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Volume 6 No. 214

Marketing and Sponsorship

Ligue 1 side Paris St. Germain "is putting pressure on its kit provider Nike to increase the value of the deal," according to Arnaud Hermant of LE PARISIEN. The club is seeking between €20M-€30M ($27M-$40M) annually from Nike. Nike, which currently pays about €6.5M ($9M) a year, "is ready to significantly upgrade its deal, but not in those proportions." Nike is already paying more than €40M ($53M) per year for the French national football team and is reluctant to pay close to €30M a year for PSG. At the same time, it is hard to imagine that Nike "wants to lose a historical partner such as PSG that finally is closing in on Europe's elite." Nike has been a partner of the club since '89 and its current deal is set to expire at the end of the '13-14 season. Given the new standing of the club and its growing int'l media coverage, PSG management believes that the club's sponsorship income "must be equal to those of major European clubs." In addition, PSG "has learned that Puma stole EPL side Arsenal from Nike for €30M per season" starting in '14-15. Club bosses believe that "the PSG brand is as good as that of Arsenal" (LE PARISIEN, 8/2).

A "major row is brewing" between the Australian Football League, its players and clubs over "third party car arrangements which have antagonised the league's major sponsor, Toyota," according to Caroline Wilson of THE AGE. AFL salary cap manager Ken Wood, along with Commercial Operations Chief Darren Birch, "have warned clubs they could be forced to include all independent car sponsorships not involving Toyota in total player payments." The threat has "angered some clubs and caused a dispute between the AFL and the players' union less than two years into the most recent collective bargaining agreement." The move "would affect 60 players who have third party car agreements not involving Toyota." Some "disenchanted clubs" also contend that Adelaide and West Coast will receive "an unfair advantage because they are also sponsored by Toyota." The dispute has "been fuelled by several players promoting their cars or specific dealerships on social media." The AFL has been "close to telling clubs no further third party car deals would be allowed," with officials pointing out such deals were "technically not allowed given Toyota's status as the game's major sponsor" to the tune of close to A$12M ($10M) annually (THE AGE, 8/6).

Brazilian telecom operator TIM has signed a sponsorship agreement with Brasileiro side Atletico Mineiro through '14. The deal will give TIM logo presence on the players' shirts. Additionally, the company's logo will be used in Atletico Mineiro football club ads and on advertising boards at the club's training center (TIM). ... Portuguese telecom Cabovisão has been named the new title sponsor of Portugal's second division. Cabovisão will have branding at all 462 games during the season, including post-match interview boards. Cabovisão will promote its new Revolution service, which combines the company's TV, phone and Internet offerings (Cabovisão). ... Second Bundesliga club 1860 Munich "announced the extension of its sponsorship deal with brewery Hacker-Pschorr during Sunday's fan fest." The company "will continue to be one of the club's premium partners and receive exclusive marketing opportunities." Hacker-Pschorr "will also continue to be the shirt sponsor of 1860's reserve team." The brewery has been a sponsor of the team for 10 years (ABENDZEITUNG MÜNCHEN, 8/4). The Munich-based club has also extended its partnership with Coca-Cola until '16. The soft drink producer will continue to serve its products during 1860 home games at the Allianz Arena (1860 Munich). ... Second Basketball Bundesliga side Gießen 46ers has renewed its kit deal with basketball and lifestyle brand K1X until the end of the '14-15 season. The company has been the team's official kit supplier since '11 (Gießen 46ers). ... The Deutsche Sporthilfe (German Athletes Assistance) has agreed to a new two-year sponsorship deal with contact lens producer and distributer MPG&E. The company will offer its contact lenses free-of-charge to all athletes supported by the organization (Deutsche Sporthilfe). ... Ligue 1 side Paris St. Germain has agreed to a three-year sponsorship deal with money transfer specialist MoneyGram (SOCCEREX, 8/5). ... Danish footwear brand ECCO has been named the official footwear supplier of the 2013 European Solheim Cup team and will create special shoes exclusively for the team. The company will also provide shoes to the defending champions' caddies and team staff (ECCO).