Profitable partnership

The 90 million euro ($134 million) deal had been hanging on the grapevine for some time, but on Thursday, the two Bavarian giants made it official. Audi is now part-owner of the country's most high-profile and lucrative Bundesliga soccer club. And both sides appear delighted.

"I am sure that this partnership will open up many new global possibilities for us," Bayern Munich chairman Karl-Heinz Rummenigge said after the announcement.

His sentiment was echoed by Audi board chairman Rupert Stadler, who said the two companies were already talking about how they could "strengthen the global presence of both brands."

The transaction, which wins Audi a seat next to Adidas - the only investor to date - in the inner sanctum of the club, is seen by many as a perfect marriage. As Bayern Munich's long-standing premium sponsor from the automotive sector, Audi's acquisition was both logical and welcome.

Alexander Krause, PR Manager of Sport+Markt sponsoring consultants, told Deutsche Welle that soccer clubs embrace the kind of long-term commitment Audi is demonstrating towards Bayern Munich.

"It is a sign of a deeper relationship, a relationship with greater security," Krause said. "Clubs don't want ever-changing partnerships. They want long-term ones, with top companies."

A two-way street

But Bayern Munich officials are not the only ones who stand to benefit from the deal. Hagen Rudolph, author of a book on the management of Bayern Munich, describes the arrangement as "a win-win situation."

Granted, the Munich club picks up a generous cheque and scores the opportunity to ride into parts of the world where Audi is the better-known half of the equation, but the partnership also represents an absolute coup for the VW-owned carmaker.

"Bayern Munich is like a trophy for Audi," Rudolph told Deutsche Welle. "It gives them the opportunity to win sympathy points and underscore their sporting image."

And he believes that sporting image is important for the company as it symbolizes an interest in health, performance and the younger generation - all important features in the world of car marketing.

"Ultimately Audi wants to tap into the positivity of Bayern Munich fans to draw attention to their company," Rudolph said.

The Bavarian factor

Krause of Sport+Markt says there is plenty of evidence to indicate the success of Audi's existing sponsorship deal, particularly in terms of heightening the company's presence in international markets. And there is no reason to believe the new deal won't prove just as advantageous.

Or perhaps even more so, as this agreement offers Audi the added bonus of stealing some of the limelight away from Munich-based rival BMW, which is essentially synonymous with Bavaria.

If for some reason the new deal, which is expected to push Bayern's annual earnings past the 200 million euro mark, should fail to take Audi to new heights, the money spent will not have been sunk into a soggy soccer pitch.

"Bayern Munich is extremely profitable," Krause said. "If Audi wanted to sell their shares again, they would certainly recoup their money."

Reporter: Tamsin Walker
Editor: Sam Edmonds