
Samsung Electronics has big problem with Chelsea and Manchester United. Samsung Electronics may strike a new shirt sponsorship with British soccer team Manchester United ― one of the most valuable sports franchises in the world.
In 2005, Samsung concluded a five-year $95 million shirt sponsorship deal with Chelsea FC. The deal is to expire in June next year. “Manchester United has recently sent an official letter asking if it’s possible to seal a new shirt sponsorship deal,” a Samsung Electronics spokesman told The Korea Times, Sunday.
According to sources close to Samsung’s sports marketing, the Korean company has been in detailed internal talks since then to study how the possible partnership change will impact its business in Europe.
“The rumor that Manchester United has requested 60 billion won in annual support from Samsung, however, is exaggerated,” according to the spokesman.
Such remarks came after American Insurance Group (AIG), the logo of which currently adorns the front of the Red Devils’ jerseys, announced a few months ago that it wouldn’t extend its four-year deal with the club when it expires next year.
In the wake of the global credit crunch, AIG recently needed a $150 billion bailout from the U.S. government to avoid bankruptcy.
Manchester United receives about $19 million per season from AIG. “The club has approached other companies as well,” the Samsung official said, referring to some Middle Eastern telephone companies.
“Olympics” and “Soccer” are the two main pivots for Samsung’s sports marketing. Since 2005 ― the year the “Samsung Mobile” brand appeared at Chelsea’s Stamford Bridge ground ― Samsung’s mobile share in Europe has steadily expanded to reach 20.1 percent last year.
It was also the top mobile vendor in the United Kingdom and France, taking up a market share of 26.8 percent and 29.6 percent, respectively, in 2008, due partly to increased brand recognition, according to Samsung officials. Samsung also added 10.3 percentage points in its European LCD TV market share between 2004 and 2008.
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