Premier League Shirt Sponsorship Deals Top £100m
Tue 24th Jul 2012 | Football Sponsorship
The combined shirt sponsorship income of the Premier League’s 20 clubs has jumped 25 per cent in a year from £117.5m in 2011-12 to £147.1m for the 2012-13 season according to new research by Sportingintelligence.
The biggest financial leaps this season have come from clubs in the north-east, with both Sunderland and Newcastle successfully negotiating lucrative new deals.
Sunderland recently signed an agreement with Invest in Africa which several sources say is worth up to £20m a year and with bonuses, could be as lucrative as the highest deals enjoyed by Manchester City, Manchester United and Liverpool.
Newcastle owner Mike Ashley has overseen an uplift of £7.5m a year after thrashing out a £10m a year deal with Sir Richard Branson’s Virgin Money. The deal follows Virgin’s acquisition of previous club sponsor, Northern Rock. Newcastle’s previous shirt deal with Northern Rock was worth £2.5m a year.
Danny Townsend, EMEA and South Asia President of sports sponsorship experts Repucom International, said: “Sunderland have pulled off a difficult piece of business by leveraging connections in Africa. The strength of the Newcastle brand meant that Richard Branson wanted to renegotiate and prolong a sponsorship he inherited. Those two clubs deserve credit.”
In return for the cash, Sunderland will carry on their shirts the name and logo of Invest In Africa (IIA), which Sunderland described as a ‘ground-breaking, not-for-profit initiative’ to help promote investment in Africa.
Though a quasi-charitable tone to the deal may have been implied when former Foreign secretary David Milliband – Sunderland’s vice-chairman – and Sunderland’s Texan chairman, Ellis Short, a Texan, were at a launch that mentioned Sunderland ‘giving something back’ to Africa, this is not a charity deal in any shape or form.
The new deals now make Arsenal’s long-term sponsorship deal with Emirates appear increasingly low as every year passes. When announced in 2004, the combined 15-year sponsorship deal for shirt sponsorship and stadium naming rights worth £100m looked massive. Worth in the region of £5.5m a year for the shirts, the deal now looks on the low side compared to their biggest rivals and leaves the Gunners in ninth spot this season.
West Brom, Stoke, Norwich and QPR have earned financial uplifts due to new or renegotiated deals this season. West Brom will earn an extra £400,000 a year as a result of a new £1.5m a year deal with property website Zoopla. Stoke will enjoy an additional £300,000 after announcing a £1.3m a year deal with bet365. Norwich renegotiated a four-year, £1m a year deal with insurance company Aviva, worth an additional £650,000 a year, while QPR successfully renegotiated an extra £200,000 a season with AirAsia.
The overall total is boosted as the three newcomers to the Premiership – West Ham, Reading and Southampton, will earn a little more combined for their shirt deals (£3.2m) than the three relegated clubs, Bolton, Wolves and Blackburn (£1.85m together) last season.
The League’s relationship with gambling firms continues with five clubs now advertising gambling firms on their shirts: Aston Villa, West Ham, Stoke City, Swansea and Wigan. The growing influence of Asian and Middle Eastern money continues too, with five clubs sporting sponsors from the regions (Man City, Chelsea, Arsenal, Everton and QPR).
Townsend added: “Brands across the world find the proposition of sponsoring teams in the Premier League attractive, in order to build brand awareness and credibility. The top clubs such as Liverpool and Manchester United are driving lucrative deals and there is room to move in terms of additional revenues, because they are delivering for their sponsors too”.
Posted by: Aaron Gourley
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