Hollis Sponsorship Bulletin

Championship football team Doncaster Rovers will be on the hunt for a new shirt sponsor from the 2010/11 season.

Current shirt sponsor Wright Investments is currently in the third and final year of its three year deal with the club, the decision made by both parties not to renew the sponsorship agreement.

Commercial Manager of Doncaster Rovers, Laura Whiting said “We would like to thank Wright Investments for their support of the club during the past three years.  Since they joined the club in 2007 Doncaster Rovers have progressed massively and are now recognised as an established Championship team, renowned for playing great football.”

“Our change in league status and increased national exposure has increased our brand value and this means the club are now looking for a new deal for our main club sponsor.  Having Wright Investments as a shirt sponsor during the past few seasons has created mutual benefits for both parties and the decision to end the shirt sponsorship has also coincided with them having a change in advertising strategy.”

West Bromwich Albion and Nottingham Forest sported the same sponsor this weekend when bookmaker Victor Chandler took up the one-off opportunity to sponsor the Football League Champion side. West Bromwich Albion is in its second season without a shirt sponsor and is attempting to woo partners with single or multiple game deals.

E.ON, FA Cup title sponsor and Football League partner, has signed England goalkeeper David James to front the brand’s new ‘Great Saves’ environmental marketing campaign.

English Premier League champions Manchester United have confounded expectations by unveiling US financial services group Aon as their new shirt sponsor.

After months of speculation that the club would sign an Asian sponsor such as Saudi Telecom or Sahara, instead it has returned to the US to secure a record-breaking deal reckoned to be worth £80 million over four years.

Although not well known in the UK, Chicago-based insurance group Aon is a global company – with 500 offices in more than 120 countries. It will replace another US financial services AIG which has been paying £14m a year.

Manchester United superstar Cristiano Ronaldo is rumoured to be on the verge of signing a £6m-a-year sponsorship deal with sportswear giant Nike. If this is right, the deal will be the biggest endorsement ever in the world of soccer. Ronaldo is the hottest property in football right now. Last month, he became a global ambassador for Castrol in the run up to the 2010 FIFA World Cup in South Africa.

With the 2008/09 football season coming to a close next week, a number of leading FA Premiership clubs are now well into negotiations for new sponsorship contracts. 

Manchester United and Tottenham both need new sponsors before the start of next season. But elsewhere the talks are focused more on the price and scope of contract renewal.

At Chelsea, for example, the priority is getting a better price from incumbent sponsor Samsung (whose deal runs out at the end of the 2009/2010 season). Although the West London club is yet to win the Champions League and has not won the Premiership since 2005/06, it is reported to be seeking parity with Manchester United on sponsor prices.

Currently, Samsung pays £10 million a year for Chelsea compared to the £18 million that AIG forked out for United. The club’s commercial management is said to have pitched for a much higher sum for the period commencing 2010/2011. However Samsung is yet to show any desire to increase its investment. If it fails to do so by the end of June, then Chelsea are free to go to the open market.

Meanwhile, the big talking point at Liverpool is whether shirt sponsor Carlsberg will want naming rights to the new stadium which the club is hoping to build when the current downturn is over. Although Carlsberg was close to ending its sponsorship of Liverpool a couple of years ago, there is talk of naming the new stadium Carlsberg Anfield.

Away from the rumour-mill, this week actually saw someone sign a deal. In a first for the FAPL, online betting firm 188Bet will sponsor both Bolton Wanderers and Wigan Athletic from the start of next season. “We were looking for a unique opportunity to mark 188Bet’s first major foray in the UK market and feel the collaborative engagement with Bolton and Wigan Athletic will help us grow our brand,” explained 188Bet CEO Andy Scott.

Tough times demand innovative measures. So it will be interesting to see how Westcountry football club Bristol Rovers fare in their search for a new shirt sponsor.

The club needs a new sponsor after previous partner Cowlin Construction decided to end its 11-year support for the club. But having failed to secure a commitment from anyone, it has decided to hold a prize draw instead.

Under the scheme, 100 tickets will be sold for £1000 each to local businesses. First prize is to get the corporate name on the home shirt while second prize is the away shirt. A third prize will see one company get £2500 worth of perimeter ads. As an incentive for entering the draw, companies will also get a hospitality package worth £700 and the chance to have their photo taken with the first-team.

Speaking to the local press, Rovers commercial director Barry Bradshaw said: “Obviously money is tight at the moment, so we decided to be creative and try something a bit different. We have always known that there are lots of local businesses who would love to come on board but have been put off by the high prices of shirt sponsorship. Even if they don’t win one of the three main prizes, they still get the chance to experience a great day out at the stadium.”

The plan has much to recommend it – not least the PR. But there are a few obvious drawbacks. The first is that the club may not sell enough tickets – in which case it will have to decide whether to accept less than the £100,000 it wants. Secondly, it may end up with a sponsor that has no money to spend on activation – limiting the impact of the partnership. Thirdly, it may be saddled with a brand or board that is incompatible with the club’s image or values.

Still, best of luck to them! The closing date for entries is 1800 on May 27. Information from Ian Holtby on 0117 952 4049 or by email via ianholtby@bristolrovers.co.uk

When times are good, sponsors come flocking to big sports properties such as Premier League soccer clubs. But in recession, it’s up to clubs to go searching for partners. As such, a new mindset is required – one which demands that rights holders have a clear grasp of client objectives. So it is interesting to note that delegates from Tottenham Hotspur are pulling out all the stops to try and secure a major partner from the oil rich Middle Eastern Gulf States.

Tottenham needs a big commitment – because it wants to build a state-of-the-art 58,000 stadium and retail complex to replace its existing home White Hart Lane. Like North London neighbours Arsenal, Tottenham would ideally like a long-term naming rights and shirt deal – because this money could offset the upfront cost of the stadium. But there aren’t many companies that can afford such a deal.

This is why it has targeted the Gulf – where Qatar, Bahrain, Dubai and Abu Dhabi business interests still seem willing to invest in the right sports property. Led by executive director Paul Barber, the club has been talking to decision-makers across the region, armed with Arabic-language business cards and brochures to present its business case.

Barber is keen to raise funds – but also recognises the importance of not appearing want to come across as pushy or naive. Speaking to Emirates Business on a recent fact-finding tour, he said: “We are very conscious of not walking into a country and expecting people to roll over and write big cheques because we are a Premier League club. We are realistic and know that’s not how business is done here.”

So why should anyone be interested? Well according to Barber, the new-build at Spurs will be the only stadium naming rights deal to come up in London during the next decade – which makes it a unique opportunity. For a Middle Eastern brand seeking to build a global presence, he argues that there is no more cost-effective way of reaching an international audience. “They could either spend £300-£400m on TV advertising around the world,” he told Emirates Business, “or become involved in the Premier League and get their share of 90,000 hours of TV a year.”

As an iconic soccer brand, Tottenham is well-placed to clinch a deal – but there are a couple of reasons why it is unlikely to match the money made by Arsenal. Firstly, the downturn will have an inevitable impact on prices. With a new sponsor needed before the start of next season, the club doesn’t have the luxury of waiting for economic recovery. Secondly, Tottenham has so far failed to qualify for the Champion’s League. In this respect, it is a decade behind Arsenal in terms of global brand-building. This will surely play a part in the value a new sponsor places on the club.

It’s spring again – the time when football clubs and sponsors start their annual mating ritual. Wolverhampton Wanderers, newly promoted to the Premiership, has already bagged itself a deal with online betting firm Sportingbet while Plymouth Argyle has renewed its vows with Ginsters (taking the sponsorship through to the end of 2010/2011).

Also in negotiation is Portsmouth FC’s relationship with Japanese printing giant OKI – which is coming to the end of its £5 million, four-year term. In a statement, OKI said it was “in negotiation regarding shirt sponsorship. Further information will be made available at an appropriate date.”

Renewal would be a welcome boost to cash-strapped Pompey. But key to OKI’s decision will be whether the South Coast club stays in the Premiership. Currently, it is just six points clear of the drop zone and has a tough run in – with games against Manchester United, Arsenal and three of its relegation rivals coming up. Presumably, OKI’s “appropriate date” is the day that Pompey becomes safe.

The importance of Premier League status for OKI can’t be over-stated – particularly against the backdrop of the global recession which has hit Japanese exporters hard. It is the Premiership which gives OKI TV exposure across Asia, Europe and the Americas. Lose that, and the appeal of the Portsmouth shirt sponsorship is dramatically curtailed.

The importance of Premiership status was underlined by the Wolves deal – signed when it become clear that the Midlands club was heading for the top-flight.  The seven-figure deal is the biggest in the club’s history. It is for two-years – which presumably is a precaution against Wolves  going back down to the Championship. Like OKI, Sportingbet is an international company and will want to ensure it gets the biggest possible audience for its money. 

It’s spring again – the time when football clubs and sponsors start their annual mating ritual. Wolverhampton Wanderers, newly promoted to the Premiership, has already bagged itself a deal with online betting firm Sportingbet while Plymouth Argyle has renewed its vows with Ginsters (taking the sponsorship through to the end of 2010/2011). 

Also in negotiation is Portsmouth FC’s relationship with Japanese printing giant OKI – which is coming to the end of its £5 million, four-year term. In a statement, OKI said it was “in negotiation regarding shirt sponsorship. Further information will be made available at an appropriate date.”

Renewal would be a welcome boost to cash-strapped Pompey. But key to OKI’s decision will be whether the South Coast club stays in the Premiership. Currently, it is just six points clear of the drop zone and has a tough run in – with games against Manchester United, Arsenal and three of its relegation rivals coming up. Presumably, OKI’s “appropriate date” is the day that Pompey becomes safe.  The importance of Premier League status for OKI can’t be over-stated – particularly against the backdrop of the global recession which has hit Japanese exporters hard. It is the Premiership which gives OKI TV exposure across Asia, Europe and the Americas. Lose that, and the appeal of the Portsmouth shirt sponsorship is dramatically curtailed.

The importance of Premiership status was underlined by the Wolves deal – signed when it become clear that the Midlands club was heading for the top-flight.  The seven-figure deal is the biggest in the club’s history. It is for two-years – which presumably is a precaution against Wolves  going back down to the Championship. Like OKI, Sportingbet is an international company and will want to ensure it gets the biggest possible audience for its money.