SociableSport

Naming Rights - This Time It's Stamford Bridge


It seems the naming rights saga has caught fire among the English FA Premier League . On the back of Newcastle United's announcement that St. James' Park is to be known as the "sportsdirect.com @ St. James' Park", Chelsea's Chief Executive Ron Gourlay has now revealed that Chelsea are preparing to follow the lead by selling the naming rights for Stamford Bridge. Like Ashley and Co. at Newcastle, Gourlay is insisting that the associated brand will only be able to add to the name, rather than actually change the name of the stadium altogether. 'Stamford Bridge' would therefore be retained in the name along with the assocation with "a suitable blue-chip company."

"Retaining the heritage of the stadium is paramount to considering such a move but we think that is achievable and on that basis we would enter into discussions over naming rights with the right partner for Chelsea", Gourlay told Chelsea TV.

"We understand that this is a sensitive issue for our fans and that is why we would keep the name Stamford Bridge in any deal".

Could it be that scenes like the below are soon to be a thing of the past within the giants of the game? Surely Abramovich doesn't need the money as much as Chelsea need the identity of their stadium?

A sensitive issue indeed, but Gouray feels that the financial advantage of selling the rights is essential.

"What we are not prepared to happen, and I am sure our fans will appreciate this, is allow our rival clubs in England and Europe to gain a competitive advantage over us in terms of the revenue they can generate through either expanding the capacity of their existing stadia or moving to a new stadium and then invest that upside in their team or the club. Those possibilities are not open to Chelsea for the foreseeable future because of the restrictions in expanding our stadium and the issues around finding a new site, so that means we have to be creative and look at our sponsorship architecture and see if we can create new value and new opportunities that keeps us competitive".

In 2004, Emirates paid Arsenal £50million to acquire naming rights on their new Ashburton Grove stadium for 15 years, and Allianz is charged £4m every twelve months for Bayern Munich's ground to bear its name. In the USA, Citigroup pay £10m so for the new New York Mets baseball arena, now called Citi Field.

Check out http://chelseafc.com for more information.

"sportsdirect.com @ St James' Park Stadium" - What do you make of the change?


"With the renaming it was always going to be whatever brand it was, at St James' Park. For the remainder of this season, we already have sportsdirect.com on the Gallowgate so we'd like to take that branding through the rest of the stadium."
Derek Llambias, Manging Director

Tampering with brand equity is risky business, particularly when the equity is built by generations of sports fanatics.

How do you think it's going to be received by the Newcastle United faithful? In changing the Official Name of Newcastle United's home ground, are they changing the very essence of the club itself?

Post your comments below and read more on the debate on BBC Sport's 606 debate

'Benefiting The Whole Football World' - East Against West, Frank Lowy and The FIFA World Cup

"We are able to show that bringing the game to Australia and having the Asian continent with us at the same time-zone will benefit not only Australia, not only Asia, but the whole football world"
Frank Lowy, Chief of Australia's FIFA World Cup Bid and Australia's Richest Man


Asia comprises the world's fastest growing economies, the fastest growing television and media audiences and the fastest growing consumer markets. Intuitively, Lowy's claim seems to be sensible. But how valid is this regional bias? The three points below try to open this up a bit.

1. The combined audiences for West and East are broadly similar


By looking at FIFA's published TV and Out Of Home (which includes pubs and other public viewing areas) cumulative viewing figures by region we can compare the 2002 World Cup held in Asia with the 2006 World Cup held in Europe.

In terms of the number of viewers, comparing Europe with Asia is hard to swing in Europe's favour. In 2002 there were 2.7 Asian viewers to every European viewer. In 2006 this figure was cut to 1.6 but still, this is a huge difference.
However, this only takes into account numbers for Asia and Europe. 'East' and 'West' is much broader.

By grouping together figures for Europe with North America, South America and Central America (EurAm) we get a better idea of what Western audiences actually add up to. We can then compare this with an Eastern group comprised of the Asia and Oceana (APAC). When we look at East vs. West in this hollistic way we get a slightly more even result. In the 2002 World Cup, held in Asia, there were only 1.3 Eastern (APAC) viewers to Western (EurAm) viewers but in the 2006 World Cup there were 1.2 Western viewers to Eastern viewers - despite the fact that the Germany World Cup was broadcast in 11 fewer EurAm territories than the 2002 World Cup.

So there wasn't that big a difference after all.

The audiences are pretty much similar from East to West. The drop off in audience attributable to changes in time-zones is nearly identical with both regions losing roughly 7% of their audience when the games were shown at more unsociable hours. Let's not forget, though, that with China's population alone being double that of the whole of Europe, Asia's 7% certainly represents more people. This brings us on to our next point - although the audiences are roughly the same, and the drop off is the same, advertisers will look for efficiency over reach and this may present the West with another argument against the Lowry.

2.  Rights fees are based on efficiency, not just reach 

Lowry also spoke about the revenue that an Australasian World Cup would bring in. He didn't go into specifics in the article I read but someone told me he'd quoted a difference of +$1bn. That's a lot of money and I'm not sure where he gets it from. Despite offering huge reach, there's going to be an awful lot of wastage in a market where the audiences are almost inconceivably large. In EurAm, penetration is much higher with a greater proportion of the total populations watching or experiencing the tournament. I don't want to waste any money speaking to people who aren't in the mood to listen, especially if there's millions of them.

Also, because there aren't many national broadcasters in the regions, the scope for competition among those looking to secure broadcast rights is smaller. Coupled with the lack of efficiency, this makes for risky - and tricky - business for those formulating broadcast revenue prediction models. Although, broadcast revenue isn't the only source of income from the tournament.

3.  A successful event needs the stadia to be full

Although we hate to admit it, everyone secretly loves the English. English football fans, like many of our counterparts, bring with them a fantastic enthusiasm for the game that heralds from decades of disappointment and ecstasy from following the nation's team. World Cup tournaments need these fans. They need them to fill up the stadiums and prevent what happened at some of Beijing's Olympic events where organisers had to give tickets away to locals for free (retail price was very high - around £90 per ticket) in order to fill the seats. In Sydney's Olympic games, kids were actually transported to the venues by buses to fill the venues with the right kind of audience.

What's the lesson here? Big TV audiences don't necessarily equate to a success on a national level.

We have a little time to go before the decisions for 2018 and 2022 will be made (December 2010) but at the moment, it seems as though the argument isn't as black and white as we may have originally thought. Let's see what FIFA say.

You can read more about Lowry's argument here
Picture found here


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