June 03, 2010: Global event posts sharp increase in revenue after adopting new approach to sponsorship with IEG’s help
For More Information Contact:
William Chipps, IEG, LLC, Tel: 312/944-1727
william.chipps@sponsorship.com
sponsorship.com
Chicago, Ill. – A revamped sponsorship strategy has paid huge dividends for FIFA World Cup.
The international soccer tournament will have generated $1.6 billion in sponsorship revenue during the ’07-’10 quadrennium, up from $584 million in the ’99-’02 period, according to IEG Sponsorship Report, the world’s leading authority on sponsorship.
FIFA achieved that success in part by creating three sponsorship tiers: FIFA Partners, FIFA World Cup Sponsors and National Supporters.
The top-tier Partner packages afford global rights to a broad array of FIFA activities—including World Cup, other competitions and special events—as well as exclusive marketing assets.
FIFA works with six companies at the Partner level, each of which is paying an annual fee between $24 million and $44 million as estimated by IEG SR: Adidas, Coca-Cola, Emirates Airlines, Hyundai/Kia, Sony and Visa.
Companies at the World Cup Sponsor level receive rights to the event on a global basis, including category exclusivity, select marketing assets and secondary media exposure.
Eight companies have signed up for World Cup Sponsor packages at annual fees of between $10 million and $25 million: Anheuser-Busch InBev’s Budweiser, BP Castrol, Continental tires, McDonald’s, MTN, Mahindra Satyam, Seara and Yingli Solar.
National Supporters receive the right to promote an association with FIFA World Cup within the host country—this year South Africa—as well as category exclusivity, domestic media exposure and other benefits.
FIFA works with six companies at the National Supporter level, each of which is paying between $4.5 million and $7.5 million a year: BP Africa, FNB, Neo Africa, Prasa and Telkom.
IEG’s Role In FIFA’s Success
Following the ’02 World Cup, FIFA began exploring the possibility of offering fewer, more exclusive sponsorship opportunities in hopes of maximizing potential revenue by offering a broader package of rights and a less cluttered environment to a small group of partners.
To gauge what the new sponsorship packages and tiers would be worth to potential partners, FIFA turned to IEG’s Valuation Service.
IEG’s sponsorship valuation experts began by forecasting the global marketing, economic and cultural conditions for the 2007-2010 time period. As part of the forecast they thoroughly analyzed FIFA’s competitive landscape and conducted an independent, third- party valuation of FIFA’s assets.
Armed with IEG Valuation statements justifying the worldwide rights fees, FIFA quickly sold in the new packages at significantly higher fees.
About IEG, LLC
IEG is the world’s leading provider of independent research, consulting, training and analysis on sponsorship. Founded in 1981, IEG provides corporations and properties with the strategies and tools to harness the sales and marketing power of sports, arts, entertainment and cause marketing.
IEG offers services that include sponsorship consulting, competitive intelligence and valuation. IEG also publishes IEG Sponsorship Report, the international online newsletter on sponsorship; the IEG Sponsorship Sourcebook, the definitive guide to sponsors, properties and agencies; and other industry publications and sources.
IEG also is the leader in sponsorship training. Its internationally renowned Sponsorship Conference, now in its 28th year, attracts a capacity crowd of delegates each year. Through its conferences, seminars and webinars, IEG has trained more than 45,000 sponsorship executives worldwide.
For more information about IEG and the sponsorship industry, please visit www.sponsorship.com or call 800/834-4850 (outside the U.S. and Canada, 312/944-1727).