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Volume 10 No. 25

Marketing and Sponsorship

Adidas is facing an investigation over claims that Cambodian workers "are being paid £10 ($16) a week in basic wages to make official merchandise for the London Olympics," according to Dean Nelson of the London TELEGRAPH. Adidas, one of the 2012 Games' largest sponsors, is "believed to have invested" £100M ($156M), and manufactured the official Team Great Britain outfit designed by Stella McCartney. But at the company's Shen Zhou factory on the outskirts of Cambodian capital Phnom Penh, the Telegraph "discovered that poor machinists" were working up to 10 hours a day, six days a week, to "produce the official Olympics merchandise that thousands of fans will buy in stores" throughout Britain. Workers said that they earned a basic salary of £40 ($61) a month for working eight hours a day, six days a week, plus a £3 ($5) allowance for health care. They said they could take their wages up to £78 ($120) "by increasing their hours to 10 per day." Adidas insisted that workers at the factory made an average of £84 ($130) a month, and "would get a pay rise later this year, along with other garment industry workers." Campaigners said the treatment of the workers "amounted to a breach of an agreement" with LOCOG that merchandisers "must pay workers a sustainable living wage." A LOCOG spokesperson said it was "concerned by the allegations and would investigate" (TELEGRAPH, 7/13).

A German news magazine has declared Borussia Dortmund head coach Jürgen Klopp the "new advertisement king" of German football. News magazine Focus reported that Klopp, who has acquired seven sponsorship deals, dethroned German football legend Franz Beckenbauer as German football's ad king. Klopp has sponsorship deals with Die Volksbanken, Seat, Puma, Metylan, Titanflex, FAZ and Philips. Cologne-based market research institute Sport+Markt Advisor Philipp Kupfer said that Klopp is "more versatile because of his charisma." He said, "This is mirrored by his ad revenues, which amount to more than €1.5M ($1.9M) annually" (SID, 7/15).  

AUDI AS THE NEW CO-DRIVER: The WESTDEUTSCHE ZEITUNG reported that German automaker Audi "becomes another co-sponsor" of Bundesliga club Borussia Mönchengladbach. Audi will be the "sixth co-sponsor of Borussia Mönchengladbach for the upcoming season." Audi and Borussia Mönchengladbach have been partners since the opening of the Borussia-Park stadium in '04. The new deal, which will end in '18, includes an "increased presence of Audi on TV-relevant ad spaces and hospitality" (WESTDEUTSCHE ZEITUNG, 7/13).

BACK ON THE CHEST: In Chemnitz, Germany, Sören Fiedler reported that 2nd Bundesliga club Erzgebirge Aue "found with electric tools manufacturer Elektrowerkzeuge Eibenstock a new jersey sponsor." The company, which is located 20km south of Aue, embellished the players' chest with its logo once before during the '07-08 season. The new deal will end in '14 and "brings in an estimated" €700,000 ($860,000) over the next two seasons (BILD, 7/13).