{"id":237896,"date":"2018-05-11T10:45:47","date_gmt":"2018-05-11T08:45:47","guid":{"rendered":"https:\/\/rtrsports.com\/sponsorship-in-kind-barter\/"},"modified":"2026-09-09T18:17:26","modified_gmt":"2026-09-09T16:17:26","slug":"sponsorship-in-kind-barter","status":"publish","type":"post","link":"https:\/\/rtrsports.com\/en\/blog\/sponsorship-in-kind-barter\/","title":{"rendered":"What is a value in kind sponsorship or a barter sponsorship?"},"content":{"rendered":"<p>When discussing sports sponsorship, almost everyone imagines a straightforward transaction: the brand pays, the team displays the logo. Cash for visibility. End of story. The reality of the market is more interesting \u2014 and more flexible \u2014 than this simple picture.<\/p>\n<p>Sponsorship in kind, also known as <em>value in kind<\/em> (VIK) or barter sponsorship, has existed for decades and is structurally integrated into contracts at teams like Scuderia Ferrari, Mercedes-AMG F1, and Ducati MotoGP. It is not a shortcut for those without budget. It is a partnership mechanism that works when the asset the brand brings has real, measurable, and relevant value for the team.<\/p>\n<h2>What is a sponsorship in kind (or value in kind)<\/h2>\n<p>A sponsorship in kind is an agreement in which the sponsor obtains the same marketing rights as a traditional sponsorship \u2014 logo on the livery, hospitality access, image licences, digital visibility \u2014 but the consideration is not (or not only) money. Payment occurs wholly or partially through products or services that the team has an interest in receiving.<\/p>\n<p>Translated into commercial language: instead of transferring hundreds of thousands of euros into a bank account, a supplier company provides its product or service to the team at an agreed value. The team builds its supply chain on it. The company obtains visibility and rights. Both record value \u2014 real, concrete, measurable.<\/p>\n<p>Barter did not disappear with the Middle Ages. It simply became more sophisticated.<\/p>\n<h2>How it works in top-level motorsport: three real examples<\/h2>\n<p>Top-tier motorsport \u2014 Formula 1, MotoGP, WEC \u2014 provides the clearest case studies, because leading teams operate as companies worth hundreds of millions of euros with a complex and expensive supply chain.<\/p>\n<p><strong>Petronas and Mercedes-AMG F1.<\/strong> PETRONAS has been title sponsor of the Brackley-based team since 2010: the Malaysian company&#8217;s name is part of the team brand itself. But Petronas does not just bring a cheque. It brings fuels and lubricants co-engineered with Mercedes&#8217; technical department. The chemical formulations optimised for the Mercedes hybrid powertrain contributed to eight consecutive Constructors&#8217; Championships between 2014 and 2021. The Petronas deal is hybrid by definition: part cash, part high-value technical product. Neither would have the contract it has without the other.<\/p>\n<p><strong>Shell and its dual presence in F1 and MotoGP.<\/strong> Shell is a technical partner of Scuderia Ferrari in Formula 1, an agreement covering bespoke fuels and lubricants for the Ferrari power unit. In parallel, Shell works with Ducati in MotoGP. Two championships, two Italian teams, one coherent positioning: our products run in the world&#8217;s most demanding engines. It is a message impossible to build by simply paying for advertising in a trade magazine.<\/p>\n<p><strong>DHL and logistics as value in kind.<\/strong> DHL has been Global Logistics Partner of Formula 1 since 2004, with a contract renewed in 2024. DHL does not just bring money to F1: it manages the transport of over 1,500 tonnes of material across the 24 circuits of the world calendar, coordinating operations across continents. It is a service that F1 must have; DHL provides it as part of the agreement. In return: global visibility and the reputation of managing the logistics of the world&#8217;s most complex motorsport series.<\/p>\n<h2>When sponsorship in kind works \u2014 and when it does not<\/h2>\n<p>I must be direct on this point, because VIK is too often proposed as a universal solution when it is not.<\/p>\n<p>It works when three conditions are simultaneously met. First: the team has a real need for that product or service \u2014 not theoretical, but operational. Second: the market value of the product or service is determinable and equivalent to the marketing assets offered. Barters that do not add up numerically fall apart after the first renewal. Third: the brand entering into VIK has a verifiable product history in a sporting context \u2014 the claim &#8220;our materials race in Formula 1&#8221; only holds if it is true and documentable.<\/p>\n<p>It does not work when VIK is used as an argument to reduce the cost of a sponsorship without bringing real value to the team. In my view, this is the most common mistake: the brand proposes VIK not because it has something useful to offer, but because it lacks sufficient liquidity. Top-tier teams understand this immediately \u2014 and decline.<\/p>\n<h2>How to structure a sponsorship in kind agreement<\/h2>\n<p>If the brand meets the conditions described above, the structuring follows a precise logic. Three operational steps.<\/p>\n<p>The first is the valuation of the product or service: a documentable list price, a verifiable production cost, and ideally a market benchmark are required. Without these numbers, no team financial officer will sign.<\/p>\n<p>The second is the mapping of marketing assets: every sponsorship right has an estimable value \u2014 media value, brand recall, hospitality, licences. VIK negotiation is always an exercise in aligning two valuations.<\/p>\n<p>The third is the contractual structure: VIK agreements often include a cash component and an in-kind component. A deal at 60% VIK and 40% cash is common, especially in the early stages of a relationship with a new property.<\/p>\n<p>For structured advice on how to set up an agreement of this kind with a <a href=\"https:\/\/rtrsports.com\/en\/motogp-sponsorship\/\">MotoGP<\/a> or <a href=\"https:\/\/rtrsports.com\/en\/formula-1-sponsorship\/\">Formula 1<\/a> team, contact us: we will analyse together the feasibility of a value in kind operation in top-level motorsport.<\/p>\n<h2>The takeaway<\/h2>\n<p>A well-structured sponsorship in kind is not a fallback. It is a form of integration deeper than many cash contracts. The brand that supplies fuel to the team sits at the technical meetings table, co-develops the product with engineers, and accesses content and relationships that a purely paying title sponsor does not automatically obtain.<\/p>\n<p>Integration comes before the logo. <strong>Always.<\/strong><\/p>\n    <div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\" class=\"faq-schema-wrapper question-list-wrap\">\r\n\r\n                    <h2><b>Frequently asked questions about sponsorship in kind<\/b><\/h2>\r\n        \r\n            <div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" class=\"faq-item question-list-row\">\r\n\r\n        <h3 class=\"h5\" itemprop=\"name\">\r\n            <b>What is a sponsorship in kind?<\/b>\r\n        <\/h3>\r\n\r\n        <div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\">\r\n            <div itemprop=\"text\" class=\"question-answer\">\r\n                            <\/div>\r\n        <\/div>\r\n\r\n    <\/div>\r\n        <div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" class=\"faq-item question-list-row\">\r\n\r\n        <h3 class=\"h5\" itemprop=\"name\">\r\n            <b>What are real examples of sponsorship in kind in motorsport?<\/b>\r\n        <\/h3>\r\n\r\n        <div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\">\r\n            <div itemprop=\"text\" class=\"question-answer\">\r\n                            <\/div>\r\n        <\/div>\r\n\r\n    <\/div>\r\n        <div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" class=\"faq-item question-list-row\">\r\n\r\n        <h3 class=\"h5\" itemprop=\"name\">\r\n            <b>What is the difference between sponsorship in kind and traditional sponsorship?<\/b>\r\n        <\/h3>\r\n\r\n        <div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\">\r\n            <div itemprop=\"text\" class=\"question-answer\">\r\n                            <\/div>\r\n        <\/div>\r\n\r\n    <\/div>\r\n        <div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" class=\"faq-item question-list-row\">\r\n\r\n        <h3 class=\"h5\" itemprop=\"name\">\r\n            <b>When is it worth proposing a sponsorship in kind to a sports team?<\/b>\r\n        <\/h3>\r\n\r\n        <div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\">\r\n            <div itemprop=\"text\" class=\"question-answer\">\r\n                            <\/div>\r\n        <\/div>\r\n\r\n    <\/div>\r\n        <div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" class=\"faq-item question-list-row\">\r\n\r\n        <h3 class=\"h5\" itemprop=\"name\">\r\n            <b>How is the value of a sponsorship in kind calculated?<\/b>\r\n        <\/h3>\r\n\r\n        <div itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\">\r\n            <div itemprop=\"text\" class=\"question-answer\">\r\n                            <\/div>\r\n        <\/div>\r\n\r\n    <\/div>\r\n    \r\n    <\/div>\r\n    \n\n","protected":false},"excerpt":{"rendered":"<p>When discussing sports sponsorship, almost everyone imagines a straightforward transaction: the brand pays, the team displays the logo. Cash for visibility. End of story. The reality of the market is more interesting \u2014 and more flexible \u2014 than this simple picture. Sponsorship in kind, also known as value in kind (VIK) or barter sponsorship, has [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":158523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20026],"tags":[],"class_list":["post-237896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sponsorizzazioni-sportive"],"acf":[],"contentshake_article_id":"","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is a value in kind or barter sponsorship? | RTR Sports<\/title>\n<meta name=\"description\" content=\"What is a value in kind (VIK) or barter sponsorship? 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A practical guide for brands considering VIK deals.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rtrsports.com\/en\/blog\/sponsorship-in-kind-barter\/\" \/>\n<meta property=\"og:site_name\" content=\"RTR Sports\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/RTRSportsMarketing\/\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rtrsports.com\/wp-content\/uploads\/2024\/07\/33990450923_abe8f739bd_b-5.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"621\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Riccardo Taf\u00e0\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@rtrsports\" \/>\n<meta name=\"twitter:site\" content=\"@rtrsports\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Riccardo Taf\u00e0\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/\"},\"author\":{\"name\":\"Riccardo Taf\u00e0\",\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/#\\\/schema\\\/person\\\/7ca2648b3d857cbfff8c499aaed0420e\"},\"headline\":\"What is a value in kind sponsorship or a barter sponsorship?\",\"datePublished\":\"2018-05-11T08:45:47+00:00\",\"dateModified\":\"2026-09-09T16:17:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/\"},\"wordCount\":1352,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/rtrsports.com\\\/wp-content\\\/uploads\\\/2024\\\/07\\\/33990450923_abe8f739bd_b-5.jpg\",\"articleSection\":[\"Sponsorizzazioni Sportive\"],\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/\",\"url\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/\",\"name\":\"What is a value in kind or barter sponsorship? | RTR Sports\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/rtrsports.com\\\/en\\\/blog\\\/sponsorship-in-kind-barter\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/rtrsports.com\\\/wp-content\\\/uploads\\\/2024\\\/07\\\/33990450923_abe8f739bd_b-5.jpg\",\"datePublished\":\"2018-05-11T08:45:47+00:00\",\"dateModified\":\"2026-09-09T16:17:26+00:00\",\"description\":\"What is a value in kind (VIK) or barter sponsorship? 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