Malaysia Airlines Announced To Sponsor QPR

[Ikman Ikreza 0]

QPR jersey sponsorship an ‘arm’s length’ deal, says AirAsia

 

There was no Bursa announcement from MAS on the sponsorship. MAS failed to respond to questions sent to it as at the time of publication.

 

According to the AirAsia announcement on Bursa, the airline will pay £500,000 (RM2.4 million) as sponsorship fees to be, among other things, the official “away shirt” sponsor of QPR for two years.

 

 

That's AirAsia will pay and how much MAS pay for official "home shirt".? Should be more then away shirt I guess.

[Izanee 0]

amazing stuff, only in malaysia this can happen. tax payers money thrown away ... don't think sponsoring QPR will help that much - they probably will be out next season!

[alberttky 0]

MAS sponsorship for Queen Park Rangers jersey to cost RM18mil

 

PETALING JAYA: Malaysia Airlines' (MAS) recently-announced sponsorship for the Queen Park Rangers (QPR) home jersey in the Barclays Premier League will cost the national carrier some RM18mil or 3.7mil, according to a source.

 

The total sponsorship fee for both MAS and AirAsia for the English professional football club, which involves a term of two years, would cost some RM30mil (6.2mil), the source added.

 

“MAS will take up a bulk or almost 60% of the total fees while the remaining will be forked out by AirAsia Bhd and its related companies which could also involve AirAsia X.

 

“Typically, the home jersey sponsorship is more expensive than the away jersey,” the source said.

 

On Monday, MAS and AirAsia signed a jersey deal for QPR which will see the MAS logo adorn the jersey at home while the AirAsia logo will be used on the team's away games.

 

“This sponsorship is the first major initiative of our new brand and marketing strategy that would see important advertising money spent on boosting our top line. This is a key component in our drive to regain global market share, profitability,” said MAS executive director Mohammed Rashdan Yusof.

 

Even so, most analysts are not thrilled. Their main grouse is that MAS should instead be focusing on strengthening its flagging financial status and showing some concrete moves towards this end.

 

Moreover, the crucial post of a chief executive officer for MAS has still yet to be filled.

 

The sponsorship deal by the two airlines closely follows a landmark share-swap deal involving the major shareholders of the respective airlines in early August which had turned the rivals into allies.

 

AirAsia's chief steward and major shareholder Tan Sri Tony Fernandes and his partner, Datuk Kamarudin Meranun, collectively own a 75% stake in Tune QPR Sdn Bhd, which in turn owns 66% of QPR Holdings Ltd. Fernandes, who only recently acquired the stake in the football club, is currently chairman of QPR.

 

In an earlier announcement to Bursa Malaysia, AirAsia said it would cough up some RM2.4mil or 500,000 as sponsorship fees for the duration of the two-year term.

 

Only in June this year, Genting UK, the largest casino operator in Britain, sealed a pact to be the main jersey sponsor for Aston Villa for two years. Although the amount was not disclosed, a source said the total sponsorship fees for the two years collectively involved some RM17mil or 3.5mil.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/9/14/business/9494526&sec=business

[J Chong 0]

The MH jersey does look like a rush job, especially with the non-aligned motive. Almost like an iron-on (you can see the borders of the logo on the model). Maybe someone commented "MY logo not big enough".

 

Think AK got the better part of deal since the 50% of the games are away (if away jerseys are wore then). Am not a football fan so if this is inaccurate do let me know. But getting 2 jerseys (better designed at that) and same coverage at a fraction of the price (RM2.5M vs MH's RM18M). Not to mention Genting only paid RM17M to Aston Villa for both home and away jerseys.

 

MH is already losing money. It shouldn't be lining up to put money into other people's pockets before cleaning house first.

Edited September 14, 2011 by J Chong

[Ikman Ikreza 0]

MAS sponsorship for Queen Park Rangers jersey to cost RM18mil

 

PETALING JAYA: Malaysia Airlines' (MAS) recently-announced sponsorship for the Queen Park Rangers (QPR) home jersey in the Barclays Premier League will cost the national carrier some RM18mil or 3.7mil, according to a source.

 

In an earlier announcement to Bursa Malaysia, [AirAsia said it would cough up some RM2.4mil or 500,000 as sponsorship fees for the duration of the two-year term.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/9/14/business/9494526&sec=business

 

MAS for RM18mil, AirAsia RM2.4mil for sponsorship..wooww..MAS more higher than AirAsia..

[flee 5]

Think AK got the better part of deal since the 50% of the games are away (if away jerseys are wore then). Am not a football fan so if this is inaccurate do let me know. But getting 2 jerseys (better designed at that) and same coverage at a fraction of the price (RM2.5M vs MH's RM18M)

The normal home jersey is worn even at away games - so it will be worn at more than 50% of the games. Away shirts are only worn if the away team's colours clash with the home team.

Edited September 14, 2011 by flee

[Nik H. 3]

MAS is into : a) Organising Concerts ( Buble, Babyface et al ) Repairing Other People's Planes, prioritising this business over own maintenance. c ) Aircraft Leasing - The Increadibly Dumb Al Wafeer deal comes to mind. d) Football. e) Airline Business as a part time income.

 

a,b,c,e all lose money. Not smart enough to analyse this football deal.

 

Recently the Great Tan Sri announced that the Lotus Team may change its name next year.......maybe MAS will be in F1 too.....

 

I remember there was a time when the English Teams pay MAS good money to take them around Asia, not too long ago. But even after this segment was handed on a silver platter to MAS when I left, they managed to make a mess of it. The last football charter flights in July saw MAS sponsoring the Teams to the tune of RM 1 million but MH got nothing back. It was not even a Board decision. An EVP did it.

 

It will be very interesting how many of the powerpoint pushers remains in MAS in the next few weeks.

 

Apparently even Mr Bean refused the CEO offer.

 

Clowns.....hehehe

[jit 0]

Nothing wrong with spending money on branding and marketing.. but have to agree with the analysts that the timing of the deal is just really bad!!

 

MH have just announced enormous losses, the CEO have not been announced yet (after almost a month??) and the direction of the company is still vague

especially with regard to Firefly and Sapphire. The 20000 staff is still obviously in the dark about this whole thing and the first big news since the take over is??

 

Now is this not really bad management to begin with? What more the major shareholder of QPR is TF? Don't know regarding the regulatory aspect of it all, but the

moral, ethical aspect is just wrong in the eyes of the public.

 

Now it is revealed that MH is paying more for the deal compared to AA... wow!! What a complete PR blunder!!

 

First impressions of the 'new' management is crucial in boosting staff morale.. it seems these 'new' guys have boobooed an opportunity to do so.. instead they

have sent a wrong signal to the staff of MH that this whole share swap deal were to benefit AA and not MH.

[BC Tam 2]

There is still rm9.6M (GBP 2M) which we do not know who will foot the bill

 

Anyway, now we have some figures to compare with/against, still think it's a cut price bargain envisaged earlier ?

[Izanee 0]

Capt Nik, didn't realise you had left MAS. NOw, that is a big loss to MAS.

The calibre of people running MAS now is very suspect. The QPR deal stinks of something nasty.

Good ol' Uncle Tony - even if he wasn't involved in the decisions, the stupid board should have chosen another EPL club.

How can they justify this? If the club was really high profile and uncle Tony owned it, ok..maybe it would work.

Not with a club still trying to swim and stay afloat in the premier league.

 

and NOT when MAS pays much more than AK.

 

i am speechless

[V Wong 0]

 

i am speechless

 

Morphing into my Ah Beng mode : "Jaw drop"

[alberttky 0]

MAS unveils QPR deal

 

PETALING JAYA: Malaysia Airlines (MAS) has informed Bursa Malaysia that it had announced a deal with UK’s Queens Park Rangers Football Club (QPR) on Monday to sponsor the jerseys of the club’s players during its home matches in the Barclays Premier League (BPL) for the seasons 2011/2012 and 2012/2013. However, the cost of sponsorship was not disclosed.

 

MAS executive director Moham-med Rashdan Mohd Yusof said the airline was elated to be associated with QPR’s ascendancy to the Premier League and that its sponsorship of the QPR home jersey, together with AirAsia Bhd’s sponsorship of QPR’s away jerseys, was a first for the Premier League.

 

AirAsia had also announced its sponsorship of QPR’s away match and “third” jerseys for the same two seasons of the BPL on Monday.

 

This sponsorship is considered the first in the history of professional football globally, where two airlines from the same country have teamed up to sponsor a football team. This deal is said to showcase the commitment of both airlines towards the success of their recent collaborative co-operation framework concluded.

 

“This sponsorship enables MAS to reinforce its global full-service presence and premium franchise via football fans and lovers from all over Europe, the Americas, Asia-Pacific, Australia and all the four corners of the world. This sponsorship is the first major initiative of our new brand and marketing strategy that would see important advertising money spent on boosting our top line. This is a key component in our drive to regain global market share, profitability and pride for the people of MAS,” Rashdan said in a media statement.

 

Meanwhile QPR chief executive officer Philip Beard said the new deal with the airlines was an exciting venture for the club.

 

“We are extremely positive about building a thriving relationship with both businesses in a bid to broaden our exposure in South-East Asia and further afield. This is a remarkable deal for the club and brings further positive news following a highly successful few weeks since the takeover,” he said.

 

The new home game jersey, adorned with the MAS logo, was worn for the first time at the showdown against Newcastle United at Loftus Road Stadium on Monday.

 

StarBiz reported yesterday quoting sources that MAS will fork out some RM18mil or £3.7mil to sponsor QPR’s home jerseys for two years.

 

The source added that the total two-year QPR sponsorship fee for both MAS and AirAsia would cost some RM30mil (£6.2mil).

 

Some 60% of the total sponsorship fee would be absorbed by MAS (as home jersey sponsorships tend to cost more) while the balance is covered by AirAsia and its related companies, which could involve sister company AirAsia X, sources disclosed.

 

AirAsia’s chief steward and major shareholder Tan Sri Tony Fernandes and his partner, Datuk Kamarudin Meranun, collectively own a 75% stake in Tune QPR Sdn Bhd, which in turn owns 66% of QPR Holdings Ltd. Fernandes, who only recently acquired the stake in the football club, is currently QPR’s chairman.

 

AirAsia told Bursa on Monday that it would pay QPR some £500,000 (RM2.4mil) as sponsorship fees for the duration of the two-year term.

 

Fernandes told reporters yesterday on the sidelines of the Forbes Global CEO Conference that branding was a powerful mechanism of growing an airline’s presence globally and airlines need to invest accordingly.

 

“AirAsia has grown from two planes to 100, that didn’t come by sheer luck. It came by investing in cultural and sporting activities. We branded. When you go to London now, everyone knows AirAsia. That’s very tough for a small company from Malaysia. If we continue not to brand ourselves, then we might as well allow Etihad (Airways), Emirates, Singapore Airlines, and Cathay Pacific (Airways) to be national carriers of this country. AirAsia built itself by investing in the brand. We sponsored Manchester United, F1, Oakland Raiders in the US -that’s how we built a brand,” he said.

 

“I’m not here to confirm or deny the numbers, we don’t even know how much it’ll be over the two years, but its a tiny investment in relation to what you want to build.”

 

http://biz.thestar.com.my/news/story.asp?file=/2011/9/15/business/9500150&sec=business

[Mike P 0]

So basically 2 logos will be appeared during the event...

[flee 5]

There is still rm9.6M (GBP 2M) which we do not know who will foot the bill

 

Anyway, now we have some figures to compare with/against, still think it's a cut price bargain envisaged earlier ?

Yes, £6+m is still peanuts compared to the £100m-£400m paid by the middle eastern airlines.

[BC Tam 2]

Yes, £6+m is still peanuts compared to the £100m-£400m paid by the middle eastern airlines.

Ah yes, fair enough

if the peanuts comparison method is brought into play

 

When you go to London now, everyone knows AirAsia

Big words !

But true onot ?

Edited September 15, 2011 by BC Tam

[Cheng Long 0]

Yes, £6+m is still peanuts compared to the £100m-£400m paid by the middle eastern airlines.

 

Yea peanuts.. but for a loss making company, those peanuts are quite significant..

[BC Tam 2]

Please do not lose track of fact that GBP 6,000,000 (RM 30,000,000) is only "peanuts" when compared to those astronomical middle eastern figures quoted

(though the quoter I notice did not define over how many years those amounts are spread over for comparative purpose )

Cannot vouch for others, but RM 30,000,000 is already one astronomical amount in realm that this 'katak bawah tempurung' exists

[Izanee 0]

*jaw drops*

 

yeah, fair play to the peanut comparers ... however, when you have a loss of RM 700 million for the first HALF of the year, GBP 6 million is like premium pistachios!

 

You cannot compare this with Emirates etc etc who make billions of dollars of profit. For them, it is KACANG PUTEH.

 

I think we should just stick with ikan bilis for now

[BC Tam 2]

I think we should just stick with ikan bilis for now

Ikan bilis nowadays has also taken on a premium you'll notice

no thanks to barang naik policies

 

(sorry, better ignore that, will go OT !)

Edited September 15, 2011 by BC Tam

[flee 5]

MAS needs to do some serious brand building - this is where AirAsia can teach them a lesson or two. MAS probably had a choice of not sponsoring QPR. If that happened, AirAsia might go it alone - and critics will probably then say that AirAsia's CEO don't care about helping MAS!

 

Branding and brand building is not fashionable in Malaysia. How many world class brands do we have that are from this country? That is why even the clever analysts are not able to discern what is brand building and what is throwing away good money.

 

Time will tell and I am hopeful that the incoming MD will be able to do something good for MAS.

[Izanee 0]

flee, i agree with some of what you say but don't you think MAS sponsoring QPR is not right? There is a conflict of interest ... Tony owns 20% of MAS and 66% of QPR. MAS pays 60% of QPR's sponsorship deal while AK foots only 40%? hmmmm ...

[BC Tam 2]

Nothing wrong to spend on advertising - rm9M a year is I imagine but a small fraction of MH's overall A&P budget anyway, and justifiable for a company with multi billion annual revenue

I guess it's just the perception (real or otherwise) of money not getting it's market worth, negativity magnified by the cross ownership issue between sponsor and whom is being sponsored

I wonder if the transaction could have been handled with better finesse ?

[flee 5]

Well QPR is turning around nicely after a shaky start to the season, winning 3-0 away to Wolves. Although this is an away game, the home shirt was worn as there were no colour clashes.

 

More here!

[Andi C 0]

Interesting blog from the MH FA who donned the QPR home jersey

 

http://vanessajezamine.blogspot.com/2011/09/london-opportunity.html

[BC Tam 2]

MAS needs to do some serious brand building - this is where AirAsia can teach them a lesson or two

Lesson number one may be to get the correct font design on the newly applied livery on 738's and 33E's in line with the rest of corporate design