Hollis Sponsorship Bulletin

One upshot of the recession is that Indian and Middle Eastern companies are being linked to just about every available sponsorship property. For weeks, there has been speculation that Manchester United would replace AIG with an Indian conglomerate like Sahara. Now, there are rumours that Tottenham Hotspur will replace its current short sponsor Mansion with a UAE-based partner when the online betting firm’s four-year deal expires this summer.

Perhaps even more interesting are rumours that Liverpool is  talking to India’s GMR Group about a possible takeover. GMR - a diversified conglomerate which is run by billionaire Grandhi Mallikarjuna Rao - initially started conversations about a sponsorship deal. But this is believed to have led to a more broad-based discussion about investment in the club. GMR, which already backs Indian Premier League cricket team Delhi Daredevils, would have to pay around £500 million to take control of the Merseyside club. But it would then be in a position to use the club as a platform for various marketing initiatives.  

With European economies under pressure, Asian companies are now regarded by many leading rights holders as their best opportunity of maximising sponsorship revenues.

A good case in point is Manchester United, which will end its association with US financial service group AIG at the end of the year. Already, there has been speculation that Indian conglomerate Sahara will step in. But now there is talk of Air Asia becoming the club’s new shirt sponsor.

AirAsia chief executive Tony Fernandes says preliminary discussions have already taken place - though this does not mean a deal has been done. From United’s point of view, Air asia would be a good shirt sponsor for two reasons. Firstly, because the two are already commercial partners - which means there is an understanding between the two. secondly, because Air Asia would help United raise its profile further in the important Asia-Pacific region.

In a separate development, struggling bank RBS says it will end its sponsorship of the Williams F1 team at the end of the 2010 season. The bank, which is reported to be cutting its sponsorship investment in half, is also said to be reviewing its deals with individuals such as tennis star Andy Murray. The one RBS sponsorship which is safe is the Six Nations - which RBS chose to renew earlier this year.