Football Partnerships

By Alex Kotler

Happy New Year… no wait!

Relations between enemy countries Iran and Israel threatened to improve after the Iranian Soccer Federation accidentally sent the Israelis a message wishing them a happy new year. Israel, surprising responded by sending salutations to ‘all the good people of Iran’. Perhaps 2010 will usher in friendly matches between the two? Now that’s optimism.

More on kissing and making up

Can’t we all get along?

The board of directors at the United States Soccer Federation unanimously voted down the motion to sanction either of the United Soccer Leagues or the North American Soccer League, both of which are vying for legitimacy as the United States’ recognized Second Division. As a result, both sides issued statements suggesting that they will work together to reach a compromise. If anything, this is the most encouraging news as the continued fragmentation of lower leagues in the US works to the detriment of future development.

More on kissing and making up

Trying to out-Fox TWC

Time Warner Cable (TWC) and News Corp. have reached a temporary agreement to continue offering subscribers broadcasts of Fox Soccer Channel (FSC), a News Corp. network. The companies were at an impasse for their respective valuations of each subscriber, with TWC demanding $1 per and FSC offering $0.30. The supposed shoo-in for FSC could be GolTV which does not own the rights to provide the same English Premier League fixtures. It is doubtful that, particularly in a World Cup year, that TWC will sever ties.

Click over to EPL Talk to find the right channel

What’d I miss in 2009

Big Apple Soccer writer Michael Lewis reveals his selections for the 29th annual installation of The Mikey Awards, recognizing those around sport for their feats - from the proud and pretty to the poor and paltry. As a sucker for infantile humor, my favorite is the Young Fart of the Year.

Take a whiff of the Mikey’s

“Low spenders” cut one from the payroll

English Premier League side Bolton Wanderers sacked manager Gary Megson on 30 December, despite the club being just five points off the mid-table mark. Hardly a fan favorite, the former Sheffield Wednesday player and Leicester City gaffer claimed to have inherited ‘a mess’ and left the organization in a ‘better state’. It appears to be a victory for supporters, who must frequently stand by mute as politics and business objectives dictate decision-making.

Megson out, somebody in

Ken-ya believe it?

Kenya has been named one of two African nations to be offered the opportunity to co-sponsor this summer’s World Cup by the South African Local Organizing Committee. For $50 million, Kenya will be granted a platform to showcase its worth as a business and investment partner. Is the opportunity more an expression of diplomacy and pan-Africanism or of a shrewd marketing tactic that leverages the hosting of the world’s most-viewed event to draw increased investment in South Africa. Or both?

2010 World Cup to deliver greater pan-Africanism?

By Alex Kotler

John Smith, Chairman of the American-based ABC Corporation, a manufacturer of widgets, is considering opportunities that would maximize the exposure of the ABC brand. He is a proper football fan, and thus is giving thought to entering a soccer-business relationship.

He calls a board meeting and invites Greville Waterman, Head of Business Development at 141 Sport & Entertainment, who also serves as a strategic consultant on football matters for Mr. Smith, to join via conference call.

From the 17th story of ABC’s Midtown Manhattan office, Smith begins, “Afternoon Waterman, how are things in jolly old?”

“Good morning John, quite well,” Waterman replied. “A little rain, but nothing out of the ordinary.”

“Let’s get to it. Should ABC consider the football industry as a possible channel to increase our brand’s exposure?”

“Well,” responded Waterman, it all depends upon ABC’s brand imagery, positioning, the objectives the firm is trying to address, and the interests, demographics and geographic regions of the firm’s respective target markets.”

He continued, “If ABC is considering the sports channel, there is an enormous amount of data that suggest that football is overwhelmingly the most popular sport in many parts of the world, and case studies support is value as a marketing tool. If ABC does wish to consider serving as a sponsor within the football market, I would recommend that we first conduct the necessary due diligence to ascertain how best to harness the sport in a unique and cost-effective manner.”

Smith nodded, pausing briefly to digest Waterman’s response. He replied, “Is it necessary or recommended that ABC already have brand equity in the football market?”

“Football is a proven vehicle to help gain the necessary awareness and saliency needed to conduct a successful brand launch in a new market. Ideally, though, ABC would already have an infrastructure and presence within the market - with regard to either industry or geography. In this manner, ABC would avail of the assets provided via the sponsorship in terms of activation.”

Board member Bigsby Dixon, a one-time oilman, “What sort of metrics can we use to gage the success and, I suppose, the usefulness of soccer sponsorship?

“Every sponsor needs to set a number of relevant, specific key performance indicators before entering into a new sponsorship. What they are for ABC differ from that of XYZ,” said Waterman, “but could include the following.

• Consumer brand awareness levels before, during, and after the sponsorship
• Propensity to purchase levels
• Levels of understanding of the sponsor’s core business propositions
• Levels of participation by the trade, staff, sales for, and beyond
• Amount, type and value of all media coverage on local, national global level.”

Bigsby cut back in, “You mentioned the levels of understanding and something about the core business propositions. Elaborate on that.”

“Certainly. Müller Dairy, a German dairy company came over to the UK in 1986. The firm entered a partnership with Aston Villa, sponsoring the team’s kits as a means of building brand awareness during their launch in the new market. The shirt logos had only Müller on it, which did little to explain who or what the company was. In fact, I recall one of my mates asking me what on earth a Müller was.”

“A Müller? Isn’t that one of those fellas in Afghanistan,” injected Marlin Yeoman, a jokester who’d earned a small fortune in the silk trade in the 90s.

“So,” Smith intervened, “were ABC to consider sponsorship options, could we expect to see a portfolio of sponsorship options? For instance, could ABC gain exposure through a football club beyond putting its logo on jerseys? Are there set durations for sponsorship contracts?”

“Well, ideally there would be a shortlist of potential options for the client to consider, along with a SWOT analysis for each one. If ABC works through an agency, the client account managers would provide corresponding recommendations for each option.”

In terms of time, that is established in the contract and the length of commitment depends in part upon the market research, which we discussed, and ABC’s objectives. Usually, an initial contract with a club lasts for about three years to allow time to mature. Deals for one year do not usually serve either side any good, as they do not permit the sponsor adequate time to evaluate.”

“You’ve reviewed ABC’s 10K, crunched numbers and calculated ratios, Mr. Waterman. You know that we’re a company of modest means but grand ambitions. Do we have enough to consider sponsorship?”

“Fair question, John. American movies frequently use the cliché of there being ’somebody for everyone’ there are opportunities within football to suit most wallets. AIG’s sponsorship of Manchester United costs around £14M per year; however, another established Premier League brand like Bolton would cost significantly less at around £1.25M. So, there is real value for money. Furthermore, ABC could also explore grassroots and corporate social responsibility projects as well.”

“Bolton, eh,” said Smith. “Those being Gary Megson’s Wanderers, right?”

“Correct.”

“Now, despite being an American-owned firm, we sell our widgets all over the world. What would you say if we were to consider, for example, a sponsorship opportunity with Bolton?”

“Well, Bolton is an excellent case to study. It has an established business model that differs from most of its competition because it is based on diversification, investment in people and long-term partner relations. Moreover, the club is an established part of the global phenomenon, prestige and exposure provided by the English Premier League.”

“Part of Greater Manchester, right?” asked Gilbert Simmons, a virtual replica of actor Steve Buscemi, only with droopier eyes and salt-and-pepper hair.

“Very sharp. Yes, the Wanderers are based in Horwich.”

“Don’t give him credit. He has Wikipedia open on his laptop,” came Bigsby, quick to level the field.

Smith continued, “If ABC were to consider, for example, Bolton, how would we determine if it were a good fit?”

“Among other things, we would use special software to analyze and compare sporting events and franchise data to determine the level of fit between the Bolton fan-base - locally, nationally and globally - in comparison to ABC’s audience.”

“Okay,” Smith concluded, seeing there was much to discuss behind closed doors. “Sounds like something worth exploring. The ABC board will give thought to the football industry in general and Bolton specifically. We’ll be in touch Waterman.”

“Cheers. I look forward to it,” replied Waterman as he hung up.

“Alright everyone, let’s talk soccer.”

Football Partnerships thanks Greville Waterman, Head of Business Development at 141 Sport & Entertainment and group member, for his assistance with this fictional case study. Without him, ABC would surely have had a quiet board meeting.

141 serves as Bolton’s executive consultancy, offering the club a combination of consultancy, rights articulation and sales services. Should any Football Partnerships member or affiliate wish to discuss sponsorship opportunities with Bolton or in general, feel free to contact Greville at greville.waterman@141worldwide.com.