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Old Firm facing more cash fears as search starts for new shirt sponsor deal


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RANGERS and Celtic are on the hunt for a new shirt sponsor after Carling called time on the association which has run for six years.

 

But the warning from commercial experts is that, due to the current economic situation, they might struggle to attract bids worth more than �£1million per year.

 

That's less than HALF the �£2.2m in total they currently receive from Carling, and would be another severe blow to the income of the clubs who are reeling after yesterday's cut-price TV deal saw them battered again financially.

 

There are now genuine fears inside both Old Firm clubs they could lose up to �£5m each over the length of a four-year contract, based on previous monies offered for shirt sponsor deals.

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The Carling deal, which began in 2003 and which was renewed in 2005, has now entered its final year.

 

Talks about its renewal have already taken place over the past few months between the clubs and the brewer, but sources have told SportTimes Carling have opted against going on.

 

The brand - who are owned by US-based Molson Coors - are aware of the success rivals Tennent's have enjoyed with T In The Park, and have been looking to focus on music-related promotions.

 

Paul Miller, managing director for Molson Coors in Scotland, refused to confirm that any decision had been made about the renewal of the Old Firm contract as there is hope some kind of corporate tie-in could remain.

 

He said: "The facts are that current deal is up at the end of the season and, as yet, nothing has been agreed about going forward from there.

 

"We are still in conversation with Rangers and Celtic and have been for a few months. It will probably move fairly quickly now in terms of our discussions."

 

Rangers and Celtic are being pro-active to ensure they are not caught cold in their search for a new shirt sponsor.

 

The word has gone out to anyone who might be interested in getting their names on two of the most famous jerseys in world football that the opportunity might be coming up very soon.

 

But the timing could not be worse, given the problems the world economy is experiencing.

 

Carling's initial Old Firm shirt sponsorship deal was for �£12m over four years.

 

But, in 2005 this was replaced by an agreement worth a basic �£18m with substantial bonuses if certain targets are hit, With Celtic and Rangers both reaching the last 16 of the Champions League during this period, and the Ibrox club also competing in the Uefa Cup final, the deal has been more lucrative than any previous deal with shirt sponsors.

 

There is no guarantee the Old Firm will continue to have the same sponsor. But, in commercial terms, it has been considered prudent to be associated with both halves of the city.

 

http://www.eveningtimes.co.uk/sport/display.var.2520540.0.old_firm_facing_more_cash_fears_as_search_starts_for_new_shirt_sponsor_deal.php

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I imagine being on Sky will help a bit when its time to renew.

 

Wee insight into the market here in a FT article from May 2009. Interesting to see that comparisons with the EPL in terms of TV revenue are nowhere near as starkly different when it comes to shirt sponsorship, which is curious.

 

For example Liverpool get �£7m pa, whereas we get �£2.2m at the moment.

 

http://www.ft.com/cms/s/0/fc60393c-430a-11de-b793-00144feabdc0.html

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I want shot of Carling and for us to get our own individual sponsor away from Celtic , I agree that being on ESPN and Sky for the next few years wilth a worldwide audience will be a good bargaining chip when it comes down to it we cant let the club lose more money by accepting medicore deals.

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I would like to see us getting a sponsor away from the MOPES, however they would probably get a better deal than us as they seem to be much better when it comes to the business side of things regarding promoting their club

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From a business perspective, many companies won't want to alienate themselves from half of Old Firm supporting Scotland. It reaches beyond our borders if it's a telecoms company as well, since then you're looking at the whole British market & even beyond in some cases.

 

The best thing financially would probably be for a banking, power or telecoms giant to sponsor us, as the money could be significantly better than we were getting from Carling. We want a big sponsor from an industry sector that makes hideously huge amounts of profit, so that they won't be missing the �£10m they give us.

 

yours sincerely,

 

The Optimist... :)

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It could also be argued that a premium is paid by these companies to sponsor BOTH OF teams as they get a larger coverage and also do not alienate half the support.

 

Unfortunately we do still play in a "back-water" league with little exposure so the pickings for sponsors are quite slim and the financial rewards for the sponsors won't be that great I wouldn't imagine.

 

Shame the deal didn't end at the end of the season before last as our stock would have been pretty high given the UEFA run.

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It could also be argued that a premium is paid by these companies to sponsor BOTH OF teams as they get a larger coverage and also do not alienate half the support.

That's precisely what I said above. I just said it differently. :)

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We've still got another year to run and the economy could have picked up by next year, so to say we'll get bugger all is a bit premature and just scaremongering.

 

Both McEwans and Carling have done very well from the sponsorships - who drank Carling in Scotland before they were on the shirts? Not many - it was considered "English lager".

 

So another company could want that kind of exposure.

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Guest ReadyTeddy
Drinks giant Carling insists that the Scottish Premier League's new television contract has no bearing on their Old Firm shirt sponsorship deals.

 

There had been speculation about the future of the sponsorship after the demise of the SPL deal with Setanta.

 

But ESPN-Sky this week agreed to take over - but paid half as much.

 

And Paul Miller, managing director of Molson Coors in Scotland, said: "We're looking at extending our relationship with the Old Firm into the future"....

http://news.bbc.co.uk/sport1/hi/football/scot_prem/8156959.stm

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