VW signs sponsor deals with U.S. soccer club, league
CHICAGO, May 6 (Reuters) - Volkswagen AG (VOWG.DE: Quote, Profile, Research) and Major League Soccer on Tuesday announced a deal that makes the German automaker the primary sponsor of the Washington club.
Valued at $14 million over five years according to the Washington Post, the agreement puts the VW logo on the shirts of the D.C. United team.
The deal includes such other club and in-stadium marketing components as billboards and a hospitality area and vehicle showroom. The new jerseys will have their first airing on Thursday in a home game against the Chicago Fire.
It is the second-largest jersey deal in the U.S. soccer league's history behind the Los Angeles Galaxy's deal signed last year with Herbalife Ltd (HLF.N: Quote, Profile, Research), a nutritional supplements marketer that pays $4 million to $5 million a year. British soccer superstar David Beckham signed last year to play for Galaxy.
The agreement with VW means nine of the league's 14 clubs have signed such sponsorship deals, a common practice overseas but not for most U.S. sports leagues. However, since its inception in 1996, the MLS has put sponsor logos on its uniforms.
Other MLS Jersey sponsors include Red Bull in New York, Best Buy Co Inc (BBY.N: Quote, Profile, Research) in Chicago, Comex Group for the Chivas team in Los Angeles, Amigo Energy in Houston, Bank of Montreal (BMO.TO: Quote, Profile, Research) in Toronto, XanGo in Salt Lake City, Utah, and Akzo Nobel NV's (AKZO.AS: Quote, Profile, Research) Glidden paint brand in Columbus, Ohio.
The VW deal also includes a smaller financial commitment by the automaker to be the official automotive sponsor for the league as a whole, replacing Honda, which ended its relationship with the league after 12 seasons.
The national deal includes player appearances, the right to use MLS league and team marks, logos and players in advertising, and in-stadium billboards on display during nationally televised games on ESPN, Univision and Fox Soccer Channel.
VW is in the process of moving its U.S. headquarters to Herndon, Virginia, in the Washington area from Auburn Hills, Michigan. (Reporting by Ben Klayman, editing by Will Waterman)
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