Wasserman Media Group Presents: World Cup Rights

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There are 100 days until the opening match of the FIFA World Cup™: Is your Brand ready?

Transcript of Wasserman Media Group Presents: World Cup Rights

There are 100 days until the opening

match of the FIFA World Cup™:

Is your Brand ready?

So you are having a typical Monday when your CMO calls you into his/her

office and asks – “What is our plan for the upcoming FIFA World Cup™?”

If you don’t have a plan yet, do not freak out. Read on and we will give you

some background information that will help you navigate the rights landscape

so you can develop a plan and have a great response for your CMO.

If you do have a plan, still read on. You might uncover some insights that

could help you strengthen your plan.

Let’s start with the basics…

Why do you need a FIFA World Cup™ plan?

Well it is simple, the numbers don’t lie. Did you know that: the in-home

television coverage of the 2010 FIFA World Cup™ in South Africa reached

over 3.2 billion people around the world, or 46.4 percent of the global

population? The tournament was broadcasted to 204 countries.

FUN FACT:

The FIFA World Cup™ is the biggest single-sport competition in the world. The

inaugural tournament was played in 1930 in Uruguay with the host country winning

the event. Argentina came in 2nd and the U.S. in 3rd.

Let’s start with the basics…

Let’s make sure you know who the key players are:

• FIFA is the international governing body of football, futsal and beach soccer.

Their job is to be the guardians of the game and develop the sport around the

world.

• The Confederations oversee the game in their respective continents and organize

the qualifying tournaments for the FIFA World Cup™. Today, there are six (6)

Confederations.

• The Associations (or Federations) are the representatives of FIFA in each

country. Today, there are 209 Associations which have the right to compete and

advance to the FIFA World Cup™.

There are others when you include media, agencies/agents and brands.

FUN FACT:

According to FIFA, football is the world’s favorite sport, played by more than 240

million players across the world. So not surprising that Football is the #1 followed

sport in most markets with the biggest exceptions being the U.S. and China.

Let’s start with the basics… What rights and intellectual property does FIFA protect?

Per FIFA, they have “developed and protected an assortment of logos,

words, titles, symbols and other trademarks which it will use, or allow

others to use under a formal agreement.” Some examples include:

FUN FACT:

In 2010, FIFA supposedly asked authorities to remove 36 women from a World Cup

match for wearing orange mini-dresses they deemed were an ambush marketing

campaign by Dutch brewing company Bavaria.

2014 FIFA World Cup Brazil

2014 FIFA World Cup

FIFA World Cup

FIFA

World Cup

2014 World Cup

World Cup 2014

Brazil 2014

2014 Brazil

Football World Cup

Soccer World Cup

Copa 2014

Copa do Mundo

Mundial 2014

Mundial de Futebol Brasil 2014

Copa do Mundo 2014

HOST CITY names + 2014

FIFA also has guidelines as it pertains to ticket promotions, public

viewing events and retail decorations to name a few. Check out FIFA’s

website for more detailed information.

Protected Marks Official Logo / Emblem

Official Programme

Official Mascot

Official Slogan

Official Poster

Host City Posters

FIFA World Cup Trophy

FIFA.COM Logo

Match Schedule

Protected Terms

Let’s start with the basics…

What do you need to know about this year’s event?

• Tournament runs: June 12th – July 13th, 2014

• 64 matches across 12 venues in 12 different host cities including the

capital, Brasília, and the two largest cities, São Paulo and Rio de

Janeiro.

• Over 3.5 million expected to attend the matches with another 18 million

expected to visit the Fan Zones.

• The official slogan “All in One Rhythm” showcases the essence of the

five pillars representing Brazil: cohesive society, power of innovation,

striking nature, living football and land of happiness.

FUN FACT:

Brazil is the most successful team in FIFA history, with 5 World Cup titles (1958,

1962, 1970, 1994, 2002) and is the only team to have played in every World Cup.

Now, let’s dig into the rights landscape

In the next slides, we will cover five (5) opportunities for a brand to

develop a marketing plan around the FIFA World Cup™.

FIFA Marketing

Media: FIFA World Cup™ Broadcasters and Social Media

National Team Sponsor

Athlete Endorsement

Hospitality Program

FUN FACT:

The 2010 FIFA World Cup™ in South Africa generated $4.2 billion in revenue. The

2014 edition in Brazil is expected to surpass $5 billion.

FIFA Marketing

FIFA offers a three-tier sponsorship structure:

1. FIFA Partners

2. FIFA World Cup Sponsors

3. National Supporters for each FIFA event

In addition, FIFA offers licensing opportunities for a breadth of products

that “help promote the tournament or contribute to the fan experience.”

FUN FACT:

FIFA unveiled its new commercial strategy after the 2006 FIFA World Cup™ in

Germany. In 2013, FIFA announced that it would expand its commercial strategy for

the 2018 and 2022 FIFA World Cups™ to create more regional opportunities.

FIFA Partners

The FIFA Partners have the highest level of association with FIFA and all

FIFA events for both men and women which includes playing a role in

supporting FIFA’s initiatives to develop the sport around the world. FIFA

partners own global rights to a broad range of FIFA activities and are

offered exclusive marketing assets which means FIFA will do everything

they can to protect them from ambush. Fees for FIFA Partners can vary

significantly based on the definition of the category being protected. For

the last cycle, Partners annual fees ranged from $24M - $44M USD.

FIFA only sells six (6) Partner opportunities which usually are negotiated to

include a minimum of two World Cup™ cycles. The current FIFA Partners

for the 2014 FIFA World Cup™ are:

FUN FACT:

In November 2013, adidas extended its partnership with FIFA through the year 2030

meaning their relationship, which began in 1970, will be official for at least 60 years.

• adidas

• Coca-Cola

• Hyundai / Kia Motors

• Emirates

• Sony

• Visa

FIFA World Cup™ Sponsors

FIFA World Cup™ Sponsors have rights to the FIFA Confederations Cup

and the FIFA World Cup™(men’s and women’s) on a global basis.

Sponsors receive rights to all official marks for brand association, select

marketing assets, media exposure, as well as ticketing and hospitality. For

the last cycle, Sponsors annual fees ranged from $10M - $25M USD.

FIFA only sells eight (8) Sponsor opportunities, which usually are

negotiated to include a minimum of two World Cup™ cycles. The current

FIFA Sponsors for the 2014 FIFA World Cup™ are:

FUN FACT:

McDonald’s owns the rights to the Player Escort Program which gives more than

1,400 children, ages 6 – 10 years old, the chance to walk onto the field, holding

hands with their favorite soccer players and teams. This amazing opportunity is

available to children in 60 countries.

• Budweiser

• Castrol

• Continental Tires

• Johnson &Johnson

• McDonald's

• Moy Park (poultry producer)

• Oi (telecomm)

• Yingli (solar energy)

FIFA World Cup™ National Supporter

FIFA World Cup™ National Supporters have rights to the men’s FIFA

Confederations Cup and the FIFA World Cup ™ only in the host country.

Supporters also receive rights to official marks for brand association,

select marketing assets, media exposure, as well as ticketing and

hospitality. A National Supporter must demonstrate that they are

headquartered or operate predominantly in the host country. For Brazil,

National Supporter annual fees ranged from $4.5M to $8M USD.

FIFA sells six (6) National Supporter opportunities, which are only for one

four-year World Cup™ cycle. The current 2014 FIFA World Cup™ National

Supporters are:

FUN FACT:

Centauro took the last available supporter spot a month prior to the 2013 FIFA

Confederations Cup. Centauro, is the largest sportswear retailer in Latin America

and has over 230 stores in Brazil alone.

• Apex (trade and investments)

• Centauro (sporting goods retailer)

• Garoto (confectionary manufacturer)

• Itau (bank)

• Liberty Seguros (insurance)

• Wise Up (language school)

FIFA Brand Licensee

FIFA also seeks brand licensees in order to work with a selection of well-

established brands that can enhance the experience of football fans

through what they deem “their creativity, innovation, superior quality and

fan engagement.”

Some collaborations include:

• Panini (sticker albums)

• Electronic Arts (video games)

• Hublot (time keeper)

• Louis Vuitton (trophy travel case)

FIFA also has an expansive licensing program that covers publications,

official merchandise such as apparel, and collectibles among other things.

FUN FACT:

For their Q3 FY14 Financial Results, EA reported that for the month of December,

FIFA 14 was one of the top three best-selling titles across all platforms in the

Western World and the #1 title in Europe.

Future Regional Opportunities

In 2013, FIFA announced that it will introduce new regional sponsorship

packages for the 2018 and 2022 FIFA World Cups™. This new structure

will go into effect in 2015, the start of the next World Cup cycle and will

replace the third-tier of sponsorships (National Supporters).

Under this new strategy, FIFA will now be offering four (4) Regional

Supporters opportunities across each of the following five regions: North

America, South America, Europe, Middle East & Africa and Asia.

Regional Supporters cannot conflict in categories with FIFA Partners or

FIFA World Cup Sponsors.

FUN FACT:

2018 will be the first time that Russia hosts the FIFA World Cup tournament. They

beat out England, Netherlands/Belgium, and Spain/Portugal for the right to host.

FIFA World Cup™ Broadcasters

FIFA sells Media Licenses across television, radio, mobile and the internet

covering over 200 countries. These licensees have the right to sell

sponsorships within their broadcasts both nationally and locally, but must

give first right of refusal to FIFA Partners and FIFA World Cup™ Sponsors.

If the partners and sponsors don’t lock their categories, the licensee can

present the opportunity to competitor brands.

Traditional sponsorship packages include a mix of advertising units,

billboards, and select marketing assets such as branding on the game

clock or player of the match.

For a complete list of official licensees visit: FIFA's website.

FUN FACT:

In the U.S., Telemundo is rumored to have spent $600M to acquire the Spanish

language broadcast rights for the 2018 and 2022 FIFA World Cups™. In turn, Fox

spent $425M for the English language rights.

Social Media

Social Media has disrupted how fans engage with sports and will once

again be at the center of the 2014 FIFA World Cup™. Brazilians are

extremely active on both Facebook and Twitter, setting the table for one of

the most active FIFA World Cups™ of all time.

Social Media platforms are once again offering advertising opportunities

around curated content during the event. FIFA, as well as many of the

official Media Rights Licenses, will also be creating their own pages with

plenty of real estate to offer brands.

Of note, FIFA does not impose any social media bans on the athletes or the

associations.

FUN FACT:

During the 2010 FIFA World Cup™ Final, people from 172 countries tweeted in 27

different languages. During the game’s final 15 minutes, Tweets-per-second (TPS)

jumped to more than 2,000, eventually eclipsing at 3,051 during Spain’s winning

goal.

National Team Sponsor

208 National Teams (the host country automatically qualifies) are eligible

to participate in the grueling 3 year process to qualify for one of the 31

spots in the FIFA World Cup™. For the players involved, there is no higher

honor in sport than representing their National Team.

Each of the associations sell sponsorships packages, which are often

tiered by types such as: official sponsors, official suppliers and licensees.

National Team sponsors typically receive a mix of rights such as official

team marks for brand association, select marketing assets, rights to

collective player images, media exposure, as well as ticketing and

hospitality during qualifying matches and certain friendlies.

FUN FACT:

As we mentioned previously, Brazil is the ONLY team in FIFA World Cup™ history to

have qualified for EACH of the 20 tournaments. Italy and Germany are tied for

second place with 18 appearances each.

Athlete Endorsements

Each of the 32 qualified FIFA World Cup™ participant nations will carry a

roster of 23 players. That’s 736 players available for endorsement

opportunities. There are many more opportunities when you look at the

former greats such as Pelé, Ronaldo, Beckham, Thierry and Zidane.

Athletes can sign endorsements with official FIFA partners and non-

partners. Endorsement contracts can include rights to the players name,

image & likeness, advertising production days, social media postings,

autographed merchandise and appearances among other rights.

An athlete CANNOT be used in their National Team uniform or other

related marks unless the brand is also a partner of the National Team. The

athlete cannot be used in conjunction with any of the approved FIFA marks

if the brand is not a partner of FIFA.

FUN FACT:

Cristiano Ronaldo of Portugal leads all players in terms of Facebook likes (>74M),

Twitter followers (24.6M) and jersey sales.

Hospitality Program

MATCH runs the official Hospitality Programme for the 2014 FIFA World

Cup™. MATCH has official vendors across key markets to help manage the

program which are also able to sub-license to select agents.

MATCH offers a mix of packages including single match packages as well

as team specific packages, venue series and final round series.

You can select from a private suite to business seats as well as a variety of

amenities including food & beverage, parking, multi-lingual hostesses, etc.

Prices can range from $700 to $100,000 USD.

Hospitality packages are a great way to entertain top business guests. If

you are looking to add a special touch, think about combining with your

athlete endorsement strategy.

FUN FACT:

The Rio Times estimates that over 600,000 foreigners will travel to Brazil for the 2014

FIFA World Cup™, which will generate about US $10.2 billion for the economy.

In Summary

No single event has the effect that the FIFA World Cup™ has with

countries agreeing to temporary cease fires, employees all of the sudden

becoming “ill” in order to stay home and watch the matches, and 46% of

the World’s eye balls glued to their television sets. As a brand, you cannot

afford to just sit out of this marketing opportunity. Therefore, we hope this

document has helped to illustrate some of the great avenues available to

you to explore.

Sources used for the presentation include:

FIFA.COM, Sports Business Journal, USAToday, BlogTwitter, EA, Soccerex, Bloomberg

National Team Sponsor

Athlete Endorsements

Hospitality Program

FIFA Marketing

FIFA World Cup™ Broadcasters

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owner. All other rights reserved.

All trademarks identified in this document remain property of their

respective holders or registrants, and are used only to directly describe

the products and brands that relate or may relate to the subject of the

document. Their use in the presentation is considered nominative use and

in no way indicates any relationship between Wasserman Media Group

and the holders of said trademarks."

Disclaimer

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AND ENGAGEMENT MARKETING AGENCY WITH EXPERTISE IN MEDIA

RIGHTS, CORPORATE CONSULTING, ATHELETE MANAGEMENT AND

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