24.01.2013

A SPONSORSHIP BUBBLE READY TO BURST?

You only need to look at a premiership football club's wage bill vs. stadium capacity to understand the recent reliance on sponsorship and broadcast income. Without both,  football is no longer sustainable and with  broadcast rights hitting the ceiling, clubs need to innovate and Manchester United  can afford the luxury of doing so. However we must not forget the principles of sponsorship's success........ Advertisers turned to sponsorship to cut through the advertising clutter, creating exclusive partnerships that their rivals couldn’t enjoy, then the media world fragmented and they realised they could speak to captive and engaged consumers. This is why sponsorship spend continues to increase vs. advertising's decline. Signing 36 sponsors demonstrates the power of Manchester United.  Their innovation should be applauded but 36 sponsors with a limited inventory, diluted category and geographic exclusivity competing for a fickle, 'global broadcast driven fan base' (Barcelona has more fans in China than in Spain) doesn’t feel like the principles of sponsorship's success.

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