Stricter Legislation May Impact Sponsorships

In coal country, some are saying that the industry's debate with environmental regulators and government officials could have a big impact on future sponsorship revenues. The "Friends of Coal" Bowl - a seven game football series between Marshall and West Virginia - may be one of the first affected.

The Charleston Daily-Mail in a piece titled "Coal Climate Could Affect Coal Bowl" quotes the president of the West Virginia Coal Association as saying "Any new series - any renewed series - would have to be looked at and clearly what is occurring today will have a bearing on what happens in 2012 as far as coal industry support of institutions and communities."

The article cites the Obama administration and the U.S. Environmental Protection Agency's recent legislative proposals that some predict may ship coal production and jobs overseas.

"In order to continue to do the kind of community support and charitable work that the industry does, they have to continue to be operating... an awful lot of this begins to get threatened when a mine shuts down," Raney said.

The seven year deal worth approximately $1 Million ($70,000 annually) provides academic scholarship money to both schools and is set to expire in 2012.

Are you keeping a regular eye out for government regulation that could impact your sponsor commitments and renewals?