A blog from The Drum's news editor, Stephen Lepitak, covering reaction to events in media, social media, marketing, advertising and communications in general.
If there have been any winners out of the fiasco surrounding the eventual liquidation of Rangers FC, it could well just be the sponsors of the Scottish Football League, the home of the new Rangers for potentially the next three years.
Sky Sports this week announced a new deal to screen both Scottish Premier League matches and several SFL matches featuring five games with Rangers, thought to be worth around £60m, while ESPN today has also agreed to screen 30 Clydesdale Bank Premier League games and 10 Rangers games, including three from Ibrox.
Last weekend saw the newly formed The Rangers Football Club take to the field for the first time against Brechin in the first round of the Ramsden’s Cup, leading to a 2-1 victory after extra time. The game drew an attendance of 4,123 (a very good crowd for most teams in Scotland, let alone one playing in the fourth tier of Scottish football.)
The game is also thought to be the highest watched programme in the history of BBC Alba.
But now, with the new football season just over a week away, AG Barr’s soft drink brand IRN-BRU has seemingly won a golden watch, having been sponsors of the lower leagues in Scotland for the last five seasons.
In 2010, the brand signed a three-year-extension to sponsor the three leagues, reportedly worth £3m. That deal will come to an end this season, but The Drum understands that an announcement on a new extension is imminent.
When signing initially in 2007, the company would never have dreamed of the potential value and audience it would see gather as a result of one of the Glasgow giants dropping down to the third division, set to endeavour to climb back up to the SPL.
Meanwhile, the sponsor is likely to have its branding spotted by an international TV audience from fans of the Ibrox club, and be in front of a potential home crowd of around 50,000.
Speaking to Rory Maxwell, who heads up MediaCom Sport, he told me that such deals are agreed to engender brand loyalty among the fan base and support grass roots football. IRN BRU has certainly done that, even supplying branded mini-buses for some clubs.
An interesting fact about IRN-BRU is that it is the only soft drink brand to outsell Coca-Cola in a single country (Scotland, of course). It spends a lot less on advertising, but in the last thirty-or-so years has become an integral part of the country’s culture. That it chose to tie-up with another aspect of that culture - football - shows very good judgement indeed.
When I asked Maxwell how much a change the entry of Rangers into the third division would have on the SFL deal, he admitted that he did expect to see an increased fee required, but stated that quantifying the increase in value would be ‘difficult’ without the league being able to guarantee coverage and audience levels.
Should an increase in the sponsorship fee emerge, the SFL will need to be able to come up with hard evidence to back up their predictions - which surely at this stage, it cannot do.
Potential interest from other sponsors however, could make the partnership more appealing, meaning that IRN-BRU, should it quickly agree to an extended deal, would be right to do so, and it’s likely we can expect that deal to run until at least 2015-2016, when Rangers will be able to achieve a return to the SPL at the earliest.
As to whether the fate of Rangers had been lucky for IRN-BRU, Maxwell agreed that it has been and I have to say I agreed with his response wholeheartedly as a follower of a lower-league team myself. “That is the unpredictable nature of sport that makes it so appealing and always creates the winners and losers from those involved,” he told me.
And if there’s anything I’ve learned about Scottish football - it’s certainly unpredictable. A bit like the IRN-BRU brand itself.
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Rangers are the same football club as before, just operated by a new company - or "newco".
But yes, Irn-Bru have certainly had more attention than they expected.
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@thege20546 Erm... Actually it's not the same football club as before. Rangers FC is currently being liquidated, hence this new club "The Rangers FC," having bought the old clubs assets are therefore starting from the bottom tier of scottish football. A football club is a business like any other, so essentially a football club is a company. If a removals company, lets call it "High Five removals", went bust and I bought their delivery lorries from the administrators, repainted them and named my new business "Higher Five Removals" it would not be the same company as before, but could look very similar if I wanted it to. If I managed to nick the old companies loyal client base, then that would be okay by me!
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It certainly is lucky for Irn Bru to benefit from this new club being delivered into the fourth tier of Scottish football. Good luck to them and who knows, they may get to reap the benefits of the new club's presence for more than 3 years.
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there will always be a RANGERS ha ha to those who thought we would just die and go away.
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As a neutral, it has being fascinating and eye-opening to read and hear what has and has not been said. Personally speaking, the chilling amount of bigotry, vile remarks and sheer bloody mindedness of some of the people that follow the 'Green' side of Glasgow, is not only staggering but shows that this goes far beyond deep-rootedness. In some small way there will be much more focus on the 'Blue' side of the city, to monitor their progress closely as they, begin the new era and the quest to return to top flight football. Finally, and more importantly the big beneficiaries, are not only The Glasgow Rangers Football Club, but the struggling P/T teams in the lower tiers, and of course the sponsors. Everyone should now begin to let things pass, and enjoy the future. Let the games begin.
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You have to be careful. The newco Rangers are very touchy about being called a new team. Despite different players, different league and a recent history to be ashamed of they insist they are the same club. You will attract unwanted beligerence otherwise.
Good for Irn-Bru!
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