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Premier League Kit Deals Reach Record High

Tue 14th May 2013 | Marketing & PR

American invasion drives Premier League clubs’ kit deals to new record high as Warrior and Under Armour help contribute to a 32% jump in kit deal revenues.

The total value of Barclays Premier League clubs’ kit supply contracts has this season shot to £117.3 million (145.5 million EUR) – a 32% increase on 2011/12.

While traditional giants such as Nike, adidas and Puma continue to invest heavily, the surge in income has been driven by the entrance of North American duo Warrior and Under Armour  the suppliers of Liverpool and Tottenham Hotspur, respectively.

This is one of the key findings of the REPUCOM Kit Supplier Report 2012/13, produced in cooperation with PR Marketing, the leading industry analysis of sports equipment supply contracts in the top European football leagues.

“The entrance of Warrior and the growth in Under Armour‘s investment in British football has been a real shot in the arm in terms of Premier League clubs‘ kit sponsorship incomes,“ said Andrew Walsh, President – Global Enterprise at REPUCOM.

“The league’s global reach makes it a very attractive prospect for the world’s top sports merchandise manufacturers. In turn, kit contracts are becoming an ever-more relevant source of revenue for the clubs, not only at the top level, but right down the division.”

Today, almost 40 years after Admiral became the first sports equipment brand in England to advertise its logo on club kit, with Leeds United, 11 different suppliers are present in the Premier League.

It accounts for almost two-fifths of the total combined kit deal revenues across Europe‘s top five leagues, which this season nears £315 million.

“Across Europe, we’re seeing the relationships between the top clubs and their kit suppliers growing from purely branding of the kit to more profound, strategic partnerships,” said Dr Peter Rohlmann of PR Marketing.

Clubs from England‘s top division earn an average of £6 million per year from kit supply deals, also up on last year.

The dominance of Premier League clubs when it comes to securing kit sponsorship deals comes down to the sheer volume of replica shirts they sell.

This season, the league‘s 20 clubs will sell a combined total of approximately 5 million jerseys worldwide. That is around one million more than 2011/12, another key indicator of continuing growth of the league‘s popularity globally. It is also more than double the number sold by Germany‘s 18 Bundesliga sides.

Shirt prices are also rising across Europe but Premier League club shirts are still the cheapest among the top five European leagues.

The report shows the average price of a Premier League club shirt has risen 8.3% since last season, impacted primarily by the proliferation of leading brands this season.

The average price of a Premier League club jersey now stands at £47.60, but that is still significantly less than the Serie A equivalent at £61.

 

All values in GBP (£). Currency conversion at time of study: 1 GBP = 1.24 EUR

 

Posted by: Aaron Gourley

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