The truth about chess sponsorship in Canada

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  • The truth about chess sponsorship in Canada

    There has been lots of discussions lately on this forum about the sponsorship of chess in Canada. I would like, here, to provide my point of view on the subject. I think that I am uniquely qualified to provide some light on the matter as I happened to have been able to collect well over 75 000$ in sponsorships for the FQE and the Chess and Math Association.

    Companies sponsor events or causes for a multiple of reasons.

    First, you have sponsorship that is driven primarily for marketing reasons. We will call them marketing sponsorships. In these cases companies want their name associated with an event because it reaches a large public and that the brand will benefit from being associated with the event. Good examples of this is the sponsorship by IGA of the French t.v. show Kampaï (that promotes good eating habits, clearly in line with the positioning of the food store) or Coca-Cola that sponsors the Olympics. Companies that want to sell equipment of a specific sport will also sponsor events associated with that sport, as it is a good way to reach a target audience interested in the sport. Hence Salomon will sponsor ski events to generate positive brand recognition for its brand among skiers.

    Obviously, chess has very limited potential in Canada for this type of sponsorship, the cause: very small audiences (advertisers pay for eyeballs) and limited revenue potential from the sale of products. Even if we were to accept Mr. Hébert’s argument,i.e. that we can make chess prestigious, if nobody watches, understands or cares,chess has little to offer for this type of sponsorship dollars. Totally different story in Russia, of course.

    The second type of sponsorship could be labelled “cause sponsorship”. Here companies will sponsor good causes in order to enhance their image as being good corporate citizens (obviously for most of them it comes from a genuine belief that they have a role to play in society). In most cases, the policies of these companies will try to align the causes that they support with their marketing strategies. Competition is fierce for those dollars as good causes to support abound and available dollars are far lesser than for marketing sponsorship. Good example of such sponsorships is IGA sponsoring “Moi je croque” program that promotes good eating habits among school children in Québec or Jean Coutu giving money to St-Justine hospital.

    Having access to these kind of dollars for chess is not easy but feasible. Chess needs to promote an angle by which the practice of chess serves a better purpose for society in general – nobody will sponsor chess to ensure that professional chess players earn ever bigger prizes in tournaments! So far, the two best angles I have found, that allowed me to tap funding in this market, are related to the youth market. For example, SAP will promote in the Québec Open because they see chess as a good activity to enhance kids skills in math and science. Bank of Montreal sponsors Larry’s Canadian Chess Challenge because their Québec Chairman, Jacques Ménard, is very involved in strategies aiming at preventing kids from dropping out of school and saw in scholastic chess, a worthwhile activity that could enhance kids relationship with their school.

    A third source of sponsorship dollar is what I would call “goodwill sponsorship”. In this kind of sponsorship a company or an individual accepts to give money because it is solicited by a customer or because it wants to give support to an employee who solicits funding for a cause he believes in or other similar reason. For example CN supports the FQE because Richard Cloutier (FQE treasurer) works at CN and CN wants to support its employees’ involvement in their community. When Sobeys buys a table at a gala that benefits this or that fund raising effort, it is usually for that reason.

    What distinguishes there type of sponsorships from the previous ones, is that it is the identity of the one who asks that is more important in the decision to grant than the cause itself, although the cause still need to be worthy and beneficial to society in general. Most of the funding the FQE got in the last year was from that category and related to the business contacts I developed over the years as president of Sobeys Québec.

    The opportunity for chess in this category lies with solicitors doing it for the cause. Hopefully, once the solicitor is gone, the sponsor will continue to support the cause because, by then, the sponsor will have seen a way to justify the expense for marketing or cause sponsorship. Mr. Hébert seems to believe that this is easy to achieve but I would beg to differ. Solicitors of this nature are not easy to come by and are sollicitated by numerous people who want them to embrace their cause. Ever complaining professional chess players that are not able to express genuine gratitude to these volunteer fund seekers or organizers, tend to be a turn off, both to the organizers and the sponsors. To be successful in this category of sponsorship, a cause has to be as successful at selling itself to solicitors as it is at selling the cause itself.

    A fourth category is “local sponsorship”. Here, a sponsor wants to be part of the fabric of the community at the grass root level. A good example is Lawton’s (a local drug chain) support of Chess and Math in Atlantic Canada or the local IGA retailer sponsoring the Lanaudière tournament organized by the local chess club.

    These sponsorship tend to involve local retail businesses that will benefit by the patronage from the club 's member. Obviously, the bigger, the more active the club, the higher the chance to get a significant amount. If your event has regional visibility, the merrier and if your event gives provincial visibility to a far away region, you may be able to tap in the natural pride smaller centers have in hosting great events. The success of the Saguenay Open in finding sponsorship in the region can be explained by this factor and by the extraordinary leadership of its organiser Mr. Éric Gravel.

    As you can see, finding sponsors for chess is not “cause impossible”, but it is certainly more difficult that Mr. Hébert would make it appear. Special conditions need to be assembled to be successful. It would be preposterous for me to tell the CFC what strategy it should approach to finance its Olympic team or its Canadian Open, but I hope this exposé will help in the process of its development.



    Marc Poulin

    Opinions expressed we are my own and do not constitute an official position of the FQE.
    Last edited by Marc Poulin; Saturday, 22nd May, 2010, 12:59 PM. Reason: coma forgotten

  • #2
    Re: The truth about chess sponsorship in Canada

    To cut short:

    Originally posted by Marc Poulin View Post
    [N]obody will sponsor chess to ensure that professional chess players earn ever bigger prizes in tournaments!
    An interesting question would then be: why is it so hard for so many to understand?

    Comment


    • #3
      Re: The truth about chess sponsorship in Canada

      My opinion there has always been huge potential for "cause" sponsorship with respect to youth chess. This might be coupled with the idea that bright young people might be potential future employees for progressive firms, makes this an area a great potential.

      I also believe that much of this potential was left untapped in Canads because of the official policy and politics of the CFC. First off, the chess federation tends to underestimate it's young people. This affects their perception of who deserves recognition and support. This in turn will affect the viewpoint of the corporate sponsor. Secondly, for years youth chess has been used as a kind of "cash cow" to prop up other less lucrative areas of organized chess. The problem is by overly relying on young people and their families you actually sabotage the chances that many of these people will stay in chess and succeed at it. In essence, chess parents are the real sponsors in leiu of corporate sponsors. This only works if the families involved are rich, and even then people want a fair deal.

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      • #4
        Re: The truth about chess sponsorship in Canada

        Originally posted by Marc Poulin View Post
        Obviously, chess has very limited potential in Canada for this type of sponsorship, the cause: very small audiences (advertisers pay for eyeballs) and limited revenue potential from the sale of products. Even if we were to accept Mr. Hébert’s argument that we can make chess prestigious, if nobody watches, understands or cares, it has little to offer for this type of sponsorship dollars.
        Mr Poulin,
        Where exactly have you found a line of mine saying that "we can make chess prestigious, if nobody watches, understands or cares" ? The rest of your exposé not only stood on his own but confirms pretty much what I have been saying all along. There was absolutely no need for you to come up with a silly interpretation of my opinions.

        Originally posted by Marc Poulin View Post
        Ever complaining professional chess players that are not able to express genuine gratitude to these volunteer fund seekers or organizers, tend to be a turn off, both to the organizers and the sponsors.
        Even though I am not a professionnal player, it is hard for me to accept this statement which needlessly shows chess players in a bad light. As far as I can tell, chess players in this country, professionnals or not, are very rarely sponsored (directly or indirectly) which do not prevent most of them (me included) to show appreciation whenever its due.

        Originally posted by Marc Poulin View Post
        As you can see, finding sponsors for chess is not “cause impossible”, but it is certainly more difficult that Mr. Hébert would make it appear.
        Thank you Mr. Poulin for this very clear and potentially useful exposé on sponsorship (genuine gratitude...). But for this once again questionable part that involves me, I will simply say this: I'd rather be guilty of making sponsorship search look a bit easier than it actually is, thus encouraging people to pursue it for the benefit of the game, even if only on a small scale, than making it look harder than it actually is, thus reenforcing people in the convenient belief that it cannot be achieved.

        Comment


        • #5
          Re: The truth about chess sponsorship in Canada

          Originally posted by Jean Hébert View Post
          , I will simply say this: I'd rather be guilty of making sponsorship search look a bit easier than it actually is, thus encouraging people to pursue it for the benefit of the game, even if only on a small scale, than making it look harder than it actually is, thus reenforcing people in the convenient belief that it cannot be achieved.
          This is exactly how I feel. It's way too easy (lazy) to come up with a bunch of reasons why something is too hard.

          Comment


          • #6
            Re: The truth about chess sponsorship in Canada

            Originally posted by Jean Hébert View Post
            Mr Poulin,
            Where exactly have you found a line of mine saying that "we can make chess prestigious, if nobody watches, understands or cares" ? The rest of your exposé not only stood on his own but confirms pretty much what I have been saying all along. There was absolutely no need for you to come up with a silly interpretation of my opinions.
            You have misinterpreted his sentence. Below, I have added parentheses to make clear his premise.

            Marc Poulin:

            "Even if we were to accept Mr. Hébert’s argument (that we can make chess prestigious), if nobody watches, understands or cares, it has little to offer for this type of sponsorship dollars."
            everytime it hurts, it hurts just like the first (and then you cry till there's no more tears)

            Comment


            • #7
              Re: The truth about chess sponsorship in Canada

              You are right Ben. I have corrected the original to include a forgotten coma.
              Thanks

              Comment


              • #8
                Re: The truth about chess sponsorship in Canada

                Great post Marc! Thanks for taking the time. If you don't mind dropping me a quick email I would appreciate your advice on some Olympic Fund raising possibilities in Quebec.

                I''m at halbond@sympatico.ca

                Comment


                • #9
                  Re: The truth about chess sponsorship in Canada

                  Originally posted by Marc Poulin View Post
                  You are right Ben. I have corrected the original to include a forgotten coma.
                  With or without added commas or parenthesis, I remain misquoted but this is not so important.
                  Mr Poulin's overall excellent exposé clearly support the idea (and the facts!) that several types of sponsorship (if not all of them) are available for chess. It goes without saying that, like any substantial endeavour, it can not be achieved easily without some efforts (no one has pretended otherwise), which is not sufficient reason to avoid it if someone accepts the duties that come with the role of an "organizer", especially when it comes to organizing "championship" tournaments but not only for those.

                  Comment


                  • #10
                    Re: The truth about chess sponsorship in Canada

                    Originally posted by Marc Poulin View Post
                    ...nobody will sponsor chess to ensure that professional chess players earn ever bigger prizes in tournaments!
                    But at the same time sponsors understand that a big part of the prestige of the event sponsored depends on the amount of money prizes going to the winners (the top players), just like in other sports. They understand also that attendance at that event (excluding youth tournaments) also depends largely on the amount of money prizes advertised. So directly sponsors will ensure that top prizes are bigger, if not for the sake of the players, at least in the interest of "their" event and thus in their own. In that context the quote above is misleading if it is meant to say that great players are not part of attracting sponsors.
                    The words "champions", "elite" and "excellence" are always welcomed (that is, outside of organized chess in Canada).

                    Comment


                    • #11
                      Re: The truth about chess sponsorship in Canada

                      Thanks to Marc for a thoughtful review of the types of sponsorship.
                      I certainly believe we can do more and am working on several projects right now. With the help of a fine team, I was able to raise over $100K for the 2007 Canadian Open/CYCC without a penny of government funding. On other occasions, I have been unsuccessful: for example, despite approaches to Air Canada at the highest levels, we have never been able to persuade Canada's "national airline" to offer free or even discounted tickets for our Olympiad team.
                      In my experience, despite a great deal of effort, it has been virtually impossible to tap into commercial sponsorships for chess. Commercial sponsorship hinges on two factors: the profile and the demographic.
                      The profile of chess is very limited: virtually no television coverage and less and less coverage by the print media. In Ottawa, we have been relatively successful in getting a few hits on local television and quite good coverage by the local paper, The Ottawa Citizen, but nothing approaching the level required to make it interesting for commercial sponsors.
                      As for the demographic, unfortunately, chess fails on all metrics for most potential sponsors. The only buttons I have been able to push, with only limited success, have been those involving kids and/or the internet. The reality is that, in my experience, the only sponsorship monies we have been able raise were actually contributions disguised as sponsorships.
                      I would offer a few observations on raising contributions (as opposed to commercial sponsorship) for chess events. It seems to me that success depends on 1) the event itself, 2) the economic environment, 3) the competition and 4) the personal connections. In my experience, these are in ascending order of importance.
                      1) the event itself
                      This tends to be the least important factor. As a basic requirement, the event itself must be demonstrably well run with a solid management team, including financial stewardship. Large events are more attractive than smaller events (the Open is much more attractive than the Closed). Events in Canada are more attractive than events overseas (which hurts the Olympiad effort). Star power does make a difference, which often means attractive conditions for overseas superGMs (Nigel Short at the Open in 2007 or Shirov in 2009 were big drawing cards). Most important, kids events are much more attractive than open events for obvious reasons. Indeed, in 2007 our funding was largely raised to support the CYCC although we admittedly did use some of these funds to subsidize the Open.
                      2) the economic environment
                      The third most important factor is the overall and local economic environment. It is much easier to raise funds when companies and individuals are flush than when times are difficult. The boom and bust cycles of the financial or high-tech industries largely influence the willingness of participants in those sectors to open their wallets. The current climate is slowly improving but the last 12 months have been very difficult as the organizers of the Toronto Canadian Open can attest.
                      3) the competition
                      In raising funds for chess competitions, we are in competition with a long list of worthy causes. To name a few: any causes involving children; fundraising for hospitals (children's hospitals top the list for obvious reasons) and medical research; other local and national charitable activities; other "sporting" events, led by the Olympics and the Paralympics but including local soccer or hockey; other notable causes, such as Katrina, the Asian Tsunami or most recently, Haiti. What on earth does the Haitian earthquake have to do with funding for the chess Olympiad team? The common denominator is the source of the funds: individuals or companies have to budget their contributions among these competing alternatives and in this competition, chess is not top of mind.
                      4) the personal connections
                      This is by far the most important factor in generating contributions for chess events. Recognizing that the sums involved in chess are pitifully small, it only takes a few of these connections to make an event successful. This requires connecting with a person who has an interest in chess, personally or through children, and who has the personal funds or the influence over corporate contributions. If one reviews the funding of all major events in Canada over the past decade, I believe one will find that this has been by far the most important source of non-governmental contributions. Unfortunately, we are our own worse enemies. Successful fundraising organizations prize these contributors and bend over backwards to make them feel highly valued. I will not recite the litany of horror stories in which individuals or companies who contributed to chess were left with a bitter taste in their mouths.
                      I hope these comments help to stimulate the discussion begun with Marc's thoughtful posting.
                      Gordon Ritchie

                      Comment


                      • #12
                        Re: The truth about chess sponsorship in Canada

                        Originally posted by Gordon Ritchie View Post
                        On other occasions, I have been unsuccessful: for example, despite approaches to Air Canada at the highest levels, we have never been able to persuade Canada's "national airline" to offer free or even discounted tickets for our Olympiad team.
                        As a shareholder of Air Canada I'm surprised you are so critical of the company.
                        As you may or may not be aware, one of the concerns of the investment community has been the ability of the company to avoid bankruptcy. Not that long ago they severely diluted the shares to raise money.
                        In my view, one of the reasons they have been performing so badly is because they are the "national airline" as you pointed out. They have routes I feel certain most of the more profitable airlines wouldn't touch.
                        Suggestions they give away free or discounted rides comes as a shock to me. If they have such responsibilities as a "national airline" why isn't the government picking up the loses instead of me?

                        This is my point of view and not any criticism.
                        Gary Ruben
                        CC - IA and SIM

                        Comment


                        • #13
                          Re: The truth about chess sponsorship in Canada

                          Hey Gary;
                          I didn't read Gordon's comment as a criticism of Air Canada. It was an example of the difficulties chess faces with sponsors, even from a seemingly good candidate for some in kind assistance.

                          Even in the cases where personal connections can make a difference, using that personal connection for chess rather than other worthy causes is still a decision.

                          Comment


                          • #14
                            Re: The truth about chess sponsorship in Canada

                            Personal touch: working in Toronto, thanks to Brian Fiedler's efforts! He'll have some announcements in due course of major sponsors for the 2010 Canadian Open and the next Toronto Open!

                            David

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                            • #15
                              Re: The truth about chess sponsorship in Canada

                              Great news and congratulations to Brian and his team.

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