Banco BMG is a leading consigned credit lender in Brazil. The bank has embarked on a unique journey to prosperity since the turn of the new century. Under the leadership of outgoing CEO Ricardo Guimaraes, the bank has reinvented its mode of business.
In the social scene, Guimaraes is a lover of sport especially football the favorite past time in Brazil. He combined his passion for football into an avenue to promote the brand of the company. Sports marketing has made BMG the prime sponsor in Brazilian football circles. Guimaraes himself serves as the president of Atletico Mineiro, one of the best clubs in the Serie A division.
BMG has a special fund set up in 2009 for the welfare of athletes and sportsmen. As a lender, it also advances loans to football teams to meet their running costs. In return, the clubs can pay off the loan or give BMG some economic rights to their stadium’s and players. BMG makes its profits from the sale of players in the future. The possibility of working with clubs in the Serie A is a worthwhile venture for BMG. The deals they put in place result in win-win situations for all parties involved. However, BMG keeps the contracts signed with players private.
Sponsorships do not come cheap. The sponsor invests lots of resources to meet the running costs of the clubs involved. The clubs, in turn, get the funds to pay their players and technical bench a well as facilitate logistics for playing every game. Though the deals take up a large chunk of resources, Ricardo asserts that the bank reaps its rewards in brand recognition and financial returns.
The financial returns result from the sale of players in which the bank has commercial rights. Guimaraes says it’s important for the bank to contribute to the development of the game and, therefore, partner with as many clubs as possible. The bank remains impartial and does not support a specific team to win the league crown. The league is widely followed, and, therefore, BMG’s brand reaches a wide audience.
Under the terms of every sponsorship deal, every sponsored club prints the logo, colors and names of BMG on the official sports kits. For instance, the official BMG Orange color theme appears prominently on several club’s kits in the league. Some of these clubs include Cruzeiro, Vasco, Fluminese and Sao Paolo.
BMG remains keen to reach new heights and is currently in the search for a business partner to share the burden with as it diversifies its products.