* Chevrolet name to adorn Man Utd shirts from 2014
* Global (Chicago Options: ^RJSGTRUSD – news) appeal sends value soaring to record level
* U.S. sports could break taboo and adopt logos
By Keith Weir
LONDON, Aug 3 (Reuters) – Manchester United’s record deal to
put the Chevrolet brand on its famous red shirts underlines the
marketing power of the English Premier League which already
commands the most lucrative TV contracts in world soccer.
Carrying a sponsor name is a highly effective if unsubtle
form of marketing that has been a feature of European soccer
since the 1970s. However, United (Toronto: UNC.TO – news) ‘s deal with General Motors (NYSE: GM – news)
is certain to drive up the sums other top European clubs
demand for turning their players into moving billboards.
It will also influence a debate in the United States where
NBA (National Basketball Association) teams are already looking
at whether to allow logos on their players’ vests in what would
be a first for the biggest sports on the other side of the
Atlantic (Stuttgart: A0J3C9 – news) .
United, owned by the American Glazer family and planning to
list on the New York Stock Exchange this month, have been
English champions a record 19 times and claim to have 659
million followers globally – more than any other club.
“Manchester United, as the world’s biggest brand in the
world’s most popular sport, is going to be an attractive
proposition,” said Austin Houlihan of business services group
Deloitte.
Having your name displayed on a team shirt gives sponsors
90 minutes of guaranteed exposure in matches that attract huge
global audiences at time when large parts of the media have
fragmented into niche markets.
“There is a much more valuable proposition being inside the
programme on team shirts than advertising around it when viewers
can tune out,” said Danny Townsend, President for EMEA and South
Asia at Repucom, the sports brand analysis company.
United and GM have not confirmed the value of a deal which
will see Chevrolet replace U.S. insurance broker Aon (Xetra: 865852 – news) as
the brand on United shirts from 2014 under a seven-year
agreement.
However, sources have told Reuters the deal will cost GM
$60-70 million each year, plus a $100 million activation fee,
taking its total value to nearly $600 million.
Spain’s Barcelona currently enjoy the most lucrative shirt
sponsorship in the world game, receiving 30 million euros ($36.5
million) each year from the Qatar Foundation, promoting the
Gulf nation that will host the 2022 World Cup.
The increase in commercial income is particularly welcome
when leading clubs are under pressure to ensure they avoid
financial losses under new licensing rules introduced by
European soccer’s ruling body.
DOUBLING UP
English soccer’s Premier League is screened in more than 200
countries. TV rights for foreign markets are worth almost 1.4
billion pounds under a set of three-year deals to be
renegotiated in coming months.
That figure looks certain to climb and already outstrips
what other European leagues earn overseas, creating a virtuous
circle for English clubs.
“The brilliance of the Premier League’s global TV
distribution deals are they give the clubs more money in direct
revenue and more leverage from a sponsorship point of view,”
said Townsend.
Total (Other OTC: TTFNF.PK – news) revenue for Premier League shirt sponsorship last
season was around 130.5 million euros ($158.68 million) from 20
clubs, according to data from Sport+Markt. The next highest was
Germany’s top-flight Bundesliga on 119.1 million euros.
A number of English Premier League owners also run U.S.
sports franchises. The Glazers have the Tampa Bay Buccaneers in
the NFL (National Football League), while the Fenway Group own
Liverpool FC and baseball’s Boston Red Sox.
Commentators said they believe mainstream American sport
would ultimately follow the European model and tap into shirt
sponsorship. Major League Soccer, the new kid on the block,
already has done.
“It’s only a matter of time before this happens in U.S.
sport,” said Simon Chadwick, professor of sports business at
Coventry University in central England.
One hurdle was the way the finances of U.S. sport are often
centrally controlled to maintain an even competition.
“The issue is how will they will manage this. How will
revenues be distributed? But I don’t see how they can resist
this,” Chadwick said.
(Additional reporting by Ben Klayman in Detroit; Editing by
Jane Merriman,





























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