Monday, June 10, 2013

'Brand Germany' on show

AppId is over the quota
AppId is over the quota
Champions League final provides a "brilliant showcase" for "Brand Germany"Bundesliga clubs have strong "indigenous corporate engagement"Expert: Sponsor and fan cooperation is for the clubs' greater goodLike German businesses, Bundesliga clubs pursue long-term planning

(CNN) -- When Germany's two biggest soccer clubs go head-to-head in Saturday's Champions League final, there can only be one winner: German industry.

The Bavarians of Bayern Munich will look to rectify last year's heartbreak on home soil against Chelsea when they take on a formidable Borussia Dortmund side that is seeking to emulate the club's only success in Europe's top competition, back in 1997.

Some of the biggest talents in world football will be on show at Wembley come kickoff at 1845 GMT in London, with the likes of Arjen Robben, Franck Ribery and Robert Lewandowski set to dazzle the crowd.

But the all-Bundesliga final could just be the sideshow to a bigger German act, as billion-dollar corporates gear up for one of the major advertising opportunities in world sport.

From sportswear multinationals such as Adidas and Puma to insurance giants Allianz and Signal Iduna, Wembley stadium will be awash with the household names of German commerce -- all helpfully beamed to a global television audience of potentially 150 million.

var currExpandable="expand16";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='sports/2013/03/07/exp-football-club-german-teams-bayern-dortmund.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130305224510-united8-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand16Store=mObj;var currExpandable="expand26";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='sports/2013/04/24/football-club-bayern-munich-pep-guardiola.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130423142240-guardiola-goetze-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand26Store=mObj;var currExpandable="expand36";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='sports/2013/04/24/pinto-bayern-victory.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130424043509-pinto-bayern-victory-00013429-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand36Store=mObj;Thousands of toxic yellow and crimson red jerseys will sport the names of Dortmund's sponsor -- chemical manufacturer Evonik -- and that of Bayern -- Deutsche Telekom -- as Europe's largest economy struts its industrial might on club football's most prestigious stage.

Read: Double trouble for Bundesliga?

Germany, Europe's manufacturing powerhouse, is considered one of the economic bright spots of a continent dogged by recession despite the country posting growth of only 0.1% in the first quarter of this year, driven mostly by consumer spending.

Despite low growth, Germans -- recognized as the best savers in Europe -- proved they were ready to flaunt their cash as Dortmund received a staggering half a million ticket requests for the final while Bayern received 250,000. Wembley can hold just 90,000 fans.

Football finance expert Simon Chadwick said the final will provide a "brilliant showcase" for "Brand Germany," adding that the flair and style of the Bundesliga as well as the wide array of homegrown talent on display will enhance the brands connected with the teams.

"Existing brand associations that many people around the world have with German products -- notably efficiency and quality -- will no doubt be reinforced," Chadwick told CNN.

Financial model of sustainability

The ties between German industry and football run deep.

Unlike in England, France and Spain, where clubs are backed by Arab sheikhs, Russian oligarchs and American tycoons, the German league prefers a more homely approach to club financing.

Christian Seifert, chief executive officer of the Bundesliga and a self-proclaimed Borussia Monchengladbach fan, is skeptical as to whether the final will boost the national economy, but he does believe the game will be a good advert for German football.

"Bayern and Dortmund are proof that it is possible to have good sporting performance and to have solid financial behavior," Seifert told CNN.

Unlike other top leagues which attract more global endorsers, the Bundesliga clubs are largely sponsored by domestic brands -- 15 of the 18 clubs in Gemany's top tier for the 2012-13 season were backed by local companies ranging from multi-billion-dollar insurance firms to family chicken and dairy farmers.

"The big difference that you notice between other clubs in Europe is the degree of indigenous corporate engagement," sports finance expert Tom Cannon told CNN.

var currExpandable="expand119";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='sports/2013/02/07/football-club-mourinho-ferguson.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130207173003-football-club-mourinho-ferguson-00001906-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand119Store=mObj;var currExpandable="expand219";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='sports/2013/05/03/football-club-hargreaves-poyet-german.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130503160756-football-club-hargreaves-poyet-german-00034706-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand219Store=mObj;var currExpandable="expand319";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='sports/2013/05/03/football-club-spot-hargreaves-manchester.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130503155633-hargreaves-on-spot-story-body.png";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand319Store=mObj;Even the stadia are part of the Bundesliga's "Brand Germany" philosophy.

While fans of Manchester United or Liverpool would scorn at the renaming of Old Trafford as the Aon Arena or Anfield as the Standard Chartered Stadium, regular rechristening is the norm for the 18 Bundesliga teams.

So the Commerzbank Arena -- home to Eintracht Frankfurt and located in the country's financial heartland -- is named after one of Germany's biggest banks. Dortmund's Signal Iduna Park, once the Westfalenstadion, and Bayern Munich's Allianz Arena -- both tagged by insurers -- serve as further examples of the close links with big business in Germany.

Chadwick believes branding stadiums reveals a consensus in football that is characteristic of German society and culture, where sponsor and fan cooperation is seen as for the club's greater good.

"This shows both a level of commercialism and a certain betrayal of history and heritage that some fans both in Germany and in other countries find unacceptable," said Chadwick.

Read: All-German final down to youth policy

However, there is one fundamental rule for all Bundesliga teams that ensures fans are not kept in the dark when it comes to the control of their club.

The "50 plus one" rule -- a revered model of football governance whereby fans are the majority stakeholder -- applies to all clubs participating in the Bundesliga, with the exception of Bayer Leverkusen and Wolfsburg.

Those teams were founded by pharmaceutical company Bayer and car manufacturer Volkswagen respectively and are 100% owned by these companies, with the stadiums -- BayArena and Volkswagen Arena -- named in their honor.

This is due to a rule that states if a club in Germany receives major financial backing from one party for over 20 years, that party can then take a controlling stake in the club.

The boardroom structure in the Bundesliga is unique and completely different to the big clubs in England, where a relatively small ownership group dominates the board.

"The boards of these (German) clubs are packed with corporate heavyweights," said Cannon. "It's a confident assertion of German industry."

var currExpandable="expand131";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='sports/2013/05/10/cnn-football-club-show-ferguson-moyes.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130510114854-cnn-football-club-show-ferguson-moyes-00095601-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand131Store=mObj;var currExpandable="expand231";if(typeof CNN.expandableMap==='object'){CNN.expandableMap.push(currExpandable);}var mObj={};mObj.type='video';mObj.contentId='';mObj.source='international/2013/05/09/cnn-football-club-alex-ferguson-special.cnn';mObj.videoSource='CNN';mObj.videoSourceUrl='';mObj.lgImage="http://i2.cdn.turner.com/cnn/dam/assets/130509100808-cnn-football-club-alex-ferguson-special-00001508-story-body.jpg";mObj.lgImageX=300;mObj.lgImageY=169;mObj.origImageX="214";mObj.origImageY="120";mObj.contentType='video';CNN.expElements.expand231Store=mObj;Although Bayern is owned by the fans, both Adidas and carmaker Audi have 9% stakes in the club, with the chairmen of both companies sitting on its supervisory board.

In the case of Dortmund, 82% of the club is free-float stock and owned by the fans but the corporate board is dominated by businessmen with backgrounds in banking and shipping.

Read: Football enters space age with 'Footbonaut'

Bundesliga boss Seifert insists he is not concerned by the intimacy between big business and football clubs in Germany because the revenue generated by the teams pales in comparison to big multinational brands' profits.

"I don't think they're too close," said Seifert. "The good thing is that the 100,000 jobs are created through the Bundesliga in Germany.

"We're talking about global brands and they're using football as a marketing instrument all over the globe."

Read: Time for Premier League to give youth a chance, says Hargreaves

The strategy pursued by the German Football Federation and the Bundesliga after a poor showing at the European Championships in 2000 has paved the way for the nation's current success at both club and international level.

"Each club that wanted to play in the top two tiers of the Bundesliga -- 36 clubs -- had to have a youth academy," Seifert said.

"Today more than €100 million ($128 million) per year is invested and 5,000 players are educated in the program."

Dave Webb, a scout for English Premier League club Southampton who spent time observing the Bayer Leverkusen setup, explained that there has been major investment by Bundesliga clubs at grassroots level -- and players coming up from youth level are given more time to flourish than players in the English system.

"Bayern and Dortmund are very strong at youth level and that is behind their success," said Webb. "Players are judged a bit later in the Bundesliga -- instead of 17 or 18, players can go right through to under-21 level before they reach the first team."

Given that co-ordinated strategy allied to long-term planning, no wonder "Fussball" is coming home -- to Germany.

/* push in config for this share instance */cnn_shareconfig.push({"id" : "cnn_sharebar2","url" : "http://www.cnn.com/2013/05/23/sport/football/german-football-business-champions-league/index.html","title" : "Champions League final is shop window for \'Brand Germany\'"});ADVERTISEMENTCNN Football Club Be part of CNN's coverage of European Champions League matches and join the social debate.June 6, 2013 -- Updated 1425 GMT (2225 HKT) A former Palestinian player, once held without charge for three years, is campaigning for a boycott of Israel's staging of a major European tournament.May 23, 2013 -- Updated 1052 GMT (1852 HKT) The logo of FC Bayern Muenchen is pictured on the hood of an Audi A1 during a promotional event at the Audi factory on August 21, 2010 in Ingolstadt, Germany. Luxury-car manufacturer Audi turned cars over to the players of FC Bayern Muenchen. When Germany's two biggest soccer clubs go head-to-head in the Champions League final, there can only be one winner: German industry. May 22, 2013 -- Updated 1356 GMT (2156 HKT) The Bundesliga model of sustainability is very much in vogue. But are Bayern Munich and Borussia Dortmund creating a dangerous duopoly?May 23, 2013 -- Updated 1106 GMT (1906 HKT) Bayern Munich super fan Boris Becker takes a tour of London ahead of the 2013 Champions League final.May 23, 2013 -- Updated 1015 GMT (1815 HKT) CNN takes an exclusive look at the venue of the Champions League final between Bayern Munich and Borussia Dortmund.Bayern Munich and Borussia Dortmund tease CNN's Pedro Pinto gives his analysis of the Champions League final between Bayern Munich and Borussia Dortmund.May 17, 2013 -- Updated 1710 GMT (0110 HKT) David Beckham embraced his tag as a "gay icon" and has been credited with breaking the big taboo -- homosexuality in football.May 13, 2013 -- Updated 0750 GMT (1550 HKT) 'King' Alex Ferguson is quitting Manchester United but the $3.17 billion brand will survive, according to experts.May 7, 2013 -- Updated 1418 GMT (2218 HKT) Italian football lags behind its other European rivals commercially, but newly-crowned Italian champions Juventus is showing Serie A clubs an example of revival.April 24, 2013 -- Updated 1434 GMT (2234 HKT) Luis Suarez's biting of Branislav Ivanovic is the latest episode of moments of madness when soccer stars behave badly.March 29, 2013 -- Updated 0938 GMT (1738 HKT) Former South African president and Nobel peace prize laureate Nelson Mandela joins guests at his home in Cape Town, on August 20, 2008 to celebrate his 90th birthday year, at an event organised by the Mandela Rhodes Foundation (RODGER BOSCH Sunderland's partnership with the Nelson Mandela Foundation is part of its bid to woo the African market.March 28, 2013 -- Updated 1558 GMT (2358 HKT) South African children play football in a township in Bloemfontein on June 21, 2010. South Africa will face France in their final Group A, 2010 World Cup, first round football match on June 22. Each year as many as 700 Cameroonian young footballers leave Africa in search of a professional career abroad. May 6, 2013 -- Updated 1201 GMT (2001 HKT) Referees across Europe are feeling the heat. Insulted, threatened, chased off the field, attacked, hospitalized and, tragically, killed. February 26, 2013 -- Updated 1225 GMT (2025 HKT) A real human brain being displayed as part of new exhibition at the @Bristol attraction is seen on March 8, 2011 in Bristol, England. The Real Brain exhibit - which comes with full consent from a anonymous donor and needed full consent from the Human Tissue Authority - is suspended in large tank engraved with a full scale skeleton on one side and a diagram of the central nervous system on the other and is a key feature of the All About Us exhibition opening this week. Footballers have a battery of physios, fitness trainers and doctors all striving to fine-tune their physique -- but are they missing a trick?February 26, 2013 -- Updated 1424 GMT (2224 HKT) No Englishman has won the EPL title in over 20 years, while a leading manager reveals that English coaches are now "not respected abroad."May 13, 2013 -- Updated 0933 GMT (1733 HKT) Football supporters demonstrate in front of Italian TV RAI after the match between A.C.Milan and Lazio Roma was cancelled 11 November 2007. The spectre of football violence resurged in Italy on Sunday as the shooting dead of a fan sparked nationwide disturbances which forced the suspension of several Serie A matches. Banner reads 'Racism can stop League but death of tifosi has no signification. Hardcore Italian football "ultra" Federico is a Lazio supporter who happily admits directing monkey chants at black players.March 5, 2013 -- Updated 1123 GMT (1923 HKT) When Jupp Heynckes made his Bundesliga debut as a player in 1965, the name of Bayern Munich was a new one for the nascent German league.February 19, 2013 -- Updated 1902 GMT (0302 HKT) Football's world governing body FIFA has confirmed it will use goal-line technology at the 2014 World Cup in Brazil.February 19, 2013 -- Updated 1403 GMT (2203 HKT) Match-fixing has become a worldwide issue, with hundreds of matches under investigation -- but how do you actually fix a football game?February 18, 2013 -- Updated 1700 GMT (0100 HKT) U.S soccer star Robbie Rogers has "come out" as gay on the day he retired from the game, making the announcement on his blog.February 11, 2013 -- Updated 2231 GMT (0631 HKT) The wealth of owners like Chelsea's Roman Abramovich often fuels success, but for other clubs such backers prove a mixed blessing.January 30, 2013 -- Updated 1342 GMT (2142 HKT) The Secret Footballer reveals the complex issues surrounding racism in the English Premier League. Today's five most popular storiesMoreADVERTISEMENT

View the original article here

No comments:

Post a Comment