Posts tagged manchester united
How Sports Brands Create Brand Fanatics
Aug 24th
A key reason sports brands are so successful is the relationship they have with each of their consumers, or fans. Being a sports fan-and loving a team brand-transcends a person’s job, family or social status. “Fans experience pleasure and satisfaction with successful teams,” writes Baylor University marketing professor Kirk L. Wakefield in his book, Team Sports Marketing, “but, they also experience feelings of delight or excitement that deeply resonates within the identity of the individual fan, such that the effects are likely to be long-term. … Sports teams develop a faithful fanatical following primarily due to high levels of identification…”
It is this identification that professional and amateur leagues in general, and teams in particular, play on (or prey upon). Wakefield points out that a dedicated sports fan has “an enduring involvement with the sport and situational involvement with the event.” A fanatical soccer fan, for example, will have “an ongoing interest or concern with the sport on a day-to-day basis.” That same fan, if dedicated to a particular team, will also watch or attend games, check scores online, follow the team’s star players and buy team merchandise. This is the kind of brand involvement some product brands can only dream about.
Identifying with a particular team brand is a strong fan motivator. “Highly identified fans are likely to Bask In Reflected Glory [BIRG] by doing such things as wearing team-identifying apparel after a team win, describing team wins in terms of what ‘we’ did, and, in general, seeking to enhance their public image by connecting with positive aspects of the team,” Wakefield writes. “The result of BIRGing is enhancing self-esteem in the highly identified fan.” According to Wakefield, the more identified a fan becomes, the higher the level of his or her team involvement.
Incredibly, Wakefield writes, “identification with a sports team seems to shield against the potential consequences of death…evidence suggests that one’s identification and involvement with a sports team in some ways makes the highly identified fan feel immortal.” Now that’s the ultimate in brand loyalty.
There is a hierarchy of sports brand fanaticism. Some fans of a particular sport might identify with a league or association, such as the International Soccer League, the NBA (National Basketball Association) or NASCAR (National Association for Stock Car Auto Racing). Others might identify with different sports under the same umbrella brand, such as the Olympics or the NCAA (National Collegiate Athletic Association). Or fans might be intent on supporting a single team brand, often because of school or hometown affiliation. And then there are the multisport fanatics, supporting several sports, leagues or teams at once. Typically, each of these leagues or teams positions itself as a distinct brand with its own logo, merchandise and marketing program.
This presents a big branding challenge: There are so many sports brands in existence that sports fans in general may be spread thin. In their book, The Elusive Fan, authors Irving Rein, Philip Kotler and Ben Shields say competition among sports brands for market share is increasingly intense because of fragmentation. They believe there are six distinct sports sectors vying for fans’ attention: older sports (such as European soccer and Major League Baseball), reemerging older sports (such as cricket, rugby and golf), school sports (high schools, youth development teams and the like), new sports (extreme sports and paintball, for example), declining older sports (such as boxing and horse racing) and sporting goods (including team merchandise and sports equipment).
That means each sports team needs a multifaceted branding strategy to keep fans loyal. Traditionally, teams hitch their stars to star athletes. But now these brands, say Rein, Kotler and Shields, “must also broaden their star power mix to include facilities, food, teams, places, events, and individuals, such as owners, who have not been a part of the storyline. Star power needs to be redefined to connect with more fans, maximize all the attributes that a sports product has to offer, and ensure a constant flow of sports branding material to convert into star status.”
The authors point to Manchester United as an example of a team that “has been transformed into a highly profitable company and an identifiable global brand.” Manchester United became a megabrand due to developing the best talent, careful attention to managing and growing the business, and an aggressive distribution strategy. Today its arsenal includes branded restaurants, stores, a cable television network, a stadium, the use of new media and unorthodox ways to expand into new markets, such as a marketing partnership with the New York Yankees.
Sports leagues and teams continue to attract and retain sports fans, as well as commercial sponsors, but for the first time in a long time, the sports world is feeling a money pinch. In fact, a recent study indicates that over half of companies surveyed “plan to cut 2009 sponsorship spending, including sponsorship in the sports world, while almost as many are seeking to get out of current deals…” (”Over half of firms to cut sponsorship spend – study,” Reuters, March 10, 2009).
That may be why sports brands are beginning to look for new and novel ways to generate revenue from their fans. For example, the storied New York Yankees, MLB’s most valuable team, just opened a new Yankee Stadium this season. Soon afterward, the Yankees organization announced it would market its own grass: Yankees Sod. “It may cost a few thousand dollars to cover a large backyard, but the sod comes with a certificate of authenticity from Major League Baseball, complete with the counterfeit-proof hologram, declaring it to be the official grass of the New York Yankees” (”Yankees Grass Is Now a Brand,” The New York Times, March 22, 2009).
Barry Silverstein is a freelance writer/marketing consultant and co-author of the McGraw-Hill book, The Breakaway Brand.
SportsPro ranks the world’s 200 most valuable sports properties
Jun 19th
SportsPro magazine has published the world’s first ranking of sports properties in its July issue. Unsurprisingly, the National Football League (NFL) is ranked as the world’s most valuable sports property, with a value of US$4.5 billion. It is followed at the top of the table by three other American properties – Major League Baseball (MLB) (US$3.9 billion), the NBA (US$3.35 billion) and Nascar (US$1.9 billion).
The newest property in the list is the Indian Premier League (IPL), which is valued at US$1.6 billion – a staggering achievement for a two-year-old property.
The highest ranked European team property is the Ferrari Formula One team (7th) at a value of US$1.55 billion, followed by Manchester United Football Club (8th) at US$1.495 billion. The most valuable American sports club is the Dallas Cowboys (10th), the NFL team, valued at US$1.278 billion.
Tiger Woods (11th) is the highest rated athlete property with a value of US$1.25 billion, followed by Jack Nicklaus (16th) at US$1 billion. Golfers dominate the athletes’ table because of the high earnings from designing golf courses; Tiger Woods is expected to earn over a billion dollars from designing courses in the next decade and will almost certainly eclipse his on-course earnings. David and Victoria’s Beckham Brand Ltd property (88th) is valued at US$375 million.
Many single annual events appear, led by the Wimbledon tennis championships (22nd) valued at US$900 million.
Unsurprisingly, the most valuable competition is the Fifa World Cup (5th) valued at US$1.7 billion, ahead of the Summer Olympic Games (15th) at US$1.04 billion. The Uefa Champions League (13th) is valued at US$1.1 billion, eclipsing the Summer Olympics due to its annual status.
Ends
OVERALL TABLE (200) (Top Ten tables below)
Source: SportsPro Magazine
1 National Football League; 32 NFL franchises Football - US$4.5 billion
2 Major League Baseball; 32 MLB franchises Baseball – US$3.936 billion
3 National Basketball Association; 30 NBA franchises Basketball – US$2.344 billion
4 Nascar France family; Motorsport – US$1.9 billion
5 Fifa World Cup; Fifa Soccer – US$1.7 billion
6 Indian Premier League BCCI (India) Cricket US$1.6 billion
7 Scuderia Ferrari; Fiat Motorsport – US$1.55 billion
8 Manchester United FC; Malcolm Glazer Soccer – US$1.495 billion
9 Formula One; CVC/Royal Bank of Scotland Motorsport – US$1.45 billion
10 Dallas Cowboys Jerry Jones Football US$1.278 billion
11 ETW Corp/Tiger Woods Design Tiger Woods Golf US$1.25 billion
12 New York Yankees George Steinbrenner Baseball US$1.19 billion
13 Uefa Champions League Uefa Soccer US$1.1 billion
14 Real Madrid Club Members Soccer US$1.073 billion
15 Olympic Games (Summer) International Olympic Committee Multi-Sports US$1.024 billion
16 Nicklaus Design and Golf Equipmt Jack Nicklaus Golf US$1 billion
17 Washington Redskins Daniel Snyder Football US$999 million
18 PGA Tour PGA of America Golf US$970 million
19 New York Giants John Mara/Steven Tisch Football US$932 million
20 New York Jets Robert Wood Johnson IV Football US$927 million
21 Arsenal FC Stan Kroenke Soccer US$910 million
22 The Wimbledon Championships All England Lawn Tennis Club Tennis US$900 million
23 US Tennis Open United States Tennis Association Tennis US$880 million
24 New England Patriots Robert Kraft Football US$861 million
25 World Wrestling Entertainment McMahon Family Wrestling US$837 million
26 Miami Dolphins Wayne Huizenga/Stephen Ross Football US$828 million
27 Liverpool FC George Gillett/Tom Hicks Soccer US$801 million
28 Arnold Palmer Design Arnold Palmer Enterprises Golf US$800 million
29 Great White Shark Enterprises Greg Norman Golf US$800 million
30 Uefa European Championship Uefa Soccer US$800 million
31 FC Barcelona Club Members Soccer US$793 million
32 AC Milan Silvio Berlusconi Soccer US$774 million
33 National Hockey League 30 NHL franchises Ice Hockey US$760 million
34 Rugby World Cup Rugby World Cup Ltd/IRB Rugby Union US$750 million
35 The Masters Augusta National Golf Club Golf US$750 million
36 Michael Jordan Michael Jordan/Nike Basketball US$725 million
37 Houston Texans Robert McNair Football US$725 million
38 Philadelphia Eagles Jeffrey Lurie Football US$723 million
39 FC Bayern Munich Club members Soccer US$721 million
40 ICC World Cup International Cricket Council Cricket US$700 million
41 ATP World Tour Assoc. of Tennis Professionals Tennis US$700 million
42 Indianapolis Colts James Irsay Football US$699 million
43 Chicago Bears McCaskey Family Football US$692 million
44 Baltimore Ravens Stephen Bisciotti Football US$690 million
45 Denver Broncos Patrick Bowlen Football US$689 million
46 Tampa Bay Buccanneers Malcolm Glazer Football US$685 million
47 Carolina Panthers Jerry Richardson Football US$676 million
48 Cleveland Browns Randy Lerner Football US$673 million
49 New York Mets Fred Wilpon Baseball US$665 million
50 Green Bay Packers Shareholders Football US$664 million
51 Kansas City Chiefs Hunt Family Football US$660 million
52 Pittsburgh Steelers Rooney Family Football US$659 million
53 Seattle Seahawks Paul Allen Football US$657 million
54 Boston Red Sox John Henry/Thomas Werner Baseball US$651 million
55 Chelsea FC Roman Abramovich Soccer US$634 million
56 Cincinnati Bengals Michael Brown Football US$612 million
57 New Orleans Saints Thomas Benson Football US$608 million
58 St Louis Rams Chip Rosenbloom/Stan Kroenke Football US$603 million
59 Detroit Lions William Clay Ford Football US$597 million
60 Arizona Cardinals William Bidwell Football US$594 million
61 Team McLaren-Mercedes; Mercedes/Mumtalakat/Ron Dennis/Mansour Ojjeh Motorsport – US$580 million
62 San Diego Chargers Alexander Spanos Football US$577 million
63 Buffalo Bills Ralph Wilson Jr. Football US$574 million
64 Tennessee Titans Kenneth Adams Jr. Football US$569 million
65 Atlanta Falcons Arthur Blank Football US$567 million
66 San Francisco 49ers Denise DeBartolo York Football US$561 million
67 Oakland Raiders Allen Davis Football US$559 million
68 Minnesota Vikings Wilf Family Football US$545 million
69 Monaco Grand Prix; Automobile Club de Monaco Motorsport – US$520 million
70 Olympic Games (Winter) International Olympic Committee Multi-Sports US$504 million
71 America’s Cup Société Nautique de Genève Sailing US$500 million
72 Golden Boy Promotions Oscar de la Hoya Boxing US$500 million
73 Ryder Cup PGA of America/PGA European Tour Golf US$500 million
74 Jacksonville Jaguars Wayne Weaver Football US$497 million
75 Internazionale Massimo Moratti Soccer US$481 million
76 Juventus Agnelli Family Soccer US$476 million
77 Los Angeles Dodgers Frank McCourt Baseball US$469 million
78 Chicago Cubs Tom Ricketts Baseball US$455 million
79 Commonwealth Games Commonwealth Games Federation Multi-Sports US$450 million
80 New York Knicks Cablevision Systems Basketball US$405 million
81 Australian Open Tennis Australia Tennis US$400 million
82 LeBron James LeBron James Basketball US$400 million
83 Six Nations Six Nations Rugby Ltd. Rugby Union US$400 million
84 Chicago Bulls Jerry Reinsdorf Basketball US$399 million
85 Phoenix Suns Robert Sarver Basketball US$381 million
86 WTA Tour Women’s Tennis Association Tennis US$380 million
87 Los Angeles Lakers Jerry Buss/Philip Anschutz Basketball US$379 million
88 Beckham Brand Ltd. David Beckham/Victoria Beckham Soccer US$375 million
89 Detroit Pistons Karen Davidson Basketball US$374 million
90 Boston Celtics Wycliffe Grousbeck Basketball US$353 million
91 Major League Soccer MLS Soccer US$350 million
92 Tour de France Amaury Sport Organisation Cycling US$350 million
93 Hendrick Motorsports; Rick Hendrick Motorsport – US$335 million
94 AS Roma Sensi Family Soccer US$331 million
95 FC Schalke 04 Club members Soccer US$331 million
96 MotoGP; Dorna Sports Motorsport – US$330 million
97 Los Angeles Angels of Anaheim Arturo Moreno Baseball US$330 million
98 Toronto Maple Leafs Ontario Teachers’ Pension Plan Ice Hockey US$325 million
99 Philadelphia Phillies William Giles Baseball US$322 million
100 St Louis Cardinals William DeWitt Jr. Baseball US$315 million
101 Roush Fenway Racing; Jack Roush/John Henry Motorsport – US$313 million
102 Asian Games Olympic Council of Asia Multi-Sports US$310 million
103 Indianapolis 500; Tony George Motorsport – US$310 million
104 Cleveland Cavaliers Daniel Gilbert Basketball US$310 million
105 San Francisco Giants William Neukom/Susan Burns Baseball US$305 million
106 Houston Rockets Leslie Alexander Basketball US$304 million
107 Dallas Mavericks Mark Cuban Basketball US$304 million
108 Copa America Conmebol Soccer US$300 million
109 French Open French Tennis Federation Tennis US$300 million
110 PGA European Tour PGA European Tour Golf US$300 million
111 Ultimate Fighting Championship Zuffa LLC Martial Arts US$300 million
112 Chicago White Sox Jerry Reinsdorf Baseball US$292 million
113 New York Rangers Cablevision Systems Ice Hockey US$291 million
114 Atlanta Braves Liberty Media Baseball US$289 million
115 Houston Astros Robert Drayton McLane Jr. Baseball US$288 million
116 Seattle Mariners Nintendo Baseball US$277 million
117 San Antonio Spurs Peter Holt Basketball US$269 million
118 Washington Nationals Theodore Lerner Baseball US$264 million
119 Texas Rangers Tom Hicks Baseball US$262 million
120 Singapore Grand Prix; Ong Beng Seng/Singapore Government Motorsport – US$261 million
121 Baltimore Orioles Peter Angelos Baseball US$260 million
122 Cleveland Indians Lawrence Dolan Baseball US$260 million
123 San Diego Padres John Moores Baseball US$260 million
124 Toronto Raptors Ontario Teachers’ Pension Plan Basketball US$260 million
125 Panathinaikos Giannis Vardinagiannis Soccer US$254 million
126 Arizona Diamondbacks Ken Kendrick Baseball US$253 million
127 The Open Championship Royal & Ancient Golf US$252 million
128 Tottenham Hotspur FC Daniel Levy Soccer US$250 million
129 Colorado Rockies Charles Monfort/Richard Monfort Baseball US$241 million
130 BMW-Sauber F1 Team; BMW Group Motorsport – US$240 million
131 Detroit Tigers Michael Illitch Baseball US$240 million
132 Philadelphia 76ers Comcast Spectacor Basketball US$234 million
133 Utah Jazz Miller Family Basketball US$233 million
134 Minnesota Twins James Pohland Baseball US$232 million
135 Toronto Blue Jays Rogers Communications Baseball US$229 million
136 Washington Wizards Abe Pollin Basketball US$229 million
137 Sacramento Kings Maloof Family Basketball US$227 million
138 Orlando Magic Richard DeVos Basketball US$226 million
139 Milwaukee Brewers Mark Attanasio Baseball US$225 million
140 Cincinnati Reds Robert Castellini Baseball US$222 million
141 Renault F1 Team; Renault Motorsport – US$220 million
142 Sachin Tendulkar Sachin Tendulkar Cricket US$220 million
143 Golden State Warriors Christopher Cohan Basketball US$217 million
144 Montreal Canadiens George Gillett Ice Hockey US$217 million
145 Denver Nuggets Stan Kroenke Basketball US$213 million
146 Tampa Bay Rays Stuart Sternberg Baseball US$208 million
147 Oakland Athletics Lewis Wolff/John Fisher Baseball US$207 million
148 Kansas City Royals David Glass Baseball US$204 million
149 Manchester City FC Abu Dhabi United Investment Group Soccer US$202 million
150 Australian Football League AFL AFL US$200 million
151 English FA Cup English Football Association Soccer US$200 million
152 FC Porto FCPorto SAD Soccer US$200 million
153 Atlanta Hawks Atlanta Spirit Basketball US$199 million
154 Portland Trail Blazers Paul Allen Basketball US$199 million
155 Miami Heat Micky Arison Basketball US$196 million
156 Detroit Red Wings Michael Illitch Ice Hockey US$196 million
157 Indiana Pacers Herbert Simon/Melvin Simon Basketball US$196 million
158 Los Angeles Clippers Donald Sterling Basketball US$195 million
159 Aston Villa FC Randy Lerner Soccer US$195 million
160 Minnesota Timberwolves Glen Taylor Basketball US$195 million
161 Oklahoma City Thunder Clay Bennett Basketball US$195 million
162 Memphis Grizzlies Michael Heisley Basketball US$191 million
163 New Jersey Nets Bruce Ratner Basketball US$191 million
164 Werder Bremen Werder Bremen and Co. Ltd. Soccer US$190 million
165 Fenerbahce Fenerbahce S.K. Soccer US$190 million
166 Toyota Racing; Toyota Motor Corp. Motorsport – US$190 million
167 Volvo Ocean Race; Volvo Event Management UK Sailing – US$190 million
168 Pittsburgh Pirates Robert Nutting Baseball US$188 million
169 Charlotte Bobcats Robert Johnson Basketball US$184 million
170 New Orleans Hornets George Shinn/Gary Chouest Basketball US$184 million
171 Milwaukee Bucks Herbert Kohl Basketball US$180 million
172 Florida Marlins Jeffrey Loria Baseball US$179 million
173 Philadelphia Flyers Comcast Spectacor Ice Hockey US$178 million
174 Dallas Stars Tom Hicks Ice Hockey US$177 million
175 Celtic FC Dermot Desmond Soccer US$172 million
176 VfB Stuttgart Club members Soccer US$171 million
177 Boston Bruins Jeremy Jacobs Ice Hockey US$170 million
178 Hamburger FC Club members Soccer US$165 million
179 Galatasaray Galatasaray SK Soccer US$160 million
180 Vancouver Canucks Francesco Aquilini Ice Hockey US$153 million
181 Borussia Dortmund Borussia Dortmund GmbH Motorsport US$150 million
182 Colorado Avalanche Stan Kroenke Ice Hockey US$150 million
183 Olympique Lyonnais Jean-Michel Aulas Soccer US$150 million
184 New Jersey Devils Jeffrey Vanderbeek Ice Hockey US$144 million
185 Olympique de Marseille Robert Louis-Dreyfus Soccer US$141 million
186 Earnhardt Ganassi Racing; Teresa Earnhardt Motorsport – US$140 million
187 Minnesota Wild Craig Leipold/Philip Falcone Ice Hockey US$140 million
188 Los Angeles Kings Philip Anschutz Ice Hockey US$136 million
189 Everton FC Bill Kenwright Soccer US$133 million
190 Ottawa Senators Eugene Melnyk Ice Hockey US$133 million
191 Chicago Blackhawks Wirtz Family Ice Hockey US$132 million
192 Anaheim Ducks Henry Samueli/Susan Samueli Ice Hockey US$131 million
193 Calgary Flames Calgary Flames LP Ice Hockey US$131 million
194 Tampa Bay Lightning Oren Koules/Len Barrie Ice Hockey US$130 million
195 Glasgow Rangers FC Sir David Murray Soccer US$126million
196 Pittsburgh Penguins Mario Lemieux/Ronald Burkle Ice Hockey US$126 million
197 Newcastle United FC Mike Ashley Soccer US$120 million
198 Kobe Bryant Kobe Bryant Basketball US$120 million
199 San Jose Sharks Kevin Compton/Greg Jamison Ice Hockey US$116 million
200 Penske Racing; Roger Penske Motorsport – US$115 million
Source: SportsPro Magazine
TOP TEN LEAGUE PROPERTIES
Rank Property Owner/Majority Shareholder Sport Value
1 (1) National Football League 32 NFL franchises Football US$4.5 billion
2 (2) Major League Baseball 30 MLB franchises Baseball US$3.936 billion
3 (3) National Basketball Assoc. 30 NBA franchises Basketball US$2.344 billion
4 (4) Nascar France family Motorsport US$1.9 billion
5 (6) Indian Premier League BCCI (India) Cricket US$1.6 billion
6 (9) Formula One CVC/RBS/Ecclestone Motorsport US$1.45 billion
7 (13) Uefa Champions League Uefa Soccer US$1.1 billion
8 (18) PGA Tour PGA of America Golf US$970 million
9 (33) National Hockey League 30 NHL franchises Ice Hockey US$760 million
10 (41) ATP World Tour Association of Tennis Prof Tennis US$700 million
Source: SportsPro Magazine
TOP TEN TEAM PROPERTIES
Rank Property Owner/Major Shareholder Sport Value
1 (7) Scuderia Ferrari Fiat Motorsport US$1.55 billion
2 (8) Manchester United FC Malcolm Glazer Soccer US$1.495 billion
3 (10) Dallas Cowboys Jerry Jones Football US$1.278 billion
4 (12) New York Yankees George Steinbrenner Baseball US$1.19 billion
5 (14) Real Madrid Club Members Soccer US$1.073 billion
6 (17) Washington Redskins Daniel Snyder Football US$999 million
7 (19) New York Giants John Mara/Steven Tisch Football US$932 million
8 (20) New York Jets Robert Wood Johnson IV Football US$927 million
9 (21) Arsenal FC Stan Kroenke Soccer US$910 million
10 (24) New England Patriots Robert Kraft Football US$861 million
Source: SportsPro Magazine
TOP TEN INDIVIDUAL ATHLETE PROPERTIES
Rank Property Owner/Major Shareholder Sport Value
1 (11) ETW Corp/Tiger Woods Design Tiger Woods Golf US$1.25 billion
2 (16) Nicklaus Design Jack Nicklaus Golf US$1 billion
3 (28) Arnold Palmer Design Arnold Palmer Golf US$800 million
4 (29) Great White Shark Enterprises Greg Norman Golf US$800 million
5 (36) Michael Jordan Michael Jordan/Nike Basketball US$725 million
6 (72) Golden Boy Promotions Oscar De La Hoya Boxing US$500 million
7 (82) LeBron James LeBron James Basketball US$400 million
8 (88) Beckham Brand Ltd David and Victoria Beckham Soccer US$375 million
9 (142) Sachin Tendulkar Sachin Tendulkar Cricket US$220 million
10 (198) Kobe Bryant Kobe Bryant Basketball US$120 million
Source: SportsPro Magazine
TOP TEN ANNUAL TOURNAMENT PROPERTIES
Rank Property Owner/Major Shareholder Sport Value
1 (22) The Wimbledon Championships All England Lawn Tennis Club Tennis US$900 million
2 (23) US Tennis Open United States Tennis Association Tennis US$880 million
3 (35) The Masters Augusta National Golf Club Golf US$750 million
4 (69) Monaco Grand Prix Automobile Club de Monaco Motorsport US$520 million
5 (81) Australian Open Tennis Australia Tennis US$400 million
6 (83) Six Nations Six Nations Rugby Ltd. Rugby Union US$400 million
7 (92) Tour de France Amaury Sport Organisation Cycling US$350 million
8 (109) French Open French Tennis Federation Tennis US$300 million
9 (120) Singapore Grand Prix Ong Beng Seng/Singapore Government Motorsport US$261 million
10 (127) The Open Championship Royal & Ancient Golf US$252 million
Source: SportsPro Magazine
Sponsorship… a buyer’s market
May 8th
Global companies are being swamped with sponsorship approaches from sports and arts bodies as the economic downturn transforms the business of sponsorship into a buyer’s market.
Some of the world’s biggest sponsors are cutting back on deals, although none of those contacted by the Financial Times said they were looking to terminate commitments. However, the economic outlook is prompting nervousness among rights owners who are trying to negotiate longer term deals with clients as a way of building in greater funding security to offset expected declines in sponsorship revenues.
Rights holders are gearing up for life without clients from the stricken banking and car sectors and trying to squeeze out more sponsorship dollars from others. “There is a great deal of inventory available and as in any downturn there will be a flight to quality,” said Phil Carling of Octagon, the global marketing company. “It’s a bit more of a buyers’ market,” said Keith Levy, vice-president of marketing at Anheuser-Busch and responsible for the beer company’s US sponsorship deals in baseball, basketball and American football.
According to Sports Marketing Surveys, the car and banking sectors were the leading industries of sports sponsorship, which was responsible for 79 per cent of all sponsorship last year. Between them, they signed off 253 of the 713 reported deals last year.
British Airways, a London 2012 Olympics sponsor, said it had always attracted interest from rights holders. “But increasingly so, we have noticed that third parties are looking to work with us more and more,” said Luisa Fernandez, global sponsorship manager. Calls are coming in daily to the Emirates Airlines, which sponsors football, rugby and cricket tournaments and teams. “They used to come but not at this frequency,” said Boutros Boutros, of Emirates. “We went after most of our properties but now they are coming to us.”
IEG, a sponsorship advisory arm of the advertising group WPP, expects sponsorship spending by North American companies to increase by only 3.2 per cent, following three years of double-digit growth. Globally, it will rise 3.9 per cent to $44.8bn, IEG believes.
BT, official sponsor of the London 2012 Olympics, said of the sponsorship climate that “clearly in worsening economic times, some change is inevitable”, and would be partly driven by upcoming sponsorship opportunities. “For companies like BT, this can be an appropriate time to negotiate new long-term deals cost-effectively,” BT said. Last month, it announced a four-year deal to sponsor the Paralympic World Cup.
Germany-based rivals Adidas and Puma are not cutting back. Adidas has said it aims to spend about 13 per cent of its net revenues each year on marketing, spending €1.2bn ($1.5bn) last year. Puma spends about 15 per cent on marketing. AIG, the bailed-out US insurer, will not renew its shirt sponsorship of Manchester United while Hyundai has taken up advertising spots for the Oscars that were abandoned by General Motors.
Nortel’s financial woes threaten the telecommunications group’s sponsorship of next year’s Winter Olympics in Vancouver and the London 2012 Olympics. Its restructuring after seeking bankruptcy protection last month “does involve us taking a hard look at our sponsorships and, in some cases, decide to no longer invest in certain programmes as a sponsor”, said Nortel. But its Olympic commitments remained unchanged, it added.
Several companies made it clear they were sticking to their guns. Tsingtao said its main long-term sponsorship, with US basketball, was “not really affected by the financial crisis. It is going well”. Itau, the Brazilian bank, which spends $15m a year on the national football team, concluded that its merger plans with Unibanco meant it made sense to continue the marketing programme. The next two to three months will see fewer sponsorship announcements and activity, according to Karen Earl, chairman of the European Sponsorship Association. “People genuinely don’t quite know how things are going to pan out,” she said. www.ft.com