Premier League scores spectacular own goal with new Barclays sponsorship deal

July 3, 2012

The Premier League just doesn’t get it, does it? The world is crashing around Barclays ears: its chief executive Bob Diamond has just been forced to step down by the Governor of the Bank of England; its chief operating officer Jerry del Missier has quit; its chairman Marcus Agius will be exiting in the coming months; and Bob’s top team of investment bankers face a mass clear-out (if, that is, they had anything to do with BarCap between 2005 and 2008, which is highly likely).

And what does the Premier League do? It inks another sponsorship deal with Barclays Bank, this time for a whopping £35m a year over 3 years (or so Brand Republic tells us).

Granted, when scandal strikes, the boot is usually on the other foot: it’s the sponsor that  assesses the collateral brand damage and, if necessary, does the firing. For instance: Coca-Cola repudiating its association with Wayne Rooney, after the latter consorted with a prostitute while his wife was pregnant; everyone junking Tiger Woods once his elaborate sexual gymnastics came to light; Vodafone shaking a big stick at McLaren Mercedes (but not much else) over cheating on the F1 track; and Emirates Airline threatening to drop its World Cup sponsorship because of FIFA chief Sepp Blatter’s limp-wristed approach to racism on the pitch.

But the scandal now engulfing Barclays is of such epic proportions that even the Premier League – not normally known for its ethical sensitivity – should carefully consider whether it is prudent to continue its association with such a blighted brand. Let’s face it, it doesn’t look too clever, does it? ‘We’re a wholesome family sport, happy to take money from anyone – cheats and spivs especially welcome’.

Of course, the Premier League commercial negotiators have been unlucky in their timing. Little were they to know that, as protracted negotiations were nearing their conclusion, international financial regulators would hit Barclays with a £290m fine for manipulating the interbank lending rate. Even so, a suspension in the negotiations would now be the intelligent way forward – while the Premier League looks for an alternative commercial partner; and Barclays does the decent thing by withdrawing its offer. Tip for Premier League negotiators: try sectors other than financial services. It will save pain later.


Brazilian partner Peralta says “Tchau” to StrawberryFrog

February 1, 2012

Relief for StrawberryFrog, the maverick but financially-challenged New York advertising micro-network, is nigh.

SF founder Scott Goodson has realised his 30% investment in Sao Paolo agency StrawberryFrogPeralta, which he set up with Brazilian creative whizzkid Alexandre Peralta in 2007.

The way Peralta tells AdAge the story, break-up was all his idea. SF NY has never had operational control over Peralta’s outfit, but it does boast a string of enviable global clients, such as Emirates and Pepsi, that were expected to spread their love to Brazil via the association.

No dice, says Peralta. All his clients, even Pepsi, were won locally. “The fact that 100% of our clients belong to us made us rethink the partnership.”

That may be true, but the fact is Brazilian hotshops are not above playing fast and loose with their international allies. Thanks to growth rates of 30% or more a year, they can more or less set their cap at who they like – once out of contract. In Peralta’s case, this currently seems to involve flirtation with MDC-owned CP&B. Certainly he was coy on the subject when pressed by AdAge.

Just before Christmas, I highlighted a similar situation at Neogama BBH. Founder Alexandre Neogama was giving his UK partners a hard time, even threatening to defect to a rival network. In the event, this seems to have been a bluff aimed at leveraging his existing position, although we cannot yet be certain of that.

For Goodson, parting with Peralta must be a mixed blessing. On the one hand, he can congratulate himself on a shrewd financial investment. SFP is profitable, enjoys an estimated $8-9m revenue and, according to Peralta, is expected to grow by 50% this year. On the other, when is Goodson likely to come across such an opportunity again?


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