Bayern Munich has signed a contract extension with long term sponsors Beats. The audio brand has been working with the German club since 2013. The new deal is set to expire at the end of the 2020/21 campaign. Beats will continue to remain the audio partner of the club after signing the contract extension.
Players from the Bayern Munich squad are likely to be part of the campaign promoting audio products of the Beats. Various German and Bayern players, such as Bastian Schweinsteiger, had previously worked with the Beats for numerous years.
This deal will help Beats in getting worldwide exposure by working with Bayern. The German club is one of the most followed and successful clubs across the world. They enjoyed a prolific 2020, winning the second treble of their history. Most importantly, they got back the Champions League title back to Allianz Arena.
Bayern is one of the most financially stable clubs in Europe since they have a very efficient way of doing the job both on and off the pitch. Despite enjoying so much success on the pitch, the defending European Champions have also suffered losses due to the pandemic. In the last fiscal year, Die Roten ended up losing close to $60 million as fans are yet to return to the Allianz Arena.
It was a no-brainer for Bayern to not extend the deal with Beats. The sources of revenue for clubs depend on sponsorship and broadcast deals since matchday revenue is next to nothing due to the pandemic. In such a situation, securing deals with existing sponsors is key. Earlier this season, Bayern had extended the partnership with Coca-Cola as their beverage partner. Considering the popularity of Bayern, it will not be a surprise that there is a very minimal decrease in income from contract renewals with these brands.