Shirt Sponsorships

galaxyPutting your company name front and center on a team’s jersey could arguably be seen as a wiser investment than placing your name on the team’s stadium.  In Europe, some teams are finding kit sponsorships even more profitable than stadium deals thanks to increased levels of investment.

According to the research firm Repucom, the British Premier League experienced a 20% increase in shirt sponsorships in the 2014/15 season following a 36% rise in shirt sponsorships the season before.   Chelsea AFC, one of the league’s biggest clubs, recently agreed to a deal with Yokohama Rubber Company worth $61.4 million per year.  Even greater, Manchester United is in the middle of a $70 million per year deal with Chevrolet.  According to CNN, Qatar Airways spends $181 million a year to be the jersey sponsor of Barcelona, arguably the most recognizable soccer team in the world.

Jersey sponsorships do not come without controversy.  In England, Newcastle United has been forced to remove the Wonga logo from its children’s replica jerseys starting in the 2016 season because the company is a payday lender.  In Spain 86% of all jersey sponsorships come form outside of Spain.  While this is excellent marketing for companies looking to increase their international reach, its one less avenue for companies within the country to push their own names.

Jersey sponsorship in MLS totaled $55.8 million, which is higher than the Netherland’s top league, the Eredivisie.  In 2012, 13 teams had kit sponsors and today, 18 out of the 20 teams have sponsors. The team with the greatest deal, the LA Galaxy still only makes $4.4 million per season from Herbalife.  As the league continues to grow in international prominence, time will tell if these jersey sponsorships grow in size and scope. Here is a promotional video hyping  the new Sporting Kansas City jersey, with sponsor Ivy Funds, introduced this past Wednesday.

REFERENCES

http://edition.cnn.com/2015/02/24/football/football-shirt-sponsorship-deals/

http://www.totalfootballmag.com/features/world-football/how-do-mls-kit-sponsorship-values-compare-to-europe/

http://www.businessofsoccer.com/2014/07/11/mls-jersey-sponsorship-tells-two-different-stories/

http://www.mlssoccer.com/news/article/2014/03/03/jersey-week-2014-la-galaxy-unveil-new-primary-kit-updated-sash

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One thought on “Shirt Sponsorships

  1. It’s very interesting to learn that jersey sponsorships are more valuable than stadium deals. Before reading your post, I thought a stadium deal would be more profitable because the people at the game and the viewers watching from home can see the company’s logo. Also, usually “die-heart” fans are the only ones to buy jerseys, since they are loyal followers of the team. However, games aren’t always attended, or watched at home, by solely loyal fans. Often, people who are impartial to sports will go to a game with their friends and family, or watch the game at home if someone else is loyal to the game. However, these impartial people probably wouldn’t buy jerseys. But after reading your post, it’s interesting to see how this is not the case.
    -Diana DiCocco

    Like

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