Hollis Sponsorship Bulletin

The government is to allocate £461 million of emergency money to keep two crucial developments on track in the run up to the London 2012 Olympic Games. The Olympic Village will receive £326 million while two media centres will get £135 million. The money comes from a £2.7bn contingency fund which is part of the London 2012 budget.

Finance for the Village and the media centres looked in danger because of the impact of the downturn on, explained Olympics Minister Tessa Jowell when she released the cash: “The Village and media centres are essential to a successful London Games. With private sector funding more difficult to secure, it is right that we safeguard these projects.”

The impact of the downturn is not just limited to London 2012’s suppliers. Another setback has been the news that  tier one sponsor Nortel has filed for bankruptcy protection. Nortel, which signed up as 2012’s network infrastructure supplier, now faces a battle to survive.  It is not yet clear to what extent its financial problems will affect its ability to pay its fee or complete the job it has agreed to undertake.

• It hasn’t all been bad news, however. January also saw the London 2012 Organising Committee sign up Adecco as official recruitment services supplier. A tier two supporter, Adecco is believed to be paying around £20 million.

Travel Guide publisher Lonely Planet has signed up for its first-ever TV sponsorship. A subsidiary of BBC Worldwide, Lonely Planet is supporting the Adventure & Exploration strand on UKTV-owned factual channel Eden.

The deal, which runs for six months, gives Lonely Planet twice-daily exposure around shows like Michael Palin’s New Europe and A Year In Tibet. However there are also activities planned for other platforms. Ideas on the table include exclusive online content from Lonely Planet for Eden’s website; ad space in Lonely Planet Magazine for Eden and an Eden microsite on the Lonely Planet website.

The sponsorship deal coincides with a rebrand for UKTV channel - to Eden from UKTV Documentary. UKTV is  50% owned by BBC Worldwide - which means it is, in effect, a sister to Lonely Planet (75% owned by BBCW).

Stuart Cain, the man who masterminded Carling’s sponsorship of the Premier League during the 1990s, has reappeared as a partner at Mindshare’s newly-formed Invention Group. He joins from Scottish Premier League (SPL) club Rangers - where he was commercial chief.

In his new post, Cain’s main task will be consultancy around Castrol’s sponsorship of the 2010 FIFA World Cup in South Africa and the 2014 World Cup in Brazil. However he will also help Invention chief Sean Jefferson grow Mindshare’s sports and entertainment businesses.

Aside from his work in soccer, Cain also has strong credentials in music - one of the factors that convinced Jefferson he had found the right executive for the job: “This is an outstanding hire. Rare is it for someone to have such strong sports marketing, music, content and media expertise, on both the client and rights owner sides.”

There was some welcome relief for the sponsorship sector this week following the news that banking group RBS is to renew its sponsorship of rugby union’s Six Nations. 

Despite the fact that RBS is heading for a £28 billion annual loss, the bank has decided to pay around £20 million for a deal which will run from 2010 to 2013. By the end of that term, it will have partnered the event for a decade. Commenting on the decision to renew, a bank spokesperson told the BBC that the “sponsorship has been selected to meet very specific objectives within the competing nations.” 

RBS (which employs Synergy as its sponsorship consultancy) had been expected to follow other financial services groups which have dropped out of sponsorships as a result of the poor economic climate. Credit Suisse, for example, is ending its relationship with F1 team BMW Sauber while ING is to re-evaluate its own Renault F1 deal. 

The biggest story, however, is the decision by US insurance group AIG to quit its Manchester United sponsorship at the end of this season. The FA Premier League champions are now looking for a replacement from 2010/2011. Names touted include Indian company Sahara and Saudi Telecom. With its emphasis on oil-rich or growth economies, United believes it will surpass the £14m a year paid by AIG.

Starting from this week, WBI Media & Entertainment’s sponsorship brand Hollis is shifting its coverage of the sector online. In doing so, it plans to develop and expand on the work which has been done during the last decade by its monthly publication The Hollis Sponsorship Newsletter.

The decision to go digital is driven by two factors, says WBI Media sales director Duncan Clark. “Firstly, we want to provide more regular updates on this fast-moving sector. So we are shifting from a monthly paper publication to a weekly online bulletin. Secondly, we want to reach all of the new companies and organisations which have made sponsorship a core part of their marketing activities. So we are significantly increasing our coverage of the audience.”

Over the years, Hollis has built up a strong position in the sponsorship market thanks to its Yearbooks, Newsletters and annual Sponsorship Awards - which are viewed as an industry benchmark. Going forward, the new online platform will enable Hollis to develop an even richer dialogue with brands and consultancies in sectors such as arts, media, sport and CRM. Special attention will also be given to commercial developments around London 2012. 

“In the first phase, we plan to deliver news and analysis of the sector,” says Clark. “But once the online platform beds in, we will explore ways to increase the volume of case studies, sponsorship data and market insights we can offer.”

Welcome to the launch of the Hollis Sponsorship Bulletin. Building on the heritage of the Hollis Sponsorship Awards, the Hollis Sponsorship & Donations Yearbook and the Hollis Sponsorship Newsletter, the Sponsorship Bulletin will ensure that, within a totally dedicated environment, you will be able to keep yourself fully briefed on the issues and news impacting the sector.

Each and every Tuesday, you will receive the Bulletin featuring the most pertinent stories of the week sourced and written by specialist journalist Andy Fry. And, in the very near future, news will be added to the bulletin’s website as and when it happens regardless of deadline and we will be featuring comment from the industry’s leading lights. Moreover, we will also be giving access to a wealth of case histories and in-depth articles and subscribers will be offered access to unique and regularly-updated sponsorship data. Keep checking in on www.hollis-sponsorship.com for the latest updates.

If you would like to send in your news, comment and feedback, please email rsarginson@wilmington.co.uk ( 020 8891 1065) – and indeed if you would like colleagues to receive the Bulletin, please email us with their contact details.