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Philip Morris Ends China Soccer Sponsorship (fwd)
November 27, 1998
Dow Jones Newswires
Philip Morris Ends Sponsorship Of Chinese
Soccer League
Dow Jones Newswires
By Matt Forney
BEIJING (Dow Jones)--Philip Morris Cos. (MO) has discontinued its
high-visibility title sponsorship of China's popular professional soccer
league.
Philip Morris Asia Inc.'s five-year contract to sponsor the Marlboro League
expired in October. Chinese newspapers have reported that the company
paid about US$7 million a year to name the league after its leading cigarette
brand. Company executives wouldn't confirm the value, but industry analysts
say that amount is likely correct.
Marlboro suffered recently when China introduced a law banning tobacco
advertising, which limited the company to a single advertising board in soccer
stadiums. Chinese media also rarely referred to the league as the Marlboro
League, calling it instead "A-division soccer" - although some television shows
played theme music from Marlboro commercials when they reported scores.
The soccer league's logo featured the familiar red-and- white design of
Marlboro cigarette packaging. It is unclear what the league's future logo will
be.
"We feel it is time for Philip Morris to re-evaluate its direction towards
event
sponsorship in China," said Jenny Fung, director of corporate affairs for
Philip
Morris Asia Inc., in a faxed statement. She wouldn't elaborate, but said Philip
Morris recently sponsored a bridge tournament and a re-employment center.
International Management Group, a Cleveland-based sports marketing firm,
owns marketing rights for the league. IMG is now trying to find a new sponsor
for the league.
AB L.M. Ericcson's (ERICY) Ericsson (China) Corp. and Carlsberg A/S
(K.CRL) of Denmark have discussed sponsorship with IMG, an industry
observer said.
IMG declined to reveal what Philip Morris paid, and what it is asking of
prospective sponsors.
Soccer is China's most successful professional sport. The top division, whose
season ended in October, has 14 teams. Five former league players now play
professional soccer in Europe, generally regarded as the highest level of the
sport.
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