- English league has seven top-tier partners and several licensing deals
- Concerns raised around possible conflict between individual clubs’ deals and league’s expanded commercial roster
The Premier League could generate a further UK£750 million (US$1.02 billion) if it centralises perimeter advertising sales and expands its roster of commercial partners.
The English top-flight soccer league is considering an overhaul of its commercial activities to replicate models in the US and is considering adding another three top-tier partners and centralising up to 60 per cent of its pitchside advertising revenue, according to Sky News.
The Premier League currently has seven top-tier partners, including Barclays, Microsoft, Electronic Arts (EA) and Guinness, as well as several licensing agreements with the likes of Football Manager and Topps.
The competition’s 20 teams were presented with the proposals at a meeting but there are no firm plans to initiate the revamp as of yet.
While no club executive has yet to publicly speak about the presentation, one is reported by Sky News to have raised concerns around the possibility the league’s expanded commercial roster could come into conflict with individual teams’ sponsorship arrangements.
In addition to briefing clubs on a potential new sponsorship structure, the summit also featured a presentation from the Independent Football Regulator. David Kogan, the chairman of the regulator, and Richard Monks, its chief executive, both shared plans for its inaugural ‘State of the Game’ report, which will be prepared during the coming months.
SportsPro says…
Unlike most European soccer leagues which still have a title sponsor, the Premier League shifted to a multi-partner model a decade ago, helping to attract a greater range of global brands and increasing revenues whilst still achieving scarcity. The arrangement has also given individual clubs more freedom in partner negotiations. For example, few financial institutions wanted to partner with teams when Barclays was sponsorship the whole competition.
A shift towards centralising pitchside sales would follow the example of the Uefa Champions League and increase revenues. However some clubs, particularly those with greater global followings, might object.
Ultimately, with the league’s media rights deals locked in for the long term, and with many clubs seeking new sources of income amid a ban on front-of-shirt betting sponsorship at the end of this season, handing over more inventory might be seen as a price worth paying.
Sponsorship remains the most powerful commercial force in sport, yet as investments soar, the ROI gap widens. This April, SportsPro London will deliver frameworks for proving impact beyond logo placement. Learn more here.