A Sydney victory would unlock greater riches
September 24, 2005
A Swans win will bring new sponsors and members and lift attendance, writes Stephen Dabkowski.
It's the AFL's Holy Grail. A Sydney victory in today's grand final would be a financial bonanza on top of what has already been a successful footy season if you consider all the numbers.
The AFL reported this week that season 2005 achieved record attendance; membership and television ratings and league revenue hit $200 million for the first time. But a Sydney victory will unlock far greater riches in the future. Sponsorship experts say there are millions of dollars in sponsorship income, membership expenditure and television revenue waiting to be unleashed by a Sydney victory. Banking giant Citibank offered an insight into what is possible at the start of the finals just weeks ago when, it has been speculated, the company paid almost $1 million to become Sydney's new jumper sponsor.
Success for Sydney means higher ratings for the AFL in the lucrative NSW market, which will drive up the overall value of its broadcast rights now in negotiation with the major networks.
Even rival clubs such as Essendon realise why success for Sydney is important for the league in the long term.
Peter Jackson, Essendon's chief executive, believes the whole game can benefit - even Victorian clubs - from a Sydney win.
"Sydney is the most critical emerging market in the AFL from both a support and sponsorship point of view," he said. "It will be a matter of ensuring the game capitalises on the result should Sydney win.
"I know a large number of our key business partners have their head offices based in Sydney and it is increasingly becoming a place AFL clubs look to do business. You would think a Sydney flag would increase the awareness of AFL football in Sydney to the benefit of all stakeholders."
Lynne Anderson, managing director of sports sponsorship experts S-Comm Australia, believes that quietly the senior executives within the AFL would be excited about a Sydney win.
"A Swans premiership would have significant financial and strategic implications for the game," she believes.
"If Sydney were to win, the flow-on effects would see attendances at Sydney games go up, membership would soar, which is cash up-front for any club, and there would be a pool of new sponsors happy to look at the game, both for Sydney, but also nationally."
Most observers, including Lynne Anderson, also believe that a Swans victory would probably bring forward the AFL's longer-term vision to introduce a second AFL team into Sydney, attacking rugby's NRL in its heartland.
The increasing dominance of interstate clubs in the AFL - only two Victorian clubs have won premierships since 1996 and only three since 1993 - has meant the powerhouse local clubs have become more sophisticated in the packages they offer to their sponsors.
Peter Jackson says Essendon provides exclusive football content for the handsets of its major sponsor - mobile phone giant 3 - and the club is held accountable for sales and media coverage of their product.
A recent survey indicated that 3 remained the most visible sponsor in the AFL.
"The dynamics of sponsorship have changed in my opinion," Mr Jackson said. "Sponsors now are far more demanding, looking for a commercial return on their sponsorship, and rightly so.
"As a club we have been very conscious of providing genuine outcomes for our sponsors - it is no longer a matter of simply sticking a logo on a jumper."
St Kilda during the season signed a lucrative deal with NEC Business Solutions - not a sponsorship - but a channel-partnership arrangement.
In effect, that meant that St Kilda signed on to help NEC Business Solutions look for business customers around Australia to sell its products and services, and the club will be rewarded financially by NECBS's sales growth.
"Traditional sponsorships in the AFL where people hand over a cheque and forget about it are dead," said Riaki Tanaka, managing director of NEC Business Solution. "Our relationship with St Kilda is about us working together as partners to drive sales. We have weekly meetings where St Kilda gives us access to its other corporate clients. They open doors to allow us to become part of the corporate AFL family.
"The benefits over time of a partnership like this we believe will be worth millions to both St Kilda and NEC Business Solutions. This way both sides benefit from a more sophisticated arrangement."
Despite the recent dominance of interstate clubs, one of the main reasons why Toyota became the AFL's main sponsor two years ago was to lift its market share in Victoria - a tactic that seems to have worked.
Toyota claims it has gone from No.3 car seller in Victoria to No.2 in the past two years, overtaking Ford - but is still behind Holden.
"We are delighted with the AFL sponsorship and it is certainly helping our brand awareness and the intention to purchase, which is what all our research is telling us," said Toyota spokesman Peter Griffin. "The key with consumers is to get on their shopping list to eventually convert to a sale."
The ATTACK has begun.
http://www.theage.com.au/articles/2005/09/23/1126982228600.html
Many in Melbourne are talking about attacking NRL in it's heartland. Could this be war?
