Why can't Chelsea find a shirt sponsor? Plus, we hear from Paralympics president Andrew Parsons
Aug 22, 2024
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Andrew Parsons, the president of the International Paralympic Committee, dives into the excitement surrounding the upcoming Paralympics in Paris. He discusses the impressive ticket sales, surpassing 1 million, and the challenges of ensuring fair athlete qualification and accessibility. The conversation also highlights the impact of broadcaster and sponsor involvement on the perception of Paralympic athletes. Additionally, Parsons tackles the nuanced relationship between sports and geopolitics, emphasizing the importance of advocacy for the Paralympic movement.
Chelsea FC struggles to secure a shirt sponsor primarily due to diminished commercial value and poor competitive performance since changing ownership.
The transition to American ownership has led to challenges in Chelsea's commercial operations, highlighting a mismatch in sponsorship expectation versus market reality.
The upcoming Paralympic Games serve as a crucial platform for promoting inclusivity in sports, emphasizing the need for greater accessibility for athletes with disabilities.
Deep dives
Chelsea's Sponsorship Challenges
Chelsea FC faces significant difficulties in securing a new shirt sponsor, primarily stemming from a decline in their competitive performance. After the departure of former owner Roman Abramovich, the club's commercial value has diminished, causing a mismatch between their expectations and what brands are willing to pay. This misalignment has made brands less interested, as Chelsea no longer enjoys the visibility and prestige that comes with participation in the Champions League. The club's reliance on temporary sponsorship deals highlights their struggle to regain the influential stature they once held in the world of football.
Impact of American Ownership
The transition to American ownership has not yielded the expected success in Chelsea's commercial operations, as indicated by high turnover in the management team responsible for sponsorship deals. The complexity of navigating the European market contrasts with the U.S. landscape, where sports franchises often have robust naming rights and sponsorship structures. Chelsea's lack of a naming rights deal has further complicated revenue generation, which has left the club struggling to attract significant partnerships. As other Premier League clubs successfully secure lucrative deals, Chelsea finds itself lagging in a competitive environment with a need to adapt its commercial approach.
Betting Brand Sponsorship Questions
The impending ban on betting brand sponsorships raises concerns for Chelsea as they search for financial opportunities that align with their brand image. Current negotiations suggest a cautious approach to aligning with gambling brands, which may conflict with ethical considerations and the club's public image. As competitors like Crystal Palace have successfully partnered with betting brands, Chelsea's reluctance could limit their options, particularly given their current market struggles. The pressure to secure sponsorships that are both lucrative and appropriate for their branding complicates Chelsea's financial landscape further.
Warner Brothers Discovery's Financial Struggles
Warner Brothers Discovery is experiencing significant financial challenges, with a reported net loss attributed largely to a write-down of their legacy television business. The loss reflects ongoing declines in U.S. linear advertising and uncertainty in sports rights negotiations, highlighted by the loss of NBA coverage. As the company transitions toward a streaming model, they aim to address the operational inefficiencies of their traditional TV networks, while still grappling with how to balance revenues from both streaming and cable distributions. The ongoing restructuring efforts indicate a pivotal moment for the company as they face pressure to adapt to changing viewer habits and financial realities.
The Future of the Paralympics
The upcoming Paralympic Games in Paris aim to showcase the sport while addressing accessibility and inclusion on a global scale. IPC President Andrew Parsons emphasizes the games' potential as a platform for promoting change, particularly in how society views athletes with disabilities. This year marks significant advancements, with plans to broadcast all 22 sports live, aiming to maximize global viewership and engagement. The Paralympics hopes to leave a lasting legacy by addressing infrastructure for athletes beyond the games, ensuring wider opportunities for participation in sports for individuals with disabilities.
Football fans love a clean kit with minimal branding but the C-suite, very much, do not. Despite what looks like an experienced team of sports executives running Chelsea, the Premier League club have started a second season in a row without a principal partner, but why? Tom Bassam, Sam Carp and Josh Sim seek to answer that question before also assessing a disastrous set of financial results for Warner Bros. Discovery. Then, ahead of the Paralympic Games, we hear Sam's interview with IPC president Andrew Parsons.
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