Asian Sport Business Round Up 8th Jan 2012

Air Asia started off the year with a busy week announcing deals in F1 racing and Premier League soccer. 

The low-cost carrier will invest almost RM 6.5 million in the Grand Prix racing team Caterham F1 for advertising and PR activities.
CEO & spokesperson Tony Fernandes told a media outlet in Kuala Lumpur he wants to spruce up the airline’s image; to elevate its brand perception to that of a high-end technology product associated with F1 racing.

In a recent interview with the team's own magazine, Team Lotus Notes, Fernandes said AirAsia needs to look at Caterham F1 as being more than just a ‘racing team'.
"If we break down what F1 really is, its about innovation."
AirAsia said it intended to use sports sponsorship and branding to drive consumer aspirations and build sports-related themes connected to sales campaigns for various flight destinations.
“This will enable the company to differentiate itself against its competitors which are only pushing low fares and also attract a different segment of customers wanting to associate themselves with F1,” said a company statement.
The arrangement includes a driver development program  to help train new drivers from across the region and encourage public awareness of the airlines. A company statement said the racing team was a Malaysian brand and the company’s involvement and support would generate local interest and goodwill.
The racing group, 1Malaysia Racing Team Sdn Bhd, formerly known as Team Lotus, will be competing in its third Formula One season this year under the name Caterham F1 Team.
Air Asia also announced a contract with the Premier League soccer team Queens Park Rangers that will see the airline’s logo displayed on the team’s away games jerseys. A Malaysian news source reports the deal is worth UK £350,000 and will last one year. Tony Fernandes bought the West London-based Premier League team last fall.
In tennis news, Indian pro Somdev Devvarman has signed a deal with the Indian branch of the direct selling company Herbalife.
Devvarman, who has a world ranking of 84, joins other Herbalife brand ambassadors such as Indian badminton player Saina Nehwal and the female boxer Mary Kom.

In media deals, Ten Sports announced it will broadcast International Cricket Council events in Pakistan for the next three years.
Ten Sports, through its Taj TV parent, bid US$15 million for the rights in a December tender and beat out a rival bid from Independent Music Group, which runs the Geo Super channel.
Independent Music Group had previously won the right to contest the tender through the Lahore High Court, after the Pakistani Television Corporation had originally indicated that Ten Sports would acquire the satellite and cable rights. The court directed PTV to hold a tender.
Ten Sports has been granted the satellite and cable portion of rights that were originally part of the exclusive package acquired last year by PTV from global rights holder ESPN Star Sports for US$30 million. PTV decided to sub-license the pay TV rights to another broadcaster because of the high cost of the initial rights fee.
The package includes media rights to the ICC World Cup and ICC Twenty20 World Cup.

The 2012 sport business deal flow is well underway.

 www.sportsfestivalasia.com