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Liverpool F.C. Seek £80 Mil. Deal With Carlsberg, But the Brewer May Not Easily Be Replaced

By Jim Edwards | Jun 25, 2009

Liverpool F.C. want lead sponsors Carslberg to match the £80 million deal that Aon struck with Manchester United earlier this month, according to the Times. Such a deal would be priced at roughly £20 million a year. Currently, Carslberg pays only £7.2 million a year through 2010.

Pulling off such a coup would be both a financial and political victory for Liverpool’s American owners, Tom Hicks and George Gillett Jr. They have laden the club with debt and (briefly) threatened to replace LFC’s beloved manager, Rafael Benitez, making them virtual personae non grata at the club.

The deal must be negotiated by the end of July, The Times said. Carlsberg has the negotiating power of the incumbent, however: Sponsoring Liverpool is no walk in the park — a new brand coming in would find many a minefield to navigate.

Previously, fans have forced Carlsberg to abandon ads and promotions in The Sun newspaper, which Liverpool fans refuse to read. Currently, Liverpool’s fans are demanding an advertiser boycott of Fox Soccer Channel and Sirius/XM’s Steven Cohen, who made remarks criticising fans’ behavior at games where people died.

In a recent meeting between Liverpool fans and Ian Ayre, commercial director at the club, some fans criticised the brewer for advertising at the Leppings Lane end of Sheffield Wednesday F.C.’s ground, where 96 Liverpool fans died in an infamous stadium crush.

In sum, Liverpool’s fans regard the job of the shirt sponsor as supporting the club and its mythos, not selling products.

Also looking for a new deal is Chelsea F.C., whose £10 million a year deal with Samsung expires in June 2010. The Times gave this handy list of stats:

  • £80 million The four-year deal Manchester United signed with Aon takes effect from next summer
  • £75 million Juventus have a five-year contract with Tamoil, the international oil company
  • £68 million Bayern Munich’s four-year deal with T-Home
  • £50 million Chelsea signed a five-year contract with Samsung in 2005
  • £38 million Real Madrid’s three-year deal with Bwin.com, the Austria-based online gaming company

Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.

BNET User Analysis

Web Buzz:
  • Liverpool Sign Standard Chartered to £80M Deal; Replaces Carlsberg

    BNET Advertising - 73 days 13 hours 54 minutes ago

    Liverpool F.C. has replaced lead sponsor Carlsberg with Standard Chartered in an £80 million deal worth £20 million annually for four years

  • Carlsberg Confirms Talks With Liverpool on £7.5M Sponsor Pact

    BNET Advertising - 110 days 12 hours ago

    Forbes published a highly misleading headline yesterday: “Carlsberg And Liverpool Might Part Ways.” A closer inspection shows that the opposite is probably the case — the brewer will likely stick with Liverpool F.C., with whom it currently has a 7.5 million a year sponsor deal. The story itself didn’t live up the tease. Here’s what...

  • Standard Chartered Eyed in £15M Liverpool F.C. Sponsor Deal

    BNET Advertising - 109 days 10 hours 17 minutes ago

    Standard Chartered is a candidate to replace Carlsberg as lead sponsor of Liverpool F.C. for the price of 15 million a year, according to the Daily Mail. That’s almost twice what the brewer pays, 7.5 million. Such a deal would fulfill one prediction by BNET — that a Liverpool sponsorship is worth a lot more than 7.5 million –...

  • Arsenal's £100M Sponsorship Deal With Emirates No Longer Looks Like a Good Deal

    BNET Advertising - 132 days 13 hours 29 minutes ago

    Arsenal F.C.’s sponsorship pact with airline Emirates once looked like a good deal for the club: The Gunners received 100 million for a 15-year lead sponsorship contract in 2004. But five years in, that deal looks less like a lottery win and more like a millstone. Arsenal receives far less for its sponsorship rights than comparable clubs...

  • Liverpool F.C. to Replace Carlsberg as Lead Sponsor on Sept. 18

    BNET Advertising - 74 days 4 hours 14 minutes ago

    Liverpool F.C. has struck a new shirt-sponsor deal to replace Carlsberg, according to the Times. The new sponsor will be unveiled Sept. 18

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