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Volume 10 No. 25

Marketing and Sponsorship

ManU has warned Premier League rivals that its £150M ($247M) summer spending spree "is only the beginning," after raking in "huge commercial revenue" from its sponsors, according to Alex Miller of the London DAILY MAIL. Far from "putting away the cheque book," sources close to the club said that "the hunt for further Galacticos will continue, paid for by the expanding commercial revenues generated by the club, described as more than sufficient to fund the current and additional player costs." In the latest full-year accounts released for the club, covering the '12-13 season, ManU’s "commercial operation pulled in" £152.5M ($251M). However that figure "has grown dramatically," with estimates suggesting that figure will be closer to £190M ($313M) when the next full-year results -- which cover '13-14 -- are released later this month. Accounts covering the current season "are expected to show commercial income" closer to £240M ($395M) when they are released next year. The club’s "unprecedented spending spree is being paid for by a number of major deals." According to the club’s official website, "the club currently has 29 sponsors and commercial partners." These include the £47M ($77M)-a-year "shirt sponsorship deal with Chevrolet." ManU's "world-record deal" was agreed and signed in '12 on terms of $559M over seven years, starting this season. Chevrolet has replaced ManU’s previous deal with Aon, which was worth £20M ($33M) a year. Next season "will see the start of another record-breaking deal" when adidas takes over from Nike as the club’s kit provider in an agreement worth a "staggering" £750M ($1.2B) over 10 years -- £75M ($123M) a year (DAILY MAIL, 9/3).

Bundesliga shirt sponsors pay an average of €7.4M ($9.7M) for the most important ad space in the top flight. This number is drastically lower in the 2nd Bundesliga. That is the result of a marketing analysis by SPONSORs ahead of the '14-15 season. Bayern Munich receives the most money for its jersey space, with sponsor Deutsche Telekom paying around €28M ($37M) annually. Also in the top 3 are Borussia Dortmund (€18M/$24M from Evonik) and Schalke (€15M/$20M from Gazprom). At the bottom of the league are SC Freiburg (€2.5M/$3.3M from Ehrmann), FC Augsburg (€2M/$2.6M from Al-Ko Kober) and SC Paderborn (€1.2M/$1.6M from Volkswagen's sponsorship of its factory team VfL Wolfsburg was not included in the analysis. In the 2nd Bundesliga, the difference between the top deals and the bottom deals is not as dramatic as in the top flight. Six clubs share the top 3 sponsorship deals in the second division. Those are Eintracht Braunschweig (€2M/$2.6M from Seat), FC Ingolstadt (€2M from Audi), FC Nuremberg (€1.7M/$2.2M from Wolf Möbel), Greuther Fürth (€1.7M from Ergo Direkt), FC Kaiserslautern (€1.6M/$2.1M from and 1860 Munich (€1.6M from Volkswagen). The bottom three are VfR Aalen (€350,000/$460,000 from Pro Win), SV Darmstadt (€300,000/$394,000 from Software AG) and SV Sandhausen (€250,000/$328,000 from The average across the league is €1.1M ($1.45M). Not part of the analysis was Red Bull's sponsorship of RB Leipzig (SPONSORs).

The Baku 2015 European Games announced that dairy supplier Milla has become an official supporter of the inaugural event. Milla will support the Baku 2015 European Games through advertising in more than 5,000 stores around Azerbaijan and by carrying the Baku 2015 logo on all of its products and staff uniforms. Milla products will also be available at Baku 2015 competition venues via ice cream vans and a TV advertising campaign. Milla becomes the Games' third official supporter after McDonald's and Tickethour (Baku 2015).

Polish Ekstraklasa side Wisla Krakow agreed to a three-year sponsorship deal with businessman Wieslaw Wlodarski's Foodcare, according to Jaroslaw Adamowski of INSIDE WORLD FOOTBALL. Wlodarski also announced that he is "aiming to take over Wisla Krakow from its current owner, Boguslaw Cupial." The "amount of the potential deal was not disclosed." Wlodarski said, "I have been thinking about it a lot. I'm currently working on a certain project which will generate revenues. When I close the deal, I will make an offer to Boguslaw Cupial." He added, "We have become a sponsor of the Football Academy of Wisla Krakow and the logos of our [beverages], Frugo and 4Move, will appear on the shirts of the youth squad of [Wisla]" (INSIDE WORLD FOOTBALL, 9/3).

Italian printing firm Prink "signed a shirt sponsorship deal" with Serie A side Cesena for the '14-15 season. The company, which specializes in printer cartridges, "has taken the secondary front-of-shirt position" (SOCCEREX, 9/3). ... Online binary trading company EZTrader and Bundesliga side Bayer Leverkusen "announced a premium partnership." The deal, brokered by Sportfive, "includes extensive traditional marketing activities, as well as digital rights and a planned joint website" (SOCCEREX, 9/3). ... Worldwide Holdings -- the development arm of the Malaysian state of Selangor -- will maintain its commitment as the title sponsor of the Selangor Masters for the seventh straight year. Worldwide Holding’s support of the Selangor Masters is part of its corporate social responsibility where apart from sports sponsorship, it also supports the underprivileged through various community projects under the Yayasan Raja Muda Selangor (Asian Tour). ... W-League side Sydney FC bolstered its W-League corporate portfolio by adding De Lorenzo as the team’s back of shirt sponsor for the next two seasons. De Lorenzo upgraded from the sleeve sponsor of the team last year, to feature on the lower back of the home and away jerseys to be worn by Sydney FC’s two-time Championship-winning W-League squad until the end of the '15-16 season (Sydney FC). ... Wonga has extended its sponsorship of Newcastle United Women's Football Club for another season (NUWFC).

ARGENTINA-GERMANY FRIENDLY: The Argentine football team typically makes from $1M-$1.3M per friendly. In the case of Wednesday's friendly against Germany, the "friendly forms part of the contract with adidas, which sponsors Argentina." In addition to the typical fee, the Argentine FA will earn money from TV rights and static advertising, "which could mean" $400,000 more. The game's organizers sold 51,000 tickets for the game, at prices ranging from €25 ($33) to €150 ($197) (CLARIN, 9/3).