Shirt Sponsors (or the lack thereof)

Discussion in 'MLS: News & Analysis' started by lfcli30, Feb 9, 2014.

  1. lfcli30

    lfcli30 Member

    Jun 21, 2005
    New York
    Club:
    Liverpool FC
    Nat'l Team:
    United States
    Just a quick analysis done here, but it seems as if clubs are losing their shirt sponsors more often in recent years and (a bit concerning in my view) not getting new ones in a relatively short period of time.

    Here's a quick look at the state of the league:

    Chicago: Quaker
    Chivas: Corona
    Colorado: None
    Columbus: Barbasol
    DC: None (lost VW, no replacement)
    Dallas: Advocare
    Houston: None (lost GreenStar, no replacement)
    KC: Ivy Funds
    LA: Herbalife
    Montreal: BMO
    New England: United Health Care
    New York: Red Bull
    Philadelphia: Bimbo
    Portland: Alaska Airlines
    Salt Lake: LifeVantage (new 2014)
    San Jose: None (lost Amway)
    Seattle: Xbox
    Toronto: BMO
    Vancouver: Bell

    For a 19 team league, it seems a bit bizarre that there are still 4 clubs with no major shirt sponsorship. Outside of Houston, these four clubs have been struggling in recent years as well, and this is a very big financial blow to DC United in particular.

    The ones that are a bit...confusing (at least to me anyway) are Houston - which is in a major market and has been in MLS Cup finals frequently in recent years - and Colorado, which seemingly has made no progress in getting a sponsor over the past 5 years.

    I'm pretty interested in the business side of the league, and it seems like 4 out of 19 teams missing out on multi-million dollar partnerships is not a good thing. Have there been any indications that these four clubs will be getting sponsors in the near future?
     
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  2. MLSFan123

    MLSFan123 Member+

    Mar 21, 2011
    Boston Area
    Club:
    New England Revolution
    Nat'l Team:
    United States
    DC appears to be close. This was a tweet from a couple of days ago



    Steven Goff (@SoccerInsider)
    2/6/14, 11:52 AM
    D.C. United close to finalizing primary sponsor, I'm told. Probably not in time for unveiling of new jersey design on Feb 15 #dcu
     
  3. RapidStorm

    RapidStorm Member+

    Jan 30, 2005
    Denver, CO
    Oh, it's not just "seemingly". At this point, it feels like listening to a State of the Union address:

    'There's no lack of companies interested, it's finding the right company with the right deal,' Plush said." - January 29, 2009

    "Plush: We are essentially back starting the process again. The world has changed pretty dramatically for everyone. We are repositioning our proposition. It’s going well but we are kind of at square one again. We can move very quickly. Beginning of the 2011 season is likely." - August 2, 2010

    “'We’ve had a lot of meetings and we are very bullish on where that is going to land,' [Plush] said. 'There is a lot of confidence we will get closure in the near future.'” - December 21, 2010

    "'Our objective has always been this year, and I know it will be a 2011 result,' [Hinchey] said. 'I don’t see this taking us past the regular season and I would like to think it will be before the end of July.'" June 1, 2011.

    "We have new business coming through, we are ahead of last year in new season tickets, we are making great progress but, ultimately, we have to get the shirt deal done. It’s on me and it is an absolute focus for me in 2012.” - Hinchey, January 17, 2012

    “Denver is the 18th sized market and we have as many professional sports team as the New York market so when you talk about a share of voice for your brand, you have to be very clever to deliver what is required to be successful,” said Hinchey. “After having success delivering one for Derby County, I thought we could come in, take the same best practices and get it done, but it’s not gone as fast as I thought.” November 13, 2012​


    Sensing a pattern?
     
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  4. Stan Collins

    Stan Collins Member+

    Feb 26, 1999
    Silver Spring, MD
    Rep for the most well-sourced post I've seen in a long time.
     
  5. JasonMa

    JasonMa Member+

    Mar 20, 2000
    Arvada, CO
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    redinthemorning repped this.
  6. UNION S.C.

    UNION S.C. Member

    Feb 15, 2007
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    DC and Houston will probably have sponsors soon. I am shock SJ does not have one, but i think it will be a package deal with the new stadium naming rights. Colorado will be the last I feel.
     
  7. soundermiki

    soundermiki Member+

    May 24, 2009
    Seattle
    Club:
    Seattle Sounders
    Nat'l Team:
    United States
    That is a pretty damning series of stories/quotes. For you Colorado folks, what do you think the overriding issue is here?
     
  8. FoxBoro 143

    FoxBoro 143 Member+

    Jan 18, 2004
    MA
    Nat'l Team:
    United States
    They already have the stadium rights sold so they can't package that and they have only recently had their attendance start improving?
    The Revolution are lucky to be on this list. UHC had approached the Krafts about a partnership of some sort with the Patriots. Part of that deal ended up including the Revs shirts. Had UHC not approached the Revs and had the deal packaged in with the Patriots, I have a solid feeling the Revs would not have a sponsor. Which honestly would not bother me, I know none of that money has gone back into the product so I would rather see Revolution across the shirts!
     
  9. lfcli30

    lfcli30 Member

    Jun 21, 2005
    New York
    Club:
    Liverpool FC
    Nat'l Team:
    United States
    Yeah, couldn't spell it out any clearer. I like what the club has done in recent years in terms of kits and whatnot. It's just surprising that a club with an MLS Cup to its name and a very nice facility can't get anything done. Is it incompetence or just a legitimate lack of interest on the part of local/national businesses?
     
  10. lfcli30

    lfcli30 Member

    Jun 21, 2005
    New York
    Club:
    Liverpool FC
    Nat'l Team:
    United States
    I dunno about Houston. It seemed insane to me that they couldn't snag a sponsor for their first year in a brand new stadium. They're going on almost two years without a kit sponsor at this point, and there is no shortage of businesses cropping up and expanding in that city too.
     
  11. JasonMa

    JasonMa Member+

    Mar 20, 2000
    Arvada, CO
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    Incompetence. This is the same group who have let to name a head coach less than 5 weeks from opening day.

    Hinchey seems to have a very narrow set of parameters for an "acceptable" company and is only now starting to widen his parameters. Up until last year he was looking really only at Colorado companies who shared the Rapids same "values". Now they've hired a firm to help look over a broader spectrum of options.

    Strong rumors/leaks in the past have linked deals "almost" done with Chipotle, Coors, and Westerra credit (who became a presenting sponsor of the team, but not a jersey sponsor). It sounds like the Coors deal was done and handshake-agreed with the head of Coors, but the overall head of MolsonCoors killed it and wouldn't sign the contract.
     
  12. GunningforMLS1993

    Aug 28, 2013
    Club:
    New York Red Bulls
    I would love to see Fly Emirates on the Colorado jerseys. Would make sense to me considering the Kronke connection.

    That or Walmart :p
     
  13. Totoro

    Totoro Member+

    Dec 3, 2009
    Colorado
  14. Totoro

    Totoro Member+

    Dec 3, 2009
    Colorado
    BTW, kudos to RapidStorm for figuring out how to make a link look like a link on BS. Write your text, underline it, then apply the hyperlink.
     
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  15. Totoro

    Totoro Member+

    Dec 3, 2009
    Colorado
    I'm more surprised it's only 4. A million dollars or more/year seems like a pretty big advertising deal. Aside from a handful of teams, what do you get for that? People don't watch the games on TV for the most part, and teams likely trail NFL/MLB/NBA/NHL for the most part in jersey sales. I'm sure people here will chime in with the magic words of "youthful demographic" but the overall size of the MLS pie in most markets still seems small.

    So to me, the league seems to be doing very well here.
     
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  16. redinthemorning

    redinthemorning Member+

    Apr 26, 2011
    Club:
    Houston Dynamo
    Nat'l Team:
    United States
    That's not accurate. The Greenstar was terminated last February. From what I've been told, the team received a sizable buyout, so it's not really a financial issue until we get deep into this year.

    Houston has a very vibrant business community, but it's not necessarily concentrated in consumer products. Combine that with current sponsor conflicts (you can't get Shell on the jerseys when StatOil already has their name above the Northeast Gate), and it makes it more difficult to find a kit sponsor.

    EDIT: I'd also like to point out that there are different classes of shirt sponsor. IIRC, deals like Chicago/ Quaker and Seattle/ XBox involve league-wide advertising deals. That changes the equation a bit.
     
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  17. JasonMa

    JasonMa Member+

    Mar 20, 2000
    Arvada, CO
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    Hinchey has said (reading between the lines a bit) that the league has offered the Rapids help to find a deal like this (and also the Crew/Barbasol deal) but that the Rapids haven't taken them up on it, preferring to keep full control of the process.
     
    redinthemorning repped this.
  18. Totoro

    Totoro Member+

    Dec 3, 2009
    Colorado
    Kroenke could advertise his other sports properties. He could advertise all of them, including the stadia. That would be ashtray money from each of Arsenal, the Rams, Avs, etc.
     
  19. Goodsport

    Goodsport Moderator
    Staff Member

    May 18, 1999
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
  20. GunningforMLS1993

    Aug 28, 2013
    Club:
    New York Red Bulls
    There is a giant ass Arsenal logo at the Dick. Surprised no fans have destroyed it yet.
     
  21. Totoro

    Totoro Member+

    Dec 3, 2009
    Colorado
    Why would they want to destroy it? Heck, at the start of games and after Rapids goals they fire the cannon from the Arsenal corner.
     
  22. GunningforMLS1993

    Aug 28, 2013
    Club:
    New York Red Bulls
    Fans of Arsenal rivals. All you need is a couple of Tottenham fans talking on the train about where they are sitting and having the guy who got the tickets saying "Ya, we are sitting in the section in front of that Arsenal logo."
     
  23. RapidStorm

    RapidStorm Member+

    Jan 30, 2005
    Denver, CO
    Yeah, the second time he used that line about losing sleep, I rolled my eyes. Now, a third time? I can only laugh; it was terrible hyperbole to begin with, and even less believable when you admit you'd hired someone else (the 3rd party) to take care of the problem for you.
     
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  24. JasonMa

    JasonMa Member+

    Mar 20, 2000
    Arvada, CO
    Club:
    Colorado Rapids
    Nat'l Team:
    United States
    There are (sadly ;)) multiple Tottenham fans in Centennial 38 who stand in the Terraces in front of the logo. Nobody cares.
     
  25. UNION S.C.

    UNION S.C. Member

    Feb 15, 2007
    Los Angeles, CA
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    [I'm more surprised it's only 4. A million dollars or more/year seems like a pretty big advertising deal. Aside from a handful of teams, what do you get for that? People don't watch the games on TV for the most part, and teams likely trail NFL/MLB/NBA/NHL for the most part in jersey sales. I'm sure people here will chime in with the magic words of "youthful demographic" but the overall size of the MLS pie in most markets still seems small.

    So to me, the league seems to be doing very well here.[/quote]

    I agree with this. Most teams do have jersey sponsors and are still fighting for media attention.
     

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