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Ethical concerns surface among Premier League's money-spinning deals | Ethical concerns surface among Premier League's money-spinning deals |
(35 minutes later) | |
Picture the scene. You are a diehard Chelsea fan taking advantage of Burma’s renewed openness to tourism. In a bar in Rangoon, you scan the array of unfamiliar spirits on offer, and suddenly the thought occurs: “What would John Terry drink?” | Picture the scene. You are a diehard Chelsea fan taking advantage of Burma’s renewed openness to tourism. In a bar in Rangoon, you scan the array of unfamiliar spirits on offer, and suddenly the thought occurs: “What would John Terry drink?” |
Luckily, help is at hand. Grand Royal, one of Burma’s most popular whisky brands, is Chelsea FC’s “whisky partner” in the football-mad south-east Asian nation. The tie-in includes Chelsea-themed bottles of the spiritand training sessions in Burma by coaches from the London club. | Luckily, help is at hand. Grand Royal, one of Burma’s most popular whisky brands, is Chelsea FC’s “whisky partner” in the football-mad south-east Asian nation. The tie-in includes Chelsea-themed bottles of the spiritand training sessions in Burma by coaches from the London club. |
The drinks firm is among 21 companies that pay varied, and generally undisclosed, amounts of money to be brushed with the Chelsea brand, ranging from “principal partners” such as Adidas to “club partners” which include an airline, a beer and an energy supplier, and regional sponsors such as Grand Royal. | |
Even a brief glance through the accounts of most top Premier League clubs reveals the sheer number of such assorted sponsors, as well as the huge sums they contribute. It also provides an instant financial map of English football’s main overseas fanbases, principally Asia and, to a lesser extent, west Africa. | Even a brief glance through the accounts of most top Premier League clubs reveals the sheer number of such assorted sponsors, as well as the huge sums they contribute. It also provides an instant financial map of English football’s main overseas fanbases, principally Asia and, to a lesser extent, west Africa. |
Such is the global reach of the Premier League that non-UK commercial deals are arguably far more important these days to top clubs. Games are now broadcast in 212 countries and territories, with the league claiming a worldwide TV audience of 4.7 billion people. | |
Despite their recent on-field travails, Manchester United remain the undisputed kings of such deals. In 2014, the club raised £189m in revenue from commercial tie-ins, 44% of its income, up from £61m, which was 24% of total income, in 2008. | |
While British fans will be familiar with the Chevrolet logo on Manchester United shirts, and the £750m kit deal with Adidas, further down the commercial chain things become more interesting. | While British fans will be familiar with the Chevrolet logo on Manchester United shirts, and the £750m kit deal with Adidas, further down the commercial chain things become more interesting. |
A United fan of similarly fervent bent to our hypothetical Chelsea acolyte in Burma could travel much of the world and enjoy a range of approved products, more often than not officially endorsed by players appearing in slightly awkward-looking photoshoots or TV adverts. | A United fan of similarly fervent bent to our hypothetical Chelsea acolyte in Burma could travel much of the world and enjoy a range of approved products, more often than not officially endorsed by players appearing in slightly awkward-looking photoshoots or TV adverts. |
Manchester United’s top-tier “global partners” include one for sustainable technology (Spanish multinational Abengoa), aperitif drinks (Aperol Spritz of Italy) and wine (Chile’s Casillero del Diablo). A small step down to “official partners” brings even more options, including diesel engines (Yanmar of Japan) and instant noodles (Nissin Foods, also Japanese). | |
The latter tie-up was announced last year by Richard Arnold, group managing director, who praised the noodles for “setting a standard that has been emulated the world over”. There was even a Japanese cartoon advert featuring Wayne Rooney, Robin van Persie and Ángel Di María woodenly intoning the “hungry to win” slogan. | The latter tie-up was announced last year by Richard Arnold, group managing director, who praised the noodles for “setting a standard that has been emulated the world over”. There was even a Japanese cartoon advert featuring Wayne Rooney, Robin van Persie and Ángel Di María woodenly intoning the “hungry to win” slogan. |
Manchester United were the first club to create an international sales division and fully exploit the reach of the Premier League, according to Nigel Currie, a global sports marketing consultant. | Manchester United were the first club to create an international sales division and fully exploit the reach of the Premier League, according to Nigel Currie, a global sports marketing consultant. |
“The traditional model was to get in a main sponsor, a few subsidiary sponsors and settle for that, but the growth and exposure of the Premier League has been so great that the clubs have realised they have more equity than first thought,” he said. | “The traditional model was to get in a main sponsor, a few subsidiary sponsors and settle for that, but the growth and exposure of the Premier League has been so great that the clubs have realised they have more equity than first thought,” he said. |
“Manchester United led the way because they were a global brand before any of the other clubs were. They were a brand from the 70s onwards but the Premier League has made a lot of other clubs brands as well. It’s something that has taken time for them all to organise and sort out but they now are. | “Manchester United led the way because they were a global brand before any of the other clubs were. They were a brand from the 70s onwards but the Premier League has made a lot of other clubs brands as well. It’s something that has taken time for them all to organise and sort out but they now are. |
“Even a few years ago when Vodafone were the main sponsors of Manchester United, they got most of the equity and benefits in the club because they were main sponsors. Now you’ve got Chevrolet who are paying much more but there are a number of other sponsors as well – all big, big deals.” | “Even a few years ago when Vodafone were the main sponsors of Manchester United, they got most of the equity and benefits in the club because they were main sponsors. Now you’ve got Chevrolet who are paying much more but there are a number of other sponsors as well – all big, big deals.” |
Other top teams are catching up, but image-based global marketing requires time and a lengthy record of success on the pitch. | Other top teams are catching up, but image-based global marketing requires time and a lengthy record of success on the pitch. |
Thus, even though Manchester City are faring better in the league than their neighbours, their commercial revenue remains lower, at £166m for 2013/14. Much of this also comes from companies around Abu Dhabi, home of the club’s super-wealthy owners. | Thus, even though Manchester City are faring better in the league than their neighbours, their commercial revenue remains lower, at £166m for 2013/14. Much of this also comes from companies around Abu Dhabi, home of the club’s super-wealthy owners. |
Either way, the ever-increasing raft of deals means global commercial duties are a part of the professional life of many top Premier League footballers. | Either way, the ever-increasing raft of deals means global commercial duties are a part of the professional life of many top Premier League footballers. |
This, in part, involves overseas tours. Chelsea, at whose Stamford Bridge stadium the Thai brewer Singha has “exclusive lager pouring rights”, have played in Thailand for three of the past five years. | This, in part, involves overseas tours. Chelsea, at whose Stamford Bridge stadium the Thai brewer Singha has “exclusive lager pouring rights”, have played in Thailand for three of the past five years. |
It can also mean extra-curricular duties for the more recognisable players. Last week a new TV promotion for a Nivea moisturiser was released, starring Liverpool midfielder Adam Lallana. The ad had been hastily re-shot to replace one featuring Raheem Sterling, who £49m later, has moved to Manchester City. | It can also mean extra-curricular duties for the more recognisable players. Last week a new TV promotion for a Nivea moisturiser was released, starring Liverpool midfielder Adam Lallana. The ad had been hastily re-shot to replace one featuring Raheem Sterling, who £49m later, has moved to Manchester City. |
Among all this, and mentioned far less often than the money, are some ethical considerations. Among Manchester United’s long list of regional partners, including motorbikes in Thailand and soft drinks in Nigeria, is a confectionery deal for Burma. | Among all this, and mentioned far less often than the money, are some ethical considerations. Among Manchester United’s long list of regional partners, including motorbikes in Thailand and soft drinks in Nigeria, is a confectionery deal for Burma. |
While Burma has seen some reforms, it is ruled by a military junta and remains the focus of serious human rights concerns, meaning any tie-ins need to be handled sensitively. For example, Chelsea’s Grand Royal deal involves the club supporting Burma’s fledgling football league, hence the coaches’ visit to the country. | |
Other messages can be more mixed. In May, Arsenal players Mesut Özil and Per Mertesacker visited a programme run jointly by the club and human rights charity Freedom from Torture. Six months earlier, Theo Walcott, Jack Wilshere and Lukas Podolski, three of their teammates, posed with a giant Arsenal-badged Visa card to promote a commercial partnership with a bank in Kazakhstan. | Other messages can be more mixed. In May, Arsenal players Mesut Özil and Per Mertesacker visited a programme run jointly by the club and human rights charity Freedom from Torture. Six months earlier, Theo Walcott, Jack Wilshere and Lukas Podolski, three of their teammates, posed with a giant Arsenal-badged Visa card to promote a commercial partnership with a bank in Kazakhstan. |
Turn to another web page, that of Human Rights Watch, and one learns that, along with restrictions on assembly, free speech, and religion, torture remains “a serious problem” in Kazakhstan. | Turn to another web page, that of Human Rights Watch, and one learns that, along with restrictions on assembly, free speech, and religion, torture remains “a serious problem” in Kazakhstan. |
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