Shirt Sponsor Confirmed

[Pondicherry]

You could say "it doesn't add up" about all investment in the club (except the Amex sponsorship). We have no visible means of support but there is no denying the stadium is built and we have shirt sponsors.

 

[y2dave]

Interesting business model and a big part of their success and appeal to prospects will be generating local traffic and awareness, hence the sponsorship deal.

I think on a commercial level it makes perfect sense and I wouldn't be suprised to see the holding company go onto launch similar models in other locations.

I'd also imagine in additon to the sponsorship fee the club have negotiated other perks.

 

[Storer 68]

Be quite funny when Gus and tanno come under some Job pressure!

 

[Storer 68]

Not a particularly good example given that Kingston Communications were owned by Hull City Council. And guess who paid for Hulls new ground ( and I guess own it ) ? That's right, Hull City Council.

First goal scored at the KComm by a former BHA player too

The idea of a new stadium for Kingston upon Hull was first mooted in 1997, but funds to finance such a project only became available when the city council sold a portion of its holdings in Kingston Communications.[2] The council provided most of the funds, more than £42 million, with the rest stemming from government single regeneration budget grants and from the Football Stadium Improvement Fund.[

the stadium complex was completed on time (in fourteen months)[1] and on budget (at approximately GB£44 million).[1] The stadium opened its doors on 18 December 2002. Hull City beat Sunderland A.F.C. 1–0 in a friendly match to mark the occasion.[10] Steve Melton scored the goal, the first at the KC Stadium.[3]

 

[Lush]

Doesn't alter the FACT that a company with founding partners like AMEX and L&G isn't gonna be exactly skint (if you'll pardon the pun).

It is all starting to make sense now. There are relatively few major employers in the area. They all want to cut recruitment agency costs and attract good people. Why not join together, start their own recruitment company and look for nationwide/'prestigious' publicity?

 

[Lady Whistledown]

Most sponsorship deals aren't about sales anyway, they're about brand awareness, and about corporate reputation.

Say you're after, I don't know, an insurance quote, and you've got two new companies offering you a price, one you've never heard of and the other you've heard of because their name is on Arsenal's shirts (or whatever team). Psychologically, your brain will be drawing you towards the one you've heard of, because it's telling you they must be established, they must be creditable, you feel like you know them. The other one might be offering exactly the same deal, but with the first, there is that comforting sense of security, that trust gained by the fact you are familiar with them thanks to their link with a well known football team. Even if you hate that football team, the awareness of the brand is what it's all about.

And as someone else has said, sponsoring a football team is a bit of a status symbol for a lot of companies too, the glory by association, if you will. That might generate positive links with business associates, as opposed to just customers.

 

[fire&skill]

 

[DT Withdean]

They aren't a small privately-owned local recruitment agency.

Their joint-venture partners include American Express, Bupa International, City College Brighton & Hove, Domestic & General, Legal & General (and Brighton & Hove Albion FC), so there's some serious money and businesses there.

 

[mistahclarke]

I heard that Amex provided some of the start up capital for the company.. Not sure how true that is?

I might look into that, but Manpower do all the recruitment at the mo, and they only recently took over from Adecco.

 

[Lord Bracknell]

But the numbers still dont add up.

Lets say they fill 100 jobs a week at £50. If there is that many jobs in Brighton!! (Consdiering most large employers like Amex and L&G will pay the monthly £299 fee, £50 seems a generous avergae point), thats £5k a week roughly 250k a year. Out of that comes running costs say 60k staff wages and interent fees. The MD isn't going to be taking peanuts out of it, say 60k min a year wages. Is this sort of thing VATable? If so you need to take 20% of £250k = 200k, 20%ish corp tax = £160ish. Take out the running cost/directors wages, there isn't going to be an awful lot left as it is, without shelling out to sponser a championship club!!

And I would think filling 100 jobs a week is almost impossible in Brighton over a sustained period, it could be nearer 100 a month and on that very rough basis 100 x 12 x £50 is £60000 a year?

Very rough and grabed out of the sky numbers, but as I say, to me it doesn't add up.

But good luck to them

You've not got it right. They are not a recruitment agency. They are an advertiser of jobs. They make their money by employers paying up-front for adverts that are placed on the website. Madejski got rich by selling advertising space for second hand cars, not by selling cars. Once the website is set up and the payment system is working, all they have to do is count the money that comes in. They don't have to fill any of the jobs. That's what the advertisers have to do.

 

[JBizzle]

i can certainly agree that £250k doesnt make for a large business (btw, you only pay corp tax on profits over a certain quite high amount) . £60k isnt really enough to sustain a business for anything more than a one/two man band. so we have to draw one of these conclusions:

* your numbers are wrong.
* they will be bust before the summer ends.
* there isnt alot of overheads and actually a few hundred grand is plenty enough.

the subtext to what i as saying before is that, given they have been set up by Amex, L&G and others, maybe one of those businesses is paying the money and the logo is taking the limelight.

I agree but I feel the most pertinent point is being overlooked... One of the founding partners is Brighton and Hove Albion FC. So you would assume the club a have a vested interest in it's success. I think that all these made up sums are both irrelevant and inaccurate and the basis for the deal would be in the best interests of both parties otherwise they would not be our sponsors, the club are too canny to make a gaffe on the 2nd most key advertising spot outside the Amex stadium.

I also think the logo looks great!