In regards to the shirt sponsorships: Could it be possible that those past short deals like with Chirag and such were just because both parties are incompetent. I mean, shirt sponsorships have proven to be very good revenue around the world. I am sure a company like JSW Group can work out a good deal with a stable/reliable company.
If the following clubs approached Pepsi, Parle-G , Lays or any other FMCG : they would only be offered the following amounts ( highest optimistic ,wishful amounts)
Bengaluru FC : 2 Crores
Dempo : 1.5 Crores
Salgaocar 1 Crore
Bharat FC : 50 Laks
SCdeGoa : 50 Laks
Dempo by using DEMPO as "shirt sponsor" get almost 10 times that from their company....it get softest as tax deductions , CSR etc
Salgaocar the same from the various subsidiaries of VM Salgaocar group of companies
JSW Steel , JSW Cement , JSW Energy etc all contribute 2-3 crores each...
So buy selling to stable /reliable companies is actually not profitable and in fact loses money on the balance sheet
IPL clubs struggle to get 2Crores for short sponsorships these days , which is why they have resorted to Formula 1 or " race-car style advertising"
If Indian football clubs wanted to earn genuine amounts from Shirt sponsors,...then shorts would start to look like the old J-League or Brazilian league shirts
4 years ago SLFC had a sound business plan ...1 Crore from AIRCEL for the shirt sponsor ( 60 Laks year one in 2nd Divison , rose to 1 Lak in I-League and .5 the following year )
Their players wage bill was 1 Crore in 2nd Divison and 2 Crore in I-League ...before Anglian Investment came in...
With Clubs like Dempo , Salgaocar , Bharat FC all spending in excess of 10 Crores on wage bills... shirt sponsors will only be a fraction , and never be able to sustain , unless they continue with THEIR model of it.
CLUBS need to start cutting their coat according to the cloth !
@arsenalfan700, I think it is like this: Club managements are shit. When they had formed the clubs, they did not have a strong vision for the future. Most of them did not have proper systems in place (accounting, accountability, corporate set up, ...). Therefore, the corporates are hesitant to sink their money in the ventures. Plus, the issue of visibility (or lack of it) is there.
MB and EB have cricket, hockey and other teams as well. So for football, they had to form a company where the sponsor has equal stake. United is not so organized, so the sponsor tries to gobble them up. For company -owned clubs, self financing is best, as @gaffertape mentioned. If, JSW can get say Rs 10 lakhs as shirt sponsorship, then that will be a game changer. But that amount of money is not possible under current scenario.
It is alright to have teams for other sports by a club. But the football Sponsor needs to know for sure where he is putting his money. In other words, he has to be sure his money is being used for the football team, and not for buying energy drinks for the hockey team.
Anyway, for Dempo, Salgaocar and other company owned teams, this problem is not there, since being corporates, they have clear-cut budget heads to show in the CSR schemes. Random roadside clubs don't have that.
@gaffertape How much of that FMCG sponsorship amount change if say Alcohol or Tobacco company is given an opportunity to be Shirt Sponsor. Such companies are restricted to show their ads in TV/Media, so they give better amount. ITC Company Wills/Goldflake used to be great sponsor of Indian Cricket. 1996 world cup was called Wills world cup. Same way Filmfare awards were sponsored by Manikchand Guthka. Pepsi/Parle have lot of options. Alcohol companies do not have that many. Thats why chances are more to get more money from them.
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- Bengaluru FC : 2 Crores
- Dempo : 1.5 Crores
- Salgaocar 1 Crore
- Bharat FC : 50 Laks
- SCdeGoa : 50 Laks
Dempo by using DEMPO as "shirt sponsor" get almost 10 times that from their company....it get softest as tax deductions , CSR etcPepsi/Parle have lot of options. Alcohol companies do not have that many. Thats why chances are more to get more money from them.