Sponsorship Update

Financial institutions have been very visible in the press this week, but mainly for the wrong reasons as enormous companies such as Lehmann Brothers and Merrill Lynch have either gone bust or been bought out. However, despite this negativity, the Dutch financial services company, AEGON have stepped forward with a 5 year, £25 million investment to become the first ever lead sponsor of the LTA - a sponsorship that the LTA have been actively pitching to businesses for over 12 months. AEGON are aiming to use the partnership not only to raise awareness of the brand in the UK but also as a means to rapidly increase the business.

On the downside, AIG have had to be bailed out by the US Government to the tune of $80 billion in US tax payers cash, throwing their long term sponsorship deal with Manchester United into doubt. The deal has not been curtailed yet, but it seems certain that the two companies will part company shortly.

One deal that will definitely end is that between the failed Tour operator, XL and West Ham Utd. The fall out from XL's bankruptcy has left tens of thousands of UK holiday makers stranded around the globe and West Ham had to act quickly in order to blank out XL's logo on their shirt fronts.

Neither of these stories will make a huge material difference to either club. Manchester United will certainly find another sponsor, and West Ham are no longer so reliant on the commercial input of sponsors due to their Icelandic owners. What is likely however is that, in line with traditional media, the market will become a buyer's one with brands more able to determine the price they pay, given that there is less money and potentially less sponsors available in the market place.