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Volume 10 No. 22

Marketing and Sponsorship

Andy Murray could earn up to £15M ($22M) a year from personal endorsements following his Wimbledon men's title victory, but is "unlikely to mirror David Beckham by signing multiple sponsorship deals," according to John Reynolds of the London GUARDIAN. Murray's victory over Novak Djokovic is "likely to transform the British player's earnings potential from sponsors." Murray is represented by Simon Fuller's XIX, which has "also been responsible for a number of Beckham's key sponsorship deals." But experts believe that Murray, who scooped £1.6M ($2.4M) for winning Wimbledon, is "unlikely to be as active as Beckham in terms of branding and sponsorship." They "do not expect him to capitalise on his maximum sponsorship potential," and instead to be "cautious about choosing his commercial partners." BrandRapport Managing Dir Andy Kenny said, "He doesn't strike me as the kind of person who will now look to have lots of commercial partners or commit himself to lots of PR activity -- my instinct is that he will have a few sponsorships, but will do more with them." Havas Sport & Entertainment Managing Dir Gordon Lott said, "In Andy's case, he was already at the top of his game, and he should be a serious contender for many more majors to come which creates many more opportunities, such as clothing ranges and merchandise" (GUARDIAN, 7/8). BLOOMBERG's Danielle Rossingh reported branding consultant Jonathan Gabay said, "A British man winning Wimbledon hasn’t happened for such a long time. The sky really is the limit for him" (BLOOMBERG, 7/8). In London, Elliott Goat reported University of West Scotland sport business & management lecturer Scott Barcley said Murray “will easily enter sport's rich list” with at least £17M ($25M) earned this year. Barcley said, "Personally, I would be convinced that his contract with adidas -- presently £15M over three years -- will have a performance-related increase as Brand Murray becomes an even more recognized in markets such as the Far East.” Global Head of Sport Marcus Jon points to non-sporting areas such as telecom and banking "as new areas for Murray to exploit." Jon said that Fuller would be looking at companies such as Coca-Cola and Visa "as possible partners." Jon: "This is his time to capitalise on the potential of very lucrative sponsorship deals" (INDEPENDENT, 7/8).

GLOBAL PERSPECTIVE: MARKETING MAGAZINE’s Simon Nias wrote Murray's Wimbledon win is “hugely significant from a U.K. perspective.” However, M&C Saatchi Sport & Entertainment CEO Steve Martin “stressed that when it comes to endorsements, it is Murray's worldwide profile that matters.” Martin: “I don't think that the fact he has won Wimbledon will mean brands are suddenly beating a path to his door. You have to crack the American and Asian markets before you start getting those global deals that put you on a new level.” He added, "Yesterday's win will enhance his appeal massively and I certainly believe he will win more titles over the next four to five years, but he's still some way off [Roger] Federer and [Rafael] Nadal who transcend all boundaries and are really streets ahead in terms of their global appeal” (MARKETING MAGAZINE, 7/8).

SIR ANDY? The BBC reported PM David Cameron said that Murray "deserves a knighthood." Cameron: "I can't think of anyone who deserves one more." Cameron said Murray's win had "lifted the spirits of the whole country." Cameron: "We were wondering on Sunday morning, 'Do we dare to dream that this is possible?' and he proved absolutely that it was" (BBC, 7/8). In London, Naughton & Gardner reported Murray "played down the possibility of knighthood." Murray: "I think it’s a nice thing to have or be offered. I think just because everyone’s waited for such a long time for this, that’s probably why it’ll be suggested, but I don’t know if it merits that. I don’t know" (LONDON TIMES, 7/8).

The controversy surrounding Mario Götze wearing a Nike shirt during his introduction at adidas-supplied Bayern Munich continues as Bayern Exec Board Chair Karl-Heinz Rummenigge "accuses Nike of an intentional ambush maneuver," according to Althoff & Volpe of BILD. Rummenigge said, "I'm disappointed in Nike. It isn't fair play what it has purposely played." The club had to apologize to shareholder adidas and fined Götze €20,000 ($25,700). In addition, Jan Kirchhoff, who was also wearing a Nike shirt at his introduction, and Mario Gomez, who was wearing a Nike hat at the club's training camp, were each fined €10,000 ($12,900). Rummenigge: "They contribute a nice amount to help flood victims." He added, "We will not put up with something like that again" (BILD, 7/7).

Dwyane Wade kicked off a 10-day trip to China to promote the country's top sportswear outfitter, Li Ning Co., according to Chen Jia of CHINA DAILY. After posting an annual loss last year, "Li Ning is looking to give its brand a boost by recruiting Wade," who has 3.4 million fans on Weibo -- the Chinese Twitter. Li Ning Founder Li Ning said, "Li Ning's products will be better known to consumers thanks to Wade." Brandlogic's Denis Riney said that "Unlike some other high-profile NBA athletes, Dwyane Wade has largely remained free from scandal throughout his playing career." Riney: "He is a positive role model that will be attractive to Chinese consumers who have a long love affair with the game of basketball." Branding consultant Ed Roach said that "Li Ning is turning to an American sports icon so they can start being seen as a world brand and not just a regional one." Roach said, "They've done their homework in China to determine if Wade would be a great fit. It's a good strategy, so long as Wade's values match Li Ning's" (CHINA DAILY, 7/4).

ManU on Monday announced a five-year partnership with Aeroflot. The Moscow-based int'l airline becomes ManU's official carrier. The partnership marks ManU's first commercial venture in Russia -- where it has close to 18 million followers (ManU). REUTERS' Keith Weir reported Aeroflot is a sponsor of the Sochi 2014 Olympics and replaces Turkish Airlines as ManU's partner. Financial terms "were not disclosed." Although "United and Aeroflot may sound like an unlikely combination, there is already heavy Russian investment" in European football through owners including Roman Abramovich at Chelsea and sponsors such as Gazprom (REUTERS, 7/8). In London, Roger Blitz reported the terms were not disclosed, but Aeroflot CEO Vitaly Saveliev "admitted it was 'expensive.'" Saveliev added, "The value of the contract is quite reasonable." The agreement "is the latest in a series of sponsorship deals driven by the club’s London-based commercial team as it looks to exploit its reputation." Aeroflot becomes one of the club’s dozen global partners, but ManU also "cuts deals with companies to give them exclusivity within their geographic regions." The deal is a departure for Aeroflot, "which traditionally sticks to Russian sports clubs and events for its sponsorship activity, such as football club CSKA Moscow and the Sochi Winter Olympics" (FINANCIAL TIMES, 7/8).

EPL Tottenham on Monday announced that U.S.-based technology company HP will be the club's principal partner for '13-14. HP has chosen to extend the sponsorship agreement between the club and Autonomy PLC, which has been a club sponsor since '10 and was acquired by HP in '11, for a further season (Tottenham).

NEW KIT: In London, Joe Mewis reported Tottenham has unveiled its new kit for the '13-14 campaign. Continuing its link with Under Armour, the club has "unsurprisingly opted for a white home shirt, although it's dominated by a huge round HP sponsor logo on the front." The club also released pictures of its away shirt, "which is turquoise blue and not altogether easy on the eye." Gareth Bale is featured heavily on the promotional materials, hinting he "will be staying at White Hart Lane" (DAILY MIRROR, 7/8).

Serie A side AC Milan has agreed to a three-year sponsorship deal with Banca Popolare di Milano. The banking group will join AC Milan's "top partner" sponsorship tier -- the club’s leading commercial category below that filled by shirt sponsor Emirates and kit partner adidas (SOCCEREX, 7/8). ... Second Bundesliga club FC Ingolstadt has acquired a new partner with IT company Donat Group. The company, which has been a partner of the club since '04, will continue its sponsorship and increase its investment until '14 (FC Ingolstadt). ... Second Bundesliga club Fortuna Dusseldorf opened a new fan shop after months of planning and construction. The new store offers on 135 square meters almost every item of the club's merchandise line (Fortuna Dusseldorf).