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King of Clubs
The king of all clubs in relation to sponsorship and advertising has been Manchester United for some time now. When chief executive David Gill announced AIG as the new shirt sponsors of Manchester United in 2006 the sum of money certainly caused a stir. It was a British record shirt sponsorship deal of £56.5m to be paid over four years. That equates to £14.1m a year. Manchester United then had the most valuable sponsorship deal in the world, due to the renegotiation of the £15m-a-year deal Juventus had with oil firm Tamoil.
The four-year agreement has also been heralded, by extension, as the largest sponsorship deal in British history, eclipsing Chelsea ‘s deal with Samsung.
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American Connection?
You may also know that Nike are the official sportswear partner, Budweiser is the official beer (anyone know where the American connection comes from?), Betfred are the official betting partners and Key 103 is the official radio station.
So… do these companies get their money’s worth?
Well, back in 2004, the club was able to report an operating profit of £58.3m ($105m) – not including the cost of playertransfers – thanks to strong sales of replica shirts and other merchandise. It is believed that the club has 75 million fans worldwide, with 23 million in Europe, 4.6 million in the Americas, 40.7 million in Asia, and a further 5.9 million in South Africa. That’s an awful lot of people relating to AIG.
Just consider that every person in the world who wears one of United’s famous old shirts is advertising the company. Imagine if Soccerlens could sponsor Manchester United. How many people would visit this website if they did? The return must outweigh the cost.
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