Bayern Munich: Business Soars in 2016 with New Sales, Marketing and Sponsorships
Bayern Munich have been rather quiet in the transfer market since signing Mats Hummels and Renato Sanches in May, but player additions are only a small portion of the club's business model.
Rather quietly, the German giants have been conducting extensive business to develop their brand, increase revenue and streamline their squad. It's a project many years in the making, and one that has accelerated in 2016.
As Bayern continue to evolve their profile as a business, B/R takes a closer look at all the lucrative dealings they've done in 2016.
Doha Airport Sponsorship
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Bayern confirmed a deal with Doha Airport in January that should add "several million euros" (per Bild, h/t ESPN's Stephan Uersfeld) to their coffers.
According to the agreement, the airport (which is operated by Qatar Airways, a government-owned enterprise) is to be featured on advertising boards at the Allianz Arena. Due to the airport's links to the Qatari government, the deal received plenty of criticism from human rights activists and politicians, including German Green Party representative Ozcan Mutlu (per Deutsche Welle).
But despite the controversy and criticism, there is no doubt that Bayern will profit handsomely from the sponsorship deal.
Selling Pierre-Emile Hojbjerg and Sebastian Rode
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It's conventional wisdom that anything for sale is only worth what someone is willing to pay for it. In the case of Pierre-Emile Hojbjerg and Sebastian Rode, Bayern found the right buyers and made a real coup. The former was sold to Southampton for €15 million, the latter to Borussia Dortmund for €12 million, per Transfermarkt. Considering where both were in their careers, this was exceptional business.
Hojbjerg had played just 25 games in his senior career for Bayern and was second choice whilst on loan at Schalke last season. Johannes Geis and Leon Goretzka were the Gelsenkirchen side's first-choice duo in central midfield, with Hojbjerg amassing a modest 1,690 minutes in all competitions, per Transfermarkt.
As a player who joined from Brondby on a free transfer and who never became a player of much use to the first team, Hojbjerg's price of €15 million is marvelous business for Bayern.
Similarly, Rode's offloading was a wonderful bit of salesmanship. In two seasons with the Bavarian giants, the 25-year-old was never more than an afterthought. He played 1,452 minutes in 2014-15 and just 493 in 2015-16, per Transfermarkt.
Tz (in German) reports his wage was €3.5 million per year at Bayern, almost sixfold the €600,000 he'd earned at Frankfurt. Yet with Bayern having signed Rode on a free transfer and spent €7 million on his wages, a net gain of €5 million for a player who was never close to starting is a great coup for Die Roten.
Offloading Mario Gotze's Wage
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In terms of transfer fee, the difference in price for which Bayern signed and sold Mario Gotze is clearly indicative of a significant loss. Per Transfermarkt, the 24-year-old was purchased for €37 million in 2013 and sold back to Borussia Dortmund for €26 million last month. With just one year left on his contract and the player surplus to requirements, Bayern took what they could get.
One angle to the Gotze sale that has been discussed less is the effect of his wages on the club's total bill. Bild (in German) reported in July that Gotze was earning €10 million to €12 million per season at Bayern, depending on unspecified performance-based clauses.
That's an enormous wage to pay a benchwarmer, and perhaps it explains why Bayern were so eager to sell him, even at a loss. That loss is made up for in deductions from the wage bill.
Signing New Partnership with EA Sports
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On Tuesday, Bayern announced a partnership with EA Sports via the official Bundesliga website. The deal will boost marketing for both the club and the video game developer.
Previous partnerships with EA have been made by other clubs like Real Madrid, Paris Saint-Germain and Juventus, but Bayern have become the first in Germany.
The partnership will see Bayern players portrayed in FIFA 17 more accurately than ever before, using 3-D head-scanning technology. And the Allianz Arena will be modeled with unprecedented accuracy. Bayern fans will also be able to enjoy FIFA 17 on matchdays at many game pods around the Allianz Arena.
The deal keeps Bayern on par with other big clubs and helps increase their growing popularity outside Germany, especially relative to those sides without the bonus of superior graphics. It's all part of a long-term plan to attract more fans from around the world.
Touring in the United States
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Bayern have pushed to develop their market in the United States in recent years, opening an office in New York and playing against the MLS All-Stars in 2014. The idea is to further develop their fanbase in a very lucrative market, with games against AC Milan in Chicago; Inter Milan in Charlotte, North Carolina; and Real Madrid in East Rutherford, New Jersey, attracting large crowds.
Bayern have also taken advantage of their opportunities off the pitch. Appearances at the New York Stock Exchange, advertisements for player meetings in Times Square and more have increased the club's outreach.
Fandom is strengthened by more personal experiences between viewers and clubs, and it can be hard for Bayern to reach out to the U.S. market from thousands of miles away. The tour, therefore, is a great way to strengthen bonds between the club and its support overseas.
