Blog Post

August 2024 Newsletter

Oliver Rockett • 29 August 2024

We hope you have had a nice summer filled with holidays, sport and sun! 


What a summer of sport we have had so far, with the rest of the Paralympics still to come. England was so close yet again at the Euros, a very well organised and triumphant Olympics, an emotional Wimbledon as we said farewell to Andy Murray, a fantastic win at Silverstone for Lewis Hamilton and now already into the new football season. 


Some of us at The Value Xchange enjoyed the cricket at Lord's including Jimmy Anderson's farewell, the incredible atmosphere in Paris for the Olympics and lots of golf if it wasn't raining. 


Below we give our recap of the summer in sponsorship and partnerships but first a quick update from The Value Xchange. 


A Quick Update on Us


We have had a busy summer working with Movember, the men's health charity alongside their commercial partnerships team as well as providing commercial advice on their Ahead of the Game programme. Their youth mental health programme delivered through sport which helps young people build mental fitness, strength and resilience to reduce the 50% of mental health issues that develop by age 15, read more here. 


We have worked with British Superbikes team Rapid Honda and Railway 200, the 200 year anniversary of the birth of the modern railway on their commercial partnerships frameworks and strategies. We have helped Mentholatum secure an exciting new partnership to be announced in the next few weeks and we continue our work with UK Deaf Sport as the countdown to the 2025 Deaflympics in Tokyo begins with just over a year to go! 


We have also just been appointed by a major UK Olympic Sport Governing Body to support them with their commercial strategy and outreach. 


Euro Gaffs

During Euro 2024, Hisense, the Official Home Appliances Partner, created a unique challenge for themselves with their LED board advertising. The brand simultaneously ran two messages: "Hisense TV, No. 2 Globally" and "Hisense: Never Settle for No.2 Globally." This mixed messaging sparked some cheeky responses from consumers, with some humorously questioning why they should purchase from a brand that seemingly encourages them not to settle for being second best.

This situation highlights the critical importance of clear, consistent messaging in sponsorship campaigns. While the intention behind the dual messaging might have been to emphasize Hisense’s global reach and ambition, the execution led to confusion and unintended interpretations.

For brands, particularly in high-stakes environments like major sports events, it’s essential to ensure that messaging is not only clear but also aligns seamlessly with the brand’s values and goals. Mixed messages can dilute the brand's impact and even lead to negative consumer perceptions, as seen in this instance. Moreover, being able to gauge real-time reception and adjust messaging accordingly is crucial. Brands must be prepared to listen to consumer feedback and pivot quickly to maintain a positive brand image throughout the campaign.

Hisense’s experience during Euro 2024 serves as a reminder for all brands: a well-crafted message is vital, but understanding how it will be perceived by the audience is equally important. Or perhaps this was all intentional by Hisense in order to stimulate conversations about the brand....we aren't convinced though.



Sponsorship Announcements


New sponsorship and partnership announcements often feel like an afterthought. Despite the value of some sponsorships on par with the cost of a new player their announcements are frequently underwhelming, consisting of little more than a standard press release with quotes from executives and a vague promise of "more to come."

This approach not only underserves the value of the sponsorship but also misses an opportunity to engage fans from the outset. A well-crafted, creative announcement can set the tone for the partnership, capturing the interest of fans and building a connection between the brand and the team.

A great example of how to do it right comes from Liverpool FC and Husqvarna. Instead of a typical press release, they involved the grounds crew at Liverpool's training centre in creating a fun, engaging video. This approach not only highlighted the partnership but also showcased the brand in a way that resonated with fans, making the sponsorship feel more authentic and relevant.

For rights owners, putting more effort into sponsorship announcements can have a big payoff. Creative, well-executed announcements can increase fan engagement, enhance the perceived value from fans of the sponsor, and set the stage for a successful partnership. After all, if the sponsorship is worth a significant investment, the announcement should reflect that importance.



Gambling Dominance in the Premier League


55% of teams in the Premier League have a gambling front of shirt sponsor for the 2024/2025 season. It was around this time last year when we wrote in our newsletter about how 40% of teams had a gambling front of shirt sponsor expecting it to decrease with the impending ban. 


However, the opposite has happened with teams cashing in before the ban where we expect mid-table club front of shirt sponsorship values to drop by up to 50 percent. Betting brands will still be allowed on the sleeve and advertise on LED boards though. It's expected teams will offset some of these losses with a doubling in sleeve sponsorship revenue and 50 percent increase in LED prices for betting brands. (Sport Business) 


Unfortunately, this trend suggests that Premier League commercial teams are too short-sighted, and in a nod to the above section, perhaps don't value establishing a true partnership for long term commitment. To be fair they are under pressure to focus on short term gains - securing the next partner as quickly as possible, maximising cash for minimal rights and reinvesting as little as possible to the partnership. However, it's just kicking the betting brand can down the road, instead it should be a priority for commercial teams to devise strategies that continuously attract and retain partners. 


An example of long term planning comes from Formula 1 in McLaren and Aston Martin. Aston Martin focuses on establishing partnerships with brands as their first global partnership. Positioning themselves as the team that introduces brands to global sponsorship and nurtures these relationships into true partnerships. McLaren on the other hand have developed a stable of over 50 partners that are enticed by the vast network available to them once in the club and the strong marketing platform that offers exceptional fan engagement. 


There will be no fewer than 11 Premier Clubs seeking a new front of shirt sponsor after the 25/26 season. Standing out as a football property in such a crowded market is admittedly challenging and finding a brand willing to invest eight figures in a sponsorship deal is even harder. Rights owners that don't plan for the future though will be left in the lurch, evident by both Chelsea's commercial and transfer strategy! 



As always if you want to have a chat please do not hesitate to reach out. 


All the best,


David, Jamie and Oliver


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