Man City to test Fair play rules

[CJ]

http://www.guardian.co.uk/football/2011/jul/07/manchester-city-naming-rights

[Gibbo]

was only a matter of time before they tried this.

[RedAndWhite]

How is this testing them - its increasing revenue - 100 million for ten years seems about the going rate. I fully expect them to get an increased shirt sponsorship @25 million a year soon as well.

[Craig_H]

How is this testing them - its increasing revenue - 100 million for ten years seems about the going rate. I fully expect them to get an increased shirt sponsorship @25 million a year soon as well.

The people that own this prospective sponsor are the government of Abu Dhabi - arguably the same people who own City.

[Kenneth]

If it's considered a fair value, I don't see the issue with this.

[Baracus]

What’s in a name? Businesses take sports stadiums seriously

20 Feb 2007 10:00

When Citigroup agreed late last year to pay USD$20 million (£10 million) a year to have its name on the New York Mets baseball stadium opening in 2009, many businesses looked on with great interest. Then, Prudential Financial confirmed a USD$105.3 million (£52 million), 20 year deal for the Prudential Center, home of the National Hockey League’s Jersey Devils.

And in January this year, Barclays Bank agreed to have its name on the stadium of the New Jersey Nets basketball team in order to increase its exposure in the lucrative American market. This deal is reported to be worth between USD$15 million (£7.5 million) and USD$20 million (£10 million) per year. In Europe, the business of stadium naming rights may not be as developed as the US market but it still presents significant opportunities for businesses to leverage their sponsorship and drive value to the company.

Naming rights are often used by companies to raise their profile in new markets or to launch a new brand. Aligning a corporate brand with sports projects is also helpful to project a positive corporate image due to the association with sporting excellence and achievement, as well as community spirit. Some more tangible benefits may also be offered such as advertising space, use of premium seats and access to players for corporate marketing events.

Recent high profile stadium naming rights deals in Europe include Bayern Munich’s Allianz Arena at USD$8 million (£4 million) a year, and a total sponsorship package at Arsenal’s Emirate’s Stadium, which includes both the stadium naming rights over fifteen years and the shirt sponsorship for eight years, worth USD$200 million (£100 million). Julie Clark, leisure sector leader at PricewaterhouseCoopers LLP commented: “When you consider the relative size of the UK and German sports markets at $7.5 billion and $8.5 billion respectively, compared with the US at $49 billion, it puts the naming rights deals done in Europe in perspective.

In the context of the overall market size, the Arsenal and Bayern Munich deals clearly compare favourably with recent deals in the US.” A new naming rights opportunity is now being offered in the UK, the value of which is perhaps a little more difficult to predict.

The Government recently announced a naming rights opportunity for the proposed Northern Ireland stadium at the former Maze/Long Kesh Prison site. The Minister responsible for the development of the former Maze/Long Kesh prison site, David Hanson MP said: “The Government will be looking for a commercial naming rights partner that can not only provide a financial contribution to the cost of the stadium but, more importantly, share in our vision for a sports venue to be proudly used by the whole community.”

The Northern Ireland stadium aims to provide strategic value to corporations looking to extend their sponsorship programmes, by providing association with at least three successful sports, bringing together the communities of Northern Ireland and helping convert to Maze/Long Kesh prison area into a ‘shared place of hope and sporting excellence Subject to final negotiation and agreement, the Northern Ireland multi-sports stadium is planned to include three sports, whereas most stadiums have a maximum of two sports sharing the space. Sports potentially involved include:

•Northern Ireland national football team is currently at one of the highest points in their recent history in terms of FIFA rankings, following impressive wins against Spain and England.

•Ulster Rugby, winners of the Celtic League in 2006 and previous winners of the Heineken Cup in 1999. Irish Rugby Football Union: the Irish international rugby team is currently (February 2007) fourth in the International Rugby Board world ranking, just behind New Zealand, France and Australia.

•Gaelic sports: Members of the GAA’s Ulster Branch continue to dominate Gaelic Football competitions, with County Tyrone the winner of the All Ireland Football Final in 2006.
Clark commented: “Businesses often look for comparison sites to gauge the price of a naming rights deal. When calculating the value, companies look at the number of sports, the potential media coverage of the stadium, the visibility of the arena to the local community and any additional events to be held there. “

The sponsorship of the former Millennium Dome in Greenwich for a reported £6 million a year over 6 years is an interesting example as it will also be used for many different events and the sale of the naming rights has been important to reposition the Dome from a visitor attraction to a multi-purpose arena.” The level of interest in the naming rights sponsorship in Northern Ireland will no doubt be watched carefully by others planning new stadia: the Irish Rugby Football Union, for example, has just started the construction of the new Lansdowne Road stadium, and the recent purchase of Liverpool Football Club should enable the development of a stadium to replace Anfield.

http://http://www.ukmediacentre.pwc....7&newsareaid=2

[ChesterDave]

What exactly does their lease say about naming the stadium something different. As tenants I would have though it difficult to rename it.

To have a gentlemens agreement for a company to spend 100 million to call it something else would cast a certain degree of doubt in how genuine the deal is and how much it is really worth

[Kenneth]

Interesting question.

[CJ]

we dont get many of those

[Chrono]

If it's considered a fair value, I don't see the issue with this.

Nor me, can't see the problem really and don't think it is testing the rules.

[Rich]

You're right. What City will do is ensure they match the best sponsorship deals out there with their own ones.

[Exiled_red]

What exactly does their lease say about naming the stadium something different. As tenants I would have though it difficult to rename it.

To have a gentlemens agreement for a company to spend 100 million to call it something else would cast a certain degree of doubt in how genuine the deal is and how much it is really worth

I hadn't thought of that, it would be interesting to see what if anything happens, I suspect that it will happen but the Council may claim a cut...

[CJ]

i think the question may be "would city really get that much money from a deal that didnt involve their owners"

[dww]

Nor me, can't see the problem really and don't think it is testing the rules.

I think some people are determined that the rules won't work and are willing to fit what happens to that narrative. I'm not sure we will be able to tell how well the initiative has worked for at least four or five seasons but I fully expect every big transfer to be seen as a shocking affront to the idea by some.

[Vermilion]

i think the question may be "would city really get that much money from a deal that didnt involve their owners"

Good question, but i expect Citeh to be able to get around this fair play just as i do the Chavs.

If it's about income, but not directly from a wealthy owner, what's to stop them doing lucrative deals with other companies...say Abu Dhabi do one company a 'favour' by buying their goods or some other deal, and in re-turn are re-paid with sponsorship or investment in the club from said company, i think this would be very hard to stop when dealing with people as rich and influential as these.