How sponsorship can benefit all concerned
Sponsoring riders is helping some companies reach target markets
BUSINESSES are being encouraged to consider equestrian sponsorship as a tax-effective advertising method following the tightening of data protection laws.
While there is strict legislation surrounding when and the extent to which sponsorship can be considered advertising, if done correctly, it can benefit the business, rider and the sport.
Chartered accountant Julie Butler FCA of Butler & Co, who specialises in equine and farm tax, told H&H equestrian sport’s strong attendance figures and also racing’s viewing numbers are both positives when it comes to attracting sponsors, as it means brands get in front of more people.
She said the ability to show how and why a business chose to sponsor a person is highly important when it comes to being on the right side of tax laws — and to seek professional advice if you have any doubts.
“Make sure you have all your ducks in a row: the decision, the evidence and the figures,” she said, adding the same criteria must be met when it comes to business sponsorship of family members.
“Evidence should be gathered into a full marketing report that’s approved at board level.
“You need to be able to show what work, sales or contracts came as a result of sponsorship — it all comes down to evidence.”
She added with the GDPR data protection laws that came into force in May restricting targeted advertising, carefully selected sponsorship of equine competitors and competitions can be an
effective and tax-efficient way of reaching potential customers in a business’s target demographic.
Para dressage rider Suzanna Hext, who works with a number of sponsors, said it is essential riders show businesses what they can offer them. For example, using and promoting products, social media posts, helping with product development and giving feedback.
“It’s not just about you — it’s about helping them as well,” she told H&H.
“Being a para rider, some things have to be altered, it’s interesting for them and for me as to what we can do to help, which makes it a bit different to helping some other riders.
“Having their support is massive, it means having me and the horses kitted out [and using] the best possible gear to perform.”
Jeweller Sylvia Kerr found sponsoring polo player Heloise Wilson-Smith was perfect for the launch of her Polo collection.
“She is such a good ambassador,” said Sylvia, adding that giving Heloise her products is a great way of getting them “out there” to her target market.
“There’s nothing better than having your jewellery worn by a beautiful lady, playing [the sport that inspired the collection].
“It brings the product to life — it is a different form of advertising, a much more alive form.”
Aloeride, a specialist company that makes aloe vera products for horses and humans, sponsors 15 riders across a range of disciplines, backgrounds and levels.
“The reason we have a range of people and disciplines is that the product has a wide application,” director Han Van Beek told
H&H, adding that the focus is very much on “mutual benefit” between Aloeride and the riders it sponsors.
He said there are also tax benefits and the company’s accountant ensures that it is entirely the right side of the lines of what is permissible.