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Posts from the ‘Football Finance’ Category

Off the radar

I’ve witnessed many a professional football club, diversifying activities in a desire to seek additional income streams ‘into the coffers’.  Well the latest certainly wasn’t expected.

Turkish Süper Lig Club, Trabazonspor, has come up with an idea to become involved in a hydro electric power station.  This might help address compliance with UEFA Fair Play rules.  Trabzonspor’s reaction to these new restrictions is a government-approved 28 MW hydroelectricity plant planned for Trabzon, Northeastern Turkey.

Sadri Sener, Chairman at the Club has said that it needs a guaranteed source of income, and that the local conditions for hydro power are ideal in the mountainous hinterland, which has a plentiful supply of rainwater. 

Other sources of energy considerations are prospering in stadia developments we have been involved with including, wind, rain water harvesting, solar panels and ground pumps.  A changing face of football as alternative revenue is sought.  Why not?

 

Money for old rope?

It has been brought to my attention, the professional fees that the administrator to Glasgow Rangers FC has accrued to date. Duff and Phelps, has confirmed that it has already received £2.4M.  This for the first stint of six-months’ appointment at the original club, “Rangers”. 

Apparently, its’ original quotation was in excess of this but requoted along with a variance to the original brief.  We understand that it is now asking creditors to approve a further payment of £363K for work carried out between June 30 and August 10 2012.
 
Should Duff and Phelps secure approval, it would mean the London-based firm had been paid a total of £2.7M for the six-months.  I wish I had more time to do an analysis of fees vis-à-vis size of club, amount of creditors and debts.  No surprise firms chase this sort of work.

It’s an ambush

Reflecting on recent events, I thought that I would pause to think about some of the more memorable ambushes in the sphere of marketing tactics (“ambush marketing”).  A definition is: “Ambush marketing is an emotionally charged phrase that refers to the practice of appearing to align a brand with an event for which that brand has not paid for the right to be a sponsor.”

The inspiration for this post was after Wimbledon’s Champion, Serena Williams, was reprimanded once again for breaching sponsorship rules at the Women’s Singles final by taking her Gatorade bottle into the post-match press conference.  Naturally, she represents Gatorade sports-drinks product, but everyone knows this tennis event is the exclusive territory for Robinsons drinks through its sponsorship agreement.

Well here are some other instances of ambush marketing that I can recall:

In 2010, a Dutch beers promotional activity was seen as a blatant infringement, during the Football World Cup in South Africa.  36 ladies from Holland were held after breaking the law and sponsorship protocol at this tournament, all after scantily clad, blonde girls, in orange miniskirts caught the cameramen’s attention and thus executed this ambush.  How else would we know of Bavaria Beer?  Unfortunately, an ITV pundit lost his job in connection when his tickets were traced to this orange ‘wave’. Budweiser was the aggrieved party in this instance.

In 2009, Six Nations Rugby campaign, adverts for Fuller’s beer included a picture of rugby post and the strapline, “Support English Rugby”.  The Advertising Standards Authority (ASA) had to get involved given that the Rugby Football Union (RFU) objected as the brewery had not actually paid for the privilege of any association.

In 2008, Adidas had spent circa $200 Million to become the official sportswear brand at the Beijing Olympic Games.  Little did they know an indigenous ‘hero’ would undermine their plans.  The Chinese sportswear brand Li Ning (created by a former gymnast) had its’ moment of fame as he was chosen to light the Olympic cauldron at the opening ceremony. Li Ning was China’s most decorated Olympian and a National hero. This media exposure effectively gave his Company a free ten-minute advert across China and the World. After the introduction of the gymnast by acrobatic wires to the main stadium, Li Ning’s Hong Kong-listed shares jumped 3.4%.

The Chartered Institute of Marketing (CIM) in the run up to London Olympics 2012 has said: “Those hoping to bask in London’s moment in the sun may be surprised at how restrictive the provisions of the Olympics Act are”. This being legislation introduced for purposes of protection.

The organisers of the 2012 Olympics have already taken the precaution of booking almost all the City’s billboard space during the games.  Also, any infringement using Olympic identity can result in a fine and penalty of £20,000.  But watch this space, the creative industry would see any fine as ‘small fry’ given the right exposure for an adventurous brand!

Stub born

It’s an interesting model that has only been agreed today by Sunderland AFC – and I have to confess an area that I have not delved into too much until recently.  I refer to the contractual deal between that club and US-owned, StubHub. 

StubHub, a rival to the more established Viagogo, has only just come to our shores.  It is an online “secondary ticketing” business which wants to establish itself  in the UK.   The Sunderland deal follows a similar contract worth an estimated £1.7M, with Everton.  A key focus is trading of season tickets. A service that I have used for hospitality at times of ‘peak demand’, so seen first hand how it works.

Viagogo are allegedly in the process of doing the same at Fulham and Newcastle.  It was piloted last season by them at Aston Villa.

Premiums are often prevalent in this ‘reselling’ – reporting suggests high prices but also more competitive prices may occur dependant on a given ‘supporters’’ aspirations.  The drivers behind this new model are supporters’ feedback on difficulties in acquiring tickets online for matches.

StubHub is an online marketplace owned by eBay, which provides services for buyers and sellers of tickets.