Narvesen new head sponsor
By Endre Bakken, 6 November 2005, 01:22
The Reitan Group will continue as the club's head sponsor for at least four more years, but from now the logo of Narvesen will be "decorating" the front of the players' shirts.
"SKETCH" OF THE 2006-SHIRT: Hopefully the pastel colours will be de-emphasized.
Photo: Thomas Myren
"We have supported Rosenborg for many years. Obviously for commercial reasons, but there is also a personal dimension to this. Both me and my brother have played for Rosenborg. I was even the top goalscorer on the youth team one season," financial director Kjell Magnus Reitan brags.
But after six years of having the logo of Rema 1000 (supermarket chain) on the chest, they are replacing it with the logo of sister corporation Narvesen (newsstand chain).
Narvesen collaboration more important "This spring we agreed to change the logo on the shirts from Rema 1000 to Narvesen. The reason being that our collaboration with the Reitan Group has been more centered on Narvesen as of late," Rosenborg's chief executive Nils Skutle said when the new deal was presented to all the Narvesen employees in late September.
Amongst other things, RBK and Narvesen will focus on selling match tickets and supporter merchandise.
"Considering the enormous distribution Narvesen has we will be able to sell supporter equipment all over the country. At the same time we hope to be able to sell more match tickets than the 350,000 we sold last year. An attendance of 20,000 at each match still is our goal," RBK's sales and marketing director Erik Espeseth confirms.
Better deal considering the totality The current four year agreement with the Reitan-group is worth about €1 million a year. In hard cash the new contract is not a big leap forward.
"But the increase in total values is extensive. The size of the amount is hard to determine, but the deal is very good for both parts. We will attract customers to each other," Espeseth tells, avoiding revealing the exact worth of the accord.
"All that I am going to say is that we have got partner deals that begin at 2.5 millions NOK a year. Ads on the shirt and status as a head sponsor cost extra".
SMILES AND LAUGHTER: Skutle and Reitan jr. were both very happy after the contract was signed.
Photo: Thomas Myren
This means that the eigth year equipment deal with Adidas worth €10 millions is more advantageous.
"The Adidas agreement is worth 9.375 millions NOK a year, but it is hard to compare these two completely different deals with eachother. If we were to look outside of Norways borders, we find that the equipment deals are greater than the regular sponsor deals. All things considered the deals are largely equal," Skutle says.
New stand name Rosenborg has long insisted on the importance of having local business partners. Exchanging Rema 1000, a corporation local to Trondheim with the Oslo based Narvesen is not a matter of importance according to Nils Skutle.
"Both Narvesen and Rema are Norwegian brand names, so I do not see the difference," he says.
In addition to a new logo on the shirt, the "Rema"-stand on Lerkendal will change its name.
"All the ad boarders on the stadium will be changed, the same goes for the name of the stand. We have had this internal competion to get the leader of Kjernen, Korsgat, to say "the Rema stand" the most possible times. Now we will try to get him to say "the Narvesen stand" instead," Espeseth reveals jokingly, knowing fully well that the supporters use the neutral name "tribune vest" (West stand) as the name of their stand.
The sponsor market flattens out The deal with Narvesen is the sixth big agreement that has been prolonged this year. Already Fokus Bank, Bygger'n, Adressavisen and Coca-Cola had signed contracts that last until 2009, while the deal with Adidas lasts another three years, until 2012.
RBK had an income of 36.2 millions, only counting the sponsor and ad money from 2004. This is almost twice as much as in 2001 when the sum was just over 20 millions.
This chart explains the development in this area:
"We have had an enormous growth in this area since 1994, but now it is flatting out. We cannot expect to have the same steep growth that we had from 2001 until 2003 from now on", Nils Skutle comments.
In addition to the aformentioned sums are the 18.4 millions of revenue from the VIP areas at Lerkendal. In total Rosenborgs bottom line was 54.6 millions when it came to sponsors in 2004.
The revenues this year will be more or less the same despite the lack of gold medals. The earnings will increase with a couple of percent next year.