A-League Sponsorship

[midfielder]

Well put together A-League sponsorship clip about the A-League by SBS... at 1:40 the Mariners get a pat on the back as the leaders in sponsorships... Also gives a nice little revenue table at the 2 min ...

On the article 's theme of increasing sponsorship it is true all clubs need to get better dollars.

http://player.sbs.com.au/twg#/twg_08/ALeague/A-LeagueNews/playlist/A-League-Sponsorship/

 

[Bex]

Well spotted MF

 

[dibo]

so for people who didn't watch the vid (and you should), basically clubs are looking at covering costs of ~$8m per season to keep themselves afloat.

they get
~$2-3m in sponsorships
$1.2m special purpose grant from FFA
~$800k in value from corporate partners (playing kits, flights, cars etc.)
~$1.4-4m in ticket sales, suites, hospitality

if you're making $3m sponsorship, $4m tickets, even this best case scenario has you on $8.2m revenue. you barely scrape over the rough $8m figure. then to stay up there you've got to invest in your playing stocks, your coaching, marketing budget and other things to keep it all bubbling. chances are if you're looking to make more you're spending more too. if you're short on sponsorship and getting shit crowds (looks a short distance north) you're going to be pissing money out like a firehose.

tough gig, running one of these a-league clubs.

 

[midfielder]

so for people who didn't watch the vid (and you should), basically clubs are looking at covering costs of ~$8m per season to keep themselves afloat.

they get
~$2-3m in sponsorships
$1.2m special purpose grant from FFA
~$800k in value from corporate partners (playing kits, flights, cars etc.)
~$1.4-4m in ticket sales, suites, hospitality

if you're making $3m sponsorship, $4m tickets, even this best case scenario has you on $8.2m revenue. you barely scrape over the rough $8m figure. then to stay up there you've got to invest in your playing stocks, your coaching, marketing budget and other things to keep it all bubbling. chances are if you're looking to make more you're spending more too. if you're short on sponsorship and getting shit crowds (looks a short distance north) you're going to be pissing money out like a firehose.

tough gig, running one of these a-league clubs.

Good summary ... but highlights how important paying crowds are ... also how important the next media deal is for club revenue..

 

[elevated position]

foxtel has the rights  to 2013 don't they?? how much do they tip in ?

 

[dibo]

the fox money goes to the FFA, which then flows through via the SPGs.

when the deal is renegotiated and renewed in 2013 (presumably for more moula, given the success of the HAL and especially the success of the socceroos as well as the ability of FTA channels to come in now that DTV multicasting is a reality) the amount will surely adjust.

i have a feeling that the FFA bucks dropped with the two new teams, and will do so again with two more. at the same time, the cost of playing at home will rise - we lose money every time we fail to make a certain crowd number* and we get 3 more home games for every pair of new teams, so unless crowds jump more revenue has to come from other places.

* by 'a certain crowd number' i refer of course to some break-even number, exactly what that number is i don't know. mick had a good idea a couple of years ago that i don't think he was really at liberty to disclose, and i think i did some back-of-the-envelope calculations that put it in the vicinity of 13k.

 

[midfielder]

the fox money goes to the FFA, which then flows through via the SPGs.

when the deal is renegotiated and renewed in 2013 (presumably for more moula, given the success of the HAL and especially the success of the socceroos as well as the ability of FTA channels to come in now that DTV multicasting is a reality) the amount will surely adjust.

i have a feeling that the FFA bucks dropped with the two new teams, and will do so again with two more. at the same time, the cost of playing at home will rise - we lose money every time we fail to make a certain crowd number* and we get 3 more home games for every pair of new teams, so unless crowds jump more revenue has to come from other places.

* by 'a certain crowd number' i refer of course to some break-even number, exactly what that number is i don't know. mick had a good idea a couple of years ago that i don't think he was really at liberty to disclose, and i think i did some back-of-the-envelope calculations that put it in the vicinity of 13k.

Your 13K is not far off the mark... In Hal 1, from a excellent sourse the figure was 11.5K was the break even ... add more expenses i.e. salary cap and Ya the 13K seems about right...

foxtel has the rights  to 2013 don't they?? how much do they tip in ?

Fox pay 17 m per year for all Soccerooos & A-League... crowds will have some affect on the next media deal... like if crowds stay at early season levels then the deal will be less than if the average is above 15, 000....

 

[dibo]

found this on the old forum. calculations are from 9/11/07, so they're a little dated.

using the almighty calculating power of the back of an envelope...

cost per season: $6m

subtract from that:
sponsorship: $3m
fox grant: $1.25m (i've heard it's $10m per year to the 8 clubs, so that's 1/8 of $10m)

so that leaves $1.75 to be made up from other sources.

if the average value of a ticket is $15* then the required average crowd to break even is about 11666...

we'd need to average about 13250 from here in to make it to that figure for the season.

this is of course neglecting corporate facility sales, merchandising, and any other revenue sources.

* this will probably be about right but by no means exact - it's an adult GA ticket. it will be simultaneously pulled up by higher cost tickets and down by the number of concessions and whatnot. the higher the proportion of GA memberships the more it will be pulled down, but memberships are worth something in non-monetary terms too.

 

[curious]

Fox pay 17 m per year for all Soccerooos & A-League... crowds will have some affect on the next media deal... like if crowds stay at early season levels then the deal will be less than if the average is above 15, 000....

Bums on stadium seats are not the concern of fox or any other prospective telecaster. Bums on lounge room seats determine the value of a TV deal, the popularity as measured by ratings. If they aren't decent, both advertising time and subscription value aren't worth tuppence.

 

[midfielder]

Fox pay 17 m per year for all Soccerooos & A-League... crowds will have some affect on the next media deal... like if crowds stay at early season levels then the deal will be less than if the average is above 15, 000....

Bums on stadium seats are not the concern of fox or any other prospective telecaster. Bums on lounge room seats determine the value of a TV deal, the popularity as measured by ratings. If they aren't decent, both advertising time and subscription value aren't worth tuppence.

Not quite right there is no way of knowing what the future rating will be .... because there is little to no FTA ratings out their that can be used.... therefore crowds will be a factor in the calculation, as part of the weighting in the media deal calculation.... as well as world cup ratings on SBS...

So crowds are important ... how to increase them ARRrrrrrrrrrrr difficult .....

 

[FFC Mariner]

Sadly (given how they will treat it) publicity via FTA is probably the best way to increase crowds.

 

[curious]

Fox pay 17 m per year for all Soccerooos & A-League... crowds will have some affect on the next media deal... like if crowds stay at early season levels then the deal will be less than if the average is above 15, 000....

Bums on stadium seats are not the concern of fox or any other prospective telecaster. Bums on lounge room seats determine the value of a TV deal, the popularity as measured by ratings. If they aren't decent, both advertising time and subscription value aren't worth tuppence.

Not quite right there is no way of knowing what the future rating will be .... because there is little to no FTA ratings out their that can be used.... therefore crowds will be a factor in the calculation, as part of the weighting in the media deal calculation.... as well as world cup ratings on SBS...

So crowds are important ... how to increase them ARRrrrrrrrrrrr difficult .....

There is the paytv demographic and ratings to guide prospective fta ratings. (ratings of aleague and other football in comparison with other sports and programmes) There is also the past and existing paytv ratings which will obviously carry much weight in determining the future value to fox, and by proxy, the dollars to the FFA. Paytv veiwing is in the same boat as crowds so far this season btw.

 

[midfielder]

Fox pay 17 m per year for all Soccerooos & A-League... crowds will have some affect on the next media deal... like if crowds stay at early season levels then the deal will be less than if the average is above 15, 000....

Bums on stadium seats are not the concern of fox or any other prospective telecaster. Bums on lounge room seats determine the value of a TV deal, the popularity as measured by ratings. If they aren't decent, both advertising time and subscription value aren't worth tuppence.

Not quite right there is no way of knowing what the future rating will be .... because there is little to no FTA ratings out their that can be used.... therefore crowds will be a factor in the calculation, as part of the weighting in the media deal calculation.... as well as world cup ratings on SBS...

So crowds are important ... how to increase them ARRrrrrrrrrrrr difficult .....

There is the paytv demographic and ratings to guide prospective fta ratings. (ratings of aleague and other football in comparison with other sports and programmes) There is also the past and existing paytv ratings which will obviously carry much weight in determining the future value to fox, and by proxy, the dollars to the FFA. Paytv veiwing is in the same boat as crowds so far this season btw.

No argument on the Pay TV ratings & other methods you wrote on... all will be in the mix.. as to will be the expected increase in media due to going to FTA TV... However in all that crowd numbers will be part of the weight ... crowd numbers also have an impact on main stream media coverage ... thus more media coverage the bigger the crowd ... chicken and egg argument I know...  But I don't think is any argument that more media coverage will lead to an increase in crowds (the size is debatable).... So yes crowds are important as they will be used along with a number of other things in the weighted mix to determine the size media deal as I posted above...plus will affect the amount of mainstream coverage will get... Like if we start to average 15 K ... then hard to ignore ...

 

[elevated position]

in the earlier seasons the telegraph ran on Tuesdays an 8 page liftout on football (like the newcastle herald) and that had all sorts of football content for the casual fan. What happened to that because now football is page 16 from the back next to brothels??

 

[midfielder]

in the earlier seasons the Terrorgraph ran on Tuesdays an 8 page liftout on football (like the newcastle herald) and that had all sorts of football content for the casual fan. What happened to that because now football is page 16 from the back next to brothels??

Good point ... a very well connected mate of mine in the media says that the TerrOR are not that happy with Football ... thus the Timmy C reports...He informs me that both News & Fairfax think in a few years only one paper will survive ... News are determined that it is them... As News sees it according to my mate Football give beter access to Socceroos to Fairfax & place more expensive adds in the SMH... So until FFA & News meet have a hug and reach some kind of agreement ... then expect the crap to continue...


Just on Dibo's costings above... the Scum with their crowds this year and on the smaller scale of sponsors ... Con may start to count his eggs ... interesting position... small crowds, lower level sponsorship .......HMMMMMmmmmmm could be watch this space.

 

[Nik Mrdjas Disco Bikkie]

Was there a clause in the Fox contract for extra $$ for the extra game televised each week?

 

[midfielder]

Was there a clause in the Fox contract for extra $$ for the extra game televised each week?

I don't think so ....