Asia races ahead

As crisis-ridden companies across Europe and the US back out of sponsorship deals with top football clubs, Formula 1 teams and global events—financially better off Asian firms are stepping in and talking big money. And it’s not just Anil Ambani showing interest in buying the British football club Manchester City or the fraud-struck Satyam Computer Services becoming a major sponsor for the 2010 and 2014 FIFA World Cups in South Africa and Brazil, respectively.

The trend is catching on fast across India and rest of Asia. So, while Tata Consultancy Services (TCS) has been roped in by Ferrari for Formula One, liquor baron Vijay Mallya’s Kingfisher Airlines (Fly Kingfisher) now sponsors Force India, at the F1 Grand Prix. More recently, Sahara India and financial services firm Religare have been approached by soccer giants Manchester United for sponsorship after American International Group (AIG) decided to not renew its shirt sponsorship contract with Man U. Subhrangshu Neogi, Director (Brand & Corporate Communications), Religare Enterprises, says: “Religare as a brand is always open to association with sports and is constantly evaluating opportunities to take the brand to the next level in sync with the group’s plan to create a globally scalable business.”

The struggling US economy has only helped Asia’s cause. In the US, the recent IEG Sponsorship Report projected annual growth in sponsorship to be 2.2 per cent this year. This is down significantly from the over 11 per cent increase in 2008. Financially stronger Asian companies, therefore, are in demand and getting their logos on “first world” events and teams. Apart from Petronas (sponsor of the F1 team BMW Sauber) and Emirates Airways (sponsors Arsenal) others like Samsung (Chelsea), Chang Beer (Everton) and Kyocera (Reading)—are sponsoring English Premier League clubs. It seems that the Asian invasion in sponsoring world sporting events is no longer limited to just cricket.

—Anusha Subramanian