If, like me, you grew up in the seventies, you’ll recall entrepreneur Victor Kiam’s famous Remington ads, which ended with the line ”I liked the shaver so much, I bought the company”. Audi, evidently, feel the same way about their sponsorship of Bayern Munich, having yesterday announced that they had taken a 9% stake in the club as well as continuing as a sponsor. Bayern’s strategy of sponsoring the European footballing elite is self-evident - as well as Bayern, the brand also sponsors AC Milan, Barcelona, Manchester United and Real Madrid – but this clearly takes their involvement to a new level, and raises an interesting question: does Audi’s move herald a new era of brands moving from sponsorship of the elite sporting names to investing in them as well? Only time will tell. But if it did, I wouldn’t find it surprising.

Moving from sponsor to investor is undeniably a leap in terms of the financial commitment involved, but not that big. Clubs like Bayern are massive brands with millions of passionate, committed fans. But let’s remember that as businesses, in financial terms they’re minnows by comparison with the market capitalisation and buying power of major brand owners.

Some might argue – especially with Bayern languishing at seventh in the Bundesliga and facing elimination from the UEFA Champions League – that adding financial risk to marketing risk isn’t a smart move when on-field performance is so critical to the bottom line: the spectre of Leeds haunts. But whilst every deal carries an element of risk, let’s face it, Bayern aren’t Leeds: they’re a long term footballing superpower with stable, membership-based ownership and high-quality earnings. The risk is as minimal as you can get – in football anyway.

There’s a final argument – which I assume applies to Audi and Bayern – that makes moving from sponsor to investor entirely logical to me. If just about everything about the relationship from a brand and business point of view is right, and if you share and can commit to a long-term vision – in short, if there’s perfect synergy – why not go one step further and become an investor as well as a sponsor?

To summarise, I don’t believe we’ll see a stampede into these type of deals: for one thing there’s a recession on, and for another I don’t see too many assets out there that brands would invest in.  But I don’t think the Audi-Bayern deal is the last of its type that we’ll see.

In the meantime, I’ll be adding a new filter question into the model we use to help our clients make a call on whether to sponsor a potential asset: would you buy stock in it?

By Tim Crow on November 27th, 2009

Tags: Default, Football, Football Sponsorship, Manchester United, Sponsorship, Sponsorship consultants