So much money in the big end of football

So much money in the big end of football
Bayern Munich recently announced record finances and appears to be solidly trending upwards. Revenues are booming over A$800 million per annum and through a deal with insurance company Allianz, the club has even been able to pay off all the money owed for their stadium, fifteen years ahead of schedule. The club has made hay from its star players and have sold more shirts, 1.7 million in fact, than the rest of the Bundesliga put together. The other German teams struggle meantime.

Allianz may soon get seat on the Board alongside fellow investors adidas and Audi.

The vast majority of the club is still owned by the fans.  All this places Bayern on the same level as Manchester United and Real Madrid – without the debts that those clubs carry.

Manchester City has just exceeded the £300 million threshold for revenues for the first time in the club’s history after revealing their annual report for 2013-14.

Meantime, AC Milan has agreed a new five-year sponsorship extension with Emirates which will see the airline remain on the club’s shirts until the 2019/2020 season. As part of the deal the Emirates branding will also be displayed on the Italian club’s training kits, across the San Siro stadium and The Emirates Lounge. In a successful engagement template that Emirates has used in Australia and elsewhere, this has been timed to coincide with the airline’s new dedicated A380 service to Milan.
As with Bayern, Man U et al, the international recognition and presence of these clubs is vital. AC Milan connects more than 370 million fans in all continents.

Emirates also currently sponsor other big clubs in football such as Real Madrid, Arsenal and Paris St. Germain.

You’ve gotta love the cross linkage and opportunities for cross branding with the news that English Premier League club Arsenal have announced a three-year exclusive deal with Carlsberg UK who will supply a range of alcoholic beverages within their Emirates Stadium. A clear positioning of Arsenal with both a beer, “the beer brand of football”,  and their stadium naming rights sponsor, with major appeal to and engagement of fans. The agreement will see Carlsberg’s lager, ale and stout products on sale for fans on match days and during other events held at Emirates Stadium.


Originally published in "Back on the Block". Follow this link to read and subscribe – Cars, luxury yearnings | plenty of money flowing | Rio and the America's Cup || "Back on th… –

Eric Winton

Director, New Millennium Business

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