Published on March 3, 2014
There are 100 days until the opening match of the FIFA World Cup™: Is your Brand ready?
So you are having a typical Monday when your CMO calls you into his/her office and asks – “What is our plan for the upcoming FIFA World Cup™?” If you don’t have a plan yet, do not freak out. Read on and we will give you some background information that will help you navigate the rights landscape so you can develop a plan and have a great response for your CMO. If you do have a plan, still read on. You might uncover some insights that could help you strengthen your plan.
Let’s start with the basics… Why do you need a FIFA World Cup™ plan? Well it is simple, the numbers don’t lie. Did you know that: the in-home television coverage of the 2010 FIFA World Cup™ in South Africa reached over 3.2 billion people around the world, or 46.4 percent of the global population? The tournament was broadcasted to 204 countries. FUN FACT: The FIFA World Cup™ is the biggest single-sport competition in the world. The inaugural tournament was played in 1930 in Uruguay with the host country winning the event. Argentina came in 2nd and the U.S. in 3rd.
Let’s start with the basics… Let’s make sure you know who the key players are: • FIFA is the international governing body of football, futsal and beach soccer. Their job is to be the guardians of the game and develop the sport around the world. • The Confederations oversee the game in their respective continents and organize the qualifying tournaments for the FIFA World Cup™. Today, there are six (6) Confederations. • The Associations (or Federations) are the representatives of FIFA in each country. Today, there are 209 Associations which have the right to compete and advance to the FIFA World Cup™. There are others when you include media, agencies/agents and brands. FUN FACT: According to FIFA, football is the world’s favorite sport, played by more than 240 million players across the world. So not surprising that Football is the #1 followed sport in most markets with the biggest exceptions being the U.S. and China.
Let’s start with the basics… What rights and intellectual property does FIFA protect? Per FIFA, they have “developed and protected an assortment of logos, words, titles, symbols and other trademarks which it will use, or allow others to use under a formal agreement.” Some examples include: Protected Marks Protected Terms Official Logo / Emblem Official Programme Official Mascot Official Slogan Official Poster Host City Posters FIFA World Cup Trophy FIFA.COM Logo Match Schedule 2014 FIFA World Cup Brazil 2014 FIFA World Cup FIFA World Cup FIFA World Cup 2014 World Cup World Cup 2014 Brazil 2014 2014 Brazil Football World Cup Soccer World Cup Copa 2014 Copa do Mundo Mundial 2014 Mundial de Futebol Brasil 2014 Copa do Mundo 2014 HOST CITY names + 2014 FIFA also has guidelines as it pertains to ticket promotions, public viewing events and retail decorations to name a few. Check out FIFA’s website for more detailed information. FUN FACT: In 2010, FIFA supposedly asked authorities to remove 36 women from a World Cup match for wearing orange mini-dresses they deemed were an ambush marketing campaign by Dutch brewing company Bavaria.
Let’s start with the basics… What do you need to know about this year’s event? • Tournament runs: June 12th – July 13th, 2014 • 64 matches across 12 venues in 12 different host cities including the capital, Brasília, and the two largest cities, São Paulo and Rio de Janeiro. • Over 3.5 million expected to attend the matches with another 18 million expected to visit the Fan Zones. • The official slogan “All in One Rhythm” showcases the essence of the five pillars representing Brazil: cohesive society, power of innovation, striking nature, living football and land of happiness. FUN FACT: Brazil is the most successful team in FIFA history, with 5 World Cup titles (1958, 1962, 1970, 1994, 2002) and is the only team to have played in every World Cup.
Now, let’s dig into the rights landscape In the next slides, we will cover five (5) opportunities for a brand to develop a marketing plan around the FIFA World Cup™. FIFA Marketing Media: FIFA World Cup™ Broadcasters and Social Media National Team Sponsor Athlete Endorsement Hospitality Program FUN FACT: The 2010 FIFA World Cup™ in South Africa generated $4.2 billion in revenue. The 2014 edition in Brazil is expected to surpass $5 billion.
FIFA Marketing FIFA offers a three-tier sponsorship structure: 1. FIFA Partners 2. FIFA World Cup Sponsors 3. National Supporters for each FIFA event In addition, FIFA offers licensing opportunities for a breadth of products that “help promote the tournament or contribute to the fan experience.” FUN FACT: FIFA unveiled its new commercial strategy after the 2006 FIFA World Cup™ in Germany. In 2013, FIFA announced that it would expand its commercial strategy for the 2018 and 2022 FIFA World Cups™ to create more regional opportunities.
FIFA Partners The FIFA Partners have the highest level of association with FIFA and all FIFA events for both men and women which includes playing a role in supporting FIFA’s initiatives to develop the sport around the world. FIFA partners own global rights to a broad range of FIFA activities and are offered exclusive marketing assets which means FIFA will do everything they can to protect them from ambush. Fees for FIFA Partners can vary significantly based on the definition of the category being protected. For the last cycle, Partners annual fees ranged from $24M - $44M USD. FIFA only sells six (6) Partner opportunities which usually are negotiated to include a minimum of two World Cup™ cycles. The current FIFA Partners for the 2014 FIFA World Cup™ are: • • • adidas Coca-Cola Hyundai / Kia Motors • • • Emirates Sony Visa FUN FACT: In November 2013, adidas extended its partnership with FIFA through the year 2030 meaning their relationship, which began in 1970, will be official for at least 60 years.
FIFA World Cup™ Sponsors FIFA World Cup™ Sponsors have rights to the FIFA Confederations Cup and the FIFA World Cup™(men’s and women’s) on a global basis. Sponsors receive rights to all official marks for brand association, select marketing assets, media exposure, as well as ticketing and hospitality. For the last cycle, Sponsors annual fees ranged from $10M - $25M USD. FIFA only sells eight (8) Sponsor opportunities, which usually are negotiated to include a minimum of two World Cup™ cycles. The current FIFA Sponsors for the 2014 FIFA World Cup™ are: • • • • Budweiser Castrol Continental Tires Johnson &Johnson • • • • McDonald's Moy Park (poultry producer) Oi (telecomm) Yingli (solar energy) FUN FACT: McDonald’s owns the rights to the Player Escort Program which gives more than 1,400 children, ages 6 – 10 years old, the chance to walk onto the field, holding hands with their favorite soccer players and teams. This amazing opportunity is available to children in 60 countries.
FIFA World Cup™ National Supporter FIFA World Cup™ National Supporters have rights to the men’s FIFA Confederations Cup and the FIFA World Cup ™ only in the host country. Supporters also receive rights to official marks for brand association, select marketing assets, media exposure, as well as ticketing and hospitality. A National Supporter must demonstrate that they are headquartered or operate predominantly in the host country. For Brazil, National Supporter annual fees ranged from $4.5M to $8M USD. FIFA sells six (6) National Supporter opportunities, which are only for one four-year World Cup™ cycle. The current 2014 FIFA World Cup™ National Supporters are: • • • Apex (trade and investments) • Centauro (sporting goods retailer) • Garoto (confectionary manufacturer) • Itau (bank) Liberty Seguros (insurance) Wise Up (language school) FUN FACT: Centauro took the last available supporter spot a month prior to the 2013 FIFA Confederations Cup. Centauro, is the largest sportswear retailer in Latin America and has over 230 stores in Brazil alone.
FIFA Brand Licensee FIFA also seeks brand licensees in order to work with a selection of wellestablished brands that can enhance the experience of football fans through what they deem “their creativity, innovation, superior quality and fan engagement.” Some collaborations include: • Panini (sticker albums) • Electronic Arts (video games) • Hublot (time keeper) • Louis Vuitton (trophy travel case) FIFA also has an expansive licensing program that covers publications, official merchandise such as apparel, and collectibles among other things. FUN FACT: For their Q3 FY14 Financial Results, EA reported that for the month of December, FIFA 14 was one of the top three best-selling titles across all platforms in the Western World and the #1 title in Europe.
Future Regional Opportunities In 2013, FIFA announced that it will introduce new regional sponsorship packages for the 2018 and 2022 FIFA World Cups™. This new structure will go into effect in 2015, the start of the next World Cup cycle and will replace the third-tier of sponsorships (National Supporters). Under this new strategy, FIFA will now be offering four (4) Regional Supporters opportunities across each of the following five regions: North America, South America, Europe, Middle East & Africa and Asia. Regional Supporters cannot conflict in categories with FIFA Partners or FIFA World Cup Sponsors. FUN FACT: 2018 will be the first time that Russia hosts the FIFA World Cup tournament. They beat out England, Netherlands/Belgium, and Spain/Portugal for the right to host.
FIFA World Cup™ Broadcasters FIFA sells Media Licenses across television, radio, mobile and the internet covering over 200 countries. These licensees have the right to sell sponsorships within their broadcasts both nationally and locally, but must give first right of refusal to FIFA Partners and FIFA World Cup™ Sponsors. If the partners and sponsors don’t lock their categories, the licensee can present the opportunity to competitor brands. Traditional sponsorship packages include a mix of advertising units, billboards, and select marketing assets such as branding on the game clock or player of the match. For a complete list of official licensees visit: FIFA's website. FUN FACT: In the U.S., Telemundo is rumored to have spent $600M to acquire the Spanish language broadcast rights for the 2018 and 2022 FIFA World Cups™. In turn, Fox spent $425M for the English language rights.
Social Media Social Media has disrupted how fans engage with sports and will once again be at the center of the 2014 FIFA World Cup™. Brazilians are extremely active on both Facebook and Twitter, setting the table for one of the most active FIFA World Cups™ of all time. Social Media platforms are once again offering advertising opportunities around curated content during the event. FIFA, as well as many of the official Media Rights Licenses, will also be creating their own pages with plenty of real estate to offer brands. Of note, FIFA does not impose any social media bans on the athletes or the associations. FUN FACT: During the 2010 FIFA World Cup™ Final, people from 172 countries tweeted in 27 different languages. During the game’s final 15 minutes, Tweets-per-second (TPS) jumped to more than 2,000, eventually eclipsing at 3,051 during Spain’s winning goal.
National Team Sponsor 208 National Teams (the host country automatically qualifies) are eligible to participate in the grueling 3 year process to qualify for one of the 31 spots in the FIFA World Cup™. For the players involved, there is no higher honor in sport than representing their National Team. Each of the associations sell sponsorships packages, which are often tiered by types such as: official sponsors, official suppliers and licensees. National Team sponsors typically receive a mix of rights such as official team marks for brand association, select marketing assets, rights to collective player images, media exposure, as well as ticketing and hospitality during qualifying matches and certain friendlies. FUN FACT: As we mentioned previously, Brazil is the ONLY team in FIFA World Cup™ history to have qualified for EACH of the 20 tournaments. Italy and Germany are tied for second place with 18 appearances each.
Athlete Endorsements Each of the 32 qualified FIFA World Cup™ participant nations will carry a roster of 23 players. That’s 736 players available for endorsement opportunities. There are many more opportunities when you look at the former greats such as Pelé, Ronaldo, Beckham, Thierry and Zidane. Athletes can sign endorsements with official FIFA partners and nonpartners. Endorsement contracts can include rights to the players name, image & likeness, advertising production days, social media postings, autographed merchandise and appearances among other rights. An athlete CANNOT be used in their National Team uniform or other related marks unless the brand is also a partner of the National Team. The athlete cannot be used in conjunction with any of the approved FIFA marks if the brand is not a partner of FIFA. FUN FACT: Cristiano Ronaldo of Portugal leads all players in terms of Facebook likes (>74M), Twitter followers (24.6M) and jersey sales.
Hospitality Program MATCH runs the official Hospitality Programme for the 2014 FIFA World Cup™. MATCH has official vendors across key markets to help manage the program which are also able to sub-license to select agents. MATCH offers a mix of packages including single match packages as well as team specific packages, venue series and final round series. You can select from a private suite to business seats as well as a variety of amenities including food & beverage, parking, multi-lingual hostesses, etc. Prices can range from $700 to $100,000 USD. Hospitality packages are a great way to entertain top business guests. If you are looking to add a special touch, think about combining with your athlete endorsement strategy. FUN FACT: The Rio Times estimates that over 600,000 foreigners will travel to Brazil for the 2014 FIFA World Cup™, which will generate about US $10.2 billion for the economy.
In Summary No single event has the effect that the FIFA World Cup™ has with countries agreeing to temporary cease fires, employees all of the sudden becoming “ill” in order to stay home and watch the matches, and 46% of the World’s eye balls glued to their television sets. As a brand, you cannot afford to just sit out of this marketing opportunity. Therefore, we hope this document has helped to illustrate some of the great avenues available to you to explore. FIFA Marketing FIFA World Cup™ Broadcasters National Team Sponsor Athlete Endorsements Sources used for the presentation include: FIFA.COM, Sports Business Journal, USAToday, BlogTwitter, EA, Soccerex, Bloomberg Hospitality Program
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