At a time when renewing corporate sponsors is no guarantee, Major League Soccer has completed a three-year extension with Panasonic to remain the league’s official consumer electronics partner.
The extension, like its predecessor, is valued at just shy of eight figures over three years. With it, Panasonic ensures it will continue to receive rights to MLS league and team marks, in-stadium signage, player appearances and on-site promotion rights at MLS games. It also will remain a presenting partner of MLS Futbolito, a four-on-four grassroots soccer tournament.
“We looked very closely at our sponsorship list as the way most companies are looking at marketing activities and we felt the MLS sponsorship has worked well for us,” said Christine Amirian, vice president of marketing. “We saw strong response from consumers and retail outlets.”
Panasonic’s extension, like its predecessor,
is valued near eight figures over three years.
Kathy Carter, executive vice president at Soccer United Marketing, said, “We’ve worked really hard with Panasonic over the last number of years, and we’ve been able to drive some significant business for them. They essentially doubled down with us.”
When Panasonic signed a similar deal in 2005, it added the rights to U.S. Soccer, allowing it to activate around the U.S. men’s national team for the 2006 World Cup. But it decided not to do that with this renewal.
“It really came back to focusing our efforts,” Amirian said. “U.S. Soccer was a strong property, but these are interesting times and there are choices to be made.”
Panasonic last week announced it planned to shed 15,000 jobs and close 27 factories before March 2010. The announcement came in response to news that the company will report losses of $4.2 billion for the fiscal year ending in March. Shares were trading at $12.35 at press time, nearly a 50 percent decline from its 52-week high of $24.03 on May 1, 2008.
Amirian said one of Panasonic’s most effective MLS promotions took place last year when it partnered with Best Buy to promote its Viera flat-panel televisions in 400 retail locations in Hispanic markets. It had point-of-sale promotions of MLS players such as the New York Red Bulls’ Juan Pablo Angel and the Chicago Fire’s Cuauhtemoc Blanco.
“We saw an increase in sales and awareness following this promotion,” Amirian said.
Panasonic, which first became an MLS partner in 2003, also has seen its MLS relationship open up additional business opportunities. It recently signed a deal with the MLS’s expansion team in Philadelphia that will see it outfit the franchise’s new stadium with LED boards and TVs. It also struck a deal with MLS owner-operator AEG to install more than 1,000 TV monitors throughout L.A. Live and an 8,000-square-foot screen.
The Panasonic renewal is the first of three major sponsorships MLS is working to renew. It also is working to close renewals with Volkswagen and Pepsi. Carter said that she anticipates news before the start of the MLS season on March 19.
