Thursday, March 18, 2010

Manchester United aiming to exploit huge sponsorship opportunities in India

United's London-based commercial operation, which has secured 15 lucrative sponsorship agreements worth in excess of £130 million since its inception in 2008, has conducted a detailed study into the opportunities open to the club in India.

And with the Glazer family continuing to view the club's off-field appeal as a key factor in their ability to drive down their £716.5 million debt, results have highlighted United's huge potential in the country. A five-year deal, worth £12 million, with the Indian mobile communications company Bharti Airtel was sealed last May and moves are now underway to extend United's links to India, with the likelihood of Sir Alex Ferguson's team visiting the country within the next two years.

United's research has shown that they have 20 million supporters in India, with their fixtures broadcast to 1.15 billion homes in 2008-09. And in a direct comparison with the 2008 Formula One season's final grand prix from Sao Paulo, which attracted 156 million viewers in India, United's Champions League final victory against Chelsea in May 2008 was watched by 267 million people in the country.

In an effort to forge closer ties with India, the club recently hosted a global brands event – in an Old Trafford suite dominated by vast images of Wayne Rooney, Michael Owen and Ji-sung Park - staged by +91 Europe, a network of Indian CEO's, which was aimed at emphasising United's value to prospective Indian partners.

Rakesh Rawal, founder of +91 Europe, said: "Until 10 years ago, everybody returning to India from the UK would be asked to take one thing home to his friends and family – a bottle of Johnnie Walker Black Label whisky. Now, the first request is for a red Manchester United shirt, then a bottle of Johnnie Walker Black Label whisky!

"As India has largely shrugged off the global downturn, I can see many Indian multi-nationals becoming household names in the next five to 10 years and it will be fascinating to see which Indian companies embrace global sports like football to enhance their global brand recognition."

The Glazers' determination to 'sweat the brand' has been borne out with a host of territory-specific deals being signed recently. Last Thursday, a five-year agreement with Telekom Malaysia was announced, followed by a £7 million tie-up with Turkish Airlines on Monday. on Thursday, United will announce an African sponsorship deal.

United's focus on India was sharpened by the interest in Bayern Munich's visit to Kolkata in May 2008, which saw 120,000 fans turn out to watch the Germans.

A Manchester United cafe has been launched in India and coaches have travelled to the country to help identify and train youngsters capable of guiding India to qualification for the 2022 World Cup. But while United have no plans to 'dilute the brand' by acquiring an IPL franchise, the club are determined to make their mark in India.

Casper Stylsvig, United's sponsorship manager, said: "In Europe, 86 per cent of all sponsorship goes to sport. In India, that figure is just 10 per cent.

"We expect that to change. Football is the second-most popular sport behind cricket in India and there is a huge English-speaking audience who actively watch football.

"We know we have a long way to go in terms of realising the club's potential off-field earnings, especially in comparison to the likes of the New York Yankees or Dallas Cowboys.

"But the reason companies like AIG and Aon have chosen to put their name on our shirt is because we can raise brand awareness. Within a year of starting their shirt deal, AIG went from outside Business Week's Top 100 global brands to number 47."

Stylsvig's claims of United's brand value are supported by Sharp, the electronics company whose 18-year shirt sponsorship deal with the club ended in 2000.

Sharp communications manager Martin Arnold said: "When you say Sharp to people today, many of them either bring up Manchester United or microwave ovens that have lasted for 20 years.Since we stepped away from Manchester United, the awareness of Sharp has fallen." With United due to tour North America this summer, a trip to India may have to wait until 2011, though.

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