The ins and outs of Cat C Advertising Licenses

The Cat C Advertising License system was introduced to Hong Kong sailing in 2001 as a result of the introduction of the Advertising Code in the revised Racing Rules of Sailing 2001-2004. Since that time the number of license holders has increased from 4 in the first year to 18 today. The scheme has so far generated HK$72,504.54 in revenue for HKSF at the end of January 2008.

Why?

It is common in many sports for the governing body to widen the benefits from advertising revenue brought by the participating teams. Sailing is thus not unusual in introducing a levy on the recipient of individual sponsorship and, like other sports, utilizes the (accumulated) revenue for the benefit of the wider community.

Where does the money go?

The HKSF website states: “Monies derived from the HKSF licensing scheme will be ploughed back into the Hong Kong sailing scene as financial assistance for sail training schemes, racing seminars, youth participation in overseas events or other similar deserving causes. “ It is only in the last year or so that the revenue has begun to add up to anything significant.

How do I apply?

Go to the website, download the form, fill it out and return it to HKSF. Applications should be submitted at least 1 month before the license is required. The HKSF does not guarantee to be able to consider late applications in time for an event.

How much does it cost?

There are 3 ways of assessing the fee:

A percentage of the value of sponsored equipment (eg a sail).
A percentage of the value of cash or other benefits (eg cash, product, services)
The “box rule”.

The fee in the first and second case is set at 5% of the sponsorship value. The third method, the “box rule” is used if no clear value can be attached to the sponsorship. In this case the fee is based on the area of the advertising sign at a rate of $250 /sq m. In the case of a double sided logo, only one side is assessed.

All 3 methods are subject to a $250 minimum

What is the renewal cost?

If no new benefits are received in subsequent years, the renewal fee is 15% of the original fee.

What if I get no benefit from the advertising?

If, for instance, you buy a boat with a set of sails that already carry advertising and you derive no benefit from the advertising, you still need to apply for a Cat C license. However the fee will only be $100.

HKSF Racing Rules& Appeals Committee

April 2008

Rules for HKSF Cat. C Licences

New Cat C Licenses application Form (effective form 21 April 2008)

List of Cat C License Holders