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Saudi Sportswashing Machine
- Thread starter superfaisty
- Start date
Related party transactions aren't banned by the prem. They just have to be considered fair market value.
I was all ready to complain about it being overblown but it doesn't seem too far out of line compared to the others. Obviously City's is ridiculous:
https://www.statista.com/statistics...ships-in-the-barclays-premier-league-by-club/
There is a very good argument for seperating sponsorship deals from owners. But most european teams wouldn't go for it. Juve with jeep, byern alianz, wrexham aviation gin etc...
Who knows what fair value is in sponsorship these days?
Which is a bit sickening.
Grays_1890
Colin Calderwood
Especially when more start to do it, what was once fair will start to look undervalue. That's the risk
True, but I don't think theirs is silly compared to us or the goons
Agreed, i can't see the prem blocking it. Expect a million other saudi companies to give them sporsorship deals though. Hell they don't even have to be saudi companies.
It's gone from 5m to 25m, that's a big jump even allowing for them being in CL.
It's not about this season though. Everybody expects them to be up there from now on. At least challenging for cl places or maybe higher in the future. So you could argue £25m for sponsoring Saudi Sportswashing Machine would turn out to be cheap in 3 to 5 years time.
Grays_1890
Colin Calderwood
The thing is with the middle east, they have or used to run at a 51/49 rules making everything locally owned or have a finger in it from thr locals, mostly royals or offshoots. Constructing, water, car dealerships, hotels, franchises, oil, electrics, all owned or partly owned by someone powerful. That's before you look at government like tourist boards and offshoots from that. As you say, plenty of sponsors out there
monkeybarry
Ian Walker
And they are high profile now and will expand as a brand.
It does seem like a justifiable value.
I'm sure they've had lawyers scrutinize whether it would stand up to challenge.
Did they have anyone else that was willing to pay that other than Sela? If not then it is an inflated sum to help them get around FFP.
Baleforce
Ron Henry
Every sponsor is the best bid whatever the football club. It's why they won.
Obviously, any other incredible insights? The point is was anyone else willing to pay close to that. If their last deal was for £5m and they've nobody else bidding near £25m it's an inflated price.
Bishop
Paul Stalteri
You're assuming quite a bit. Do we know the delta between what AIA are willing to spend on Spurs versus the next best offer? You're assuming the best offers are close, in this kind of game closed bid that is not always the case.
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Grays_1890
Colin Calderwood
Done a few sponsorship deals and its all differs per deal. Generally you sit down and get presented with the facts and figures and the exposure value based on print, TV and online. For example we sponsored a golfer who was constantly in the top 10 of the Masters, ironically bad everywhere else, but they would calculate how much the TV fees would be for X amount of coverage on a Sunday in the US and the World etc. We were told "3m of advertising value" now sponsorship is so wishy washy you take those literal figures as such, wishy washy and it cost us 50k to sponsor his shirt for a year.
So I assume they would be using the increased interactions on Sky as they will get more games per season (I imagine) and also the CL interactions as a way to inflate the figures. As its a new year and a new comp, they can in relative terms, inflate those figures to whatever they like, such is the nature of how figures are calculated.
ricky2tricky4city
Tom Huddlestone
I'm not sure when legally defending the amount you can use comparative figures from other clubs. The problem then for the league is Emirates Marketing Project. You show their growth curve in sponsorship amounts, and ask 'well you have given the green light to this?..So..'
I’m assuming nothing. There’s an if in there…
A company that hadn’t even a website a few weeks ago is suddenly paying 25m in sponsorship sounds dodgy to me. If it doesn’t to you I’ve no prob with that
Grays_1890
Colin Calderwood
Emirates Marketing Project went to the extreme didn't they? One of the cousins paid something like 100m for a hospitality suite of something. I am being extreme but literally every bit of money going in was bent. They had the emails from the CFO and how the money was being moved about. Hilarious strokes being taken