Tag Archives: adidas

The Business of Football Kits: Sponsorships, Technology, Branding and Beyond

As we enter the final few months leading up to this summer’s World Cup in Brazil, the national teams taking part in the tournament have been unveiling their new kits to ride on the wave of growing interest in international football.

Brazil, England, Germany, Spain, Argentina and France have all released new kit designs for the summer, with various big-name sportswear companies and top international stars at the helm of high-profile launch events and flashy marketing campaigns. (The Mirror has a collection of some newly released kits here.)

As with most commercial activity in football, however, not all the recent kit launches have been met with universal acclaim: Ben Curtis’ article on the Mirror is a cynical rant at the hype machines that these events have become, while Lizzie Parry’s on the Daily Mail highlights just how expensive replica kits, launched over increasingly short time periods, have become.

In February, we explored the importance of stadiums in the overall commercial strategies of football clubs. As top-level football increasingly becomes big business and a huge revenue generator, let’s take a look at another money-spinning side to the sport: football kits.

 

Vincent Yu

 

Sponsorships

One of the first things that comes to mind when football kits are mentioned these days is the staggering amount of money they can generate for football clubs, both from the merchandising side and from the corporate sponsorship side.

While club merchandise is generally dependent on the popularity and on-pitch success of the clubs themselves—and the annual Deloitte Money League results generally attest to that—the larger context is the money that sportswear companies actually pay to be the official kit providers of football clubs.

In recent years, just in the Premier League, we’ve seen many instances of eye-watering commercial deals involving kit suppliers. Liverpool’s 2012 deal with Warrior Sports, the latter’s first foray into football, would, according to Andy Hunter of the Guardian, net the club at least £25 million a year.

Just this January, Arsenal announced they would be changing their kit maker from Nike to Puma, in a five-year deal reportedly worth more than £30 million a year, per the BBC. And, as ever when it comes to business deals, Manchester United shocked the world this March with their world-record 10-year deal with Nike, which, according to Simon Mullock of the Mirror, will see the Old Trafford club earn more than £60 million a year.

Besides contracts with sportswear makers, the other big player in the football kit boom is the corporate sponsorship deals that have taken center stage in recent years. This 2013 J.J. Colao article in Forbes listed Manchester United, Barcelona, FC Bayern Munich, Liverpool and Real Madrid as the biggest shirt sponsorship deals in the world.

Another interesting marketing tactic has been employed by Tottenham Hotspur this season, as they featured different sponsors on their shirts in different competitions, with Hewlett Packard their Premier League front and AIA their cup shirt partner. According to Kevin Palmer of ESPNFC, however, even Tottenham will revert to the traditional “principal partner” model at other big clubs, having agreed a lucrative £20 million-a-year deal with AIA for the next five years.

 

Richard Heathcote/Getty Images

 

Technology

But with all the money that goes into the kits, and their burgeoning price tags, do those who get to wear them actually benefit?

Specifically, do the footballers themselves get anything out of the constant kit changes, or are they just excuses to step in front of a camera for yet another photo shoot?

Just ask the Italian national team stars. According to the BBC, the high-tech football shirts they will be wearing at the World Cup this summer will be able to deliver massages during the game. The shirts contain a special tape that provides “micro-massages” for their wearers and “maximise muscle power” by allowing the body to recover from exertion more quickly.

Away from the luxury options provided to footballers these days, far more important is the shirts’ ability to keep their wearers warm in extreme cold temperatures. This article from PRNewswire.com lists a few examples of temperature-regulating technologies that are present in football shirts on the market.

Different sportswear manufacturers—the same who enter into the lucrative long-term contracts with football clubs and will rely on such technology to win such bids—integrate different functions into their shirts, but the underlying principles are the same: adding layers onto shirts that keep players comfortable, dry, warm or cool depending on the surrounding weather conditions.

With the digital space increasingly at the center of the football fan experience, besides featuring on shirts themselves, technology has also crept into the marketing side of football shirts and kit launches, so much so that organizing such events can be considered an industry in itself.

See, for example, this analysis on Liverpool’s new kit launch in 2012 on Dan McLaren’s TheUKSportsNetwork.com. Liverpool’s multichannel marketing and promotion strategy, across different social media platforms, was all about putting out a united front for the kit launch, which also had to match the club’s corporate branding.

But, as they’ve tended to do so in social media in general, Manchester City will take home the technology and marketing hybrid approach for football kits as well.

They’ve since switched to Nike as their main shirt sponsor, but City’s launch of their Umbro kits for the 2012/13 season, as covered here by SoccerBible.com, took fan engagement to a new level when they invited fans to decide how the new kit would be officially launched.

 

Ray Stubblebine

 

Branding

Using a new innovative campaign to bridge the marketing and technology worlds with branding in football was yet another Manchester City-affiliated project, New York City FC.

Since their official announcement in 2013, New York City FC have caught the attention with their cutting-edge digital-marketing campaigns despite the MLS outfit not yet officially competing in the U.S.’s highest-tier domestic football league.

NYCFC put their fans truly at the center of their business and branding strategy by inviting them to submit ideas for an official club crest, which was met with widespread acclaim and culminated in a win-win scenario where the club also got their hands on an excellent winner, shown here on the MLS official website.

An example of how the football kit itself has become more than just one of the components of a football club’s identity; it’s evolved into an integral part of the football club’s business strategy on the whole.

So eager have clubs and affiliated sponsors wanted to tap into their fanbase for merchandising dollars that they have begun creating hype cycles out of kit launches to boost profits and increase circulation among their followers—at the risk of straying into grey areas and stirring controversies.

In tandem with the ongoing, controversial narrative that football is becoming more and more middle- and upper-class and moving away from the traditional working-class fanbase that gave the sport its following and popularity, clubs and corporations have rushed into a branding frenzy and become eager to associate themselves as “premium” titles.

A major recent example was that of Adidas, who, according to Anna White of the Telegraph, may refuse to supply Sports Direct, one of the biggest sports retailers in the UK, with a variety of World Cup football kits due to concerns over its stores and customer service.

Said Adidas, “Like all manufacturers, we regularly review, season by season, where our products are distributed. We determine distribution channels for all products based on criteria such as in-store environment and customer service levels.”

In other words, sportswear manufacturers are eager for their football kits to be treated as premium consumer goods—indeed, the mooted £140 price tag for the new England kits by Nike almost automatically price themselves into that category—and they’re not afraid to incur the wrath of fans and middlemen retailers to achieve their commercial goals.

Charlie Crowhurst/Getty Images

 

Prior to the World Cup row, Adidas also landed themselves in hot water with Sports Direct over their treatment of Chelsea’s official club kit. In light of the public spat, Matt Scott of InsideWorldFootball.com put together an excellent and in-depth analysis of the changing role of the football kit itself.

Linking the state and rationale of Chelsea’s commercial and branding activities with the area’s wealthy and exclusive reputation, Scott consolidates a list of the London club’s highest-profile official sponsors, who all pride themselves on their elite stature within their respective industries.

The ever-changing face of the football kit, then, is not just an evolution of modern shirt design and an extension of clothing technology into sport, but is a reflection of a shift in the status of merchandise and football itself in the eyes of football clubs, manufacturers and sponsors.

And with seemingly unstoppable momentum behind money-spinning sponsorship deals, it seems that football kits will continue to be at the center of football’s paradigm shift. One only hopes that it doesn’t one day become only limited-edition items due to their exclusivity.

 

This article first appeared on Bleacher Report.

The Proliferation of Data-Driven Analysis in Football (Part Two: The Coaches)

Big data.

It’s the flavor of the moment, whether it’s used in conjunction with politics, business or sports, and given the growing ease with which organizations and people can collect data, it looks as if big data is here to stay.

And when the BBC Technology section runs an article on how data analytics is influencing football, you know it’s a hot, hot topic.

In part one of this series looking at data-driven analysis in football, we discussed the growing popularity and importance of statistics to football scouts, which extends to how football clubs run themselves as organizations and businesses.

A key player in the stats arena that we looked at was Manchester City, so it’s no surprise that the BBC article just cited starts with City as a club to look at: They, after all, employ 10 full-time data analysts just for the first team (and this was the picture, at the time of writing, almost six months ago), and club captain Vincent Kompany has realized the value of in-depth analysis, such that he’s reportedly started meeting with his fellow defenders and the data analysts to discuss their findings.

We started off our last piece looking at the role that pre-match preparation played in Simon Mignolet’s exciting penalty save from Stoke City’s Jonathan Walters on the goalkeeper’s debut for Liverpool—the importance of data analysis and the simple of collection of statistics did the job there, and will continue to do this job.

We will now discuss the coach’s role and use of statistics in part two of our four-part series on Business of Soccer, in which we’ll look at how big data and related technologies and trends have influenced and augmented the beautiful game. Parts three and four will look at the sports scientists and, finally, the fans.

 

Photo courtesy of The Telegraph.

Photo courtesy of The Telegraph.

Club Information

Let’s start with a fascinating Sports Illustrated article from Jen Chang, who talks about the use of performance analytics by Premier League club Everton and how it influenced ex-manager David Moyes’ preparation work.

And there are major repercussions on the tactics side of the game. Steve Brown, Everton’s First Team Performance Analyst, performs this exact role, where he analyzes information provided by Prozone (more on the data providers later) to develop game plans. Where are opposing full-backs usually positioned? What positional traits do opposing wingers exhibit? How can Everton prepare their team shape to take advantage of any habitual practices of next week’s opponent? As Brown says in the article, American forward Landon Donovan was often eager to solicit more information from Everton’s analysts during his time on loan at Goodison Park.

We can thus see the importance of opposition scouting in terms of tactical approach and how teams can prepare their own players to negate formations and systems, as well as take advantage of any possible habitual holes that are magnified. Add this tactical and positional information provided by data analytics onto detailed observations and reports prepared by specialist opposition scouts (such as this quite brilliant analysis done by former Chelsea scout Andre Villas-Boas via the Telegraph), and it could make for a comprehensive picture and extensive preparation.

The implications of this method quite naturally also extend and have applications beyond opposition scouting. By studying a club’s own players, managers can get a feel for how they can better train and mold them into all-rounded stars with fewer glaring holes in their games—and this not only means they can do tactical and positional work, but also fitness work.

We’ll look more in depth at the science of sports fitness in part three of this series (particularly a high-profile example at Liverpool), but we’ll also refer to one of many interesting applications of GPS technology: to track player movement, position and fitness.

Arsenal, with their aesthetically pleasing attacking movement, self-sufficient financial structure and new world-class stadium, are known for their modern approach to the game, and their use of GPS to monitor their own players won’t come as a surprise, and in the case of midfield starlet Jack Wilshere, according to a Guardian report, it was this technology that persuaded him to miss the 2011 Euro U21 tournament.

 

Independent Information

So all is well and good with regards to data analytics and statistical analysis employed by football clubs, but where does all of this information come from?

Well, there are a number of big players in the sports analytics scene, and Prozone and Opta are the two biggest names around, mostly because their scope and coverage extend far beyond just a single team.

To that end, Prozone has struck up a number of high-profile partnerships with the likes of Arsenal, Manchester United, Manchester City, Stoke City, Fulham and Wigan Athletic, and this self-styled performance analysis firm provides the information that helps the team preparation process of many other clubs around the world.

In the US, where as we covered last time Major League Soccer have been pioneers in the technological and analytical front, both DC United and Chicago Fire have struck up agreements with Prozone to provide technical and tactical analysis, while the US Soccer Federation itself also employs such data to aid its national team and referees association. Their work also helps the German Football Association, who does a similar thing for the German national football team.

Opta, whose succinct Tweets from a variety of accounts looking at different leagues complement a viewer watching football on TV, are probably as famous among fans for their one-word conclusions as they are among clubs with their information, but it is interesting that they seem to be more of a statistical analysis firm as opposed to “performance” per se.

What do we mean by this? This OptaPro blog will shine more light onto what exactly Opta does with its data. Opta is much more of an independent data provider, in that its information is gathered and supplied in a more third-party role, looking at league-wide trends and analysis, as the blog entry does for Premier League goal-scorers.

Opta is, as well, the official media partner of the Premier League, the Football League and the Scottish Premier and Football Leagues, and its focus is much more on the fan engagement level—official Premier League partners such as Barclays and EA Sports will be able to access use live Opta data, while other popular sites like EPLIndex.com and Squawka are built entirely on data provided by Opta.

But it is another kind of analytics project that Opta has done recently that really captures the imagination and the potential of such analysis.

Opta’s project with adidas on “The Engine,” in which a mathematical equation-based algorithm has searched out specific types of box-to-box, stamina-heavy players and will continue to do so over the course of the season. This collaboration looks on the surface to be an ambitious feature aimed at fans interested in player analysis and comparison, but in reality there could be big implications on the world of football scouting and coaching.

Will there be a day that third-party data analysts—not in-house analysts at clubs—take over all the information analysis functions of football clubs, much like generic call-centers and hardware manufacturers support different companies in the same facility?

Could Prozone come up with a standard set of coaching manuals and training regimes, based on their vast databases of performance-related data, that they could then sell onto clubs, academies and leagues as best practices as a “performance consultancy”?

Could Opta unearth players using specially designed algorithms to recommend to clubs as players they should be looking at?

How would clubs be able to turn down such offerings if both fans and they themselves knew that they are the organizations that have access to the widest range of data and as such should be the most reliable in their recommendations?

 

League-Wide Information

As we ponder the future roles of data providers like Prozone and Opta, we should also keep an eye on the present, where sports firms like adidas are expanding quickly and aggressively into the coaching analytics field.

We discussed above adidas’ “The Engine” project; in 2013, its miCoach Elite system will be implemented across MLS to provide real-time data available to both coaches and fans, who will be able to track performance levels to the minutest detail (if they wish) while the match is going on.

In part two of this four-part series on the proliferation of data-driven analysis in football, we’ve looked at the role data is now playing in the coaching arena. Most of the analysis is done pre- and post-match to prepare and debrief players and managers on what to do next, but when real-time data becomes widely available, everyone comes under heavier attention, and the pressure to perform becomes higher than ever.

As we look ahead to part three on sports scientists, there is already plenty of food for thought related to how all this information—and all the players in this field—can have ramifications for the beautiful game in the future.

Stay tuned.

This piece first appeared on BusinessofSoccer.com, where I cover business and marketing strategy, globalization and technology in football.