Group Created with Sketch.
Volume 6 No. 212

Marketing and Sponsorship

Chelsea and adidas have agreed to a 10-year contract extension worth $450M, according to the PA. Chelsea announced its "biggest deal to date" on Friday after CEO Ron Gourlay negotiated the agreement directly with adidas CEO Herbert Hainer. An industry insider with knowledge of the deal confirmed that it was worth $45M a year, or around £290M ($447.4M) in total until '23. It is significantly more than the reported £18M ($27.8M) a season "received from Samsung for shirt sponsorship," which means the Blues "are less reliant" on billionaire Owner Roman Abramovich and assists in the adherence to UEFA's Financial Fair Play regulations (PA, 6/21). In London, Neil Ashton reported Chelsea’s negotiating power "has been strengthened by their increasing supporter base around the world after their Champions League final victory over Bayern Munich in 2012." The club has huge support in north Africa and the U.S, something that "proved to be a huge bargaining chip for the club" in its negotiations. Gourlay and Hainer "have been discussing the deal for months" (DAILY MAIL, 6/21). Chelsea said in a statement, "This is the biggest deal to date Chelsea FC has signed with a partner" (London DAILY MIRROR, 6/21).

Prince Global Sports opened its first branded store in Wimbledon on Sunday in the heart of tennis' most famous postcode -- SW19 -- near the world famous All England Lawn Tennis Club. During the two weeks of the Wimbledon Championships, Prince will be visible throughout the entire Wimbledon Village as the official sponsor of all retail store windows, and is also the official license partner of Wimbledon for racquets, racquets accessories and bags. On Saturday, Prince hosted a "Fortnight of Fun" at the SW19 store which began with a Private VIP and Media Event with tennis legend Nick Bollettieri in attendance along with other top Prince Tour Players (Prince Global Sports).

PepsiCo India President Manu Anand has stepped down as it is "difficult to separate the news from the company's unfortunate decision to shell out millions of dollars to associate itself with the scandal-hit Indian Premier League," according to Avantika Chilkoti of the FINANCIAL TIMES. The news comes as people "question one of the company’s most daring decisions." PepsiCo paid Rs3.97B ($67M) "to be title sponsor of the popular Indian cricketing tournament for five seasons." It "always looked like a brave bid." The company "spent almost double what DLF, the property developer, dished out to have its name prefixed to the popular Indian cricketing tournament" between '08-12. And it is widely acknowledged that "the popularity of the IPL has fluctuated dramatically over time" -- initially high as fans were enthralled by the new, high speed format of the sport, and then dropping as scandalous afterparties and match fixing allegations left them disillusioned. Even after "shelling out all that cash," PepsiCo -- which includes Pepsi, 7UP, Aquafina water and Tropicana juices in its portfolio, as well as crisps and other snacks -- does not "seem to have got the benefit it must have hoped for from its expensive sponsorship." It "was bad luck" for PepsiCo. This year’s tournament "has been shrouded in a match-fixing scandal that has shaken even the top of the pyramid"-- int'l players and the president of the Board of Control for Cricket in India, which owns the IPL. That reduced enthusiasm for the tournament "has led commentators to question whether Pepsi will continue its title sponsorship" (FT, 6/21).

Bundesliga club Hannover 96 "has to look for a new shirt sponsor after media outlets report tourism company TUI will end its deal with the club." The reason for TUI's decision "is reportedly a cost-cutting measure" (SÜDDEUTSCHE ZEITUNG, 6/23). ... Newly promoted Bundesliga side Eintracht Braunschweig "has revealed Spanish car brand Seat as its new shirt sponsor" (BRAUNSCHWEIGER ZEITUNG, 6/21). ... Basketball Bundesliga (BBL) club ratiopharm Ulm "has signed a new sponsorship deal with furniture store Möbelhaus Mahler." The company "will become a premium sponsor of the club, which means its logo will not appear on the player's jersey." The two parties "signed a three-year deal with the furniture store investing a low 6-digit amount" (SÜDWEST PRESSE, 6/19). ... BBL side Telekom Baskets Bonn has agreed to a new partnership with digital solutions company apareo Germany. The club will launch a new, redesigned website at the end of September, which will replace its current Internet presence. Apareo will be in charge of the redesign and all its technical applications. Marketing agency UFA Sports will market the new website (apareo). ... Audio company Bose was unveiled as an official partner of the Virgin Active London Triathlon on Friday (TRIRADAR, 6/19).