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Volume 10 No. 23

Marketing and Sponsorship

EPL Newcastle United will have a new sponsor on its "famous black and white shirts next season" after it called an early end to its deal with U.K.-based bank Virgin Money, according to Keith Weir of REUTERS. The contract with Virgin Money, agreed to in January, was reportedly worth only £3M ($4.9M) per season, a "modest amount" by EPL standards. Newcastle United Managing Dir Derek Llambias said, "We will be announcing a new sponsorship partner shortly, which represents an excellent commercial deal for both parties." Newcastle, owned by Mike Ashley, who controls sporting goods retailer Sports Direct, "exercised an option to break with Virgin Money at the end of the current season" in May (REUTERS, 10/1).

Ligue 1 club Toulouse FC has "extended its sponsorship deal" with telecom company Orange for another three years, according to The two organizations have been partners since '96. Terms of the deal were not disclosed, but Orange South Dir Pierre Clement hinted the company is paying more for this current deal than it did in the past. Clement: "We made a small complimentary effort." This additional boost in revenue "comes at a good time for TFC." The club recently lost its primary sponsor, construction company Idec, which brought €800,000 ($1M) annually. The team has a sponsorship goal of €6.2M ($7.8M) for the season, and it currently has generated €5M ($6.5M). TFC President Olivier Sadran is not concerned. Sadran: "I am not pessimistic. We are a little bit late but we are going to take advantage of the upcoming matches against the big teams in the league" (, 10/1).

Telecom company Vodacom and South African Premier Soccer League newcomers Chippa United have agreed to a R500,000 ($59,747) deal, according to Ramatsiyi Moholoa of the SOWETAN. The one-year deal was signed by the Chilli Boys with the "giant telecommunications company's Western Cape provincial branch and not the national office." The agreement comes with an option to renew the sponsorship. Part of the deal will see Chippa United's Owner Chippa Mpengesi also "acquiring some of the franchise shops in the province" (SOWETAN, 10/1).

Football Federation Australia and Hyundai Motor Company Australia have announced that the automotive manufacturer's naming-rights partnership with the Hyundai A-League will continue for an additional four years until '16. Hyundai's partnership with the FFA extends across the whole of the sport, including Hyundai's role as the official vehicle supplier to the Qantas Socceroos and Westfield Matildas, as well as being one of the FFA's official grassroots partners. Hyundai is also an official partner of the FIFA World Cup through to Qatar in '22. Hyundai was the first partner of the A-League competition, which was announced in '04 with a four-year agreement (FFA).

NBA Miami Heat's Dwyane Wade has "officially departed Jordan Brand for Beijing-based footwear and apparel company Li-Ning," according to a source cited by Jared Zwerling of Wade "had been with Jordan Brand” since ’10, and his contract expired on Oct. 1. Rumors “started heating up that Wade would be leaving Jordan Brand last month when he wasn't scheduled to debut a new sneaker" for the ‘12-13 season. 76ers G Evan Turner, who endorses Li-Ning, tweeted yesterday, "I'd like to welcome the homie D Wade to the Li-Ning family!!!" The tweet has "since been removed." Zwerling noted Wade is "now Li-Ning's biggest headliner." The company’s current endorsers in addition to Turner include Raptors G Jose Calderon and former NBAer Shaquille O'Neal, "whose shoes are only sold in China." Li-Ning has "struggled mightily in the U.S. to make an impact after launching the first Baron Davis sneaker, the BD Doom." Company execs "obviously hope to change that with Wade" (, 10/1).

FIFA will "use retro sponsors’ ads for the first time in a campaign to promote the 2014 World Cup," according to Joseph & Bacon of MARKETING WEEK. FIFA will use "posters, logos and adverts from past World Cups to promote tickets and merchandise for the next World Cup in Brazil." The governing body "could use past campaigns from sponsors such as Mastercard as well as previous World Cup mascots." The move "aims to boost merchandise sales during what the organisation calls the 'off-years' between each tournament where there is less attention on the World Cup brand." FIFA Head of Strategy & Brand Management Ralph Straus said that the initiative is "part of [a] wider strategy to make 'storytelling' a more prominent part of how it markets the World Cup." Marketing "starts at the end of the year and [will] gradually ramp up over the next 12 months to next December when the draw for the tournament takes place." Straus said, "We’re conscious not to go into the market and offer the marques to pretty much anybody and just make products with it and start selling. It needs to be part of an overall concept and it needs to be carefully tested" (, 10/1).

Sky Media Network will consult professional football player Mesut Özil with the selection of sponsors and advertising partners in the future. The focus of the partnership is on the development of a marketing and promotion strategy for the 41-time German football national team player and Real Madrid star and positioning him on the int'l advertising market. The 360 degree marketing strategy of Sky Media Network comprises all relevant aspects of marketing such as the selection and acquisition of national and int'l advertising partners, negotiations and setting-up agreements as well as conceptual design and support services. With its new business sector F4B, Sky Media Network expands its previous activities with marketing celebrities from the sports and entertainment sectors. The business unit F4B will be lead by former Sky Media Network Head of Product Management Matthias Trott. Before he joined Sky in '09, he had leading positions with sports marketing agency Sirius Sport Media as well as Bundesliga channel Arena (Sky Media Network).

Big Bash League cricket club Sydney Sixers announced a partnership with the New South Wales Government for the upcoming Champions League in South Africa. The Sixers will sport the logo on their apparel for matches that will be broadcast across the world including in the U.K., U.S., Europe and Africa, as well as into Australia on Fox Sports (Sydney Sixers). ... Auto manufacturer Volkswagen is welcoming world champion cyclist Alison Shanks as an official Ambassador, cementing its commitment to supporting the New Zealand Olympic team (Volkswagen). ... European Handball Federation Marketing GmbH and Vietentours announced a renewal for another year as travel and ticket partner for the VELUX EHF FINAL4 (Vietentours).

POWER OUTAGE: The Football League is "on the lookout for a new title sponsor," with current partner Npower poised to pull the plug on its three-year sponsorship at the end of the season. It is understood that the energy company has carried out a brand and strategy review overseen by its top marketer, Debbie Britton, who joined from AXA in January, and is "now looking to take its marketing in a 'different direction'" (, 10/2).