashion Fringe (London) Fashion Week in Moscow Hong Kong Luxury Week Lakmé Fashion Week (Mumbai) LG Fashion Week (Toronto) London Fashion Week Mercedes-Benz Fashion WeekNY-Miami-Berlin Milan Fashion Week Rosemount AustralianFashion Week Singapore Fashion Festival Sydney Fashion Festival Beach Games Internatl. Skating Union Formula D racing Lexmark Indy 300 (Australia) NHRA NCAA Rugby World Cup(s Stars on Ice U.S. Open of Surfing Tour de Suisse UEFA Cup Williams F1 Team World Series of Poker ADT Championship (LPGA) Del Webb Father/Son Challenge Deutsche Bank Championship HSBC Champions (Shanghai) HSBC Women’s World Match HSBC Match Play Championship Johnny Walker Classic The Open Championship) Samsung World Championship (LPGA) The Wendy’s Skins Game Australian Open ATP Barcelona Bank of the West Classic BlackRock (Merrill Lynch) Tour of Champions Chennai Open China Open Mediabank Open Gaz de Paris Sony Ericsson Open Wimbledon)

9. Sponsorship - IMG • Sponsorship is a significant portion of IMG’s annual revenue - $1,200,000,000+ annually • IMG has division based sales team, regional based teams (as in Canada) and property specific teams that are responsibility for selling sponsorship. • In the world of IMG – Sponsorship and Endorsements are very similar – building associative platforms with personalities are built on the same principles as sponsorships. • IMG – We build strategic platforms we do not sell sponsorship • Examples: • Fashion – Mercedes Benz, Amex & DHL • Golf - Accenture, Bank of Scotland, Ricoh • Tennis – Sony Ericsson, Evian & Rolex

10. What is Sponsorship • Creating an association between a company or a brand with a property or a personality • Also known as Associative Marketing • Sponsorship is a 360 degree marketing tactic whereby other forms of media i.e. television, print, radio are one dimensional • Sponsorship allows a brand to build equity through a transference of brand attributes.

11. Who Sells Sponsorship • Properties • Agencies – on behalf of properties • In Toronto – examples of properties include: • Maple Leaf Sports & Entertainment • Tennis Canada • Royal Canadian Golf Association • Toronto Blue Jays • Toronto Argonauts • National Hockey League • Examples of Agencies include: • CCMC – Canadian Hockey League • Wakeham & Associates • XMC Sports & Entertainment • NBA Canada • NFL Canada • Canadian Football League • Honda Indy (Andretti Green Racing) • Toronto International Film Festival • IMG is a hybrid as it owns its own properties i.e. TELUS Skins Game, Wakefest & Sears Stars on Ice and also represents properties as a 3rd party.

12. Sponsorship Sales Process • Segmenting & Research on Property • Understanding the Property’s Brand Attributes • Prospecting based on the above 2 points • Identifying Decision Maker in Prospect Company • Engagement – Cold Calling or Cold Emailing • Secure First Meeting • Education and Understanding Prospect’s Needs & Objectives • Customization of Sponsorship Program • Secure Second Meeting to Present • Tweak Program • Negotiate • Contract

13. Pricing • Two things determine pricing: • What the sponsorship is worth = the value • What the market will bare!

14. Pricing • There is no hard and fast rule to pricing • In a buyer’s market – the buyer is looking for as many benefits for as little $ (NOW) • You need to convince the buyer – CFL 2001 • In a seller’s market – the seller is looking to maximize the $ from the category • VANOC, NFL, Toronto Maple Leafs, etc. • Hot categories – Beer, Soft Drink and Telecom

15. Cost vs. Value • Synergy and Efficiency • In sponsorship – the sum of the parts are worth more than the overall sponsorship • You buy efficiency when you buy sponsorship • 3:1 – $3 dollars in value for every $1 dollar spent on sponsorship

16. Cost vs. Value • Two things make up a sponsorship proposal: • Tangible Benefits • Intangible Benefits • Tangible – tickets, signage, television ads, pa announcements • Intangible – Associative Rights

17. Measurement • Much easier to measure tangible benefits vs. intangible benefits • Every asset in a proposal has a value • VANOC and NFL – Intangible

18. Negotiations • Determine the right mix of benefits with each sponsor - will vary depending on objectives • Customize • Provide 3:1 or better value • Adjust asset mix with negotiations • Win/Win Scenario with buyer – developing a long term partnership • Adjust pricing depending on market

19. How to Get More? Multiple parties Develop base of category leading sponsors Engaging and attractive sales material Customized programs Research on company

20. Maximizing Value • What if the sponsor doesn’t want to pay for the full price? • Multi-year commitment • Provide deep discount on first year or first year free • Look at first year as a trial • Backload investment

21. Sponsorship Sellers • 10 Skills/Traits that make someone a good sponsorship seller: • Creativity • Communication – Listening and Writing • Integrity • Assertive • Dynamic • Market Educated • Experience • Strategic • Consultative • Focused

22. Questions