Is it any wonder that we are still seeing silly transfer deals going through, with sums changing hands more than the total GDP in some countries when cash is flowing into the game in other areas. We recently looked at commercial deals in general on the blog (see post from July here) but we now want to look at Shirt Sponsorship again after World Soccer Magazine published its findings.
As of the start of 2010/11 season, the traditional Top 4 in the English Premier League will be earning close to £58m PER ANNUM just for selling the space on their shirts. Leading the silly money stakes are surprisingly in times of banking crisis, a bank. Not just any old bank but one that has run into major issues with the sub-prime market in the US. Step forward Standard Chartered Bank who are taking over the shirt sponsorship from Carlsberg at Anfield. They feel that an investment of £20.25 million per annum on a four year contract is worthwhile. And we wonder why we are still in the deepest financial crisis in history.
The top 25 deals in the World in 2009/10 equate to over £225million per annum flowing into football. If we look at which leagues get the share it looks like:-
English Premier League – £75m (flowing to just 7 clubs)
German Bundesliga – £90m (10 clubs)
Spanish La Liga – £16.7m( only 1 club in the top 25 and that is Real Madrid)
Italy’s Serie A – £31m (4 clubs)
France’s Ligue – £14m (3 clubs)
The Spanish situation is the most surprising – only Real Madrid attract a sponsorship deal worth more than £2.5m per annum. The other surprise is the mix of clubs from England. In the top 25 we only have 7 clubs – aside from the “Top 4” there is Man City, Spurs and Fulham. No Aston Villa, Newcastle United, West Ham United, Everton or Sunderland. Could that be because they are still in their old deals? Not in the case of West Ham or Sunderland that is for sure.
Surely the one sector that needs to take a long hard look at itself is the Online Gambling one….BWin, the Austrian gaming company weren’t satisfied with one top European side to sponsor so they signed up 3! Real Madrid (£16.7m for 3 years), Bayern Munich (£16.6m for a further 2 years) and AC Milan (£10m pa for 2 years) have all been sporting their logo recently – but surely one online company cannot produce revenues that justify a commitment of over £100m in the next three years. Emirates aren’t exactly far behind either spending £5.5m per annum until 2012 with Hamburg, £5m with Arsenal and £3.6m for another 5 years with Paris Saint-Germain – meaning a commitment of over £60m.
Madness, sheer madness…..and as a final point and WITHOUT cheating by using Uncle Google can you name the sponsors of the following 5 clubs all of whom appear in the top 25 AND the 5 clubs from the sponsors name? Answers on a postcard of course or by clicking here…
1. Juventus are sponsored by this company for another season for £10.1m. Clue – It’s not Old Dutch
2. Schalke have already spent their £16.6m this season they get from this company. Clue – Paul Gascoigne’s graduation party?
3. Inter Milan are years into this £5.5m per annum deal. Clue – I bet they get as many calendars as they want
4. Werder Bremen have been passing go and collecting £7.3m for the past few seasons. Clue – You can’t miss their building if you fly into City Airport.
5. Man Utd will get £20m per season until 2013 for this new deal. Clue – A is not off
Easy eh? So how about these?
1. Evonik pay £7m per season to sponsor which German team? Clue – they have a real Kop
2. Volkswagon like to keep it close by sponsoring this team who debuted in the Champions League this year? – Clue – Lupo
3. Wind are a big noise in Italy but who do they spend £5.5m per annum on? Clue – Eternally yours
4. Etihad are an airline but who did they fly into sponsor this season contributing £5m per season in the process? Clue – like they really need the cash!
5. Fraport is one of the biggest transport hubs in the world so why do they need to spend £5m per annum advertising the fact? Clue – Hot dogs all round
If you can answer these without cheating and get more than 5 then you are an expert or a sucker for sponsorship. But there are the good guys. Those clubs who want to put things back into the local community or a charity. These are very rare these days but there are two notable examples – FC Barcelona who still pay to have the Unicef logo on their shirts, and Aston Villa who sport the logo to Acorns, a local hospice.. I am still not convinced.
Thanks to World Soccer Magazine for providing the above financial information and Colours of Football for the graphics.