How money from EURO 2024 circulates! Sports sponsorship, strategic investment

2024-06-13 08:20:06 / SPORT ALFA PRESS

How money from EURO 2024 circulates! Sports sponsorship, strategic investment

The European Football Championship is starting with the throwing of not only the ball, but also the Euros. The sponsors of the championship teams come mainly from overseas countries, especially from China. Why does this happen?

The wording is not figurative: A scream was heard throughout the land. What happened? The German national football team has been on the field for 70 years in a row with T-shirts produced by the Adidas company. But very soon this will end. On March 22, the German Football League (DFB) announced that after 2027, Nike from the USA will be the company that for seven consecutive years will equip the German football team. This business will bring in at least double the money that the partnership with Adidas brought in, the DFB announced.

With the introduction of football boots in the 1954 World Cup, Adidas contributed greatly to the victory of the German team in the matches that took place in Switzerland.

With this kind of boots, new at the time, the Germans had a huge advantage over the Hungarian team, which was the team expected to win in the match played on the rain-soaked grass of the Bern stadium. In the decades that followed, the DFB's partnership with Adidas turned into an almost symbiotic partnership.

Many football fans were speechless, in business circles there was a lack of understanding, members of the German government criticized the DFB. Health Minister Lauterbach (Social Democratic Party) told X (former twitter) that "I think it's a wrong decision, where trade violates a piece of tradition and a piece of the homeland."

The Minister of Economy, Habeck accused that "Adidas and the colors black-red and yellow have been one for a long time. They have been part of the German identity. I wish we had a little more patriotism about it.”

Unwanted market participants

A few weeks later there was another shock for the traditionalists: the Chinese car manufacturer, BYD, will be one of the main sponsors of the European Men's Football Championship and has already made available a fleet of electric cars. BYD – and not Mercedes or VW! In fact, not a big sensation, because during the matches held on its own field for the 2006 World Championship, it was the Korean company Hyundai that took the place of the German car manufacturers.

It is not easy to learn about the reasons that led to such a decision. The DFB declined to respond to questions from Deutsche Welle and said questions should be directed to the championship's organizer, the European Football League, UEFA, which is based in Nyon, Switzerland. But there, too, no one wanted to answer Deutsche Welles' questions.

Ata dërguan një listë të shkurtër me pesë partnerët që marrin pjesë në biznes: Adidasi prodhon „topat e lojës dhe pajisjet për vullnetarët dhe punonjësit”, automobilët janë përgjegjës për teknologjinë e informacionit gjatë ndeshjeve dhe BYD ka vënë në dispozicion „që tani një flotë automobilësh elektrikë”. Po ashtu radhiten edhe Coca Cola („që kujdeset që tifozët, vullnetarët dhe zyrtarët të mos dehidratohen”) dhe sipërmarrja gjermane e transportit hekurudhor, Deutsche Bahn, që ofron bileta me „çmim special” për kampionatin.

Një studim i bërë nga Universiteti i Hoffenheim-it nën drejtimin e Profesorit Markus Voeth, publikuar në muajin qershor, thotë se Adidasi njihet më shumë nga gjithë sponsorizuesit e tjerë: Rreth 56 përqind e gjermanëve e dinë se prodhuesi i artikujve sportivë është sponsorizues i kampionatit. Ndërsa „shumë më pak të njohur janë sipërmarrjet si Betano dhe Atos, që sponsorizojnë me nga rreth 3 përqind të kampionatit, por që njihen pak nga gjermanët si të tillë.”

Avantazh Kina

Për të mësuar diçka më të rëndësishme lidhur me sponsorët, pyesim profesor Henning Vöpel. Ky ekonomist, drejtor i Qendrës për Politikën Europiane, mendon se thirrja që për një aktivitet që zhvillohet në Gjermani, siç është Kampionati Europian, sponsorë të jenë firmat gjermane është e çuditshme. Ai tha për Deutsche Wellen: “Mallrat e konsumit janë tregje të zgjeruara globale dhe futbolli ka përhapje globale, sidomos gjatë një aktiviteti të tillë siç është Kampionati Europian. Është shumë e qartë se edhe tregu i sponsorizuesve funksionon në mënyrë globale. Globalizimi i ekonomisë dhe komercializimi i futbollit ecin paralelisht me njëra tjetrën.”

Por Vöpel thotë se jo të gjithë partnerët e UEFA-s vijnë nga përtej detit. Dhe për arsyen e duhur: „Sidoqoftë krah sponsorizuesve nga bota ka edhe sponsorizues kombëtarë. Nëpërmjet këtij diferencimi UEFA është në gjendje të marrë maksimumin e fitimit nga sponsorizimi dhe njëkohësisht të ruajë „ndjenjën” e frymës kombëtare.”

Dhe si merret vendimi nga organizatorët e aktivitetit për të pranuar ose mos pranuar një sponsorizues? „Në parim UEFA merr vendim sipas dy kritereve,” thotë Vöpel: “Kush ofron më shumë? Dhe kush është më interesant nga pikëpamja strategjike?” Prandaj nuk është çudi që pesë sponsorizues globalë të vijnë nga Kina: “Ata janë më të interesuar dhe si pasojë ofrojnë gatishmëri më të madhe për të paguar në një sponsorizim të tillë.”

Lëvizjet e tregut

Sponsorizimi i sportit nuk është biznes që fillon e mbaron brenda një dite, por është një investim strategjik. Henning Vöpel thotë se: “Sponsorizim nuk do të thotë se pagesa bëhet menjëherë me derdhje parash në dorë. Bëhet më shumë fjalë për pozicionim strategjik, njohje në treg dhe vëmendje mediatike.”

And beverage conglomerates or sporting goods manufacturers often come from oligopoly markets, where a few firms have a monopoly on the market. There is a great temptation to not be intimidated by the few big competitors. What is required is presence in the country. The goal is to withstand the competition."

That's why we have to talk once again about the example of Adidas, the company that has been the symbol of the DFB, but also the other way around. A certain strategic relationship may make sense, "because this is how trust and values ​​are better developed in the market." But there comes a day when these effects diminish. This is how new movements are created in the markets."

It's better not to talk about money

One of the questions remains open: Why don't the participants talk about the money they receive? One of the explanations for this is that talking too much about money can damage the basis with which football officials enter into negotiations. On the one hand, football clubs are often non-profit organizations and therefore pay low taxes. During major championships, such as the one currently taking place in Germany, it often happens that the income during the championship does not need to be taxed in the country of the organizer.

On the other hand, many fans may be outraged if they hear how large the sums of money are that go to the number of club accounts. If they become aware of how much money is actually given for a game and especially for other things surrounding the game, then they may feel cheated. Both of these things are not good for customer relations.

Speaking to German television WDR, marketing expert Dr. Peter Rohlmann explains the high price of fan devotion this way: "Emotionality makes the rationality of the price take a backseat." Football clubs and organizations and companies that cooperate with them know this well.

They ask for their products as much money as the fans are willing to pay. But Rohlmann thinks that the maximum has been reached, it cannot be more expensive than that: "The limit should not be crossed. What is known is that the limit is slowly being exceeded."

Is the sponsorship worth it overall?

Half of the money that is given for advertising is money that is thrown out the window, industrialist Henry Ford once said. Only he didn't quite know which half is the one that gets thrown. The study done at the University of Hohenjahm (Hohenheim) says the same. The scientists say in it that: "Today, more than ever, the question of whether it is worth it for enterprises to sponsor remains unanswered."

Markus Voeth, who analyzed in an online survey the data obtained from 1000 people who were asked, says at the end that: "There is no direct impact on the sale of products. Only 12 percent of the respondents look at the companies that sponsor the European Championship, when they buy products or services."/ DW


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