What is 'rights-holder value' in a sponsorship agreement?

• A. The sponsor's perception of the event's value.
• B. The anticipated financial and strategic value a property expects to receive from a sponsor through rights and activation.
• C. The sponsor's market share.
• D. The cost of acquiring sponsorship rights.

Answer: (B)

Rights-holder value is the anticipated financial and strategic value that the property (the event or property owner) expects to gain from a sponsor through the rights granted and the activation of those rights. It encompasses not just money received (sponsorship fees) but also the strategic benefits the property can leverage—such as brand exposure, cross-promotion, hospitality, data access, and enhanced audience reach—built through rights and how they’re activated in marketing, media, and experiences.

In other words, it’s what the sponsor arrangement is worth to the rights-holder, from both cash and non-cash components, and how those elements translate into future opportunities and value for the property. This differs from the sponsor’s own perception of the event’s value, the sponsor’s market share, or the cost to acquire the sponsorship.