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Epsom Downs Racecourse

Epsom Downs Racecourse. Home of the greatest flat race in the world. The Importance of Sponsorship in Racing: A Case Study – Investec Derby Festival. ‘Derby Day’ by Phil Daniels. The Derby’s Position. Words associated with The Derby* “ W ORLD C LASS” “ P RESTIGIOUS” “ H ERITAGE”. 69%.

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Epsom Downs Racecourse

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  1. Epsom Downs Racecourse Home of the greatest flat race in the world The Importance of Sponsorship in Racing: A Case Study – Investec Derby Festival

  2. ‘Derby Day’ by Phil Daniels

  3. The Derby’s Position Words associated with The Derby* “WORLD CLASS” “PRESTIGIOUS” “HERITAGE” 69% SAY ONLY THE WORLD’S GREATEST HORSES CAN PARTICIPATE 73% BELIEVE THE DERBY IS PART OF THE NATIONAL HERITAGE 65% AGREE IT IS A GENUINELY WORLD CLASS SPORTING EVENT Events associated with ‘heritage’* Events most seen as ‘prestigious’* THE DERBY 62% GRAND NATIONAL 60% THE DERBY 61% GRAND NATIONAL 56% WIMBLEDON 56% WIMBLEDON 48% FA CUP FINAL 45% FA CUP FINAL 44%

  4. Global TV Audience • TV coverage reaches 1 billion people • 140 international broadcasters • Coverage in 500+ national and international press publications

  5. Press Coverage

  6. Digital Exposure

  7. Importance of sponsorship in British racing At £14.7m sponsorship contributed 13.3% of total prize money in 2009 by comparison the Levy contributed 57% to prize money in 2009 Sponsorships contribution to prize money has fallen by 4% since 2006 and the Levy contribution has fallen by 3% in the same period with Racecourse contributions to prize money rising by 2.8% & Owners by 4% During this time the Global Betting Market has grown by 8% - the category that contributes the most by sector to British Horseracing sponsorship A recent Sport+Markt survey reported that football was the most popular sport to watch on TV in Europe at an average of 54% across the 5 key markets of UK, France, Spain, Italy & Germany - Horse Racing was not in the top 5 of any country It also noted a 650% increase in football shirt deals from the gambling sector from 2006-09 It is evident that in addition to the funding of our sport in the UK the sponsorship environment supporting our industry is also changing

  8. Sponsorships importance to the Epsom Derby As the greatest flat race in the world the Derby needs a blue-chip sponsor with a strong brand fit to support its positioning The Derby requires a sponsor to support the rights fee with significant mutli-channel activation The Derby Festival offers a prize fund of £3.1m - including the richest race in the UK at £1.39m in 2010 The ‘buy-in’ of the sponsor to the Derby brand has a direct correlation on the success of the racecourse and its positioning The Derby’s brand equity allows us to develop our partnership categories for mutual benefit with the title sponsor Partnerships development is one of the Racecourses’ focus strategies

  9. 5 key criteria for Investec 1. EXCLUSIVITY Investec are an integral part of one of the world’s premium sporting events that combines history, heritage and colour 2. GLOBAL REACH Extensive UK and international television and press coverage delivering an excellent return on investment 3. MARKETING The Derby provides a compelling communication platform to engage with Investec’s stakeholders and drive their brand 4. SHARED & ATTRACTIVE VALUES Tradition, Outgoing, Cosmopolitan, Dynamic & Best in class 5. ENTERTAINMENT A world-class venue and hospitality on par with any of the world’s most iconic sporting and social occasions

  10. Don’t take our word for it!

  11. The Epsom Downs Model RELATIONSHIP – RELATIONSHIP – RELATIONSHIP! Working in a true spirit of PARTNERSHIP on a daily basis Account Manager handles all communication from the Chief Marketing Officer to Heads of Department and Investec’s legal team then disseminates the information internally and feedbacks directly to the sponsor Provides understanding, clarity, consistency, accountability and a strong working relationship A mutual and positive ‘can do’ attitude that questions the norms of traditional racing sponsorship As a result we enjoy 100% support in attracting complimentary brands with a strong fit in supporting categories i.e. Jaguar, Asprey & Bremont

  12. What does the future hold? • GLOBAL SPONSORSHIP MARKET • Global advertising spend is predicted to rise by 4% in 2011 • Racing must position itself to compete with other national and international properties • The introduction of the British Champions Series & Day • FIERCE COMPETITION • The Betting & Gaming market is diversifying and investing in other sports • Will the Olympics channel spend away in 2011 & 2012? • MEDIA FRAGMENTATION • Increase in digital activation of sponsorships • The introduction of HD & 3D technologies (Investec Derby & John Smiths Grand National) • RETURN ON INVESTMENT • Racing must deliver a measurable R.O.I • Aim to deliver a minimum of 2:1 on sponsorship spend

  13. The criteria we must deliver • PRESTIGE • RECOGNISABILITY & AWARENESS • AUDIENCE LOYALTY • CATEGORY EXCLUSIVITY • PROTECTIONS FROM AMBUSH • DEGREE OF SPONSOR CLUTTER • ABILITY TO ACTIVATE • NETWORKING OPPORTUNITIES • MEDIA COVERAGE POTENTIAL • TRACK RECORD OF SUCCESS

  14. Thank you Rupert Trevelyan Managing Director Epsom Downs Racecourse rupert.trevelyan@thejockeyclub.co.uk

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