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Volume 10 No. 22

Marketing and Sponsorship

The British & Irish Lions Tour of Hong Kong and Australia is expected to generate a £4M ($6.2M) profit "to be shared by the four home rugby football unions," according to Anuj Gangahar of the FINANCIAL TIMES. With the tour costing about £14M ($21M), "it is no surprise a range of sponsorship deals have been signed." The Lions "have signed deals with, among others," HSBC bank, adidas, wine producer FirstCape Wines, carmaker Land Rover and software company Microsoft. Suppliers to the tour include "shirtmaker Thomas Pink and Maximuscle, the sports nutrition supplier." From a sponsorship point of view, "the Lions tour differs from other rugby tournaments, and indeed most sporting events," as 65-70% of revenue comes from sponsorship, rather than ticket sales and TV rights. Lions Sales & Marketing Dir Charlie McEwen said, "Sponsors are critical to the livelihood of the Lions. Without them, the tour simply doesn't happen." Yet while the Lions brand is undoubtedly appealing for sponsors, "by its very nature the tour has a limited shelf life." McEwen said the tour can be likened to "a star that shines very brightly for a very short period of time." The tour itself lasts just six weeks, "which presents challenges" for tour organizers and sponsors. The latter need to be convinced that their financial commitment "will yield results for their brand beyond the tour dates." But the strategy "appears to be working." Most of the leading sponsors, including HSBC, adidas and Land Rover, "are supporting the tour for at least the second time." For Australian airline Qantas, which sponsors the Wallabies, "the benefits from supporting the Lions tour are manifest." A Qantas spokesperson said, "The tour is followed by tens of thousands of fans and brings significant economic and tourism benefits for the host nation" (FT, 6/17).

Tottenham player Gareth Bale applying to trademark his heart-shaped goal celebration  is "a bit silly isn't it?," according to Matt Himsworth of ESPN's FC United blog. Well, "not really, no." It is important "to say what he's not doing first." He is "not stopping anyone from forming a heart-shape with their hands to celebrate something." What he is doing "is preparing the grounds for a marketing and merchandising push." He is creating a mark, like the Nike swoosh or the adidas three-stripe, which he hopes will become internationally recognizable and saleable "and that can appear on clothing and sports gear across the globe." It is "a simple step as part of the development of brand Bale." What he is doing, by applying for a trademark, "is making it easier to define and protect his brand." In this country, "to succeed in a passing off claim, there are more hoops to jump through." You must prove that the mark is yours, "that you have a reputation behind that mark and that you have suffered harm as a result of misuse of your mark." If you have already obtained a registered trademark, then all you have to do is "wave your certificate around." Any self-respecting company which relies on its brand will trademark its logo, "why should well-known individuals not do so?" (ESPN, 6/17).

Electronic advertising space on the front of Barcelona's new La Masia training facility will bring in €72M ($96.3M) annually, according to the EFE. The estimate came from MCM Group, the business managing the project, which will split the money 50-50 with Barcelona. MCM Group President Antonio García Valdecasas indicated that the project will be complete in four months. The advertisements will use an LED area on the front of the building, with companies wishing to advertise in that space able to pay €120 ($160) per month to broadcast their ads for 15 seconds at a time, for two minutes per month. Contract lengths with sponsors will be from 12-36 months long on a platform that will be able to advertise up to 50,000 businesses or products. All businesses that are partners or sponsors of Barcelona will be able to use the MCM-Masia-FCB business platform, while other businesses will be able to occupy a place on a wait list, starting the first day the sponsorships are sold (MUNDO DEPORTIVO, 6/18). 

Turkish top-flight football club Beşiktaş JK Istanbul "signed a preliminary agreement with Vodafone Türkiye," which is "willing to buy both the name of the future stadium and prime spot on the shirts of BJK players," according to STADIUMDB. With demolition of the old stadium only just beginning, it is "already almost certain that Vodafone will be the naming rights owner for years to come." Though talks are understood "to be in progress and speculations over duration and value of the contract would be premature, this cooperation is thought to have a long-term perspective." StadiumDB.com understands that the future stadium "will not lose the name 'Inönü' after rebranding in 2014, though the final name hasn’t been unveiled yet" (STADIUMDB, 6/13).

German national team and Real Madrid player Mesut Özil "is the sponsorship king of Germany's male athletes," according to SPORT1. A study by sports marketing reasearch company REPUCOM shows that Özil "generates between $4M-$5.3M annually from his sponsorship deals with watch brand Cyrus Genève and adidas." The top 10 "includes seven footballers and F1 world champion Sebastian Vettel, NBA Dallas Mavericks player Dirk Nowitzki and 2010 PGA Championship winner Martin Kaymer" (SPORT1, 6/17).

Top 10 German Male Athletes By Sponsorship Income
Rank Club Sport
Most Important
Sponsorship Deals
Sponsorship Income
1. Mesut Özil
Football
Cyrus Genève
adidas
$4M-$5.3M
2.
Sebastian Vettel
F1
Red Bull
Geox
Tirendo
Infiniti
$2.7M-$4M
2. Dirk Nowitzki
Basketball
Nike
ING-DiBa
$2.7M-$4M
2. Martin Kaymer
Golf
Taylor Made
Rolex
Hugo Boss
BMW
$2.7M-$4M
5.
Bastian Schweinsteiger
Football
Right Guard
adidas
funny-frisch
$2M-$3.3M
5. Thomas Müller
Football
adidas
REWE
Bifi
$2M-$3.3M
5.
Mario Götze
Football
Nike
Mercedes
$2M-$3.3M
8. Philipp Lahm
Football
CEWE Fotobuch
adidas
Nintendo
$1.3M-$2.7M
8.
Lukas Podolski
Football
adidas
PSD Bank
$1.3M-$2.7M
8.
Mario Gomez
Football
Nike
Hugo Boss
Red Bull
$1.3M-$2.7M
Source: REPUCOM Market Intelligence, June 2013

Golfer Justin Rose stands to gain at least $1.57M from "bonuses in his sponsorship contracts" following U.S. Open victory, and his management also will "immediately" be able to increase his appearance fees, according to James Corrigan of the London TELEGRAPH. A source said Rose's bonuses "will not just rise for this year, but for the years ahead. Justin was already among the top earners in golf, but this will take him to a new level. When his contracts are up for renewal, the numbers will be huge." Corrigan noted Rose became the first Englishman to win the U.S. Open since Tony Jacklin in '70, and the first to win any major since Nick Faldo in '96. That makes Rose "hot property to appear at corporate days." The victory moved Rose to No. 3 in the World Golf Rankings, which also means "other bonuses will kick in on his contracts" (TELEGRAPH, 6/17).

TAKING HIS TIME: Rose Tuesday morning appeared on CNBC from the NYSE floor and said there has been a "lot of interest" from potential sponsors after winning the U.S. Open, but added he is "having a hard time catching up on my phone with family (and) friends." CNBC's Simon Hobbs noted Rose recently signed an endorsement deal with British Airways, and Rose said, "I'm very well looked after being one of their premier cardholders. I get definitely some fantastic treatment." He noted Jacklin after he won the U.S. Open "felt like he was dragged all around the world, doing all sorts of things that he thought he should be doing as a major champion." Rose: "He said actually that his major run ended very quickly because of how he handled that period because that's what he thought he needed to be capitalizing upon. ... That's a good lesson for me to really stay true to my game and always make every decision I make about what's best for my game." He noted he has to "relish" some of the potential endorsement opportunities, but "at the same time weigh them out very carefully" ("Squawk on the Street," CNBC, 6/18). Rose also appeared on NBC's "Today" and MSNBC's "Morning Joe" Tuesday.

Nike Golf added Chinese golfers Hao-Tong Li and Xin-Jun Zhang to its talented Tour roster. In a multi-year agreement, Li and Zhang will represent the Swoosh in clubs, ball, footwear, glove, apparel, headwear and accessories (Nike). ... German Football League (DFL) Digital Sports extended its cooperation with IT solutions company BTD Newmedia (DFL). ... Bundesliga club Bayer 04 Leverkusen "has signed a sponsorship deal with Austrian regional tourism company SalzburgerLand Tourismus GmbH." The two parties "signed a three-year deal" (SALZBURG24, 6/17). ... Bundesliga side Borussia Dortmund has extended its sponsorship deal with Brinkhoff’s brewery for another five years. Brinkhoff’s previous deal with Dortmund, which entailed its No.1 brand serving as a "champion partner" of the club, was due to expire in '15. However, the agreement has now been extended through to June 30, 2020 (Borussia Dortmund). ... Neymar has teamed up with clothing brand Rock & Soda to launch a line of pants and jean shorts called NJR for the young public. The 60 models of the summer collection will go on sale in August at major department stores in Brazil (SPORT, 6/17). ... Ultimate Sports Nutrition reached a sponsorship agreement with Bolton Arena, which as of the end of June will be known as the USN Bolton Arena (USN). ... CONCACAF and its commercial agency, Traffic Sports, "have signed up State Farm as the official auto and home insurance sponsor for the 2013 Gold Cup," which kicks off in the U.S. next month. State Farm "returns to back the Gold Cup after supporting the past three editions of the biannual national team competition" (SOCCEREX, 6/18).