Nhl says no to jersey ads - and $120m windfall

[Arsonist22]

Originally Posted by Locke

Why are people comparing putting ads on NHL jerseys to ads on Soccer jerseys?

Wouldnt the most likely comparable be European Hockey jerseys?

Because soccer (it's called football btw!) jerseys have one sponsors name on their shirts, whereas euro hockey jerseys tend to have about 10 different sponsors names plastered all over them. I'm presuming that's due to the lower amounts the euro hockey teams can get in sponsorship, so it's more likely the NHL would be like soccer and be able to secure 1 high paying sponsor.

[Locke]

Originally Posted by Arsonist22

Because soccer (it's called football btw!) jerseys have one sponsors name on their shirts, whereas euro hockey jerseys tend to have about 10 different sponsors names plastered all over them. I'm presuming that's due to the lower amounts the euro hockey teams can get in sponsorship, so it's more likely the NHL would be like soccer and be able to secure 1 high paying sponsor.

I'm familiar, check the sig.

Anyways, I dont necessarily see it that way.

The value of most NHL Franchises rests on their brand and I dont think they'd be willing to sacrifice the team logo for a major sponsor.

It seems more likely to me that they would agree to one or two middle-range sponsors with small logos instead.

Either way, it seems much ado about nothing. I imagine that they'd want to put sponsor logos into the ice before they put them on jerseys.

[Sidney Crosby's Hat]

Originally Posted by Poe969

jerseys with the ads all over them look terrible, it would just take away from the game even more. I wonder how long it'll be until it happens and who will be the first team to do it... I can see it now though, the Summer's Eve Oilers!

Oilers tried to do this in 1972. They were supposed to be called the Edmonton Gulf Oilers. WHA wouldn't allow it. That's why they're blue and orange.

[Arsonist22]

Originally Posted by Locke

I'm familiar, check the sig.

Anyways, I dont necessarily see it that way.

The value of most NHL Franchises rests on their brand and I dont think they'd be willing to sacrifice the team logo for a major sponsor.

It seems more likely to me that they would agree to one or two middle-range sponsors with small logos instead.

Either way, it seems much ado about nothing. I imagine that they'd want to put sponsor logos into the ice before they put them on jerseys.

I saw the the Liverpool badge in your sig and presumed you didn't know much about footy! (I'm a toffee!).

I still can't see them risking their brand for only $120m anyway. Whilst I'm sure man utd has more worldwide awareness than and an individual NHL team, I can't see them having 20 times the brand awareness as some of the original 6 teams. It may happen, but it'll be for considerably more than $120m.

Not sure any company would pay a premium for a small logo on a shirt. Most of those euro jersey sponsors logos are so small you can't see what they're advertising anyway.

As you said logos on the ice are more likely before shirt sponsors.

[Locke]

Originally Posted by Arsonist22

I saw the the Liverpool badge in your sig and presumed you didn't know much about footy! (I'm a toffee!).

I still can't see them risking their brand for only $120m anyway. Whilst I'm sure man utd has more worldwide awareness than and an individual NHL team, I can't see them having 20 times the brand awareness as some of the original 6 teams. It may happen, but it'll be for considerably more than $120m.

Not sure any company would pay a premium for a small logo on a shirt. Most of those euro jersey sponsors logos are so small you can't see what they're advertising anyway.

As you said logos on the ice are more likely before shirt sponsors.

Ah! That explains a lot!

Well, Man U might not have 20 times more awareness than an original 6 team, but its probably not as far off as you might think.

Not to mention that $120M is absolute peanuts. The NHL is a $3 billion dollar a year industry and it has revenue sharing programs in place so $120M only works out to $4M per team.

It just isnt worth it if it affects the brand recognition, and thus overall franchise value, of even one original 6 team even slightly.

[polak]

I would say Manchester United has twenty more times the brand awareness then the entire NHL...

The entire planet knows who Manchester United is. Do you think anyone in the developing world knows who any of the original 6 teams are? There is a large number of people in the freaking US that would probably have a hard time naming half the teams in the NHL.

[flamefan74]

Originally Posted by driveway

You'd have to do the math, but here's a site which breaks down Manchester United's salaries by the week (why the hell they do it by week, I don't know)
http://freshmanutd.com/manchester-un...-wages-201415/

And here's their fiscal report for 2013
http://ir.manutd.com/phoenix.zhtml?c...cle&ID=1855756

Now, obviously this doesn't include things like taxes, stadium costs, etc. But their expected revenue for 2014 is above 420 million pounds. 80 Million US dollars, the supposed value of the jersey sponsorship, is not an insignificant percentage of that money.

I forgot Man U was a publicly traded company. Looked over their 2013 year end results.

363 million pounds revenue
180 million pounds staff costs (they employ 793 people!)
74 million pounds operational costs

They have a market cap of $2.696 billion. They have an office in Hong Kong. Comparing them to the NHL in terms of corporate sponsorship doesn't really work in my eyes.

And ads on jerseys would suck.

[Arsonist22]

Originally Posted by polak

I would say Manchester United has twenty more times the brand awareness then the entire NHL...

The entire planet knows who Manchester United is. Do you think anyone in the developing world knows who any of the original 6 teams are? There is a large number of people in the freaking US that would probably have a hard time naming half the teams in the NHL.

I'm sure people in the developing world are queuing up to buy man utd tickets and Chevrolets because of their sponsorship deals.

[Oil Stain]

Originally Posted by Arsonist22

I'm sure people in the developing world are queuing up to buy man utd tickets and Chevrolets because of their sponsorship deals.

What are you trying to say? People in developing countries don't buy cars?


Chevrolet.
Market
Total 2011 Sales
United States
1,775,812
Brazil
632,201
China
595,068
Russia
173,485
Mexico
162,461
Canada
150,540
Argentina
133,491
Uzbekistan
121,584
India
111,056
Colombia
105,783

[Coach]

I like how England isn't on the list.

[getbak]

Originally Posted by Locke

I imagine that they'd want to put sponsor logos into the ice before they put them on jerseys.

Yeah, that's easy to imagine.

[heep223]

Is this $120M/yr? Or would that be a contract over multiple years? Would be a big difference. I'm assuming it would be a multiple year deal (5 or so?) totally 120M but that's pure conjecture.

The thing is that cash flow comes with no costs. It is pure profit to the owners. That is valuable.

[Vulcan]

I don't buy or wear clothes with large logos or writing on them. If they want me to advertise their wares they better be paying me for the privilege. This goes for sports team sweaters and clothes also.

[Resolute 14]

Originally Posted by undercoverbrother

How do you know that teams don't need to have advertising on them to survive? Honest question, is there a study or a report, because I think that they do need these monies to survive. The contracts in some sports (ie: soccer) are extreme. I struggle to believe that they can fund on these contracts based solely on gate and TV revenue.

Teams don't need advertising to survive the same way you don't need another credit card with a $10,000 limit to survive. In the end, you survive by spending within your means. In the NHL, that requires a salary cap. As UKFlames notes, for UEFA, that means rules requiring teams to avoid operating at a loss.

In both cases, jersey sponsorships is about the ability to buy bigger and better toys (players), not survival.

[UKflames]

Originally Posted by Resolute 14

Teams don't need advertising to survive the same way you don't need another credit card with a $10,000 limit to survive. In the end, you survive by spending within your means. In the NHL, that requires a salary cap. As UKFlames notes, for UEFA, that means rules requiring teams to avoid operating at a loss.

In both cases, jersey sponsorships is about the ability to buy bigger and better toys (players), not survival.

You are right, this does not come down to making the owners richer, it is about creating more spending power to get new players, of which the top ones are now requiring massive amounts of cash to buy. I prefer the NHL model where it has to be players for players (or picks but they don't have a draft in soccer) rather than cash, as that system creates a haves and have nots situation. Man UTD is a massive worldwide brand, to be their main sponsor costs millions of pounds but someone like Sunderland, not so big, so the sponsorship is less, giving them less to spend on top players and less chance to compete.

Anyway that is derailing the thread, I think this will arrive eventually and come in slowly with a couple of ads at first, slowly getting more prominent.

[gargamel]

I hope it never happens, but if they're set on doing it, they'd be smart to roll it out with expansion teams and relocated teams. We'd be upset if they tacked an ad onto the Flames jersey, but people in Quebec or Seattle would be so happy just to have a team that I doubt they'd care too much. Once people are used to seeing it on those jerseys, slowly expanding it to other teams might not be as big of a deal.

[Barnet Flame]

Originally Posted by GGG

I assume you don't own a jersey than because of the rebook add on it

Definitely not. I avoid cheap Chinese ripoffs like the plague.

[Resolute 14]

How about some vomit inducing nonsense to ruin your lunch hour?

http://www.icethetics.co/concepts/20...ccer-crossover

Every single one of those is pathetic, Calgary's worst of all. Montreal and Ottawa aren't far behind.

[Reign of Fire]

Will not buy a jersey if this happens...it would be like a walking Nascar

[undercoverbrother]

Originally Posted by Resolute 14

How about some vomit inducing nonsense to ruin your lunch hour?

http://www.icethetics.co/concepts/20...ccer-crossover

Every single one of those is pathetic, Calgary's worst of all. Montreal and Ottawa aren't far behind.

even more evidence that soccer sucks....