Virtual Sponsorship and Marketing in Asia

Overview

The VfB Stuttgart, a Bundesliga football club, announced a new sponsor for the upcoming season, Igloo Ventures SRL, a gambling company operating a crypto casino called Lucky Block. However, gambling with cryptocurrencies is illegal in Norway, complicating the terms of the deal.

Activation in Asia

While the German media reports on the sponsorship agreement between VfB Stuttgart and Lucky Block, the partnership activation will only target the Asian market. Utilizing virtual advertising technology that has been used in the Bundesliga for several years, viewers from Asia will see different ads compared to German fans in the stadium or watching at home.

Social Media Strategy in Asia

Additionally, social media activities in Asia are planned to cater to an Asian audience and are exclusive to the club’s Japanese account on a messaging app. This exclusivity aims to engage with fans in the region effectively.

Controversy and Investor Reaction

Fan Discontent and Porsche’s Response

Some VfB Stuttgart fans have expressed discontent with sponsors from the gambling industry, as seen in protests against previous sponsors. Furthermore, the club’s investor, Porsche, has distanced itself from the deal with Lucky Block, signaling concerns about the partnership.

Legal Implications and Risk for VfB Stuttgart

Potential Legal Risks

In addition to fan dissatisfaction, the collaboration with Lucky Block could pose legal risks. As Krypto-casinos and related advertisements are illegal in Norway, the club must ensure compliance with regulations to avoid legal repercussions. Recent legal decisions have prohibited foreign influencers from promoting illegal gambling to a German audience.

Asian Expansion and Future Prospects

Expansion and Future Opportunities

Amidst speculation that the deal could yield a six-figure sum for the club, VfB Stuttgart’s presence in Asia is set to grow. With an upcoming tour in Japan, the club may attract more sponsors from the region. While currently having one Asian player in the squad, the club may consider additional signings to align with their sponsorship activities in Asia.