Ian Mallon: Setback in search for new €1.1m sponsor of Dublin GAA
![Ian Mallon: Setback in search for new €1.1m sponsor of Dublin GAA Ian Mallon: Setback in search for new €1.1m sponsor of Dublin GAA](/cms_media/module_img/7568/3784048_5_articlesmall_2627731.jpg)
END OF AN ERA: Pictured at the Dublin GAA end of season event at the AIG head office in Dublin are, from left, Dublin hurler Eoghan O'Donnell, Dublin ladies footballer Kate Sullivan, AIG Ireland General Manager Aidan Connaughton, Dublin camogie player Ciara Tierney and Dublin footballer Davy Byrne. Pic: Sam Barnes/Sportsfile
The Dubs’ hunt for a new headline commercial partner and shirt sponsor is set to go deep into overtime after an agreement which had been reached with a new investor was dropped by the big name brand.
The Pitch understands that the deal was in the final stages of negotiation and was ’99 per cent there’, when the firm’s US parent pulled the plug, due to external global matters, three weeks ago.
The unnamed potential ‘Primary Partner’ emerged from a group of highly interested brands with whom Dublin GAA’s commercial division had opened negotiations, last spring.
The setback, while disappointing for all concerned, is viewed as temporary with discussions already underway with new prospective sponsors.
However, the race to have a sponsorship in place in time for the lucrative Christmas market and ahead of the new inter-county season in January will be the key motivation for negotiators in the coming weeks.
The men’s and women’s All-Ireland football championship winners had hoped to have a new deal in place by the time AIG’s 10-year association with Dublin GAA comes to an end next month, and to allow production and delivery time for new jerseys to be achieved.
Last January the US insurance firm announced it was bringing to a close one of the most successful commercial partnerships in Irish sport, during a period in which Dublin won 12 senior All-Irelands in men’s and ladies football.
Fees, costs, or terms are not believed to have been a contributing factor in the collapse of the draft agreement, rather a strategic U-turn by the company in relation to a global approach on sponsorship issued from the United States.
The AIG deal with Dublin stood at €1m per year, and any new contract is expected to rise in value to up to €1.1m, a figure which The Pitch understands had been agreed before the current round of talks with a new sponsor ended.
Apart from the extraordinary visibility and success enjoyed by AIG, the brand had full sponsorship across all of Dublin GAA’s teams and codes.
Dublin went to the market in March of this year and had been speaking to a number of potential sponsors, whittling that down to two by June, before opting for the now-departed preferred choice.
That strategy seems like a sensible choice, despite the current setback, by not leading on a number of interested brands, believing they were in the running, instead settling on one.
Such a tactic has now paved the way for Dublin to reopen negotiations with a number of those brands, who were involved in early discussions, to determine the next best fit for Dublin GAA.
While the organisation isn’t commenting on the current impasse or fresh negotiation process, the key concern is having a product for market ahead of the seasonal shopping season.
That issue will have more of an impact on kit suppliers O’Neills, who clearly sell more Dublin jerseys than for any other team, and particularly on the back of significant success in 2023 for senior Dublin teams.
The Pitch forecasts that approximately 15,000 jerseys would likely sell in the run-in to Christmas, achieving more than almost €1m in income for O’Neills and Dublin GAA.
The new partner, as well as having shirt sponsorship, will enjoy headline commercial ownership of all Dublin GAA teams, as well as naming rights for the county’s Parnell Park Performance Centre.
AIG marked the end of its 10-year association with Dublin GAA at the start of the championship season with a high-profile ad campaign – Celebrating Support.
The Dublin GAA sponsorship is regarded as the most valuable team sports asset in this country, surpassed only by Vodafone’s multi-million euro deal with the IRFU, and specifically the men’s Irish rugby team.
The current setback bears no resemblance to the challenges faced by the FAI - almost four years searching for a lead sponsor.
That sponsorship, for a brand which is enduring little success on the field, and ongoing controversy off it, sits at approximately €1.6m, a price still seen as too rich and too risky for investors.
The added bonus for new suitors with a Dublin sponsorship is investment in a winning brand, after both the men’s and ladies sides beat Kerry in their respective All-Ireland finals this year.
The men’s game was the highest watched sporting occasion in three years – with an average television audience of almost 1 million - until last month’s RWC showdown between Ireland and South Africa, seen by 1.2m viewers.
The body that represents the country’s sports organisations and NGBs has called on the Finance Minister to increase the betting levy from 2 to 3 per cent.
In its pre-budget submissions, the Federation of Irish Sport called on Government to increase the charges on sports book investors “to make sporting organisations more self-sustainable”.
The Federation has tweaked its lobby from last year’s pre-Budget announcement, when it then sought 2.25% of all betting duty “to establish a support and education body for those most affected by gambling addiction”.
Currently all duty from the gambling industry goes to Horse Racing Ireland and Greyhound Racing Ireland - which are not members of the FIS – a deal which is bound by legislation.
The FAI has already lobbied Government for a 1% increase in betting tax, determining that money should go to football.
On Tuesday, A&L Goodbody acting on behalf of the Federation said it was “conscious of the budgetary and legislative constraints”.
“However, certain amendments aligned with the Sports Action Plan are possible which would go some way to achieving the policy objectives of it and the National Sports Policy,” Bryan Hughes, a senior associate with the firm.
The Federation has outlined four key asks in its budgetary requirements:
- Increase in core funding for NGBs
- Taxation reform
- Raising the Betting Levy
- Acceleration of Insurance Reform Federation
CEO Mary O’Connor said that “it is important that Government do not take sport and physical activity for granted in budget 2024”.
While fresh calls for betting tax changes will certainly focus the Government’s attention, it would represent a major turn of policy if the Department of Finance adjusts gambling taxes, a move which might be more palatable than taking revenue from racing.
One of the country’s largest schoolboys/girls football leagues is facing a deepening financial crisis after almost half of its clubs signed a letter seeking greater financial disclosure.
The Kildare and District Underage League was this week served with notice by 14 clubs that it must hold a Special General Meeting by October 16, to discuss a range of issues including year-end accounts, cashflow, income, and expenditure.
The clubs have called on a range of motions to be enacted, and are demanding that the league hosts an AGM, where none has taken place since early 2022.
The members are seeking:
- Year-end accounts
- Annual accounts, to include a detail of all income and expenditure by type and category
- Detailed cash flow statements to include all payments to the KDUL bank and bank reconciliation
- Detailed accounts providing a breakdown of income and expenditure year-to-date
TD and an advocate for greater transparency in football, Deputy Catherine Murphy described the situation in Kildare as “incredible” and one the FAI must deal with immediately.
“The demands of more than a dozen clubs for the KDUL to hold an AGM and also to provide basic information such as year-end accounts, a detailed cash flow statement, with a bank reconciliation, is incredible given the relatively recent history during the John Delaney era.”
The Social Democrat representative added: “The FAI must address these serious issues, without delay, otherwise there will continue to be question marks about how the FAI is run.”
The FAI said “as this matter is ongoing, we cannot make any comment”, while the SFAI declined to make a statement, although it did confirm it was aware of issues within the league.
A former Chairman (Acting) of the KDUL, Tom Kearney, raised concerns about the league to the FAI and its chief executive Jonathan Hill, more than one year ago, but received no response.
The Pitch contacted the KDUL for comment but has not received a response.
In 2019 the KDUL wrote to Catherine Murphy outlining a series of achievements by the then-embattled FAI CEO John Delaney, encouraging political support for the now ex-chief executive.