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Marketing and Sponsorship

Emirates Cutting Sponsorship Ties With Australian Sport

One of the world’s biggest sport and major event sponsors, Emirates, will "dump its decade-long partnership with golf’s Australian Open," according to Nick Tabakoff of THE AUSTRALIAN. Emirates also may withdraw from Victoria’s Spring Racing Carnival altogether, as it "puts its key Australian sponsorship arrangements under the microscope" for '18 and beyond. Emirates Corporate Communications, Marketing & Brand SVP Boutros Boutros said that the airline had "built such strong brand awareness in Australia," with a sports portfolio worth about A$20M ($15.5M) a year, it "no longer needed the same number of dedicated sponsorships" in the country. Boutros said, "When we first came, nobody had heard of Emirates. Definitely, our research says our brand recognition in Australia is now very high. (The sponsorships) are no longer necessary." Instead, Emirates plans to "rely more on sporting partnerships with global exposure, and less on those catering to specific ­markets." After winding up Emirates’ long-running sponsorship of the Melbourne Cup last month, Boutros’ team is "now in discussions about whether to keep its last remaining spring carnival sponsorship," the A$2M ($1.5M) Emirates Stakes in November, along with its marquee in Melbourne’s Birdcage at Flemington. Emirates’ ­declining investment in Australian sport "comes at a pivotal time for the industry, with sports bodies facing fears that revenue from media rights and attendances have peaked." Boutros said that Emirates could not simply "keep spending and spending" on hundreds of sponsorships around the globe. He said, "You need to be smart. When you look at Emirates' sponsorships, we cover the globe. Every Australian who follows golf will continue seeing Emirates around the world. Same with horse racing. Same with soccer. At the end of the day, I have a budget every year. You have to follow your research and outcome" (THE AUSTRALIAN, 12/28).

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