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How the Fire's New Sponsor Deal Compares to Other MLS Clubs

The ultimate shirt sponsorship or not a shirt sponsorship at all?

Well, this probably isn't an objective statement, but the Chicago Fire really have started off 2012 well...just in the same way that Quaker Oats breakfast products are a great way to start the day!

Sorry, I couldn't resist.

In all seriousness though, I can't remember a sponsorship providing such a boost to a club in general and to a fan base in particular. Many of the people I've talked to about this deal are VERY excited not just about the new jerseys and revenue, but also about creating a partnership with a local Chicago brand. But let's step back for a second to gain some perspective.

Star-divide

In 2008, the Fire teamed up with Best Buy to have a sponsor on their jersey for the first time in the club's history. This deal had less to do with the Fire's commercial appeal as a whole and more to do with a certain Mexican legend named Cuauhtémoc Blanco. Granted, the Best Buy deal was positive for both sides: Best Buy gained exposure in the Hispanic community in Chicago, the United States as a whole and in Mexico. The Fire gained revenue and the prestige that comes with being a big enough club that a brand will pay to have their logo on your jersey.

At the end of the 2010 season, the club as a whole had a bit of an identity crisis. At this point, the Men in Red had lost Blanco, Chris Rolfe, Justin Mapp, Nery Castillo, Fredrik Ljungberg, Brian McBride, Wilman Conde and C.J. Brown within a two-year span. In December 2010, Best Buy officially ended their sponsorship.

The 2011 season would be very critical for the club. Chicago didn't qualify for the MLS playoffs for the second year in a row but they reached the final of the U.S. Open Cup for the first since 2006 and they ended the regular season on a very positive note. This was a new team with a different attitude. A team that resembled Fire teams of the past.

When I spoke with head coach Frank Klopas recently, he spoke of a desire to once again make Chicago "a very difficult place to play." And that's what began to happen. Style and star power gave way to substance. Gritty performances began to become the norm. And the focus on Tradition, Honor, and Passion became less of a marketing slogan and more of a way of life for the club.

Moving into 2012, expectations are high. But this team is looking to win, on and off the field. When the Fire announced their partnership with Quaker on January 17, it became clear this club was moving forward and not taking a step back. This deal, worth a reported $8 million over three years, establishes credibility not only because of the revenue, but because it was done with a local sponsor with the city in mind.

The deal is not as high of a dollar amount as some other sponsorship deals, but consider this: a deal like this encourages growth. It encourages the Fire to continue to work with Quaker through the duration of the contract and potentially after. We can also hope that Quaker will take that "extra" money that isn't going directly to the Fire will be used for higher-quality and socially-responsible Fire initiatives in the Chicago community.

So yeah, you could say I like this deal a little bit. But how does it stack up to others around MLS?

Chicago Fire

The deal first announced by Crain's Chicago Business was for about $1.5M a year. A corrected report put the total figure at 3 years/$8M for an average of $2.67M a year. You should know more than perhaps you have ever wanted to about the Quaker sponsorship at this point.

Colorado Rapids

None. Rapids president Tim Hinchey has stated that finding a jersey sponsor is one of the club's top priorities. He also claims that a handshake deal with a sponsor was not followed through on. The Rapids have never had a shirt sponsor.

Columbus Crew

None. Okay, Fire fans, laugh with me: bahahahahahahahahahahahaha!!! You have to wonder if their 2012 away shirt was designed with room for a sponsor in mind. As it stands, it's nothing less than an abomination. It looks like they gave up one/third of the way down.

Newjerseyrelease_medium

via www.thecrew.com

The Crew had paint manufacturer Glidden as a shirt sponsor from 2008-2010 in a deal worth a reported $1 million a year. But it appears as if the Ohio-based club will be going bare again this year. Hey, at least it'll be even more fun than usual to yell at them.

Chivas USA

Chivas USA is one of those clubs that just never has seemed to have gotten completely off the ground. Every time they begin to build some traction, they do something inexplicably dumb like leaving defender Zarek Valentin unprotected in Impact de Montreal's expansion draft.

But with their sponsorship deal, they nailed it. Corona is a perfect fit for them. Guaranteed income? Check. Great Hispanic brand? Multi-year deal? Um yeah, this is a real winner. Shame the play on the field isn't as good as this deal.

D.C. United

Das sponsor. Another fabulous deal in the nation's capital as Volkswagen of America rewarded D.C. United with a five-year deal worth $14 million back in 2008.

F*C* Dallas

In July 2011, F*C* Dallas claimed to be optimistic about finding a shirt sponsor before that month's MLS All-Star Game. Well, they're still looking. And to add insult to injury, they're now looking for a new stadium sponsor after Pizza Hut pulled its sponsorship last December.

Houston Dynamo

The Dynamo currently have a good thing going with Greenstar Recycling and a five-year, $12.7 million deal dating back in 2010. They previously had a less lucrative deal with Amigo Energy from 2007 to 2010.

L.A. Galaxy

The granddaddy of them all. In 2007, the Galaxy signed a five-year deal with Herbalife worth somewhere in the range of $17.5 to $25 million in total. That deal appeared to have been extended into 2012 as their latest shirt was recently released. However, LAG Confidential's Josie Becker has told HTIOT that La Galaxy owner Tim Leiweke will not confirm that a renewal. We will have to wait a week or two for an announcement to tell us what is really going on in La-La Land.

Impact de Montreal

When your name is Bank of Montreal (or BMO for short), what better way to build brand recognition than to team up with the newest sports franchise in the city? The five-year deal provides stability for the Impact and cements BMO's status as one of Canada's premier banks. More on BMO later.

New England Revolution

The Revs got the sponsorship monkey off their back prior to the 2011 season by signing a multi-year deal with UnitedHealthcare. Financial details of the club were not disclosed.

New York Red Bulls

I'll give you one guess as to who sponsors this team. Give up?

In 2006, the energy drink manufacturer bought and re-branded the New York/New Jersey Metrostars. Red Bull also owns an Austrian club, which is shockingly named Red Bull Salzburg.

Philadelphia Union

I could make a truly tasteless joke here, but I'll resist: the Union have a four-year sponsorship near $12 million with Mexico-based bakery Bimbo. The deal began in 2011.

Portland Timbers

Last I checked, Portland is not in Alaska. Nonetheless, the northwest soccer club chose the northwest airline in Alaska Airlines ahead of their inaugural 2011 MLS season. It is a four-year deal initially running through 2014.

Real Salt Lake

When you think jersey sponsorship, do you think Real Salt Lake? No? Well, maybe you should. In late 2006, they became the first club to have an external sponsor on their shirt, naming XanGo to adorn the kit. (I don't consider Red Bull New York as the first shirt sponsor since they technically own the club. If you disagree with this assertion, I respect that.) That deal was extended in 2009 through the 2013 season.

San Jose

Is San Jose at the end of their three-year deal with Amway? It appears so. The deal, worth $2-$3 million looks to be ending as a sponsor-less 2012 jersey was leaked. Also, Amway references have been removed from the club's website.

Seattle Sounders

The kits may be polarizing in terms of style, but the dollar signs sure aren't: The current five-year, $20 million deal with Microsoft (Xbox 360) goes through the 2013 season.

Sporting Kansas City

Your guess is as good as mine. The only thing we have to go off is anecdotal evidence from the Kansas City Star. Although shortly thereafter, a 2012 shirt was released on the MLS gear website. These things can change though. The Sporting Kansas City store is apparently "sold out due to high demand." Pshhhhhhhhhhhh, yeah right. Why on earth would you not have merchandise for sale? Seems like marketing that's too smart by half.

Toronto FC

The first Canadian MLS club's sponsor has a familiar name if you've read this from the beginning: BMO. Yep, Toronto was their first foray into shirt sponsorship and it apparently went so well that they picked up a second team in Montreal. BMO is the only sponsor of multiple teams. They also sponsor the club's stadium, BMO field. The initial jersey deal was for $1-1.5 million (CDN) over four to five years. It does not appear that sponsorship is going anywhere as it was extended in the middle of 2010 at over $4 million a year (again, Canadian dollars) through 2016.

Vancouver Whitecaps

The Whitecaps deal with Bell doesn't have any numbers publicly available. The communications company was named a "Premier Founding Partner" in 2010. Their 2012 jerseys are out.

Conclusions

When you look at sponsorships throughout the league, a few things stand out to me:

  • If you work under the assumption that San Jose and Amway is over, 14 of the 19 teams have some form of sponsorship on their shirt (if you include NYRB) ahead of the 2012 season. When you consider that 2006 was the first year that clubs started following the model the rest of the professional soccer world uses, that's not too shabby.
  • The L.A. Galaxy and Seattle Sounders deals are the largest by far. This makes sense when you consider the popularity of both clubs as well as their successes on the field. As far as the lowest-paying deals go, it's hard to say for certain because one of the reasons that clubs may not release the financial details is that they might be slightly embarrassed. Like I mentioned earlier with Best Buy and the Fire, there is a certain amount of prestige that comes with essentially being "valuable" enough to warrant having a shirt sponsor.
  • Also keep in mind with the teams who have yet to have a jersey sponsor at any point (Colorado, Dallas, Kansas City), they might be doing so because they don't want to simply have a sponsor for the sake of having a sponsor. When Philadelphia signed their deal with Bimbo, it got national attention...for the wrong reasons. Finding a sponsor that's a good fit with the club is important. It makes the transaction have less emphasis on the financial aspect and more emphasis on the partnership aspect. We can only hope the Fire's deal with Quaker falls in the latter category.

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Good article James...

I think it shows that the Fire have truly struck a unique partnership with Quaker. As you said, it’s not just about the money, it’s about actually being partners. I think we have lined up a pretty unique opportunity that will pay off in spades both financially and in the community.

As for the Columbus jersey, wow. I would be embarrassed to see any fans associated with my team wearing that 1/4 jersey. Who in their right mind would sign off on approval for that design? Even with a sponsor it looks absolutely horrible.

And I think the Revolution should just put “Robert Kraft hates us” across their jerseys.

Hot Time In Old Town SB Nation's blog for Chicago Fire, Soccer, & Chicago History

Tradition. Honor. Passion.

by Ryan Sealock on Jan 26, 2012 11:31 AM CST reply actions  

Thanks Ryan

I sure hope so on Quaker. It’s a great start; they need to keep the ball rolling and fulfill those community initiatives.

I just can’t imagine the Crew wearing that away shirt as it stands. It’s THAT bad.

The Revs desperately need their own stadium. The UnitedHealthcare sponsorship is a nice touch, but playing in that big bulky Gillette stadium is such a drag.

--
James Coston
December 2010 Graduate - Strategic Communication (Emphasis in Public Relations)
University of Missouri - School of Journalism

"And that hit me. I was like, I've got to do the right thing. I can't tell God to wait on me." - Chase Hilgenbrinck

by James Coston on Jan 26, 2012 11:46 AM CST up reply actions  

Agreed on Gilette not being good for the Revs...

I don’t think they will ever truly turn the corner unless they get an owner that cares. Unless Kraft wants to spearhead building of a SSS, it’s not gonna happen. It must be hard for Revs fans to know their owner doesn’t care about them at all or give them the time of day.

Hot Time In Old Town SB Nation's blog for Chicago Fire, Soccer, & Chicago History

Tradition. Honor. Passion.

by Ryan Sealock on Jan 26, 2012 2:36 PM CST up reply actions  

It's rough being a Revs fan...

Especially with all those nasty rumors swirling around the mother of a certain goalkeeper of theirs…

--
James Coston
December 2010 Graduate - Strategic Communication (Emphasis in Public Relations)
University of Missouri - School of Journalism

"And that hit me. I was like, I've got to do the right thing. I can't tell God to wait on me." - Chase Hilgenbrinck

by James Coston on Jan 26, 2012 4:11 PM CST up reply actions  

I think too many people lose sight of the fact that Bimbo is a local company in the Philadelphia Area, there USA headquarters is located in Horsham which is about 20 minutes outside the city and two of their largest baking subsidiaries are based in from Pennsylvania. BIMBO def. has some bad connotation in the USA but in North America that logo represents some of the biggest soccer clubs and from a recruiting spectacle outside of the US to the Americas it can only help in signing quality players, I mean not everyone can be so lucky to have Dominic Oduro play the best season of his life.

by jmcurto on Jan 26, 2012 12:31 PM CST reply actions  

Good Point

I think the brand’s name makes it seem more so like the Union sold out for a payday than they actually did. It’s an unfortunate situation, but the Union made that decision and it’s now their job along with Bimbo to explain what the deal is truly about if they want to get rid of the negative feedback.

--
James Coston
December 2010 Graduate - Strategic Communication (Emphasis in Public Relations)
University of Missouri - School of Journalism

"And that hit me. I was like, I've got to do the right thing. I can't tell God to wait on me." - Chase Hilgenbrinck

by James Coston on Jan 26, 2012 12:58 PM CST up reply actions  

you should know, canadian dollars are equal to american dollars at this point. There are days when they are actually worth more.

http://www.xe.com/ucc/convert/?Amount=1&From=USD&To=CAD

by cf97det313 on Jan 26, 2012 1:36 PM CST reply actions  

Thanks for pointing this out

The reason I labeled it as such is because this wasn’t the case when Toronto FC signed their initial deal with BMO in 2007. Also, with something that fluctuates as much as currency exchange, it’s nice to have that reference point.

--
James Coston
December 2010 Graduate - Strategic Communication (Emphasis in Public Relations)
University of Missouri - School of Journalism

"And that hit me. I was like, I've got to do the right thing. I can't tell God to wait on me." - Chase Hilgenbrinck

by James Coston on Jan 26, 2012 1:47 PM CST up reply actions  

ironically

Alaska is in Seattle. Just another way the Sounders are superior to our freaked out cousins to the south

The return of THIERRY

by Kyle Ritter on Jan 26, 2012 3:20 PM CST via iPhone app reply actions  

So what you're saying is:

#SeattleInvented Alaska?

--
James Coston
December 2010 Graduate - Strategic Communication (Emphasis in Public Relations)
University of Missouri - School of Journalism

"And that hit me. I was like, I've got to do the right thing. I can't tell God to wait on me." - Chase Hilgenbrinck

by James Coston on Jan 26, 2012 4:09 PM CST up reply actions  

Incidentally, BMO is the official bank of the Bulls. Now, If only we could have the Nordiques back.

http://twitter.com/rtisch312 Inaine thoughts and ramblings about sports and life.

by Ruben Tisch on Jan 27, 2012 11:31 PM CST reply actions  

I will never understand why the NHL doesn't have more Canadian teams

I was a huge fan of Jim Balsille’s attempts to get the Coyotes out of Phoenix and place them somewhere in Canada. Mostly because he blocked Jerry Reinsdorf’s attempt to buy that black hole of a franchise, but I digress…

--
James Coston
December 2010 Graduate - Strategic Communication (Emphasis in Public Relations)
University of Missouri - School of Journalism

"And that hit me. I was like, I've got to do the right thing. I can't tell God to wait on me." - Chase Hilgenbrinck

by James Coston on Jan 29, 2012 8:21 PM CST up reply actions  

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(I) denotes International player per MLS rules. Chicago Fire are currently allowed to sign up to 8 International players.

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Chicago Fire 2012 Transactions

November 29, 2011

- Declined options on Jon Conway, Alec Dufty and Baggio Husidic

December 5, 2011

- Purchased the rights to Orr Barouch from Mexican club Tigres

- Traded first round selection in 2013 Supplemental Draft to Vancouver Whitecaps for Jay Nolly

December 6, 2011

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December 7, 2011

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December 12, 2011

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January 9, 2012

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January 11, 2012

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January 12, 2012

- Selected Austin Berry with the #9 pick in the SuperDraft

- Selected Lucky Mkosana with the #23 pick in the SuperDraft

- Selected Hunter Jumper with the #28 pick in the SuperDraft

January 15, 2012

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January 17, 2012

- Selected Evans Frimpong with the #9 pick in the Supplemental Draft

- Selected Carl Woszczynski with the #15 pick in the Supplemental Draft

- Selected Tony Walls with the #47 pick in the Supplemental Draft

- Selected Justin Chavez with the #66 pick in the Supplemental Draft

January 18, 2012

- Re-signed Pavel Pardo to two-year contract extension

January 23, 2012

- Parted ways with Mike Banner

January 25, 2012

- Signed Kheli Dube

January 30, 2012

- Traded MLS right of first refusal for Wilman Conde to New York Red Bulls in exchange for allocation money

March 6, 2012

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March 7, 2012

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March 8, 2012

- Signed Paolo Tornaghi on a free transfer

March 11, 2012

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March 15, 2012

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April 16, 2012

- Signed Chris Rolfe

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2012 Allocation Order

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