Belt - Tightening sponsors

[saintbrat]

Disclaimer; I work with children and have no formal financial training

In My naive assumption;

it has been on my mind for a month or so now that some of the saints current major sponsors are companies who may able to weather the current financial situation than others

Jeld- Wen- people will continue to build, renovate or rebuild so doors and windows will always be needed
Linen House- can't afford the holiday or the new car But let's re do the bedroom or living room
the Age- people will continue to need to know
Jayco- people will holiday at home rather than O/S
Coca Cola- will never go out of style once people are addicted.

as well as these we have medical institutions and associated sports industries.

the Bulldogs new sponsor is also one in a field that may ride it better than others- FOOD

unlike those reliant on financial Insitutions ( as Dogs were and Tigers) or car manafacturers who are likely suffer more as people tighten or lose employment.
and thank good ness we weren't financial enough to have shares- 2 or 3 of those clubs who posted large losses it was becasue of invested shares ( although a little nest egg would be nice )

in that light what other areas could we suggest the club look at......

[Mr Magic]

The biggest and best new sponsor we can possibly get is a renegotiated deal with Telstra Dome.

[Legendary]

All good points.

Jeld-Wen may experience some downturn - certainly construction will be down and this will affect their sales.

But they are locked in for another couple of years, and hopefully by that stage things have picked up.

UD Trucks is the other one - they may suffer although again they have signed a three-year deal (I believe).

[jk23]

Disclaimer; I work with children and have no formal financial training

In My naive assumption;

it has been on my mind for a month or so now that some of the saints current major sponsors are companies who may able to weather the current financial situation than others

Jeld- Wen- people will continue to build, renovate or rebuild so doors and windows will always be needed
Linen House- can't afford the holiday or the new car But let's re do the bedroom or living room
the Age- people will continue to need to know
Jayco- people will holiday at home rather than O/S
Coca Cola- will never go out of style once people are addicted.

as well as these we have medical institutions and associated sports industries.

the Bulldogs new sponsor is also one in a field that may ride it better than others- FOOD

unlike those reliant on financial Insitutions ( as Dogs were and Tigers) or car manafacturers who are likely suffer more as people tighten or lose employment.
and thank good ness we weren't financial enough to have shares- 2 or 3 of those clubs who posted large losses it was becasue of invested shares ( although a little nest egg would be nice )

in that light what other areas could we suggest the club look at......

Had no idea that Coca Cola was one of ours sponsors.....At my work we sponsor Coca Cola!!!! so now I will use my Cola bag for my laptop and it's in red,white and black !!!!

[Eastern]

We still need a "shorts" sponsor for 2009 as our deal with XBOX has not been renewed. AF has hinted that an anouncement is imminent but nothing yet !!

[sunsaint]

Jeld- Wen- people will continue to build, renovate or rebuild so doors and windows will always be needed
Linen House- can't afford the holiday or the new car But let's re do the bedroom or living room
the Age- people will continue to need to know
Jayco- people will holiday at home rather than O/S
Coca Cola- will never go out of style once people are addicted.

I think all companies will be tightening the belt. And one of the first to get squeezed is sponsorships.
But to look at our individual sponsors...
Home loan lending has dropped like a stone in recent months, inspite of the hefty interest rate cuts. New home loan building approvals have fallen to the lowest pont in quite a while.
The Age, leaving aside readership/popularity, is in a bit of financial strife, very large reduction in journo staffing could affect content quality therefore further affecting sales.
You would expect Jayco to be hurt in the same measure as new car sales, and as the "grey nomads" superannuation gets pummelled, they will tighten any purchases of vans.
New linen would be treated as any other discretionary expense as belts get tightened.
Agreed as we are not exposed to financial institution woes, (who remembers Bopo anyway?) this may be a slight advantage.
To be honest tho as sponsorship deals are negotiated in advance, the money is pretty much a given for the period of the term. I would not like to be trying to find a major sponsor in the current climate.
I would think memberships and crowd attendances would be of more concern to the club in '09

[Bernard Shakey]

The biggest and best new sponsor we can possibly get is a renegotiated deal with Telstra Dome.

No such entity as Telstra Dome.

[Mr Magic]

The biggest and best new sponsor we can possibly get is a renegotiated deal with Telstra Dome.

No such entity as Telstra Dome.

It is for the moment - the new sponsorship deal with Etihad Airlines hasn't been approved by the AFL who believe they have 'veto' rights over 'competing sponsorships'.

[chook23]

The biggest and best new sponsor we can possibly get is a renegotiated deal with Telstra Dome.

No such entity as Telstra Dome.

It is for the moment - the new sponsorship deal with Etihad Airlines hasn't been approved by the AFL who believe they have 'veto' rights over 'competing sponsorships'.

Even if Etihad approved still the TD to sometime in Feb

[saintsRrising]

Jeld- Wen- people will continue to build, renovate or rebuild so doors and windows will always be needed
......

However they are mainly a USA company..and the USA housing market is in freefall..

Remember too that it was the USA housing market that was the straw that broke the camels back (or at least the over the top lending into it)...

James Hardie has for example mothballed some of their US plants.

However Jeldwen is a private comapny..so lets hope that they did not over-gear it.

[markinUSA]

About the Age... almost all print media are experiencing significant losses of revenue as people move to the internet for their primary source of news information. However, the opportunity to make money via the internet still exists for news organizations - that source of funding is increasing, but not enough to cover for the losses from the print edtion.

[Saints43]

Is The Age really a St Kilda sponsor in the traditional sense?

As members we get a cheap subscription to The Age but I don't think they contribute cash directly to the club (perhaps some discounted advertising?).

The Age sponsorship is a way for them to increase their distribution so that they can attract advertisers. I'm pretty sure that The Age deliver to cafes etc. for free.

[evertonfc]

I'm with sunsaint here - I think everyone is tightening their belts.

People aren't going to spend on stuff they don't need. Unless, of course, they are in the 18-25 bracket and have the deadly combination of zero financial training and disposable income.

Jeld- Wen- people will continue to build, renovate or rebuild so doors and windows will always be needed

Will they? Can people afford to build or renovate?

Linen House- can't afford the holiday or the new car But let's re do the bedroom or living room

Unusual logic.

the Age- people will continue to need to know

True - but could they cut their subscriptions in favour of online?

Jayco- people will holiday at home rather than O/S

But will the caravan be seen as a needless expense?

Coca Cola- will never go out of style once people are addicted.

People always get thirsty and this stuff is great. A few might switch to water but as pressure in our lives increases, expect more to turn toward caffiene-based drinks. Can't see them getting hit too hard.

[BAM! (shhhh)]

Such optomism would warm the cockles of Swannies heart:)

One of the biggest issues in Australian business at the moment is the "what's next" element of the current economy - we know there will be, but we don't know who.

At this stage we've seen financial institutions take a hammering, automotive take a hammering, and recruitment take a hammering. Others have been affected to greater or lesser degrees, and we can do some guessing at who/what is next, but the main necessity for the Saints is to be able to demonstrate ROI (whether direct or - if they're doing it well - through increases in sponsor marketshare by tapping the latent base and general awareness). Regardless of the current sponsors, if being a St Kilda sponsor is a good commercial investment, the Saints will be okay. If they can't, in the current climate, things may get tough.

The one I'd be concerned about would be Jeld Wen past the current agreement as they're the big money sponsor. The sword of Damocles has appeared poised over the housing market for a year now. The interest rate drops started when mortgages started foreclosing - and we're nowhere near the risk position of the US sub prime market. From what I understand (not much, don't know them, i'm inferring a lot from a little), Jeld Wen came here for mid/large projects, not general residential housing - they already had large marketshare there via Corinthian - they're not after your renovation, or even your new holiday home project. Jeld Wen are here for the 3 blocks that get turned into 12 townhouses and for the city skyscraper projects, and the warehouses. If the model falls apart, awareness won't be a priority for them... but, the silver lining is that compared to the US and Europe, Australia remains a good investment.

The other that many are speculating about are traditional medai sources such as the age - NewsPaper advertising has been cut hard by many companies, and as ev points out, discretional spend by consumers is hard to guage; I only buy newspapers these days for something to read on a plane.

The biggest danger for the Saints (and AFL in general) is more in the vein of recent member/club discussion though. If we do go into recession with higher unemployment, and budgets get tight sport is discretional spend. Memberships, butts in seats, but most of all, the TV advertising during AFL games. If AFL fans aren't a gold mine, then change will come. Now would be a time that AFL clubs would be wanting their base as passionately involved as possible.

[Saints94]

Archie said we lost x box on our shorts

[Banger2Plugger]

Quick someone get hold of the marketing department of Bonds - cos we are always gonna need undies!

[Saints94]

Quick someone get hold of the marketing department of Bonds - cos we are always gonna need undies!

You never know Dal might wear a g-string on game day

[Furphy]

Building & construction is one of the first casualties in a recession (along with car sales) The Age has about seven readers that all live in North Carlton, drink red wine and frequent fashionable coffee shops.
Caravans? No comment.
Coca-Cola? Survived two depressions and two world wars, a safe bet!
A no-lose sponsor? Tobin Brothers!
We can put off those renovations, get another year or two out of the Commodore, listen to the radio for news, stay home for holidays and even drink tap water. But when the grim reaper beckons...

"When opportunity knocks at your front door, don't be in the back yard looking for four-leafed clovers"

[saintbrat]

Disclaimer; I work with children and have no formal financial training

In My naive assumption;


in that light what other areas could we suggest the club look at......

what about the second question? what areas may be able to balance out over the years ahead.



- now that you've all given our sponsors a downer- But I'd like to predict a wonderful future for jeld Wen , the Age, jayco Musashi, Cocacola, Linen House, UD and Turtle Island -- I'd really like to.

[Legendary]

Jeld Wen purely by their size will be ok ... they are also signed for another 2 years, so hopefully by that stage things have picked up a bit.


UD Trucks are our second biggest sponsor.


Hopefully we can find a shorts sponsor soonish ... but we are pretty well set for the next couple of years in terms of companies being signed up.

[Saints94]

Jeld Wen purely by their size will be ok ... they are also signed for another 2 years, so hopefully by that stage things have picked up a bit.


UD Trucks are our second biggest sponsor.


Hopefully we can find a shorts sponsor soonish ... but we are pretty well set for the next couple of years in terms of companies being signed up.

maybe our shorts sponser can be coles or safeway maybe

[Furphy]

Yes, our sponsors are wonderful people and deserve lots of business and success for having the good taste and sense to sponsor the mighty sainters!

[Solar]

[quote="Furphy"]Building & construction is one of the first casualties in a recession (along with car sales) The Age has about seven readers that all live in North Carlton, drink red wine and frequent fashionable coffee shops.
[quote]

oh well you could always inprove your IQ by reading the herald scum....

[saintbrat]

and now AFL changing the rules which will loosen the sponsors who are relying on people wishing for miracles.

http://www.afl.com.au/News/NEWSARTICLE/ ... wsId=71461
THE AFL has reviewed its guidelines covering sponsorship agreements between AFL clubs and sports wagering providers following recent changes in state government legislation concerning wagering advertising.

AFL chief operating officer Gillon McLachlan said on Friday the AFL had advised clubs they would be allowed to sign sponsorship agreements that do not provide access to AFL or AFL club intellectual property so long as the betting agency has a product fee and information-sharing agreement with the AFL.

The AFL currently has such agreements – which cover issues including signage, ticketing and hospitality – with Tabcorp (TAB Sportsbet, Luxbet), Betfair, Betezy, Sports Acumen, IAS Bet, Sportingbet and Racing Odds.
>>>>>>>>>>>>>>>...

[St Fidelius]

I'm with sunsaint here - I think everyone is tightening their belts.

People aren't going to spend on stuff they don't need. Unless, of course, they are in the 18-25 bracket and have the deadly combination of zero financial training and disposable income.

Jeld- Wen- people will continue to build, renovate or rebuild so doors and windows will always be needed

Will they? Can people afford to build or renovate?

Linen House- can't afford the holiday or the new car But let's re do the bedroom or living room

Unusual logic.

the Age- people will continue to need to know

True - but could they cut their subscriptions in favour of online?

Jayco- people will holiday at home rather than O/S

But will the caravan be seen as a needless expense?

Coca Cola- will never go out of style once people are addicted.

People always get thirsty and this stuff is great. A few might switch to water but as pressure in our lives increases, expect more to turn toward caffiene-based drinks. Can't see them getting hit too hard.

Coca Cola also own Mt Franklin water and also poweraid.

I maybe wrong but I think the Coca Cola group are minor sponsors to all AFL sides