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Volume 10 No. 22

Marketing and Sponsorship

David Beckham, set to make his debut for Ligue 1 Paris St. Germain next weekend, has "raised a staggering" £1B ($1.6B) in shirt and boot sales in his career, with £15M ($23.7M) worth expected from his five-month stint in the French capital alone, according to Alex Miller of the London DAILY MAIL. The French club expects "to cash in on the Beckham factor by selling 150,000 replica kits bearing the former England captain's name before the end of the season." Despite retailing for £95 ($150), sales of the "Beckham 32" shirts have reached "thousands" in the week since the former England captain announced he was signing for his new club. A large number of sales are expected to come from the U.K., France, the U.S. and Qatar, while the midfielder "will earn a percentage of sales in image rights payments." He has enjoyed a long-term relationship with adidas "worth millions and officials at the German kit supplier estimate a staggering 10 million replica Beckham shirts have been sold during his 20-year playing career," worth £950M ($1.5B) at today's prices. Beckham also "endorses the adidas Predator boot and has helped sell millions of pairs, taking his worth to kit suppliers" over £1B (DAILY MAIL, 2/9).

Bundesliga club Schalke 04 "has signed a new three-year sponsorship deal with Coca-Cola," according to Friedhelm Pothoff of DER WESTEN. The U.S. soft drink producer "will replace Sinalco as a premium partner." Coca-Cola "has acquired the distribution rights for non-alcoholic beverages at the Veltins-Arena." Schalke has signed a three-year deal with the company until '16. In addition to the distribution rights, Coca-Cola "will receive ad space inside the Veltins-Arena." Schalke's most-recent partner for non-alcoholic beverages Sinalco "will end its 11-year partnership" with the club on June 30 (DER WESTEN, 2/7).

The "sensational claims that some of Australia's top sporting codes may have been corrupted by match-fixing, drug use and organised crime could help to burst Australia's multi-billion dollar media sports rights bubble," according to Tabakoff & Davidson of THE AUSTRALIAN. The "scandal sweeping sport could also have a major impact on tens of millions of dollars in marketing and sponsorship earnings by sporting codes." Leading lawyers have suggested that there was a danger that "a number of sponsors could use special clauses to trigger contract 'terminations' if more details of corruption emerge." Telecom company Telstra "has already raised the spectre of dropping sponsorships if some of the allegations about drugs and match-fixing were found to be true." Johnson Winter & Slattery partner and sports law expert Mark O'Brien said clauses in contracts for sponsors had become far more common in the age of social media "because a lot of misconduct previously didn't come to any notice." Meanwhile, there are questions "about whether the value of sports rights may have peaked." Research conducted by Repucom last year showed that the deals over the past two years for Australia's top football codes, rugby league and the Australian Football League, "have resulted in the price of Australian television sports rights growing faster than in any other market" (THE AUSTRALIAN, 2/11).

Handball Bundesliga (HBL) TBV Lemgo has agreed to a new title sponsorship deal with electronics company Phoenix Contact for three years starting with the '13-14 season. The company's logo will be featured on the club's jersey as well as on the clothes of team officials and on the team bus. In addition, Phoenix Contact will receive ad space on boards, the court and team publications during home games (TBV Lemgo). ... ExxonMobil and the Qatar Olympic Committee "have unveiled a three-year partnership in support of National Sport Day" (THE PENINSULA, 2/10). ... Al-Futtaim Motors and the UAE FA have announced that Toyota will be the official automotive supplier for the national football team for the next four years. Al-Futtaim Motors will supply the UAE FA with 30 Toyota SUV and Sedan vehicles (GULF NEWS, 2/10). ... Electronic cigarette Totally Wicked announced a partnership with Super League rugby club St. Helens, which will include the rebranding of the North Stand (Totally Wicked). ... Ligue 2 AS Monaco has named premium energy drink Sin Thirst Sin as its new official partner for the remainder of the '12-13 season (AS Monaco). ... Emirates airline is extending its sponsorship of the BNP Paribas Open until '15. Since '10, Emirates has been the official airline of the tournament, which is held in California (Emirates). ... British Ski and Snowboard have announced that "specialist property advisor Delancey has signed up as the principal sponsor" of the British Alpine Ski team (ISPORTCONNECT, 2/8). ... MATCH Hospitality AG, the exclusive rights holder of the FIFA Hospitality Programme, has appointed Cartan Global as an exclusive sales agent in the Cayman Islands, El Salvador, Honduras, Jamaica and Trinidad & Tobago, as well as an authorized sales agent in Argentina, Paraguay and Uruguay for the sale of the official hospitality program of the 2014 FIFA World Cup Brazil and the FIFA Confederations Cup 2013 (FIFA).