Football Sponsorship Column - New Broadcast Deal for Brazil; Nike Re-signs Real Madrid Star
April 1, 2011
Some of Brazil's top sides were already brokering their own deals (Club dos 13)
Big payday for Brazilian football
A new broadcast deal will net Brazil’s top football division almost $1 billion over its next three seasons.
The $933 million partnership with Rede TV, the auction’s only bidder, marks a $34 million increase on the current contract between Rede Globo and Clube dos 13, the organization representing the Brasileirão’s 20 clubs.
According to Bloomberg, that agreement expires at the end of this season, at which point Rede TV will take over only free-to-air broadcasts and not internet, mobile, pay-per-view or international rights.
The deal is somewhat controversial because many clubs were already negotiating individually for TV partners, the biggest source of revenue the Brazilian teams.
Should the Clube dos 13’s members lend their blessing to this deal, they will retain the ability to auction internet, mobile and pay-per-view rights on their own.
Nike and Real Madrid star renew contract
Mesut Özil was one of the best players at South Africa 2010 (Getty)
Real Madrid midfielder Mesut Özil is now Germany’s top-grossing sportswear endorser.
German media report that his $5.6 million a year renewal through 2015 with Nike puts him past Bayer Leverkusen midfielder Michael Ballack, who earns $3.5 million per year from Adidas.
Özil, 23, will lace up the new Mercurial Superfly III shoes as part of the deal.
He will also star alongside fellow Nike ambassadors Cristiano Ronaldo and Wayne Rooney in a series of upcoming advertisements to air worldwide.
Madrid bought Özil from Bundesliga side Werder Bremen in August for $21 million after the German international earned one of 10 nominations for FIFA’s Golden Ball award at last summer’s World Cup.
One more year for Schalke 04 bank deal
A Munich bank will sponsor Bundesliga side FC Schalke 04 for another season.
BayernLB will get ownership of a 10-seat stadium box as part of the renewal, German media report.
No financial terms have been revealed, but the deal is said to be worth six figures.
Schalke sits 10th in the top division of German football after 27 games.
The club meet Inter Milan in the UEFA Champions League quarterfinals next week.
Vietnamese football signs with Panasonic
Panasonic Vietnam will sponsor the country’s national teams as well as its Olympic squads.
Vietnamese media report that the two-year deal is worth at least $2 million and provides for financial assistance from the Japanese electronics giant as well as support of activities aimed at local football fans.
Panasonic now stands alongside Nike as co-sponsors of the Vietnamese FA. Nike paid $5 million for rights spanning 2009 to 2013.
By INSIDER's Matthew Grayson
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