untung99.biz: How Bayern Munichs Sponsorship Strategy Has Made Them A Commercial Success

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Germany’s Bundesliga might be falling behind La Liga and the Premier League, but Germany’s biggest club, Bayern Munich are still a commercial juggernaut.

In fact, in 2021 their commercial revenue of 345.2 million euros ($342.2 mil.) was the highest of any soccer club in the world, beating the likes of Paris Saint-Germain and Real Madrid.

The secret behind Bayern Munich’s commercial success is consistency.

In August, Bayern signed a new shirt sponsorship deal with Deutsche Telekom, running until 2027. The “T” logo of T-Mobile has now been on the front of the club’s shirt for more than twenty years. Deutsche Telekom are one of four long-term partners of Bayern Munich. The other three partners, Audi, Adidas and Allianz all own an 8.33% stake in the club, with the remaining 75% owned by the fans.

While Deutsche Telekom don’t own part of the club, and haven’t discussed such an arrangement, Bayern Munich board member in charge of sponsorship Andreas Jung says that they are more of a strategic partner than a sponsor. They run a joint TV station and interactive program in the stadium to create inspiring moments and inform fans about the club 24/7.

Deutsche Telekom’s logo can even be seen in the stands, as its employees at Bayern’s matches wear white raincoats and sit together in what Jung calls an “iconic” “T” shape. This long-term partnership, with no change or interruption in twenty years, means each side knows what to expect from the other.

Bayern Munich’s long-term approach helped the club ride out COVID-19, with the restrictions on fans hitting Bayern’s bottom line less than other clubs. Jung says this is because the club and its partners rely on each other and do everything in a friendly, common way so when there were hard discussions about partners’ rights during the pandemic, the club found ways to compensate partners through digital offers or other rights.

The club has also taken this long-term approach to its overseas operations. Jung says that while the Premier League grows its brand by having its clubs jet around the world each summer, only a few Bundesliga clubs make similar long-distance tours.

This means Bayern have to take the lead, and they have done so by establishing offices in the U.S. and Asia to have a permanent presence there. This means, as well as just pre-season tours, the club can hold kids’ camps and clinics, and provide a platform for other German firms to build their presence in these markets and learn about local consumers’ preferences.

Despite all this, Bayern Munich still struggle to compete with their Premier League rivals. Jung estimates that Bayern’s revenue from broadcast rights is about the same as the bottom-placed club in the Premier League. German clubs also cannot attract the same level of investment as clubs from other leagues due to its 50+1 rule that ensures clubs are owned by the fans. This does mean that the club, unlike the likes of Manchester United, is not saddled with huge debts, but also gives the club less money to spend on players.

Without such outside investment, Jung says these long-term partnerships are more vital than ever. And while the club’s current deal with Deutsche Telekom only runs until 2027, it wouldn’t be a surprise if the “T” is still seen around the Allianz Arena in Munich ten years from now.