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Volume 6 No. 197

Marketing and Sponsorship

English cricket is "turning onfield success into record commercial revenue as the national team seeks a run of victories not seen since the Victorian era," according to Ben Priechenfried of BLOOMBERG. Over the next four years, the England and Wales Cricket Board will earn about $600M from broadcast and sponsorship deals, a figure the ECB says "will rise if the team can add to its three successive Ashes victories over Australia." The latest encounter began Wednesday in Brisbane. ECB Commercial Dir John Perera said, "A fourth on the bounce would be good news for cricket because success breeds interest, not just from customers but also from potential commercial partners." The ECB’s 23-strong list of sponsors, including adidas and Investec, has "enabled non-broadcast commercial revenue to grow" 50% over the past five years. The increase in commercial activity "coincides with an onfield turnaround that has seen England victorious in four of the last five series against Australia." It lost the previous eight. ECB CEO David Collier said, "We’re now reaping the benefits of the vision 16 years ago, when the ECB was formed."

HEAVYWEIGHT SPONSOR LINEUP: The ECB’s sponsorship lineup, featuring companies such as adidas, Nestle, Investec, Jaguar Land Rover and Veuve Clicquot Ponsardin, is now "so broad as to resemble that of a major soccer club." BrandRapport Dir Nigel Currie: "It used to be just the main sponsor and the clothing sponsor and a couple of others. There’s a whole range of sponsors and brands associated with the England team and the whole ECB setup. From bottled water to cars to formal clothing to shirts and all sorts of things." London-based sponsorship agency Synergy CEO Tim Crow said that he is "impressed by the ECB’s recent commercial achievements, especially its ability to win such a long-term commitment from Investec." Crow: "The procurement departments of a lot of companies wouldn’t allow them to make a 10-year investment." Investec CMO Van Niekerk said the asset manager carried out a “thorough evaluation” of the entire England setup before putting pen to paper. Van Niekerk said, "It’s a risky investment. What if viewership suddenly dropped or if the team started playing really poorly. We have to consider all those aspects." Broadcast revenue "is the ECB’s biggest income source." At $125M a year, TV deals contribute more than 80% of income. The bulk comes from Sky Sports. In '12 Sky "won TV rights to all home international and domestic matches." The deal "also covers women’s cricket, an increasingly successful part of the game following this year’s Ashes win for the England women’s team." In addition, the ECB also "has a long-standing radio deal" with the BBC, a highlights agreement with terrestrial U.K. broadcaster Channel 5 Broadcasting, and last year signed a seven-year deal with ESPN STAR Sports in Asia (BLOOMBERG, 11/20).

TradePoint, the "trade" brand of the U.K.'s largest home improvement retailer B&Q, has become the first trade supplier of the Football League. The new agreement will see all 72 Football League clubs join TradePoint's membership scheme, which gives businesses discounted prices on TradePoint's products. TradePoint will also become the title partner of the Football League Radio Show, the weekly round-up of news, views and comments from across all three divisions of the Football League hosted by Mark Clemmit. The new agreement will also see TradePoint sponsor The Football League's Academy series of best practice seminars (Football League).

Spain's Sierra Nevada mountain range has allocated €3M ($4M) to improve its facilities for the '13-14 winter season, which is scheduled to begin Nov. 30, according to Juan Gutiérrez of AS. The primary focus has been "strengthening family offers and maintaining the policy of freezing prices due to the effects of Spain's economic crisis." The "biggest addition" is the creation of the "Pista del Mar" ("Slope of the Sea"). Cetursa Ski Resort CEO María José López said, "We have called it the 'Slope of the Sea' because it is the only ski resort in the world with a view of the sea." Other advantages for families include a "children's restaurant and an increase -- from 12 to 14 years old -- in the age range for youth discounts under the family formula." Ski season "is scheduled to run from Nov. 30 through May 4, though this will depend on the weather." Andalucia Sports General Secretary Nacho Rodríguez said, "The goal is to exceed the 900,000 visitors from last year and reach 1 million" (AS, 11/19).

Bundesliga club Werder Bremen "has renewed its deal with kit supplier Nike until '18," according to the KREISZEITUNG. Last week, it "was made public that Bremen and Nike will continue their partnership, and now all corresponding contracts have been signed" (KREISZEITUNG, 11/20). BILD's Sonnenberg & Leihkamm reported Werder Bremen will get €3M ($4.05M) a year, or a total of at least €12M ($16.2M) for the four years. The amount "could increase even more through shirt-sale revenue." The club "gets an increased share of the revenue through license fees." In addition, on-field performance "could increase the contract value." Nike "pays extra if the team wins a title or participates in int'l competitions." However, the new contract "means a loss" in comparison to the club's current deal with Nike. Werder's current kit deal runs for five years and brings in €5M ($6.8M) per season. The reason for the decrease in value is that Werder is not competing at a Champions League level anymore. Besides Nike, "five other brands including Warrior were interested in teaming up with Werder" (BILD, 11/11).

IMG's Swiss subsidiary IMG Schweiz, the official marketer of hockey's 87th Spengler Cup, has sold the last available tournament sponsorship package to Russian oil company Rosneft. The majority state-owned company has picked up a second-tier sponsorship package for hockey's oldest invitational tournament. It became the first non-Swiss entity to back the event (IMG Schweiz). ... Paris St. Germain "has signed a partnership" with Microsoft that will run until the end of the '13-14 season. Microsoft "will use the tie-up to promote its Xbox One games console," which launches on Nov. 22, and Surface tablet. The two products "will become the respective official game platform and tablet of the Ligue 1 champion" (SOCCEREX, 11/20).