Saatchi boss slams Philips as All Blacks face huge struggle for new sponsor
The All Blacks might be on a roll but potential sponsors are not knocking down the New Zealand Rugby Union’s door to replace Philips following its shock withdrawl yesterday. According to one advertising industry insider, the bench looks weak.
New Zealand Rugby Union commercial manager Paul Dalton confirms his organisation got an early heads-up about Philips' decision not to renew its deal beyond January 31, 2009.
The sponsorship included Philips' naming rights and signage for All Blacks’ New Zealand Tri-Nations games, and Philips being the All Blacks official consumer electronics brand. Dalton is in talks with several parties, but was not in a position to name an immediate replacement.
If no new sponsor steps up within a month, that could be a sign the national team is losing its commercial pull, says Saatchi & Saatchi chief executive Andrew Stone.
And also an indicator that New Zealand Rugby is not positioned to land a killer deal. “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.
With falling ratings and unexpectedly slow ticket sales for some games over the past couple of seasons, “rugby is under pressure to prove it’s still relevant,” he says. “Perhaps it has lost it a bit.”
Dalton says he is talking to several potential candidates, and is looking to announce a deal by the first quarter of next year. He says the amount of money involved would depend on the scope of the deal.
The current economic environment won’t help, Mr Stone says: “People aren’t making long term bets at the moment.” He adds 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.
And neither did Philips set an example that will inspire others to follow. “It was a very static sponsorship,’ says Mr Stone. “It felt a bit like slap-on-the-logo. It didn’t excite me. Tonally, it never really gelled. It was never fulfilling.”
Another negative is that the sponsor market for big ticket sports has become crowded and confusing, says Mr Stone.
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 says, “New Zealanders are still passionate about rugby.”
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Comments
All Blacks Sponsorship
Oh dear .. perhaps the most likely commercial sponsors have done their homework and found top level rugby has lost its gloss as a result of not being able to view it on free to air TV? Perhaps the previous greed ( media rights )has come back to bite the NZRFU on the bum?
Good comment I agree Rugby
Good comment I agree Rugby has lost its appeal to the common man having to wait to see delayed coverage on Prime that drags the game out to over 2 hours is unappealing. Rugby is our national game and should be available live on free to view just like Australia, Ireland etc
Phillips and the All Blacks
Perhaps AIG would like a cheaper option than Manchester United? The AB's could be called the "AIGBs" or the "Bailouts" or the "Fed's Reserves"
Crickey - I may go into marketing as a career!
Ciggies
Bring back cigarette advertising!
The Marlboro All blacks - when we choke, we gasp!
All Blacks? who are they?
It is not surprising that Philips have pulled out of their sponsorship, after all the NZRFU have lost thousands of fans through their arrogance.
I used to be 100% a rugby fan, and was involved at Club level for many years, running a local club Bar, and helping with raising money for the club as well.
I went to every game I could, including travelling overseas to follow the All Blacks. If I couldn't get there in person I watched matches on TV, even if they were on at some ungodly hour of the day.
Although I now live in Auckland I wouldn't even consider going to a top level game. The cost of tickets is ridiculous, and they lost me as a fan completely when free to air rights were sold to Sky TV - why should we have to pay to see our national sport.
It is time the NZRFU remembered why New Zealanders loved rugby, which is that is was accessible to all, not just the wealthy, something that has been lost to professionalism. Also there is simply too much of it with the emphasis on money making - who really wants to see (and play) rugby in the summer when the grounds are like concrete.
G henry is a fraud and
G henry is a fraud and evrybody including himself knows it. If he had have played the cards he was delt properly he would have won the world cup, then, a bit of sponsorship would be no problem now.
The whole outfit is a national debacle.
Its not only the All Blacks
Its not only the All Blacks sponorship Phillips are pulling out of. Phillips will no longer be selling Televison's here after the end of this year. So really it comes as no surprise that the sponorship is ending.
Nothing to do with rugby
This decision has nothing to do with rugby! Philips is withdrawing from the consumer electronics business in NZ and Australia so it is winding down all advertising and sponsorship. To suggest there is any dissatisfaction with the exposure, or that it reflects on the All Blacks or the game is a nonsense.
Playstation
Or if you want to be real funny, get playstation to sponsor it. i nice way of mocking a generation of kids that don't get off their ass and play sport outside!!!
Who is killing Rugby in NZ?
Agree with lack of exposure of Rugby at top level because of lack of free to air live coverage and playing times in the evening rather than in the daytime reducing crowds. On top of that add the downgrading of our provincial competition, many All Blacks missing from club rugby and the cheapening of tests (and I don't mean ticket prices), a fair level of arrogance by the Board and Executive in ignoring genuinely concerned public sentiment and thinking that spin is the answer to everything. It's becoming too elitist even for sponsors.
Needs a wholesale change of administration and board to move forward but if they didn't even have the guts to change an unsuccessful coaching set up I'm not holding my breath.
keiran -- if you want to
keiran -- if you want to watch union live in ozz --
outside a bledisloe or tri-nats involving the wannabies
then you have to have foxtel -- no super 14 is shown
on free to air live at all -- free to air tv is for cheap morons
AB sponsorship
The reality is that NZ is a tiny place and we have the most expensive (and the best) team...it can only be supported by playing in a much bigger market.
I watched TV this morning in Brisbane and John Oniel identified the need to be in a bigger market...he understands the global dynamics...NZers do not.
Some of the the Super 14+ will ultimately be based in London/LA/Tokyo or some other zone...thats professional sport...its not what I grew up with but its the way it is....everything will be driven by ratings...and Ritchie McCaw and Daniel Carter surely will earn off field sums in the multi millions....
Also look at the poulation mix in NZ we are replacing Kiwis who now live in Aussie (mostly)with Asians
driven out by a dumb Government..yep it effects sport as well.
Clock cannot be turned back....but we can be much smarter in how we deal with it.
Gavin
Who pulled the wool over his eyes?
I think the Saachi boss is sorely mistaken, the All Blacks is a brand that is at the forefront of all sporting megabrands and will be hotly contested. The Saachi boss obviously knows nothing about the severity of the movement!
oh aye
oh aye
rugby
oh aye
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