INTERNATIONAL FOCUSGERMANYMOST INFLUENTIAL GERMAN SPORTS EXECUTIVESFormula One’s McLaren-Mercedes at Hockenheim - Getty Images Sport“Now that <strong>the</strong> economy is improving again,<strong>the</strong> dem<strong>and</strong> <strong>for</strong> hospitality opportunities isincreasing <strong>and</strong> both <strong>the</strong> professional <strong>and</strong>amateur <strong>sports</strong> will benefit.“Interestingly, we see a trend that moreprivate individuals - so called `yuppie fans` - areamong hospitality clients, in place of some of <strong>the</strong>more traditional corporate clients.”Hospitality, in particular, seems to have gotback on track following <strong>the</strong> economic downturn.But <strong>the</strong>n again, sport sponsorship in Germanynever really diverted off its course.“Sponsorship showed its strength during<strong>the</strong> tough economic times in contrast to classicadvertising,” says Philipp Hasenbein, CEO of <strong>the</strong>Sportfive agency, Germany’s biggest <strong>sports</strong> rightsmarketer. “The ad market’s crisis, after whathad happened in 2001, already provided <strong>the</strong>sponsorship business with an exceptional boom.Franz BeckenbauerAlthough <strong>the</strong> “Kaiser“ haspassed <strong>the</strong> torch of BayernMunich presidency to UliHoeneß, Beckenbaueris still an omnipresenticon in Germany. One of<strong>the</strong> best football playersto have ever graced <strong>the</strong> Earth, Beckenbauerhas done pretty much everything from playingto fundraising, from managing to playing aninstrumental role in bringing <strong>the</strong> 2006 WorldCup to Germany. The country listens wheneverBeckenbauer weighs in with his opinion.Dietmar HoppHopp is one of <strong>the</strong> most controversial men inGerman <strong>sports</strong> history. The co-founder <strong>and</strong><strong>for</strong>mer CEO of German software company SAPhas put a significant amount of investment intosport in <strong>the</strong> Rhein-Neckar area by becominga patron <strong>for</strong> various clubs - most notablyHoffenheim FC - which has rapidly been turnedfrom a local amateur club into a Bundesligatitle-contender. Hopp’s investment inHoffenheim has been strongly criticised by o<strong>the</strong>rclubs, fans <strong>and</strong> parts of <strong>the</strong> German press.Stephan AlthoffHead of corporate sponsorship <strong>for</strong> DeutscheTelekom, Europe’s largest telecoms company,Althoff manages Germany’s biggest <strong>sports</strong>ponsorship budget. While <strong>the</strong> majority goes toBayern Munich <strong>and</strong> cycling, Althoff also spreadsinvestment regionally (basketball in Bonn),nationally (disabled <strong>sports</strong>, national anti-dopingagency) <strong>and</strong> internationally (NBA basketball).Herbert HainerThe CEO of adidas alsoh<strong>and</strong>les one of Germany’slargest sport sponsorshipbudgets. Hainer uppedadidas’ profits fromfootball to €1.5bn in 2010.Football is <strong>the</strong> company’s bonanza - particularlydue to ties with <strong>the</strong> German football federation<strong>and</strong> FIFA - but NBA basketball <strong>and</strong> minornational teams, such as bobsleigh, are alsoimportant to adidas’ business plan.Christian SeifertAs CEO of <strong>the</strong> Deutsche Fußball Liga, <strong>the</strong>top-tier German football divisions, Seifert isaccountable <strong>for</strong> German football’s strategicorientation. The Bundesliga is financially strong<strong>and</strong> in a position to become <strong>the</strong> best league inEurope within <strong>the</strong> next decade. The amount ofmoney Seifert gets <strong>for</strong> domestic TV rights from2013-14, <strong>the</strong> packages <strong>for</strong> which are currentlybeing preparing, will play a central role in this.Alfred DraxlerDo you think that writing people out of a jobis a tabloid cliché? Think again. Germany’sBILD Zeitung tabloid has <strong>the</strong> highestcirculation of all European newspapers <strong>and</strong>assistant editor-in-chief Alfred Draxler, whoruns <strong>the</strong> <strong>sports</strong> department, is considered anagenda-pursuing agitator by many.Theo ZwanzigerWhile his power as president of <strong>the</strong> DFB,<strong>the</strong> German Football Federation, seems tohave decreased in recent years, Zwanziger’sbackground <strong>and</strong> <strong>the</strong> importance of <strong>the</strong>organisation means he continues to carryinfluence. Zwanziger is a lawyer who haslearned <strong>the</strong> ropes in politics as well as<strong>the</strong> business of sport - <strong>and</strong> <strong>the</strong> DFB is <strong>the</strong>federation with <strong>the</strong> largest membership in <strong>the</strong>world.Dieter ZetscheMercedes-Benz has been one of <strong>the</strong> trueheavyweights of German sport sponsorship<strong>for</strong> decades <strong>and</strong> Dr. Zetsche, CEO of carmanufacturer DaimlerChrysler <strong>and</strong> head ofMercedes Car Group, leaves no doubt thatthis will continue to be <strong>the</strong> case. Naturally,Mercedes is engaged in motorsport, butit’s also a sponsor of <strong>the</strong> German FootballAssociation <strong>and</strong> Zetsche has increasedMercedes’ commitment to both golf <strong>and</strong>equestriansim in recent years.Thomas BachThe 1976 Olympic goldmedal winner in teamfencing represents <strong>the</strong>interests of no less than27 million <strong>sports</strong>men<strong>and</strong> women in 89,000 clubs. President of <strong>the</strong>German Olympic movement, Bach is <strong>the</strong> mostinfluential German <strong>sports</strong> politician on <strong>the</strong>international stage. He has been a member of<strong>the</strong> International Olympic Committee since 1991<strong>and</strong> a member of its executive committee since1996.Werner Wenning/Marijn E. DekkersChemical <strong>and</strong> pharmaceutic company Bayeris one of Germany’s biggest sport sponsors.A total of 27 <strong>sports</strong> clubs bear <strong>the</strong> nameBayer in <strong>the</strong>ir emblem, <strong>the</strong> most famousbeing <strong>the</strong> Bayer Leverkusen football team.Bayer is committed to <strong>sports</strong> on multiplelevels from professional to recreational todisabled <strong>sports</strong>. Bayer CEO Werning Wenningstepped down on October 1 to be replaced byDr. Marijn E. Dekkers. Dekkers moves fromhis position as CEO of scientific equipmentmanufacturer Thermo Fisher Scientific.SportBusiness International • No.161 • 10.10 71
INTERNATIONAL FOCUSGERMANYAnd when <strong>the</strong> advertising market slows down,creative communication strategies become moreappreciated.”Globally, <strong>the</strong>re was a 15 per cent increasein <strong>the</strong> number of sport sponsorship dealsin 2009 compared to 2008, accordingPricewaterhouseCoopers <strong>and</strong> <strong>sports</strong>management consultancy IFM. Germanbr<strong>and</strong>s Daimler, Deutsche Telekom, adidas<strong>and</strong> Volkswagen alone signed five of <strong>the</strong> 20largest contracts in 2009. This representedan investment of €367m <strong>and</strong> DeutscheTelekom’s three-year, €75m deal with BayernMunich became Europe’s third-biggest singlesponsorship deal when it was signed last year.Sponsorship spendThe annual ‘Sponsor Visions 2010’ study,undertaken by TNS Infratest on behalf of <strong>the</strong>Hamburg-based Pilot Group since 2000, breaksdown <strong>the</strong> financials of Germany’s sport businessindustry.An estimated €4.2bn will have been spenton advertising in <strong>the</strong> country by <strong>the</strong> end of thisyear. The largest part of that amount, €2.6bn,is estimated to be sport sponsorship while just€900m goes to media, €340m to public <strong>and</strong>social projects <strong>and</strong> €300m to cultural activities.German sport sponsorship investments areexpected to reach €2.7bn by <strong>the</strong> year 2012, outof an estimated total sponsorship industryworth €4.4bn.“The German sponsorship market is ona high level compared to o<strong>the</strong>rs <strong>and</strong> is veryprofessionalised,” says Hasenbein. “Clubs<strong>and</strong> agencies tailor <strong>the</strong>ir sponsorship offersto <strong>the</strong> specific needs of <strong>the</strong>ir clients’ wishes.The sponsors professionalise <strong>the</strong>ir activities byclearly defining <strong>the</strong>ir goals <strong>and</strong> activating <strong>and</strong>embedding <strong>the</strong>ir sponsorship into <strong>the</strong>ir entirecorporate communication strategy. In addition,<strong>the</strong> number of reviews of <strong>the</strong> per<strong>for</strong>mance of acompany’s investments are on <strong>the</strong> rise.”The Sponsor Visions study 2010 indicatesthat football, h<strong>and</strong>ball <strong>and</strong> beach volleyballhave <strong>the</strong> biggest growth potential in Germany.Biathlon, motorsport, boxing, basketball,swimming <strong>and</strong> cycling are also expected to showlong-term growth.“Football, led by <strong>the</strong> Bundesliga, is <strong>the</strong>undisputed number one when it comes tosponsorship. H<strong>and</strong>ball has maintained a highst<strong>and</strong>ard as well,” Hasenbein explains.He also emphasises <strong>the</strong> importance ofGerman stars in o<strong>the</strong>r <strong>sports</strong> which createattractive sponsorship options. “Formula Onehas become more attractive again in Germanydue to Michael Schumacher’s comeback <strong>and</strong>Sebastian Vettel’s success,” he says.“Maria Riesch winning in alpine skiing <strong>and</strong>Magdalena Neuner’s great per<strong>for</strong>mances inbiathlon has also had similar positive effects.”In contrast to that, equestrianism, volleyball,tennis, inline skating, snowboarding <strong>and</strong> sailing- <strong>sports</strong> where German stars are in short supply- are expected to lose audiences <strong>and</strong> sponsors.Beyond that, it is important to emphasise<strong>the</strong> prominence of naming rights deals,which have become an unrivalled sponsorshipoption in Germany. Munich-based Allianz, <strong>the</strong>second-largest international insurance <strong>and</strong>financial services organisation in <strong>the</strong> world, paysBayern Munich €6m per year <strong>for</strong> <strong>the</strong> namingof Bayern’s Allianz Arena - Germany’s mostvaluable deal of its type. Club naming rights arecommon in <strong>the</strong> Beko Basketball Bundesliga butwhen it comes to league title rights, <strong>the</strong> ToyotaH<strong>and</strong>ball Bundesliga leads <strong>the</strong> field with Toyotapaying an estimated annual sum of €2m.One recently-signed sponsorship dealmarked ano<strong>the</strong>r first in German sport businesshistory. The 2010-11 German Bundesliga seasonhas its first ever official league ball, named‘Torfabrik’ (‘Goal Material’) made by adidas.The five-year deal, announced during <strong>the</strong> SouthAfrica World Cup where adidas’ Jabulani ballcaused so many headlines, is worth €25m.Herbert Hainer, adidas CEO, explained <strong>the</strong> dealwould help German-based adidas underline itsposition as <strong>the</strong> number one football br<strong>and</strong> in <strong>the</strong>world by rein<strong>for</strong>cing <strong>and</strong> developing its presencein <strong>the</strong> all important “home country’s market”.Less is moreThe modification of sponsorship structuresis ano<strong>the</strong>r trend in Germany. Last year, <strong>the</strong>German Football Association (DFB) <strong>and</strong>its marketing partner Infront successfullyintroduced a new, integrated marketing concept<strong>for</strong> <strong>the</strong> DFB Pokal (also known as <strong>the</strong> DFBCup - German football’s annual knockout cupcompetition). The number of advertisers wasdrastically reduced <strong>and</strong> an exclusive, premiumenvironment was created, with a unified designconcept created to offer “stronger” br<strong>and</strong>ing inall stadia <strong>for</strong> DFB Pokal matches.“Based on <strong>the</strong> concept of ‘less is more’,a reduced number of commercial partners<strong>and</strong> a clear sponsor hierarchy increases <strong>the</strong>level of exclusiveness <strong>and</strong> br<strong>and</strong> awareness”,Infront’s Weinberger explains. “It is quality <strong>and</strong>exclusiveness that sells.”As a result, <strong>the</strong> DFB Pokal has becomeone of Germany’s most sought-after br<strong>and</strong>communication plat<strong>for</strong>ms. All four TOPThe DFB Pokal is now a hot sponsorship property - Getty Images Sportpartners <strong>for</strong> <strong>the</strong> 2009-10 season - Bitburger,Deutsche Post, Jack Wolfskin <strong>and</strong> T-Home -achieved measurable success in reaching <strong>the</strong>irrespective audiences, thanks in part to recordbreakingaudience figures on TV. The DFBsays cumulative viewing figures rise 20 percent to hit 729 million in 2009-10 <strong>and</strong> <strong>the</strong> finalbetween Bayern Munich <strong>and</strong> Werder Bremenwas watched by around 10 million <strong>and</strong> achievedan audience share of 33.2 per cent.A new streamlined sponsorship plat<strong>for</strong>m wasalso introduced <strong>for</strong> <strong>the</strong> FIS Alpine Ski WorldCup <strong>for</strong> <strong>the</strong> 2009-10 season. Under this newstrategy, Infront - collectively marketing <strong>the</strong>advertising <strong>and</strong> sponsorship rights to numerousFIS Ski Alpine World Cup events - has alreadysecured two companies (Swiss-based companiesEmmi <strong>and</strong> Stobag) as new sponsors.The success of <strong>the</strong>se streamlined marketingapproaches shows that even prestigiouscommunication plat<strong>for</strong>ms like <strong>the</strong> DFB Pokalor <strong>the</strong> FIS Alpine Ski World Cup can still beenhanced to deliver higher value <strong>for</strong> sponsors.And based on its experience with <strong>the</strong>seproperties, Infront is also implementing anew marketing approach <strong>for</strong> <strong>the</strong> prestigiousinternational Four Hills Tournament - <strong>the</strong> skijumping series that has taken place <strong>for</strong> 58 yearsat four different venues in Germany <strong>and</strong> Austria.“As <strong>the</strong> new marketing partner to thistournament we have introduced three majormeasures to enhance <strong>the</strong> premium characterof <strong>the</strong> series <strong>and</strong> its value <strong>for</strong> sponsors: a new,consistent br<strong>and</strong> identity <strong>for</strong> all four componentevents; st<strong>and</strong>ardised venue dressing <strong>and</strong> anexclusive, streamlined marketing hierarchy,”says Bruno Marty, Infront’s Executive Director<strong>for</strong> winter <strong>sports</strong>.“The new identity will rein<strong>for</strong>ce <strong>the</strong>perception of <strong>the</strong> Four Hills Tournament as <strong>the</strong>highlight of <strong>the</strong> winter <strong>sports</strong> calendar <strong>and</strong> at <strong>the</strong>same time deliver what sponsors want - a clearimage that <strong>the</strong>y can combine with <strong>the</strong>ir br<strong>and</strong>.”Sport on TVOne very well-documented characteristic of <strong>the</strong>German sport business <strong>sector</strong> is <strong>the</strong> relativeweakness of its pay-TV market.Pay-television penetration is only 12 per cent,a quarter of that in <strong>the</strong> UK <strong>and</strong> Italy <strong>and</strong> half<strong>the</strong> level of Spain <strong>and</strong> France. 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