Intellectual Property and Financing Ronald Crawford IP and

Intellectual Property and Financing Ronald Crawford - IP and Brand Protection Manager ® ®

NIKE FOOTBALL BRAND OVERVIEW It’s all about the football!!! ®

Contents Brief Introduction to Arsenal Football Club Industry Context Arsenal IP Financing Challenges Q&A ®

Contents Brief Introduction to Arsenal Football Club Industry Context IP Financing at Arsenal FC Challenges Q&A ®

Mission Statement To provide Arsenal with increased income, profitability, cash generation and financial strength which would allow the Club to compete at the very highest level of domestic and European football. ®

Arsenal Objectives and Values ®

Key Facts Founded in 1886 Highbury stadium 1913 – 2006 History of innovation and firsts in football Introduction of shirt numbers Emirates Stadium – Opened 2006/07 season Club built on stability – 19 Managers in 122 years Introduction of white ball Most technologically advanced football Club stadium in Europe ®

Fan profile Demographic 54% of Arsenal season ticket holders drawn from the AB Professional and Managerial social classes Revenue Highest revenue generating stadium in world football with the fans to match ® Customer spend potential 9, 000 premium seats at Emirates, delivering more revenue than our entire old stadium each game Luxury surroundings Diamond Club, invite only with 84 members each spending £ 25, 000 per year

Fan base 168 Diamond Club Seats Waiting list in operation 150 Box holders Waiting list in operation 7, 000 Club level members Waiting list in operation 27 Million Fans worldwide ® 35, 000 Season Ticket holders (Gold members) Waiting list in operation 23, 000 Silver members Waiting list in operation 100, 000 Red members Active database of 400, 000 40, 000 Junior Gunners

INDEX Brief Introduction to Arsenal Football Club Industry Context Arsenal IP Financing Challenges Q&A ®

THE LEAGUES TABLE €m Premier League (England) Serie A (Italy) Bundesliga (Germany) La Liga (Spain) Ligue 1 (France) Revenue growth in top 5 leagues 1996 -2008 (Source: Deloitte) Source: Deloitte Annual Review of Football Finance May 2 oo 8 Page ® 11

WHY ARE THEY TOP? • The Barclays Premier League is broadcast in 204 countries • 533 m homes receive the channels which broadcast Barclays Premier League • Average cumulative audience of 75 m each week throughout the season • Total global cumulative audience across the season as a whole of 2. 95 bn ®

Revenue Breakdown By League Big 5 League Revenue Sources 2006/07 ®

Brief Introduction to Arsenal Football Club Industry Context Arsenal IP Financing Challenges Q&A ®

Arsenal Revenue Sources and Totals Source: Deloitte Annual Review of Football Finance February 2009 ®

IP REVENUE BREAKDOWN Media Sponsorship Naming Rights Licensing. Retail Partnerships ®

Intellectual Property Revenue – A closer look Media Television Radio New media Mobile Internet ® Sponsorship Kit Shirt Licensing. Retail Trademark Licensing Retail Stores Partnerships Corporate Partners Retail Partners Soccer School Partners Naming Rights Stadium

Media Arsenal. com Arsenal TV obile Arsenal M ® Arsenal Magazine

Sponsorship Official Kit Sponsor Official Sponsor ®

® AC (B ) in W ) lli ire (P 7, 000 M ila n n l) 21, 000 ila m oi Ta or ) ) in W on s sp y/ (S k r. M us te In nt ve (N o (B ) ity ) l. C o til (U (T e sio n) s) 15, 000 Ju a id ad r M on el Ba rc al d ich un Do rtm un M (M an 20, 000 Re ia rn am ira te Ro ck ) 8, 000 ss Bo ru Ba ye nh l( Em n ) ) 5000000 To tte na se rg be ar ls er th (N or (C 10000000 Ar st le ca ng IG ) (A su am (S d 15000000 w po ol er Liv a ite Un se el Ch er st he an c 20000000 Ne M 25000000 Sponsorship Annual Money Table 20, 000 15, 000 12, 000, 000 10, 000 8, 000 Euros Per Annum 5, 000 0

Licensing-Retail Online Shop On Site Retail Overseas Ret ® Branded Merchandise

PARTNERSHIPS Partnerships ® Naming Rights

Technical partnerships Arsenal develops local on-field talent through local Clubs such as BEC Tero Sasana in Thailand Ho anh Gia Lia in Vietnam. Project also includes commercial and marketing initiatives to aid these Clubs Club partnerships have included investment in Academies in Vietnam, and Thailand to help develop local talent Local media platforms local websites mobile services and publishing partners - provide channels to leverage value and target millions of Arsenal fans. ®

NAMINGRights RIGHTS Naming Rights ®

Factors for evaluating a sports brand future The fan base § Sports brands must have a strong fan base. § Size of home and international reach. § Wealth of fans and franchise region. Historical success § Sports brands values increase with the longevity and extent of playing success. Exploitation of the brand § Sports brands attain more value if they are being skilfully marketed and maximising their financial value. Scarcity § Sports brands are valued higher if there are fewer teams, limited access and fewer competitions. Values § Brands which have clearly identifiable values and propositions are rated more highly, i. e. Man Utd “Theatre of Dreams”, “Dallas Cowboys” America’s team. Stars § Past and present, fans and players. This factor adds glamour and desire to associate. ®

INDEX Brief Introduction to Arsenal Football Club Industry Context Arsenal IP Financing Challenges Q&A ®

Challenges Sponsorship ® Naming Rights

INDEX • How I help? ®

Brand Protection Branding Sponsoring Communication Advertising Marketing Products & Services Human Resources ® IP TEAM

IP SUPPORT WHEEL Trademarks Domain Names Keywords Litigation Take down websites ® Design Guidelines Licensing Guidelines Trademarks Domain Names Co-existence agreements Internet

IP SUPPORT : Challenges Quality vs. quantity Brand architecture vs. trademark strategy Brand strategy vs. creativity Control vs. marketing "Use it or lose it" Quality vs. quantity Quick wins vs. legal proceedings ® Machine vs. brain

© 2008 Guardian online ®

QUESTIONS ®