US soccer(MLS) sponsorships in the U.S.A.

In this blog I'm going to tell something about the sponsorships in the US soccer(MLS) scene in the U.S.A. It's one of the biggest watched sports in the U.S.A.

Major League Soccer lost more than $350 million between its founding and the year 2004, according to a report by Business Week released that year. However, there have been positive signs of long-term profitability since 2004. As soccer-specific stadiums are built, ownership expands and television coverage increases, MLS has seen its revenues increase while minimizing costs. The 2003 season saw the Los Angeles Galaxy make a profit in their first season at The Home Depot Center, while FC Dallas turned a profit in similar fashion after moving into Pizza Hut Park in 2005.

Television coverage has consistently expanded throughout the league's history, as MLS brokered a deal with ESPN in 2006 for rights fees and a greater presence across its networks. The 2007 season saw the return of MLS to Univision and its Spanish-language networks. They joined Fox Soccer Channel and HDNet as the U.S. national outlets, and the league has mandated that every league game receive television coverage either nationally or locally in one or both teams' cities for broadcast on its Direct Kick package.

In 2007, MLS teams started selling ad space on the front of jerseys to go along with the league-wide sponsorship partners who had already been advertising on the back of club jerseys, following the practice of international sport, specifically soccer. The league has established a floor of $500,000 per shirt sponsorship, with the league receiving a flat fee of $200,000 per deal. Online gambling and hard liquor sponsorships are prohibited. As of January 2011, twelve of the league's eighteen teams have signed sponsorship deals to have company logos placed on the front of their team jerseys.

Sponsorships in the U.S.A. (Basketball)

In the United States there are two major sports in the community. These are basketball and US soccer(MLS). In these two sports, a lot of money in it. They also have the biggest sponsors in the world. In my next blog I go to tell you about these two on sports sponsorship.

USA Basketball has signed seven sponsors through the London 2012 Games, just before the FIBA World Championships in Turkey later this month.

The partners are Nike, Gatorade, State Farm Insurance, Tiffany & Co., JA Apparel Corp, Joseph Abboud brand, Mile Processor Education Program and Las Vegas Events. State Farm, Gatorade, Nike and Las Vegas Events were USA Basketball sponsors during the 2008 Beijing Olympics.

Financial terms of each of the deals were not disclosed, but USA Basketball’s previous deals with partners including Nike, Gatorade and State Farm Insurance are known to have been in the region of US$4 million each. Even if the other deals are on a smaller scale, the total annual income for USA Basketball from these seven partnerships can safely be said to be in excess of US$20 million.

“What is taking shape now is that we really are a brand with a year-round, ongoing structure,” USA Basketball chair Jerry Colangelo said. “One of the things I am very much behind is including more involvement and access. That is what sponsors want.”

As you can see, there spend a lot of money in de basketball scene. There are also a lot of people who watch the basketball games. So for the sponsors this is an excellent opportunity.

Tennis sponsorship

Corporations who sponsor tennis players provide equipment and funds for the player's use as well as providing promotional opportunities for the tennis sponsor. Tennis players who achieve a level of excellence in tennis playing through numerous tennis matches are likely to get big money tennis sponsorships that promote clothing and shoe lines, tennis equipment such as rackets and balls, and other tennis associated equipment. Professional tennis sponsorships provided by corporations cost in the hundreds of millions of dollars. Companies sponsor their products with the help of personalities who have international recognition and influence on the public in terms of good relations and success. Automobile, soft drink, and hotel accommodation corporations are some of the pro tennis player sponsors that are well known.

Tennis players who seek sponsorship and who are not pro tennis players may receive tennis sponsorships from different companies. Sponsorships may be offered from tennis gear manufacturers such as tennis rackets, tennis balls, practice equipment, tennis footwear, tennis shirts, sweatbands, and tennis shorts and skirts. Sponsorships also help tennis players secure courts to play and on which to practice.

Tennis sponsors receive promotion through signage courtside and in the venues where the tennis matches take place, internet exposure pertaining to the tennis match and websites having to do with tennis matches and certain venues, and also concerning ticket sales to the sporting event, and in ads in publications and calendars. Travel expenses of the individual tennis player or tennis teams may be sponsored as well as lodging for tennis competitions, food products, and jewelry items such as watches as worn by the tennis player. The type of promotion the sponsor receives is contingent upon what type of sponsorship is offered to the tennis player. Many sponsors have sponsorship packages designed specifically to meet their needs. Tennis players, their management teams and potential sponsors work together to put together the most beneficial contract available for both parties involved.

The biggest sponsors of the football world (2)

bwin

The Austrian betting company has been the shirt sponsor of Real Madrid since 2007, and that deal continues until at least 2013. The company also has a history of integrating its name into football leagues that it sponsors. The deal with the Portuguese Liga saw the top flight renamed the BWINLIGA from 2006 to 2008, and a recent deal with Italy’s second division will see Serie B renamed Serie bwin for two seasons in a $10m deal.

Pepsi

Pepsi is promoted by players like Thierry Henry, Leo Messi, Frank Lampard, Kaka and Didier Drogba. Their relationship with David Beckham is no more, but Becks promote the soft drink from 1998 to 2008, appearing in a variety of Pepsi commercials. Pepsi is the official soft drink of Major League Soccer and the US Soccer Federation.

Carlsberg

The Danish beer brewer specializes in long-term shirt sponsorship. Carlsberg’s name was on every Liverpool shirt from 1992 to 2010 (but no more) and has adorned FC Copenhagen’s shirts since 1999. Carlsberg is also a long-term sponsor of the UEFA European Championship, from Euro ’88 until at least Euro 2012.

Red Bull

The Austrian energy drink makers take a more direct approach. It bought SV Austria Salzburg in 2005 and renamed the club Red Bull Salzburg. In 2006, Red Bull did the same with MLS’ New York/New Jersey Metrostars, renaming the team as the New York Red Bulls. Red Bull built new stadiums for both teams, which are both known as Red Bull Arena. Red Bull also bought 49% of German team SSV Markranstädt in 2009 and rebranded the club as Red Bull Leipzig, and in 2007 formed an entirely new team in Campinas, Brazil named Red Bull Brasil, which currently competes in the São Paulo state championship.

The biggest sponsors in the world of Football (1)

So, who are the biggest sponsors of soccer? Below you’ll find a list of the biggest football sponsors, and a brief explanation of how they’re involved with the beautiful game.

Coca-Cola

Coca Cola has had stadium advertising at every World Cup since 1950 and has been an official World Cup partner since 1978. Coca-Cola’s World Cup 2010 campaign had a presence in 170 countries and that sponsorship deal was recently re-carbonated until 2022. Coca-Cola also has a long-term deal with UEFA, and will be an official UEFA partner for Euro 2012 and Euro 2016.

Nike

Nike manufactures kits for the world’s biggest clubs, like Manchester United and Barcelona, and famous national teams like Brazil. Nike’s boots and other football gear are also endorsed by world famous players like Cristiano Ronaldo. Nike has never been an official World Cup sponsor, but it’s easy to forget that when people roll out zeitgeisty advertising campaigns like Write the Future every four years.

Adidas

The jewel in the adidas marketing crown is their status as Official Licensee and Supplier of the FIFA World Cup. The German company has supplied the match balls for every World Cup since 1970, and has similar agreements with UEFA for the European Championships and Champions League. Adidas also manufactures kits for world famous teams like Real Madrid, Bayern Munich and AC Milan, and for many national teams too – most famously Germany. Adidas’ boots and other football apparel are endorsed by celebrity players like David Beckham and Lionel Messi.

Sport sponsoring and Alcohol

Sports en alcohol goes in the normal way not together. However, nowadays sports and alcohol seems to have a strong connection to eachother. Alcohol and sports are closely intertwined. This is happend because, the alcohol industry prepared in 1990 their own rules about alcohol advertising and marketing. When they made the rules they give themselve no limitation to advertise with alcohol.

Here are some examples off sportsactivities that are sponsored by an company how make alcoholic drinks.

Bavaria City Racing
This event that every year come back to the Netherlands in Rotterdam, is defined by Bavaria as the biggest Dutch Formula 1 Event. In 2008 the event attracted more than 500,000 visitors. Almost 70,000 visitors are children(between 0-19 years old). In short, thousands of children where during the Bavaria City Racing intensively exposed by alcohol.

Heineken Champions League
Before 2005 the UEFA Champions League were sponsored by Amstel Beer(also a product of Heineken). Since 2006 Heineken put the Heineken brand as focal point on the greatest football league of Europe. The Champions League is football, only Europe best football teams will be allowed to play in this league. Because this league have the best teams of Europe and there played the best players off the world, there are a lot of television viewers who love to watch this. Per season the Champions League watched by 140 million viewers spread over some 227 countries. It goes without saying that among this huge number of viewers, also a huge number of minors contains. This minors also see the commercials and the advertising of Heineken.

Rabobank( 2) Other Sports & Philosophy

The Rabobank sponsors a couple of cycling teams and the local events, I told that in my previous blog. But Rabobank sponsors a couple other sports. The other sports they sponsor are: Horseriding and Hockey. They do also something for the disabled people in the Netherlands.

Normal be normal, especially has to be special. That's the premise of Gehandicaptensports Netherlands. They create sports opportunity's for people with disabilities. The Rabobank support the initiative of the fund. The initiative is: to get the different sportsponsors turn on 1% of their budget spend on sponsoring to give to this fund.

The Rabobank has a philosophy for all the sponsoring things. The Rabobank has by many sporters a preferred position because they are very involved with sports. Their way to fill in the sponsorships is typical Rabobank. They like to go on long termed and sustainable relationships.This structural support contributes to the development of international sporting success at the Rabobank Sports.

Bring the sport to the next level together! That's a prominent role in their sponsored sports. With the way they support sports,  they help make success possible. By bringing the sports further, they indirectly in an original way to communicate their commitment. Therefore Rabobank stands not only at the finish, but they also stays on the start of success. Only then the sports comes much further.

Rabobank (1)

The Rabobank is one of the biggest sponsor in the Netherlands. Rabobank loves to invest in young cycling talent. As a sponsor of the Royal Dutch Cycling Union(KNWU) they give talent the chance to further develop. They do that through the Rabobank Cycling Plan. They also have two Cycling teams: the Pro Team and the Continental Team. The Pro Team consists professional riders and the Continental Team consists young riders how gets their training.

Besides this two teams, Rabobank is the main sponsor of the Giant Offroad Team. This team had a Mountain bike branch but also a Field Riders branch. The goal for these two teams for the next two years is to get more young talented riders bring to the best riders in the world.

The support of the Rabobank does not only goes to the professional cyclists. It goes also to the recreational cyclists. The individual banks are often involved in local cycling events. Together with the Dutch Cycling Union Tour(NTFU) they propose an annual calendar with information of tours for the competitive cyclists.

The Rabobank organize also something for the children. They call it the: Rabo Fat Tires Race. It's organizes by the Rabobank and the local cycling club. The race meets the requirements of the Royal Dutch Cycling Union. Everything is therefore perfectly controlled. The course is not accessible by cars and other vehicles. Wearing a helmet is required. If you don't have a helmet you can borrow one at the organisation for free. Trainers and coaches of the local cycling club ensure that everything runs smoothly.

Nike

Nike pays top athletes in many different sports to use their products promote/advertise their technology and design.
Nike's first professional athlete endorser was Romanian tennis player Ilie Nastase, and the company's first track endorser was distance running legend Steve Prefontaine. Prefontaine was the prized pupil of the company's co-founder Bill Bowerman while he coached at the University of Oregon. Today, the Steve Prefontaine Building is named in his honor at Nike's corporate headquarters.

Besides Prefontaine, Nike has sponsored many other successful track & field athletes over the years such as Carl Lewis, Jackie Joyner-Kersee and Sebastian Coe. However, it was the signing of basketball player Michael Jordan in 1984, with his subsequent promotion of Nike over the course of his storied career with Spike Lee as Mars Blackman, that proved to be one of the biggest boosts to Nike's publicity and sales.

During the past 20 years especially, Nike has been one of the major clothing/footwear sponsors for leading players of tennis. Some of the more successful players currently or formerly sponsored by Nike include: Roger Federer, James Blake, Rafael Nadal, Maria Sharapova, Serene Williams, Marion Bartoli.

Nike also sponsors some of the leading clubs in the world, like the Brazil National Team, Portugal National Team, Netherlands National Team, Manchester United, FC Barcelona, Arsenal, Celtic, PSV Eindhoven and some more football clubs.

Nike also sponsors various minor events including Hoop It Up (high school basketball) and The Golden West Invitational (high school track and field). Nike uses web sites as a promotional tool to cover these events. Nike also has several websites for individual sports, including nikebasketball.com, nikefootball.com, and nikerunning.com.

Sports sponsoring in the Netherlands

The sponsorship market in the Netherlands has in the year 2000, a size about the 1 billion Euro's. Of this amount goes the half to the Dutch sport. Of this amount goes the to football clubs. In the year 2000, the Royal Dutch Football Association(KNVB) starts an investigation into the social significance of football and the contribution football makes to the Dutch economy.

The study showed that corporate sponsors 347 million euros paid by the total annual spend of around 1.6 billion euros. The government contributed only 118 million euros. The remainder is paid by consumers through volunteer time and effort. That sponsorship has been accepted in the Netherlands is unmistakable.

A disadventage is that when the sport club had a gap in the budget they would easy fall back on the sponsors. Many companies been bombarded with requests for money, for the image of sponsorship this is not particularly beneficial.  In many projects, clubs, leagues and events there is no longer the original principle, that sponsorship is something extra. It does not, but the sponsoring money does not used for the gap in the budget of the sport club. The government is working enthusiastically to the misconception that the industry wil take care for the missing money. In the Netherlands we have become quite dependent on sponsorship. A good example is the footballindustry, which sponsors more than 40 per cent of the budget covers. This is considerably more than the income from grants.

Development in the sports sponsorship!

Sport is now certainly the sector where sponsorship is the most developed and accepted in the Netherlands and the rest of the world. The amount that the international business world gives to the international sport world was in 2000 a amount of twenty billion U.S. dollar. This amount is for one year, so every year they give this huge amount. In the Netherlands they give a amount of nearly a half billion U.S. dollar. One half is for the professionals and the other half is for the amateurs. In terms of residents we can count the Netherlands to one of big sport sponsor countries in the world. It should be said that in the Netherlands much money goes to the professional football sector. In the amateur sports there are less amateur clubs that are be able to contact to the big companies to get sponsored.

Positive developments in the world of sports sponsorship in the Netherlands is, that not only just large multinationals and listed companies large sums stabbing in sports, but also medium and small businesses discovered the power of sports sponsorship as a communication method yet. In the sports sector sports sponsorship is no longer called ''additional''. A couple of years ago sports sponsorships were a extra kind of income for the sport clubs. But with the maturing of sponsorship and increasing the number of companies with a club or association would link was sponsoring a permanent item on the budget. In amateur sport sponsorship is the second source of income, after contributions, but before the bar entries. In professional football sponsorship is the largest source of income.

History of sports sponsorship!

First I wanna thank you for visiting my Blog. This is a school project, and we have to write 12 blogs about a subject thats related to marketing. So I choose (Sport)sponsorship. In my first blog I want to tell something about the history of sports sponsorship. The history of sports sponsorship goes back to the time of the Greeks and the Romans. Rich people supported athletes and gladiators to be so populair by the public. More professional sports sponsorship we first see at the end of the 19th century. England already knew the professional football players. They play football and got money from the people out of the business world. There was also a man named Jaap Eden how earns a decent salary with cycling. The real breakthrough of sports sponsorship in Europe came in 1950. Sportbrands, newspapers and some car companies starts also with sponsoring from the years 1970 and became sports sponsorship in an additional momentum when extra sports brands (brands that have nothing to do with sport) sport as a communication discovered.

New products came on the market that adressed the new lifestyle, such as soft drink and color television. For these introductions were bigger advertising budgets available. In this years there came als new companies led by more dynamic entrepreneurs. These developments were certainly not at first received with cheers. The newspapers said it was a disgrace: the sport was abused, they claimed. Caps with logos were carefully out of sight of television cameras. In later periods sponsoring get many angry, worried and emotional reactions loosened. No other marketing tool was discussed so as heavy as sponsorship.