SMB.

Despite the financial pressures due to the credit crunch, Coca-Cola is committed to sponsoring major football events such as the World Cup and European Championship.

Dominique Reiniche, the president of Coca-Cola's European operations, say they would continue to invest in sports notably soccer, at the top end and grassroots level.

"We don't see ourselves as sponsors, but as partners. Olympics, World Cup, UEFA European Championships will continue," she said.

Coca-Cola has already agreed to extend through to 2020 its membership of the International Olympic Committee's worldwide TOP programme, involving major corporations, which is the IOC's most lucrative sponsorship programme.

Reiniche added that Coca-Cola will also continue its investment at the local level in sport in a bid to reduce the problem of obesity, which IOC president Jacques said last month would also be his priority if he is elected for a second term.

Watch the 2006 FIFA World Cup Coke Commercial and Coca-Cola "Yao and LeBron" Olympic commercial

Due to this financial crisis, NBA team's values might decline if the economic downturn continues to worsen in 2009.

According to FORBES, some franchises will have a direct impact if this crisis continues. Season ticket renewals and new sales are down this season. The NBA recently laid off 9% of its staff on concerns over the economy. Also, some arena naming rights partners for teams like: American Airlines, Conseco, Ford Motor, United Airlines and Wachovia. Each of these companies saw its stock dive more than 80% over the past 12 months, and some sponsors might look to back out of their deals.
Despite all that, the last season (2007-08) was a success for the NBA. The league's most remarkable teams, the Boston Celtics and Los Angeles Laker, met in the finals, and TV ratings grew up 51% over the prior year.

League-wide revenues hit a record $3.8 billion during the 2007-08 season, 6% more than the prior campaign, and the average team posted a profit (in the sense of earnings before interest, taxes, depreciation and amortization) of $10.6 million, the highest amount since Forbes began tracking NBA finances 10 years ago.
The new agreements with ABC, ESPN and TNT that began with the 2008-09 season are worth $ 7.4 billion, 21% more than the prior deals on an annual basis.
Three teams experience double-digit gains this year, Portland Trail Blazer (up 21% to $ 307 million), Boston Celtics (up 14% to $ 447 million), Oklahoma City Thunder (up 12% to $ 300 million).

The Chart above shows the TOP 10 NBA's most valuable teams based on current arena deal (unless new arena is pending) without deduction for debt (other than arena debt).



In December the 4th, I wrote a post about how NBA is loosing attendance for NHL. Does NBA still a profitable sport?