Group Created with Sketch.
Volume 10 No. 25

Marketing and Sponsorship

Emirates Airlines Tuesday announced a five-year sponsorship of F1 in a deal with F1 CEO Bernie Ecclestone "understood to be worth as much as" $200M, according to Meenaghan & Cronin of THE NATIONAL. The announcement marks Emirates' "first foray into elite motorsport for seven years and will result in the airline's branding appearing at 15 races this season." Emirates Airline Group Chair & CEO Sheikh Ahmed bin Saeed Al Maktoum said, "Our message to motor racing fans is 'fasten your seatbelt, and we are joining you for the ride.'" Sheikh Ahmed said the deal marked "another big step" for Emirates as a brand. Ecclestone said that the partnership was worth millions of dollars "but would not be drawn on an exact figure." Ecclestone: "I was told very early on that a gentleman never speaks about last night or money" (THE NATIONAL, 2/5). In Dubai, Alaric Gomes noted four races are exempt from the partnership "because of pre-existing title sponsorship commitments": Melbourne, Bahrain, Abu Dhabi and Monaco. Emirates "has been at the forefront of sports partnerships," now reaching the Dhs 1B ($272.2M) mark in sponsorships. Sheikh Ahmad said, "This new partnership will truly become one of our main associations with a truly global reach" (GULF NEWS, 2/5). Ecclestone said it would now be "the natural thing to do" for Emirates to take its F1 involvement a step further and launch a motor racing team (REUTERS, 2/5). In Dubai, Ted Macauley wrote Ecclestone proves "the sky's the limit when it comes to spreading his Grand Prix gospel worldwide." It is "typical of the sport's supremo that he honoured what was no doubt an Emirates' request to keep quiet on the dealings between them until the details had been trashed out to their mutual satisfaction and benefit." His "delight and complete trust in doing business with associates from the UAE are one of his oft-stated pleasures." Now, "his show will be stylishly placarded around the world at 30,000-feet" (GULF NEWS, 2/5).

Arsenal FC Stadium naming rights, jersey sponsor Football
ATP World Tour Platinum partner, title sponsor of
ATP Rankings
NBA In China Basketball
Houston Texans Suite sponsor American Football
Emirates Australian Open Title sponsor Golf
Breeders' Cup Sponsor Horse racing
Dubai World Cup Sponsor Horse racing
Paris Saint-Germain Jersey sponsor Football
Real Madrid Sponsor Football
AC Milan Sponsor Football
Emirates Airline U.S. Open Series Title sponsor Tennis

The stakes "could not be much higher for the world's top two sporting goods companies" -- No. 1 Nike and No. 2 adidas -- as the global football match-fixing scandal unfolds, according to Allan Brettman of the Portland OREGONIAN. Both companies sponsor national federations, club teams and standout footballers around the world. Both companies "are watching closely" to see if any of their partners are among the suspects in nearly 700 games globally that have been deemed suspicious. Nike reported about $2B in Nike Brand football wholesale revenue in the '12 fiscal year, $1.76B in '11 and $1.65B in '10. Adidas' annual report from '11 said the company expected "a new record level of sales" above €1.5B (Portland OREGONIAN, 2/4).

A report from Sponsorship Today revealed that global sponsorship from beer brands has reached $1.4B per year. A major survey of the top 420 deals worldwide shows a spend level of $1.03B and it is estimated that smaller sports properties earn a further $400M from beer sponsorship. Sponsorship Today Editor Simon Rines said, "The findings show that the world’s top three brewers, ABInBev, SAB Miller and Heineken, account for the majority of spend. However, not all major beer brands use sport. Stella Artois, Becks and Skol, all in the top ten global brands, are not big users of sport." The report found that the U.S. accounted for half of all beer sponsorship spend with Bud Light’s NFL deal, worth $1B over six years, being the biggest deal in world sport. The U.K. is the second biggest recipient of beer sponsorship with an estimated $71M per year spent on sport. The report found no direct link between beer sponsorship spend and consumption. The NFL and int'l football are the biggest recipients of beer sponsorship in world sport and account for nearly 60% of all spend. Hockey, baseball and basketball make up the next three spots with motorsport in sixth place and earning more than $60M annually from brewers (Sponsorship Today).

Rafael Nadal, who returns to competition Tuesday in Chile "after a seven-month hiatus because of injury," let his contract with management agency IMG expire Dec. 31, according to Duff & Rossingh of BLOOMBERG. IMG Tennis Worldwide Managing Dir Fernando Soler said Nadal "wanted to set up his own company." According to Forbes magazine, Nadal made $25M in endorsements last year, so the move may save him as much as $3.8M in agency fees. Chicago-based consultancy Sportscorp Ltd. President Marc Ganis said, "Nadal doesn’t need to look for corporate sponsors any more, they will come to find him." Roger Federer, tennis' top moneymaker with annual earnings in deals and prize money of $52.7M, left IMG in June. Nadal's IMG handler for 12 years Carlos Costa is "now managing him independently and has started a company with Nadal’s father, Sebastian." Nadal’s spokesperson Benito Perez-Barbadillo declined to comment on the move and Costa "didn't return a message" (BLOOMBERG, 2/4).

F1 team Mercedes AMG Petronas reached a new partnership agreement with BlackBerry. As the team's official mobile computing partner, BlackBerry will collaborate with the team on technical and marketing opportunities. The new BlackBerry 10 platform will deliver tools and services for Mercedes AMG F1 and fan engagement will be improved through the joint development of apps. BlackBerry 10 smartphones will also be used by the team, so it can "keep moving" throughout the F1 season. The new partnership sees the iconic BlackBerry branding featured prominently on the chassis and headrest of the F1 W04 Silver Arrow, the racesuits of Lewis Hamilton and Nico Rosberg, and on the team's racewear kit (Mercedes AMG Petronas).

Nike and U.K. supermarket chain Morrisons "will be the first brands to run mobile marketing campaigns simultaneously across the Vodafone, EE and O2 networks via the Weve joint venture," according to Matthew Chapman of MARKETING MAGAZINE. The brands "will run activity later this week spanning all three networks after Weve added Vodafone to its mobile advertising and commerce platform." The two companies "will be able to contact 15 million users via Weve, using location-based, text and video messages." Nike continues to trial innovations, and recently hired Burberry Social Media Dir Musa Tariq, "to develop its communications." Weve Launch CEO Nancy Cruickshank said she hoped to move mobile beyond a platform for "one-off" drives, and instead make it a platform for "ground-breaking, innovative and long-term campaigns" (MARKETING MAGAZINE, 2/5).

Brasileiro B club Palmeiras "is looking for a way to keep Kia as a sponsor," according to Bruno Braga of LANCE NET. In a meeting over the weekend, Kia execs "made it clear" to the club they were looking to spend "a lot less" than the R$18M ($9M) it paid last season when the team was in the top flight. One of the solutions could be Kia reducing its sponsorship and moving its logo "to the back of the jersey, or signing a four-month agreement." Last season, Kia was the club's main jersey sponsor (LANCE NET, 2/5). UOL's Ricardo Perrone reported the main reason for Palmeiras insisting on renewing with Kia is to "keep a good relationship" with its kit manufacturer adidas. The German company has a stock of jersey's with Kia's logo on the front that should last until midway through '13. Palmeiras would also "lose out on some money" as it receives royalties from adidas for jersey sales. The club even played Sunday's game with Kia's logo on the front of the jersey "even though the contract has expired" and no new agreement has been reached (UOL, 2/5).

Premier League club West Ham United has announced a partnership with global foreign exchange broker Alpari. The agreement will see the association of Alpari companies worldwide become the club's new main sponsor -- including the Alpari logo on the front of the claret and blue shirt -- from the start of the '13-14 season. Both marked the signing of the new partnership with a live event on the Alpari trading floor in London. The three-year, multimillion-pound deal will see "Alpari FX Trading" feature on West Ham United's team kit and apparel. This adds to the existing naming rights of the Alpari Stand and branding at the Boleyn Ground (West Ham United).

The news that the England and Wales Cricket Board agreed to a contract to make Yorkshire Tea an "official brew partner" has left "the good folk of Lancashire stewing," according to Rod Gilmour of the London TELEGRAPH. Lancashire is home to rival Lancashire Tea. When asked whether Old Trafford would be selling tea at Test matches, a club spokesperson said: "Of course we will be selling Yorkshire Tea, but we would expect sales of coffee to go through the roof as a consequence." The deal will run through Oct. '15 and includes "TV advertising, social media and on-pack promotion." Additionally, Yorkshire Tea's three-year rights "focus on a period of play" -- starting at 3:40pm each Test match day -- when the players are off the field. This is "unchartered waters as far as the ever-expanding world of sports sponsorship is concerned" (TELEGRAPH, 2/5).

Qatar Airways has agreed to become a sponsor for the friendly between Spain and Uruguay to be played on Wednesday in Doha, Qatar. Terms of the deal "were not disclosed" (MAQUINA DO ESPORTE, 2/5). ... English car manufacturer Jaguar will become the presenting sponsor for the remainder of the '12-13 Swiss Cup after agreeing to a deal with IMG Schweiz, the Swiss arm of IMG Worldwide. Jaguar's association commences at the tournament's quarterfinals. Jaguar will be visible on the tournament's combination logo and will also be able to display the Cup in presentations (Jaguar). ... Coca-Cola Amatil -- the soft drink's Australia distributor -- will continue its sponsorship of the V8 Supercars Championship and V8 Supercars promoted events for the next three years (Coca-Cola). ... Bundesliga club VfL Wolfsburg has agreed to a new partnership with premium brewery Veltins. The brewery will become the club's new official beer partner starting with the '13-14 season. The new three-year deal includes the exclusive distribution rights for beer and beer-mix beverages at the Volkswagen Arena. Veltins replaces Krombacher as Wolfsburg's beer partner (Veltins). ... German Handball Bundesliga (HBL) club HBW Balingen-Weilstetten has extended its kit deal with Kempa. The specialist for handball products has been the team's official kit supplier since '06 (HBW Balingen-Weilstetten).

CRICKET DEALS: The England and Wales Cricket Board has awarded title sponsorship to Yorkshire Bank for England's domestic 40-over competition, which will be known as Yorkshire Bank 40 (ECB). ... Derbyshire County Cricket Club has secured a shirt sponsorship deal with U.K. mobile phone retailer for next season. will now be displayed on the front of Derbyshire's Friends Life T20 shirts (