All Blacks struggling to find new sponsor, 6 months after losing Philips

Half a year after Philips announced it was pulling its support for our national team, a replacement has yet to be signed.

One of Philips’ rivals tells NBR the Rugby Union is still shopping the sponsorship around but finding no takers.

A well-placed insider at one of Philips’ consumer electronics rivals says his company was approached to fill the national team’s sponsor void. But with the recession, it simply did not have the necessary funds on hand: “They [The Rugby Union] are asking everyone but nobody’s interested.”

On September 17 last year, NBR broke the story that Philips was pulling its 15-year-old All Blacks sponsorship, effective from January 31 this year. The move came on the back of Philips’ decision to no longer sell its TVs in New Zealand.

Philips sponsored the New Zealand leg of the Tri-nations and was also the All Blacks consumer electronics sponsor in all contexts.

The day after Philips’ September 17 pull-out, Saatchi & Saatchi chief executive Andrew Stone told NBR that if no new sponsor stepped up within a month, it could be a sign the national team is losing its commercial pull. With declining ratings and poor ticket sales “rugby is under pressure to prove it’s still relevant,” Mr Stone said.

The same day, Rugby Union’s commercial manager Paul Dalton told NBR he would like to stitch up a replacement sponsor for Philips by January.

But January has come and gone, with the first All Blacks test (against France) due to kick off June 14, and the first Super 14 game July 18, there is no sign of a deal. On the All Blacks’ official website, there is still only signage for the team’s headline sponsor, Adidas.

In fact, if anything, the Rugby Union is going backwards. In December, Ford announced it was putting its All Blacks and Super 14 sponsorship under review.

A provision in the deal that sees every All Black and Super 14 player supplied with a Ford vehicle is now only guaranteed until the end of this year, before which time the troubled car maker will decide whether to continue its sponsorship into 2010.

The Rugby Union did not immediately return calls.

The global meltdown has been as tough on sports sponsorship as any other area. Sony has not renewed its deal with the Wellington Phoenix in Australasian soccer’s A-league. Samsung has withdrawn its support for the Melbourne Victory in the same competition. Honda has withdrawn from Formula One. Vodafone pulled stumps on a 12-year relationship with the English cricket team just ahead of Christmas, while global 20Twenty cricket’s global sugar daddy, Stanford, has imploded.

The current economic environment doesn't help Mr Stone said: “People aren’t making long term bets at the moment.”

He added that a sponsorship typically costs two to three times its up-front cost once costs such as hospitality and the sponsor’s own associated promotional costs are factored in.

In such an environment, the Saatchi boss advises the NZRU to look outside the obvious men’s categories of cars and beers, perhaps to an energy company.

“It can be done,” he said. “New Zealanders are still passionate about rugby.”

But even if a deal is done, the meltdown could still have an impact, Mr Stone says.

“Historically, the value of this level of sponsorship has increased with every renewal,” Mr Stone says. But he’s not sure if more money will go into the pot this time.

This article is tagged with the following keywords. Find out more about My Tags

Post Comment

8 Comments & Questions

Commenter icon key: Subscriber Verified

Has a nice ring to it. Global. Lovemark etc

Reply
Share

How about the anti smoking nazis ASH or if they decline how about the makers of BENSON and HEDGES,seems to me any sponsor in a storm.

Reply
Share

Sounds better than The Meat Board All Blacks.
Or what about the Ngai Tahu All Blacks?

Reply
Share

Like a lot of bad companies, the NZRU have failed to plan for the future, believing that the past 10 yrs of economic uplift would last forever. Where was the money put aside for the future?... there wasn't any.

They need to re-adjust the sights now and accept that sponsorship levels will be lower, gate receipts will be lower, TV revenues will be lower and therefore wages for players need to be lower.

Reply
Share

Why in hell would anyone give the NZRFU money given the apalling lack of quality in the Management of the organisation - if any org. in NZ needs a major cleanout that one does. The current CEO has been intimately involved in 2 world cup stuff ups- so what do they do - give him a third go he'll can get the trifecta!

Reply
Share

If the NZRFU run their own blog site and invited the public to express their opinions they would really find out what people think.
This has been suggested, but they are not keen for obvious reasons
There are a huge number of blog sites that they are not even aware of and the feeling is boycott everything until things change at the top.

Reply
Share

Rugby in NZ is now a minority sport, but the rugbyheads still push the old "national Sport" line and the latest is a "cathedral of 4 million" for the next World Cup. They need to get real.

Reply
Share

Rugby union is yetserday's sport - the NZRFU has to face facts, the All Blacks just don;t have the pulling power anymore (and the Super 14 is a joke these days!)

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7740 -0.0003 -0.04%
AUD 0.9511 0.0005 0.05%
EUR 0.6324 -0.0002 -0.03%
GBP 0.4954 0.0001 0.02%
HKD 6.0039 0.0001 0.00%
JPY 92.5100 -0.0050 -0.01%

Commods

Commodity Price Change Time
Gold Index 1195.4 -2.890 2014-12-19T00:
Oil Brent 61.4 1.580 2014-12-19T00:
Oil Nymex 57.1 2.910 2014-12-19T00:
Silver Index 16.0 0.096 2014-12-19T00:

Indices

Symbol Open High Last %
NZX 50 5518.5 5545.0 5539.3 -0.21%
NASDAQ 4752.6 4782.1 4748.4 0.36%
DAX 9901.3 9901.3 9811.1 -0.25%
DJI 17778.0 17874.0 17778.2 0.15%
FTSE 6466.0 6566.9 6466.0 1.23%
HKSE 23158.3 23189.6 22832.2 1.25%
NI225 17511.0 17621.4 17210.0 2.39%