Hollis Sponsorship Bulletin

With European economies under pressure, Asian companies are now regarded by many leading rights holders as their best opportunity of maximising sponsorship revenues.

A good case in point is Manchester United, which will end its association with US financial service group AIG at the end of the year. Already, there has been speculation that Indian conglomerate Sahara will step in. But now there is talk of Air Asia becoming the club’s new shirt sponsor.

AirAsia chief executive Tony Fernandes says preliminary discussions have already taken place – though this does not mean a deal has been done. From United’s point of view, Air asia would be a good shirt sponsor for two reasons. Firstly, because the two are already commercial partners – which means there is an understanding between the two. secondly, because Air Asia would help United raise its profile further in the important Asia-Pacific region.

In a separate development, struggling bank RBS says it will end its sponsorship of the Williams F1 team at the end of the 2010 season. The bank, which is reported to be cutting its sponsorship investment in half, is also said to be reviewing its deals with individuals such as tennis star Andy Murray. The one RBS sponsorship which is safe is the Six Nations – which RBS chose to renew earlier this year.

There was some welcome relief for the sponsorship sector this week following the news that banking group RBS is to renew its sponsorship of rugby union’s Six Nations. 

Despite the fact that RBS is heading for a £28 billion annual loss, the bank has decided to pay around £20 million for a deal which will run from 2010 to 2013. By the end of that term, it will have partnered the event for a decade. Commenting on the decision to renew, a bank spokesperson told the BBC that the “sponsorship has been selected to meet very specific objectives within the competing nations.” 

RBS (which employs Synergy as its sponsorship consultancy) had been expected to follow other financial services groups which have dropped out of sponsorships as a result of the poor economic climate. Credit Suisse, for example, is ending its relationship with F1 team BMW Sauber while ING is to re-evaluate its own Renault F1 deal. 

The biggest story, however, is the decision by US insurance group AIG to quit its Manchester United sponsorship at the end of this season. The FA Premier League champions are now looking for a replacement from 2010/2011. Names touted include Indian company Sahara and Saudi Telecom. With its emphasis on oil-rich or growth economies, United believes it will surpass the £14m a year paid by AIG.