By Paul Nicholson
October 29 – Ink has gone to paper on the most significant commercial rights deal in international football this year with the Asian Football Confederation and DDMC Fortis signing off on an eight-year partnership with a minimum guarantee reported to be around $3.4 billion.
That $3.4 billion could easily rise to top $4 billion and will provide a huge boost to Asian football as it exits a similarly long term deal that at its close had a stranglehold over the speed of the AFC’s development.
The new deal may similarly look to be a bargain by 2028 if the AFC reaches its development potential, though this time round the AFC will not lose out financially on their own success with the deal structured to share revenue beyond the guarantee.
DDMC Fortis start marketing the AFC’s commercial properties for the two cycles that take place from 2021- 2028 and starting with the World Cup 2022 final qualifying round.
AFC president Shaikh Salman bin Ebrahim Al Khalifa said: “This is a most significant day in the history of the AFC. With the signing of this contract, the AFC can guarantee its Member Associations that the game in Asia has tremendously solid financial foundations from which to build…
“We have reached this historic moment through the strength and unity of our organisation, which in turn, has allowed the AFC to provide our Member Associations with tailor-made support through the President’s Development and Infrastructure Initiatives and the Asian Football Assistance Programme.
“Alongside so many development initiatives, the AFC has been able to grow our competitions to the level where they are considered among the best in the world and we have seen the standards of our teams rise on the world stage.”
DDMC Fortis secured the contract after a 15-month tender process. DDMC Fortis is a joint venture between Fortis Sports, a Swiss-based sports marketing agency, and Chinese sports, media and entertainment company Wuhan DDMC Culture Co. which is listed on the Shanghai Stock Exchange.
DDMC Fortis will work with the AFC in developing competitions and events. “The partnership will focus on enhancing the competition brands with particular emphasis on engaging young audiences across the region. They will also develop and implement the next phase of the AFC’s fan focused marketing and digital strategy from 2021 onwards,” said an AFC press release.
At the signing ceremony Dr. Yi Rentao, chairman of DDMC Fortis and Wuhan DDMC Culture Co. said: “We are extremely proud to sign this contract and enter into this significant partnership becoming the first Chinese enterprise to have secured such a comprehensive commercial mandate for a prestigious global football property. We see this partnership as an opportunity for DDMC to carry out the important “Belt and Road” strategy. DDMC Fortis was created specifically for the purpose of delivering this prestigious mandate for the AFC.”
“We are incredibly enthusiastic about the length of the partnership as we strongly feel that, in cooperation with the AFC, we are in a position to transform the way Asian football is organised, enjoyed and commercialised across Asia,” said DDMC Fortis CEO, Patrick Murphy.
“We believe a key factor to success will be the creation of a marketing and content strategy that focuses on fan entertainment and engagement.”
Shaikh Salman emphasised the opportunity the region now has with this deal: “The potential in this Continent is enormous and, of course, it will be the focal point for the football world when the FIFA World Cup comes to Asia for a second time in 2022. I am convinced that, with the wise use of the new finances available, our Member Associations will reach new heights and the overall standard of football and administration will continue to improve.”
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