Why do forex and binary options brokers sponsor football clubs

 

Why do forex and binary options brokers sponsor football clubs?

Who took the most expensive football name and who can't afford the Premier League?

Sponsorship partnership between representatives of the OTC trading segment and sports teams, in particular when it comes to the most popular sporting activity football is not a new phenomenon and is very understandable. Since the arenas filled with gambling and entertaining middle class representatives, and not only, is the best target audience of private brokers. In what points brokers choose for themselves partners, cooperation with which will show the best ratio of fame cost? London's Brand Finance, a consulting firm in the field of strategy and brand price estimation, has placed its annual list of 50 most valuable, that is, expensive, brands on the expanses of football clubs of the European continent Brand Finance "Football 50 2017". It's funny, about 20 of them, to some extent, are associated with sponsorship agreements with forex or binary brokers over the past three years. In addition, 10 well-known football clubs from the first 15 in the ranking cooperated with the OTC segment.

The second fascinating observation, which can be taken out of the list of Brand Finance "Football 50 2017": good luck in different football competitions have only an indirect impact, and not necessarily proportional, on the price of the brand, that is, on the recognition. For example, in the last season, FC Manchester United has been holding the championship for many years and is considered the most expensive football brand on the planet ($1.73 billion compared to $1.17 billion the year before). The prestige of "Red Devils" prevails in value over the most successful Spanish counterparts Real Madrid and Barcelona, which have the second and third positions, respectively ($1.42 billion for each brand). Although United was only sixth in the English league and did not participate in the 2017/2016 UEFA Champions League, it was recognized as the most popular brand, partly because of the strong reputation acquired during the time of Alex Ferguson. But this is mainly due to this commercial vein effect and his ability to monetize his own victories into profitable contracts with companies from different fields and different countries, especially in the Asian market.

Another observation: 18 out of 50 most expensive football brands are considered "residents" of Great Britain, that is, almost the entire Premier League, 14 from the German Bundes League, 7 representatives of Spanish, 5 from Italian, 4 French, and others, one representative of the Netherlands and Russian Zenith.

When we already talked about the "champion" by name, MJ, it can be mentioned here that the Swiss forex company Swissquote is the main football beneficiary. Probably the scandalous forex broker IronFX has bet on the value of the brand, extending its cooperation with Bars (FC Barcelona) despite the financial difficulties, which can be used to whitewash the reputation in the future. Well, the most active and large-scale "football fan" of recent times can be called a binary broker EZTrader. It should be noted that in recent years, the broker's work is under serious threat of extinction, but over the past three years, the company has concluded, and then canceled, five contracts with football teams from Brand Finance rating "Football 50 2017", in addition, with representatives of different leagues and European countries.

As far as the financial aspect of the "sponsorship business" is concerned, the "love of football" is far from being cheap, partly when it comes to the most expensive but also famous brands. For example, the broker GKFX gave a million euros for three years with the Italian AC Milan (18th line of the list), and the forex broker FxPrimus from offshore paid $7 million for a similar contract with Manchester City (sixth line of the list) at a rate of $2 million per year. So, we can distinguish the average annual price of a football contract as $0.5-2 million per year.

And a little bit about new developments in the forex football niche. Representatives of the forex company FxPro, by the way, which recently signed an agreement with the British club Watford, talked about modern technology in the stadiums and the terminal of investors. For example, the innovation from Tottenham will get the technology of "rolling field", which drives under the podium at the back of the gate, the largest bar in the kingdom, a glass tunnel, in which fans will be able to watch the players before entering the arena, seats with heating and built-in USB inputs, and a special acoustics, capable of showing the smallest sound tones. The next step is the work of holograms, which will give Real Madrid fans the opportunity to watch the same game in stadiums in Sao Paulo and Spain.