second-largest bank, has followed the model of parent group
Barclays and sponsored its country’s leading football league. The
move is another sign of the banking world’s strong links with
football, none more so than in South Africa which is hosting the
World Cup in 2010. Dan Jones reports.
Absa, the second-largest banking group in South Africa, has stepped
up its marketing activity by securing a deal to sponsor the
country’s Premier Soccer League (PSL) for the next five years. The
bank, majority owned by the UK’s Barclays, had previously sponsored
the principal knockout tournament in South African football, the
Absa Cup, since 2003. That deal gave Absa first refusal regarding
any future PSL sponsorship agreements.
The PSL agreement will see Absa treble the prize pot to ZAR29
million ($3.8 million), with ZAR10 million on offer to the winning
team. Happy Ntshingila, group executive, group marketing at Absa,
told RBI that the bank is targeting a new generation of
prospective customers through its sporting sponsorship. “When the
opportunity presented itself, I jumped at it. The plan is to
attract the younger demographic – more than 50 percent of this
country is under the age of 20 on average,” Ntshingila
outlined.
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Football sponsorship has become an increasingly important part of
South African banks’ strategies in recent years, as the country
gears up to host the World Cup in 2010.
Absa first had a presence in the sector in 1982, when it sponsored
the United Bank Challenge, and is also now the official sponsor of
the South African national side. First National Bank is the
official bank sponsor of World Cup 2010, while Standard Bank’s
marketing efforts include sponsorship of the pan-African CAF
Champions League and 2008 African Cup of Nations, as well as the
South African club sides Kaizer Chiefs and Orlando Pirates.
The PSL deal signifies a huge jump in potential exposure for Absa
at a relatively meagre cost increase. The bank paid ZAR45 million a
year in its role as cup sponsor, compared with the ZAR70 million it
has agreed to pay as part of the PSL agreement. But just 12 cup
games are televised each season, Ntshingila said, while Absa’s new
role as PSL sponsor will see its brand feature in the 190 league
games that are shown on domestic television every year. Repeat
showings and highlights packages will add to this figure as the
season progresses.
Product tie-ins are also on the agenda as the bank seeks to build
on strong financial results for 2007. Absa’s year-end figures saw
revenue rise from ZAR29.9 billion in 2006 to ZAR35.6 billion, an
increase of 19 percent. Retail banking was a strong area despite
the slowing of the South African economy, with earnings rising by
20 percent to ZAR5 billion from ZAR4.2 billion the year
previous.
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By GlobalDataAbsa is running PSL-related promotions in conjunction with its push
into the mass market card sector, offering customers the chance to
take advantage of more competitive interest rates. The bank has
experience in this regard, having previously launched an affinity
card scheme that features cards themed around South Africa’s
provincial rugby sides.
The bank is also hopeful that the global reach of both the
footballing and financial worlds will be combined to good effect in
future campaigns. It hopes to leverage its position with its UK
parent in order to create sponsorship opportunities beneficial to
both institutions. Barclaycard became the title sponsor of the
English Premier League in 2001, with Barclays taking over in 2004
before paying £65 million ($130 million) in 2006 to extend its
sponsorship deal through to 2010. Absa says it has sought the
advice of the UK group regarding potential joint ventures.
Ntshingila added: “The sponsorship of the league here is still in
its infancy. However, we have spoken to Barclays to see what
synergies we can work towards. I’m hoping that because South Africa
has become a haven for English clubs to visit during the summer, we
might be able to do something around that.”
Selected football bank sponsorships
Domestic leagues/cups
Absa – Premier Soccer League (South Africa)
Barclays – Premier League (England)
BBVA – la Liga, League BBVA (Spain)
Clydesdale Bank – SPL (Scotland)
Qatar National Bank – Qatar Football League
International tournaments
Deutsche PostBank – World Cup 2006
First National Bank – World Cup 2010
Santander – Copa Libertadores (South America)
Standard Bank – African Cup of Nations 2008 (Africa)
UniCredit/BA-CA – Euro 2008
Club teams
ABN AMRO – Ajax (Netherlands)
Allianz – Bayern Munich (Germany)
Banif – Maritimo (Portugal)
Citibank – Werder Bremen (Germany)
Fortis – Feyenoord (Netherlands); Anderlecht (Belgium)
Nordea – Valerenga; Lillestroem (Norway)
Northern Rock – Newcastle United (England)
Standard Bank – Kaizer Chiefs; Orlando Pirates (South Africa)
National teams
Credit Suisse – Switzerland
NAB – Australia
National Irish Bank – Ireland
Nationwide Building Society – England, Wales, Scotland, Northern
Ireland
Source: RBI
