AC Milan signs £52m Emirates deal
For my second blog, I have found an article about investing in a football team. I like this sport, so as many other people in the world. That’s the reason why companies are investing in football teams.
In this article, you can read that Dubai-owned airline Emirates has announced a sponsorship deal with the Italian team AC Milan. It’s a contract for four years that will start in July. The amount of money they are going to invest, is being measured at about 52 million dollar. The publicity for the company will be seen on the shirt of the club. Before, Emirates was sponsoring Arsenal for 100 million dollar, this was the biggest sponsorship deal in English football history.
When I was the owner of a successful company and I’d be selling products all over the world, then I suppose I would sponsor a football or cycling team because there are a lot of people who like sports and they will be attracted to the company that sponsors their favorite team. When you sponsor a team like AC Milan then people associate the company with the team. Nowadays, AC Milan has some players like Ronaldinho, David Beckham,…these are players who impress a lot of children and men. People see this team on television when they are watching the Champions league and other people buy shirts of this team, wear them throughout the world, and this way, you can reach a lot of people.
I think it’s a fantastic financial deal for both “companies” because AC Milan has a bigger budget to find and buy new players. On the other hand, Emirates makes new and good publicity, plus their investments are coming into a new country, so they reach another, new, public.
http://news.bbc.co.uk/2/hi/business/8513100.stm
Abonneren op:
Reacties posten (Atom)
Gert,
BeantwoordenVerwijderenI'm also fond of soccer and I totally agree with you. For a company, it's one of the best ways to reach millions of people, and this kind of funding is necessary for a soccerteam.
The amount of money involved in these deals is mind-blowing. Not every soccerteam receives so much funds, but AC Milan 'owns' a lot of good players who are responsible for a lot of extra publicity, which makes this team a really good investment for Emirates.
Dear Gert
BeantwoordenVerwijderenFirst , I don’t fully agree with your statement. You are telling that companies invest in sport because they like sport. I rather think that there are some other reasons why companies invest in sport teams, football teams for example.
I am convinced that football is the most widely followed game in the world. Most of the people would think that the audience of football are mainly men, but also women watch football. Women like football players because they earn a lot of money and also because they have a certain status. For example, it’s usual in Belgium that a Miss Belgium marries a football player.
The print of a company’s logo on a football player’s shirt can become a profitable way of investment. But there are also some risks to discuss. Success in the market is closely related to a team’s performance. It means that the investment is mostly profitable when a team wins on a regular basis. So teams are associated with their performance.
However, the price of publicity depends in which football group a company wants to invest. Like you have mentioned in you blog that Dubai-owned airline Emirates has announced a sponsorship deal with the Italian team AC Milan. I think it’s normal that a sponsorship for such a team has a high price. Ac Milan, is like you said definitely worth to invest in. The team counts football players who are famous, even outside of the football industry. David Beckham for example, was the man who introduced the new Gilette Fusion razor. Even Armani underwear used Beckham for the publicity of their new underwear. Investing in such a football team is profitable because they have icons who aren’t only visible on the worldwide champions league.
I can come to this conclusion: investing in football is one of the best ways of publicity that reaches a large target group.
Gert,
BeantwoordenVerwijderenAs well as dieter I don’t fully agree.
Investing in a soccer team has many benefits but I think that the product of the company decides whether they will invest in soccer or in other ways of making publicity.
When you’re a company that sells products commonly used by men I think that the best way of making your product familiar to male consumers is sponsoring a sport team. On the other hand when you’re selling products used by generally woman you must search other ways of making your product familiar. Most likely it will be publishing in popular magazines.
According to my opinion the amount of money that is involved with these sponsorship deals exceeded the generally used. By sponsoring these amounts of money I think that you’re cheating and mistreating soccer. You give to famous soccer teams the possibility to buy player for a high price and give them a contract that is never seen. By doing this you create an upper class in the soccer world that only rich teams can afford.
As a consequence of that I think there should be founded a new way of investing. Companies should divide the amount of money on separated countries. This gives the companies the possibility to make some publicity in different countries.