Microsoft are in preliminary talks with Real Madrid for a naming rights deal for the Santiago Bernabeu, the teams iconic stadium. Comps have pulled in deals in the 150 million Pound range, and Madrid should expect to top that. For Microsoft, this would be a significant investment into a sports entity which has global reach and appeal. The team is known for its strategy of buying the world's star players, typically adding one every year. While this type of investment is nothing earth-shattering, Microsoft's decision to choose soccer over the other sports is worth analyzing. In the US, interest in Major League Soccer is lagging behind the supposed big four of football, basketball, baseball and hockey. The lag is mainly in the TV viewership numbers, as attendance has seen major gains recently, and many teams outdraw there basketball or hockey competition. While the MLS has not yet been a home run, there has been significant growth in the number of teams and games from abroad that are playing in the states or shown on US TV. The World Cup has become an Olympic-sized TV property. All this to say that soccer is the global sport, and has the most upside. This is particularly relevant because soccer fans in the US are technologically adept as they are younger, more plugged in and trained to use youtube and google to find the highlights and streams of their favorite teams. On that note, YouTube has been very aggressive in amassing live soccer content from top leagues like Germany and France, and I would be surprised if Microsoft didn't get into this space as well. Maybe the on-going conversation between Msft and Real Madrid is a shot across the bow, the dormant giant is awakening, and while late to the game, is ready for battle.
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