May 3, 2018 Author: Michael Flynn
The DataPOWA view on the most important talking points in the worlds of sport sponsorship and digital.
PSG ACCUSED OF ‘OVERSTATING’ SPONSORSHIPS
Big-spending French club Paris Saint Germain are in trouble with Uefa after being accused of breaching the Financial Fair Play regulations by ‘overstating’ the value of their sponsorships deals by a whopping €200 million. PSG have regularly splashed out in the transfer market since being taken over by Qatari owners in 2011, never quite so spectacularly as last summer when they spent €222m on Neymar and arranged a €180m deal for Kylian Mbappe to be completed this summer.
The Financial Fair Play rules in football were introduced to prevent rich owners from giving their teams an unfair financial advantage by not letting them make losses of more than €30m over three seasons. So clubs who spend €222m on one player need to be able to demonstrate that they have the income to cover that kind of expenditure, and sponsorship has an important role to play in that.
However, PSG have a history in this area, having been found guilty of breaching FFP in 2014 by artificially inflating a sponsorship deal with the Qatari Tourism Authority, which cost them a €60m. If they are found to have done it again, they could even face exclusion from the Champions League until they have proved that they have balanced their books.
All of which goes to show that you need to know the real value of your sponsorship deals AND be able to prove it when it counts…
You can read the full article here – https://www.ft.com/content/004c9d5e-3cdc-11e8-b7e0-52972418fec4
Tags: Football, Financial Fair Play, Paris Saint Germain
TIPS TO HELP YOU CUT THROUGH THE £500bn SPORTS MARKET
Thought leaders from the sports world came together at Campaign’s Future Fit event to discuss the challenges and opportunities for brands in the sports world. The event was attended by speakers from the likes of NFL, adidas, Nissan, Lucozade Sport, General Mills, Unicef and We Are Social Sport.
Amongst the subjects covered was influencer marketing, with adidas’ social media manager Stephen Cleary and Gareth Leeding, creative director at We Are Social Sport, who discussed their Tango Squad FC campaign, which spanned eight markets and engaged 1600 young people: “Don’t follow the rules, rewrite them and don’t buy influence – grow it,” said Leeding.
Meanwhile NFL’s director of sponsorship Lindsey Eckhouse talked about the importance of social media in building up a dialogue with fans/consumers: “Our burgeoning fan base is millennials and with digital and social consumption up year on year, we see much higher engagement with fans online compared with some traditional sports rights holders.”
You can read the full article and watch the video here – https://www.campaignlive.co.uk/article/brands-cut-500bn-sports-market/1459714
Tags: NFL, adidas, Lucozade Sport
MAN CITY TARGET THEIR NEXT GENERATION OF FANS
Having wrapped up this year’s Premier League title with considerable ease, breaking a few records along the way, Manchester City have got their eyes on dominating English – and European – football for the foreseeable future. In that spirit, they’re also trying to make sure they capture the hearts of plenty of future season ticket holders by developing an app aimed at young children.
Your average six-year-old has plenty more on their minds than whether Kevin de Bruyne should have won Player Of The Year rather than Mo Salah, so this app will have videos, games and quizzes to hold their attention and ensure they grow up to be Blues rather than Reds. This is another example of Man City leading the way in an area other football clubs are lagging behind in, this time being fan engagement and embracing digital platforms.
But is it just a data grab, wrapped up in Moonchester games and cartoons? City Group’s chief marketing officer Nuria Tarré claims not: “We are not launching this to capture data about kids. It is really about finding a way to engage with those kids,” she said “We innovated when we launched our membership product Junior Citizens, this is now the home of that membership.”
You can read the full article here – http://www.thedrum.com/news/2018/04/27/man-citys-top-marketer-how-its-kids-app-will-secure-the-next-generation-fans
DON’T MISS THE BOAT ON ESPORTS SPONSORSHIPS
If there are any brands that still consider esports to be ‘just video games’, they certainly need to wise up soon. Here are some stats to sum up why you need to be taking it serious as an opportunity:
- In 2017 the esports industry brought in US$906 million in revenue
- It is on course to hit US$1.4billion by 2022
- It’s now the most watched sport by millennial men aged 18-25
- Streaming platform Twitch boasts 15 million daily active users who watch 23 billion minutes of video per month
Another big consideration for any brand thinking about taking the plunge into esports sponsorship is that the industry is still maturing and offers great value for anyone willing to do their research and find the best avenues for their brand. Compared to traditional sports with similar viewerships, esports comes with favourable packages and huge opportunities, but they won’t be like this for long.
You can read the full article here – http://www.sportspromedia.com/insight/why-brands-consider-esports-sponsorship-wasserman-simon-tracey
WORLD CUP COUNTDOWN
FIFA STRUGGLES FOR WORLD CUP SPONSORS
There’s not long to go until the 2018 World Cup in Russia, and you’d imagine that the only preparations that are still needed to be taken care of by now are those involving picking the squads of players who will taking part. You certainly wouldn’t think football’s showpiece tournament would be struggling to find sponsors, with huge global audiences guaranteed to tune in to watch the games. However, FIFA is apparently having problems finding brands who want to be associated with it this time around.
Perhaps it’s the double whammy of FIFA’s own corruption scandals plus the negative political headlines about Russia in the US and European marketplaces that are scaring off potential sponsors, but whatever it is, football’s governing body is looking further east to find last minute replacements from Chinese firms.
At this point before the 2014 World Cup, FIFA had eight main sponsors for the tournament, and it currently has five. If the corruption scandal really is hitting them in the pocket at this crucial time in the football calendar, you can bet a wholesale brand detoxification exercise will be on the cards sooner rather than later.
You can read the full article here – https://www.cnbc.com/2018/04/17/world-cup-2018-fifa-looks-to-the-east-as-it-struggles-to-find-sponsors.html
CARLSBERG’S BEST WORLD CUP EVER? PROBABLY
It’s not all doom and gloom for brands ahead of the World Cup of course, and Danish brewers Carlsberg is hoping that the tournament will help it regain its foothold in Russia, which used to make up half of its profits but is down to just 6% currently. The brand has a strong connection with football over the years and the World Cup represents a great opportunity to get out in front of the local football fans again and turn things around. After all, anyone involved in football needs to be able to show some bouncebackability every now and then, don’t they?
You can read the full article here –
If you have got five more minutes, take a look at these articles & videos:
- The Drum: NHS runs geotargeted mental wellbeing ads in Football Manager stadiums
- Formula 1: Bruno Mars and Britney Spears to perform at US Grand Prix
- Give Me Sport: Liverpool beat Man Utd and Real Madrid to a 15-year-old in 2011 – where is he now?
- The Drum: Real Madrid inks a video content deal with Samsung