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Volume 6 No. 214

Marketing and Sponsorship

Second Bundesliga club 1860 Munich "has reportedly signed a new title sponsorship deal with car manufacturer VW," according to Filippo Cataldo of the ABENDZEITUNG. 1860 Managing Dir Robert Schäfer "has reached a decisive breakthrough during his visit to Wolfsburg," where VW's headquarters are located. The carmaker will become the team's new title sponsor and will pay €1.6M ($2.1M) annually until '16. Schäfer: "I can't confirm reports of a new title sponsor. We are certainly in very good talks, but a deal is only perfect once the contracts have been signed. Those don't even exist yet." The club "is expected to present its new title sponsor to the public over the weekend" (ABENDZEITUNG, 7/10).

Real Madrid and German int'l midfielder Mesut Özil "has abandoned Nike, which until now had been his personal sponsor," to sign a new contract with adidas, according to AS. The contract "is of a lengthy duration," according to adidas. Özil, 24, said, "During my conversations with adidas, I have always felt at home. I use adidas clothing with Germany and with Madrid, and now the circle has been closed." Adidas highlighted Özil's popularity with fans -- he currently has 10.4 million followers on Facebook and 2.4 million Twitter followers (AS, 7/11).

Longtime America's Cup sponsor Louis Vuitton, the "posh French retailer that has been a primary financial backer of the competition," wants $3M of its spend refunded "because so few teams have entered," according to Eric Young of the S.F. BUSINESS TIMES. A source said that the company's "initial sponsorship" was for $10M. Its contract was "based on at least eight teams taking part in the Louis Vuitton Cup, a round-robin playoff to determine which team will ultimately sail against Oracle Team USA in the America’s Cup championship." There currently are "three teams entered into the Louis Vuitton Cup." The source said that Louis Vuitton can get a $1M rebate "for each team less than six that participate." The company has "been a Cup sponsor for 30 years." Louis Vuitton "briefly dropped its sponsorship of the Cup in 2007, saying that commercialism had overtaken the competition." The company then "renewed its sponsorship of the Cup" in '10 after Oracle Racing won the event (BIZJOURNALS, 7/10). In New Zealand, Dana Johannsen noted sponsors have "already had to scale back their hospitality plans after America's Cup officials were forced to revise the racing schedule as part of the list of safety recommendations put forward in the wake of the death of Artemis sailor Andrew Simpson." Louis Vuitton Cup Founder Bruno Trouble said of the brand's sponsorship deal, "There were no provisions for anything less than five because we did not expect that would happen. It is worse than we thought." America's Cup Event Authority CEO Stephen Barclay said that the "bickering and brinkmanship was hurting the sponsors"(NEW ZEALAND HERALD, 7/9).

The opening match of the 2014 FIFA World Cup in Brazil is 11 months away, "but Twitter is already mobilizing to sell lucrative ad packages pegged to it," according to Cotton Delo of AD AGE. Documents show that Twitter will be "conducting a blind auction overseen by PricewaterhouseCoopers to sell promoted trends later this month." It is the "first time Twitter has set up an auction specifically for a tentpole event and an indication of how it will sell scarce inventory connected to events like the Olympics, the Oscars or the Super Bowl in the future." Promoted trends are "the only ad unit that must be bought out for an entire market for a day for a flat fee." The last reported price to "claim a daily promoted trend in the U.S. was $200,000." But the four available World Cup packages are "designed to have global reach, meaning that the winner will own the day's promoted trends in 50 countries." The estimated value of that worldwide buy "by the time next summer comes around is $600,000." The winner of the auction "will pay the value of the second-highest bid plus $1." The combined reserve price of the four packages comprising 16 promoted trends is $8.16M, "which essentially represents the minimum Twitter will accept." The auction for the "gold" package is set to take place on July 25, while the auctions for the "silver" and "bronze" packages are slated for July 30 (AD AGE, 7/10).

Bundesliga club FC Schalke 04 has signed a new sponsorship deal with home improvement store chain Bauhaus. The company will receive camera carpets next to both goals, a ticket allocation and ad space inside the arena. The deal was brokered by sports marketing agency Infront Sports & Media and will run until '14 (FC Schalke 04). ... Second Bundesliga club FC Cologne has extended its sponsorship deal with long-time partner Ford for another year. Ford has been the official vehicle partner of the club for 19 years (FC Cologne). ... Brooks Brothers, the U.S. brand founded in N.Y. in 1818, has partnered with Serie A side Inter Milan to be the club's official formalwear sponsor for the '13-14 season. Brooks Brothers has signed a two-year agreement with Inter to outfit all team players, execs and staff for their off-field appearances. A special event hosted by Brooks Brothers will be held in NYC at the end of July to unveil the formalwear look (Brooks Brothers). ... Berlin printery Laserline will be the official partner of the BMW Berlin Marathon as well as other events organized by SCC Events. The four-year partnership was brokered by Infront Sports & Media (Infront). ... Man City announced a partnership with Thailand's leading car battery brand, GS Battery. The deal will see the Japanese manufacturer of automobile and motorcycle batteries become the club's official car battery partner for Thailand (Man City). ... British second-tier rugby union club Leeds Carnegie will again be sponsored by York-based property company the Skelwith Group for the '13-14 Greene King IPA Championship season (Leeds Carnegie). ... Basketball Australia agreed to a new partnership with Alanic Int'l that will see the Australia-owned company become BA's official compression partner, servicing the Women's National Basketball League and high performance programs. Under the four-year deal, Alanic Int'l will supply its next generation compression range -- the Cloak Series -- to WNBL clubs, the Boomers and Opals, Emerging Boomers and Emerging Opals, the Emus and Gems U19 teams and the U17 boys and girls teams (BA).