Yingli Green Energy last week became the first Chinese company to become a global sponsor of the FIFA World Cup, with the company’s share price beginning to plateau from its 52-week high recorded in mid-January. The deal, covering the 2010 tournament in South Africa, also marks the first time a renewable energy business has sealed a partnership with the World Cup. Yingli’s sponsorship agreement for the South Africa tournament gives the company global marketing rights, including certain ticket, perimeter-board advertising and media rights as well as the right to showcase its solar products at fan zones across the country. Yingli Green Energy Holding Co. Ltd. is listed on the New York Stock Exchange and its share price closed on Monday at US$12.40 for a market capitalisation of $1.84 billion. Yingli has achieved a massive growth from its $3.32 low last March, peaking at $19.11 in January before levelling off at its current share price.
Moving to Europe, Clydesdale Bank (sponsor) Premier League football giants Celtic and Rangers have been handed a boost after securing a “multi-million pound” sponsorship deal with Tennent’s Lager. The Scottish brewer has confirmed a three-year deal with both ‘Old Firm’ clubs, with the full campaign to be launched in the summer. Tennent’s already boasts a 35-year heritage of investment and support for football in Scotland, including an 18-year association with the Scottish Cup, the ‘Tennent’s Sixes’ and most recently as sponsor of the Scotland national side. Celtic is currently performing strongly on the London Stock Exchange after a slump that saw its share price dip to a 52-week low of 39p. However, since October the share price has been resurgent, peaking at 48p on January 18 and currently sitting at 45.25p. Meanwhile, Glasgow-rival Rangers’ share price is slightly lower at 40.50p on Plus Markets Group. Despite having well-documented financial difficulties its market capitalisation is rated at £46.24 million.
In the Tokyo Stock Exchange, Dentsu’s share price continues to dip despite securing three broadcast deals for the International Association of Athletics Federations (IAAF) in Hong Kong, Argentina and four territories in Latin America. The IAAF’s marketing partner has signed Hong Kong’s leading telecommunications provider, PCCW, to a four-year deal covering all IAAF World Athletics series events. In addition, Dentsu agreed deals with TyC Sports in Argentina and an agreement for the 2010 World Indoor Championships with the Organización de Televisión Iberoamericana (OTI), which covers Peru, Chile, Panama and Guatemala. The advertising agency’s share price peaked at Y2,300 on January 21 but has continued to decrease since, currently lying at Y1,998. Despite the recent slide, its share price is still a dramatic improvement on the yearly low of Y1,282, recorded on March 6, 2009.
Adidas’ share price continues to perform strongly after two big partnership deals. Last week the German sports apparel company was unveiled as one of six official partners of Japan’s bid to host the FIFA World Cup in 2018 or 2022. In addition, Adidas has secured the long-term sponsorship of Ana Ivanovic that will last until the end of her career and beyond. Ivanovic, currently ranked No.23 in the Sony Ericsson (sponsor) Women's Tennis Association (WTA) Tour, joined Adidas in 2006 and has now penned a deal that will cover the entirety of her career and sees her become a brand ambassador upon her retirement from professional tennis. The deals reflect Adidas’ market strength, which is represented by its current share price of Eur35.01 on Xetra. The company has enjoyed a steady increase from the slump of the recession, peaking at Eur40.07 in mid-January.
Finally in the betting industry, Tabcorp has announced that first-half profit declined 2% on higher taxes for slot machines at its casinos in Queensland. Net income fell to A$257.9 million in the six months ended December from $263.2 million a year earlier. However, the company did see a small rise in sports betting takings, and is banking on this offering in the year to come. After an original drop following the announcement, the current share price has risen on the Australian Securities Exchange to a healthy $6.74, which compares with a 52-week high of $7.70 in May and a low of $6.05 in February.