FOOTBALL SPONSORSHIP 1 COMMERCE An Analysis of Sponsorship and Commercial Opportunities in Football Louella Miles Simon Rines A management report published and distributed by International Marketing Reports Ltd 7 Greville Road London NW6 5HY Tel: +44 (0) 20 7372 6561 Fax: +44 (0) 20 7372 6538 www.imrpublications.com email: info@im-reports.com Copyright 2004 International Marketing Reports Ltd All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, photocopying or otherwise, without the prior permission of the publisher and copyright owner. While every effort has been made to ensure the accuracy of the information, advice and comment in this publication, the publisher cannot accept responsibility for any errors. The views expressed in this report are not necessarily those of the publisher.
Table of contents EXECUTIVE SUMMARY 3 SECTION 1: MARKET ANALYSIS CHAPTER 1: WHY DO SPONSORS GET INVOLVED? Universal objectives Commercial history Think global, play local Longevity Star qualities 5 5 6 6 7 8 8 CHAPTER 2: WHAT'S HAPPENING IN EUROPE Introduction Italy Spain England Germany France ^ 9 9 9 10 12 13 14 CHAPTER 3: SHIRT AND KIT SPONSORS, PROFITABILITY AND TV INCOME Television and turnover Which is the world's richest club? CHAPTER 4: INTERNATIONAL RIGHTS AND TOURNAMENTS Introduction FIFA World Cup Coverage Sponsorship European Championships Coverage Sponsorship UEFA Champions League Coverage Sponsorship CHAPTER 5: THE VALUE OF TOURNAMENTS TO SPONSORS Broadcasting Sponsorship Endorsements Ambush marketing 17 22 23 26 26 26 26 26 28 28 28 30 30 31 33 33 33 34 34 34 JV FOOTBALL SPONSORSHIP S COMMERCE
Case study: Hyundai World Cup 2002 Euro 2004 and World Cup 2006 Case study: Yahoo! CHAPTER 6: THE COST OF COMPETING IN EUROPE Financial investment What does it take? CHAPTER 7: CHAMPIONS LEAGUE REVENUE GROWTH Payment splits Impact on TV rights fees Television coverage Attendances Federation sponsors CHAPTER 8: THE MEDIA SCENE Italy France England Germany Spain The Netherlands Switzerland CHAPTER 9: BRANDING ISSUES The 1 essence of an identity Brand creation The golden rules of branding Economic perspective CHAPTER 10: PORTRAIT OF A FAN Football trumps other sports Club popularity Media habits Reactions to sponsorship Categories of interest Fans' attitudes survey Survey conclusion Fans in the Far East * 35 35 35 35 36 36 36 36 37 38 38 38 40 43 43 43 44 44 44 48 49 51 52 52 53 54 55 56 56 56 65 65 65 65 71 71 FOOTBALL SPONSORSHIP 6 COMMERCE
Latin America Marketing and the elusive fan 76 79 CHAPTER 11: INDIVIDUAL RIGHTS Registration of a trademark Passing off David Beckham Team versus individual Control of image rights Impact of adverse publicity Case study: Has adverse publicity affected Beckham's sponsorship potential? CHAPTER 12: OUTSOURCING Outsourcing and SportFive Hertha BSC Hamburger SV SportFive portfolio The outsourcing relationship Regional variations Tickets and ticketing CHAPTER 13: OVERSEAS MARKETING STRATEGIES FOR CLUBS Planning Market knowledge Real Madrid's Chinese experience Successful tactics Keijan's sponsorship of Everton Future prospects in China REFERENCES 80 80 80 81 81 81 81 82 91 91 92 92 92 93 93 94 94 95 95 96 VJ FOOTBALL SPONSORSHIP COMMERCE
SECTION II: BUSINESS OPPORTUNITIES 97 CHAPTER 14: MARKETING A CLUB'S WARES Case study: NEC Nijmegen Business strategy Marketing for potential sponsors How to work with sponsors Balancing costs Unique selling points Achievements Case study: Charlton Athletic Sponsorship marketing The sell CHAPTER 15: HOW STADIA CAN BE EXPLOITED Naming rights Rethinking stadium usage Case study: Juventus Stadium project Young World Project Arsenal-Emirates naming rights deal Benefits of new stadia Points for the future Stadium costs Multi-faceted venues Stadium pariahs Revenue boosters Stadium capacity Revamp or new-build? Future trends Conference facilities Case study: Leicester City Walkers Stadium Finance Why build? Conference facilities Marketing Occupancy 97 97 97 98 98 99 99 99 99 100 100 100 100 100 102 103 103 103 105 105 106 106 106 106 107 107 108 108 109 109 109 110 110 110 113 113 114 114 114 117 117 117 FOOTBALL SPONSORSHIP S COMMERCE vii
CHAPTER 16: FOOTBALL AND ONLINE E-commerce Licensing and syndication Advertising and sponsorship Betting Case study: Premium TV PTV expertise Football club joint ventures E-commerce Facts and figures Future prospects CHAPTER 17: MATCHDAY OPPORTUNITIES Case study: St Pauli Marketing offer CHAPTER 18: LEVERAGING BRANDS Case study: Olympiakos CFP <? Marketing background Licensing CHAPTER 19: COMMUNITY SPONSORSHIPS Case study: Watford Football Club Corporate benefits Case study: London Leisure College Educational offers LCC philosophy The vision The academy Club impact Case study: Avon Insurance Sponsorship objectives Contractual terms 118 118 119 119 119 120 120 121 121 122 122 123 123 123 124 124 124 125 127 127 127 127 128 130 131 131 131 132 132 132 134 134 134 134 135 135 136 136 136 137 139 139 140 140 VIII FOOTBALL SPONSORSHIP 8 COMMERCE
Budgets Programme execution Sources of funding 140 140 141 143 CHAPTER 20: SECONDARY SPONSORSHIPS Case study: Northampton Town Sponsorship gains Case study: Norwich City Commercial objectives Broader commercial offerings CHAPTER 21: FOOTBALL AND FINANCE Traditional football business model The nature of a fan Performance impact on revenue Future prospects for the football business Case study: Aberdeen Financial objectives Commercial objectives Marketing tactics New membership drive New revenue streams * 146 146 146 147 147 147 161 164 164 164 164 165 165 166 167 167 167 168 168 169 169 169 170 170 170 171 171 CHAPTER 22: TECHNOLOGY PARTNERS Case study: Arsenal and 02 The competition Target audiences Further plans Benefits Support The future 172 172 172 172 173 173 174 174 174 174 174 FOOTBALL SPONSORSHIP S COMMERCE JX
CHAPTER 23: DATABASE MARKETING Direct marketing Data recording Case study: Plymouth Argyle Executive summary Five-year plan Draft strategic plan for discussion Supporter satisfaction survey Method Analysis Summary of recommendations for action Season ticket initiatives Contact and direct marketing Building a base for the future Impact of success Marketing moves Going up Pre-season activity The future ^ 175 175 175 177 177 177 177 178 178 178 181 181 1 191 191 192 193 193 194 195 195 195 196 CHAPTER 24: VIRTUAL/PERIMETER ADVERTISING LED perimeter advertising Virtual advertising FIFA regulations for the use of virtual advertising CHAPTER 25: THE ROLE OF RESEARCH Pre-sponsorship research Essential information for sponsors Measurement methods Communications research Research effectiveness Modus operandi Football specific research Sponsorship's benefits CHAPTER 26: LEGAL ISSUES Collective selling of broadcasting rights Licensing of media coverage by clubs Salary caps Player transfers New transfer rules Player image rights Legal issues for French clubs 196 197 197 198 200 200 200 200 201 201 201 202 202 203 203 203 204 204 205 205 206 FOOTBALL SPONSORSHIP & COMMERCE
SECTION III: SPONSORSHIP IMPLEMENTATION 207 CHAPTER 27: FIFA WORLD CUP SPONSORSHIP Case study.- Nationwide Aims and objectives World Cup predecessors Marketing and the World Cup Nationwide - the brand Marketing activity Case study: Avaya Business partners Sponsorship objectives Marketing issues Marketing tactics Update Case study: Carlsberg ** CHAPTER 28: MERCHANDISING Fans' attitudes Merchandising strengths and weaknesses Opportunities CHAPTER 29: PUBLIC RELATIONS Crafting the message CHAPTER 30: CORPORATE HOSPITALITY Building attractive packages Staff Facilities Presentations Catering Case study: MasterCard Marketing support Hospitality 207 207 207 207 208 208 209 209 212 213 213 214 214 214 214 215 216 217 217 217 217 218 218 219 220 220 221 221 223 223 226 228 228 228 228 229 FOOTBALL SPONSORSHIP S COMMERCE XI
SECTION IV: THE FUTURE CHAPTER 31: PROVIDING PLAYERS FOR THE FUTURE Case study: Nantes-Atlantique FCNA training school Financial considerations Academy pros and cons CHAPTER 32: AGENT FEES FIFA transfer regulations CHAPTER 33: ITALY BUILDS FOR THE FUTURE Option 1: Re-develop existing stadium Option 2-. Re-locate to a new stadium Areas for improvement 230 230 230 230 230 231 231 232 232 232 241 242 243 243 CHAPTER 34: TICKET PRICES Future pricing Pricing history Growing audiences Supply and demand Corporate hospitality impact on pricing CHAPTER 35: PLAYER WAGES CHAPTER 36: TV RIGHTS TV rights and the European Union Overseas TV rights ^ 245 245 245 246 246 246 247 247 247 248 XJi FOOTBALL SPONSORSHIP a COMMERCE