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In the current environment, characterised by diminishing public investment alongside an increase in the population of arts organisations, the need for sponsorship is becoming ever more pressing, writes Annmarie Ryan.
Business sponsorship of the arts has a long history, yet case studies show that if these relationships are managed badly, arts organisations can leave themselves open to exploitation. In the absence of a partnership approach, the audience may be used as collateral for attracting private sponsorship. The power dynamic of this type of arrangement essentially favours the business, with the arts organisation being the dependent partner, often having to make compromises artistically. Changes seem to be afoot, as the language of sponsorship moves away from the ?purchase of an exploitable property? to one that recognises partnership and the need for mutual returns; yet there often remains a ?competency gap? when it comes to initiating, developing and managing meaningful relationships between business and the arts.

The case of Nortel Networks and Galway Arts Festival illustrates what can be achieved. Nortel Networks? sponsorship of Galway Arts Festival began in 1991. Traditional arts sponsorship offerings have applied in this relationship, and in return for media exposure and branding opportunities from Galway Arts Festival, Nortel Networks has made a cash investment. However, it is the ?backstage? offerings, not always immediately evident, that have created a very special relationship between the two, and Nortel Networks? in-kind support is recognised by Galway Arts Festival as equally important as, if not more important than its cash support. This in-kind support has centred on the sharing of expertise. Resources widely available within Nortel Networks, including financial management, logistics, currency purchase, and telecommunications expertise, have been made available to the Festival, which in return has shared its proficiency in event management and facilitated Nortel Networks? staff members in the stewarding of its events. Staff have also had exceptional access to the Festival through free and discounted tickets, and a box office on their site. The most important outcome for Galway Arts Festival has been a growth in managerial and artistic confidence that has facilitated the organisation?s continued growth and expansion over the past ten years.

So what can we learn from this successful relationship?

Mutual Respect ? Before a relationship can really develop, there has to be a level of mutual respect and understanding. Nortel Networks did not attempt to interfere with artistic policy and respected the role that the Festival played in the local community. Galway Arts Festival understood the pressures they were under, competing in a volatile telecommunications industry. The development of respect and understanding was facilitated by the positive reputations of each organisation, but essentially because both organisations were open and willing to work with one another.

Adding Value ? An appreciation of the unique added value that an arts organisation can offer a business is crucial. The Festival was able to identify its core competencies that would be of value to Nortel, and by offering these as part of the relationship they were able to make the relationship more reciprocal, which led to a more balanced power dynamic.

Time and resources ? This type of relationship takes time and resources to manage effectively, and the return on investment may not be immediately evident. However, by adopting a long-term view, the relationship can bring benefits that neither party may even have envisaged at the outset.

Developing such close relationships with businesses may not be for every arts organisation; but as the long-term benefits become more apparent, these alliances are likely to become more popular. Such relationships require not only time and effort, but also a willingness and capacity to both acquire and share expertise.


Annmarie Ryan is a PhD student at the University of Limerick, Ireland. Her work centres on how to develop more sustainable and mutually beneficial business-arts relations e: annmarie.ryan@ul.ie