Qatar Airways to sponsor FC Barcelona, advertise on team's shirt

 Today we get into the fascinating World of football sponsorship, because it has been announced that Qatar Airways is going to become an sponsor of one of the World's top football ("soccer" for American readers!) sides: FC Barcelona. So we are going to see Qatar Airways on the FC Barcelona's shirt next season!

This deal consolidates the relationship between FC Barcelona and the emirate of Qatar (whose Qatar Foundation already sponsors the team) and mirrors similar sponsorship deals that top European football teams have sealed with the emerging airlines of the Gulf (the so called "MEB3"): Emirates is currently sponsoring English team Arsenal, Italy's AC Milan and is also adding FC Barcelona's arch-rival Real Madrid in the coming season, while Etihad Airways, of Abu Dhabi, and Qatar Airways are sponsoring Manchester City and Paris St.Germain, both owned by investors of their respective emirates.

The official accouncement, that can be found on FC Barcelona's website, does not disclose financial details, although sports daily El Mundo Deportivo reports that Qatar Sports Investments would pay €170 million for a six year sponsorship. Qatar Airways logo will then replace Qatar Foundation's one on the FC Barcelona shirts and merchandising. Apparently the possibility of replacing the sponsor's name was included in a clause of the original contract between FC Barcelona and Qatar Foundation.

Another point this announcement does not disclose is what is going to happen with FC Barcelona's current sponsorhip deal with Turkish Airlines. The Turkish flag carrier has invested heavily in sports sponsorship in its quest to position itself as a global super-connector and a competitor with the Gulf carriers and was, until now, the "official airline" of FC Barcelona. This relationship might be now "in the air" (if you allow me the bad joke).

By the way, all these airlines sponsoring several teams at the same time are starting to produce some slightly embarrassing situations: for example, a specially-painted Turkish Airlines aircraft flew FC Barcelona to the 2011 Champions League final, that the Catalan side played against non other than...Manchester United, a team that happens to have a similar sponsorhip agreement with the Turkish airline!

However, in this occasion, the final was conveniently played at Wembley stadium, in London, which made it unnecessary for Manchester United to fly...and, made a bit less blatant Turkish Airlines' alleged support for both teams!

Are European airlines becoming like football clubs?

This week we have got confirmation of the acquisition of a significant equity stake in Air Berlin by Eithad. The Abu Dhabi carrier will increase its stake to over 29% from the 2.99% it already owned, this will make it the first shareholder in Germany's second largest carrier.

What's interesting in this deal, though, it's not only that this is the first major foray by one of the emerging Gulf carriers in the European airline industry, although maybe not the last if we listen to the rumors coming out of Ireland, but the fact that this investment will have consequences that go beyond the financial sphere. And this raises important questions regarding the industry's competitive landscape.

As this CAPA thorough analysis underlines, Air Berlin and Etihad are going to be, from now on, close  partners: financially, as Etihad is injecting €255M in Air Berlin to help finance its fleet renewal and expansion, and also operationally, as Etihad and the airlines in Air Berlin group (including Austria's Niki and Switzerlands Belair) are going to codeshare routes across their networks. Air Berlin has already announced that is moving its Dubai service to Abu Dhabi to take advantage of the enhanced connectivity that its new partner provides. We can expect Etihad to benefit as well from Air Berlin's European network at the other end of the route.

Austria's Niki and Switzerland's Belair are also going to join forces with Eithad,a s they are part of the Air Berlin group

What this means, in effect, is that Lufthansa's long haul operation is going to be facing a larger passenger drain towards the emerging Gulf hub. Plus Air Berlin-Etihad have also the opportunity to develop an alternative German hub at Berlin's new airport, possibly not a coincidence that, in what looks like a preventive move, Lufthansa has recently announced plans to create a base in the German capital, an airport where it had had a very limited presence so far. It remains unclear whether this situation is going to affect Air Berlin's recent membership of Oneworld.

And it is precisely Oneworld who could be facing a similar situation in one of its home markets if Qatar Airways acquisition of Spanair is finally confirmed. As I write these lines the outcome of this negotiation is uncertain, although a deal must be closed soon as Spanair seems to be running out of cash. As I mentioned a few days ago, Qatar Airways would have its European beachhead, and, as in Berlin's case, it would be able to use a large brand-new airport with plenty of spare capacity to expand its European feeder operation.

Most important, and hence the title of this post, getting new entrants with access to a seemingly unlimited amounts of capital could significantly alter the competitive landscape (or distort it, depending on how you look at it)...which makes me think doesn't all this seem resemble what has happened with that other glamorous but chronically loss-making European industry:...football?