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BusinessManchester City's Shirt Sponsorship Valued at an Unprecedented £72.8m after Treble Win

Manchester City’s Shirt Sponsorship Valued at an Unprecedented £72.8m after Treble Win

The Sponsor, a renowned publication for professionals in the field of sponsorship marketing, has recently published its Sponsor Power Index, a comprehensive study assessing the value of shirt sponsorships for every Premier League club. This research takes into account factors such as reputation, awareness, and societal contributions to determine the fair market value of each sponsorship. The findings reveal that some clubs are benefiting greatly from their deals, while others are falling short. The most remarkable discovery from this study is the record-breaking valuation of Manchester City’s sponsorship, which stands at an astounding £72.8 million. This figure surpasses their current deal with Etihad, valued at £67.5 million per year. Although the previous deal expired in 2021, it has continued on an annual basis while the club searches for a partner willing to meet the new valuation. Sean Connell, the Editor of The Sponsor, stated, “Manchester City’s value as a commercial partner extends beyond their on-pitch success. Our data demonstrates that the club’s value is underpinned by its cultural relevance, reputation for innovation, and its engagement with fans. Additionally, it contributes positively to the community, the development of the game, and society as a whole. These factors are crucial considerations for sponsors seeking brand awareness and an enhanced image.” Headlines:
  • Newcastle United’s sponsorship value rises by 78% but falls significantly short of their £25m deal with Sela.
Newcastle United’s fair market value is estimated at £17.4 million, which is £7.6 million less than the club’s new sponsorship agreement with Sela, a company backed by Saudi Arabia. This raises questions about the legitimacy of the deal. Although the club’s qualification for the prestigious Champions League has contributed to a remarkable 78% increase compared to their previous partnership with Fun88, Newcastle United still faces challenges in terms of cultural relevance, fan engagement, and societal contributions, limiting their overall sponsorship potential. While the multi-year deal with Sela represents an investment in the club’s future, Newcastle United will have to settle for being considered the “best of the rest” until they can develop their brand off the pitch and offer sponsors more than just brand awareness.
  • Manchester United’s sponsorship with Team Viewer undervalued by £12.2m per year.
The fair market value of Manchester United’s sponsorship is revealed to be £54.5 million, exposing the significant undervaluation of their current deal with Team Viewer. The club is currently seeking a new commercial partner to replace the German software company, as the initial sponsorship decision was criticised for its “appalling judgment” by investors. While replicating the previous £65 million per year deal with Chevrolet may be challenging, Manchester United should command a much higher fee from any new sponsor. The Sponsor’s analysis ranks Manchester United highest in terms of longevity and success history, making them an ideal partner for brands looking to showcase their own history and quality to a global audience of football fans. With improved performances and Champions League qualification under Erik Ten Hag, the club can once again demand the highest sponsorship fees in the league.
  • West Ham’s Victory in the Europa Conference League boosts annual sponsorship value by £8.5m.
West Ham United receives more good news as their extraordinary triumph in the Europa Conference League brings not only silverware but also a significant financial boost. The club’s success in the tournament translates to an impressive £7.1 million increase in annual sponsorship value, further strengthening their commercial achievements. This victory adds another remarkable chapter to the club’s history, enhancing their reputation within the footballing world. With improved reputational scores and a strong contribution to society, West Ham becomes an attractive partner for potential sponsors. Furthermore, their successful European qualification resulting from their triumph in the Europa Conference League guarantees heightened brand awareness for another year. Competing on the European stage provides valuable exposure and opportunities for the club and its sponsors to showcase their brands to a broader audience. This extended presence on the continental stage opens doors for potential sponsorship deals and partnerships, enabling West Ham to establish stronger connections with both local and international brands. While their current deal with Betway, estimated at £10 million per year, does not expire until 2025, continued on-pitch success may require Betway to increase their investment significantly or risk losing a premium sponsorship asset to another brand.
  • Chelsea’s fair market sponsorship value plunges by almost 60%.
Chelsea’s forgettable season has had a significant impact on the club’s ability to attract and retain high-value sponsorships, particularly in an already challenging and competitive market. The end of their deal with Three coincides with the club’s disappointing campaign, leaving Chelsea in search of a new partner. The failure to secure any European football for the upcoming season means that sponsors will have significantly fewer opportunities to gain brand exposure compared to previous seasons. As a result, the fair market value of Chelsea is estimated at £16.9 million, well below the £40 million offered by Three. Manchester United and Aston Villa, both seeking new front-of-shirt commercial partners, will provide sponsors with greater brand awareness in the upcoming season. Chelsea’s existing brand reputation, including high scores for cultural relevance, innovation, and history, remains their primary negotiating leverage. Only Manchester City and Manchester United boast a stronger social following, and Chelsea leads the pack in social contribution, donating £6.5 million through its foundation, which is considerably more than any other Premier League club. While last season’s performance was disappointing, sponsoring Chelsea at a value above the fair market price entails taking a gamble that the club’s recent struggles were merely a blip for a team that typically maintains a strong presence in the Champions League.
  • Nottingham Forest insists on £10m shirt sponsorship despite fair market valuation suggesting it should be £3.9m.
Nottingham Forest’s quest for a £10 million per year sponsor may be challenging, as the club’s fair market assessment values their sponsorship at only £3.9 million, with only Luton Town scoring lower. While all Premier League teams command significant sponsorship fees due to the league’s brand awareness and viewership, the economic climate makes it fiercely competitive for clubs to secure these sponsorships. Nottingham Forest ranks at the bottom among its Premier League counterparts in nearly all measures. For instance, in terms of fan engagement on social media, Nottingham Forest has one of the lowest followings, only surpassing newly promoted Burnley, Sheffield United, and Luton Town in terms of poor scores. The club’s lack of star power among its current player roster, compared to competing clubs boasting players like Pickford, Zaha, and Diego Costa with his seven million followers, further compounds the situation. Additionally, Nottingham Forest receives low scores for its contributions to the community, charitable donations, and environmental efforts, which are increasingly important factors for potential sponsors. On the pitch, Forest finished the season strongly, but their 11 televised games fall significantly below the Premier League average of 32 games. Sean Connell, the Editor of The Sponsor, remarked, “Nottingham Forest’s Premier League survival is a testament to the club’s impressive upward trajectory. However, until they can improve their off-the-field performance to match other Premier League teams, the club’s £10 million sponsorship valuation appears to be unrealistic.”
  • Brighton and Aston Villa Benefit from European Qualification, while Liverpool and Tottenham Face Declines in Sponsorship Value.
European qualification has significantly increased the fair market value of Brighton and Aston Villa’s front-of-shirt sponsorships, now valued at £12.5 million and £11.1 million, respectively. For Brighton’s sponsor, American Express, who signed a 12-year deal in 2019 with an annual shirt sponsorship value of £8 million, this valuation serves as a reward for their long-term investment in the club. Aston Villa, on the other hand, is well-positioned to capitalise on their sponsorship valuation, as their current deal with Cazoo is set to expire soon. Taking West Ham’s success in European football as an example, Aston Villa can offer sponsors greater brand exposure compared to many other Premier League clubs. However, there are winners and losers in this scenario. Tottenham’s failure to qualify for any European competition means that their long-term sponsor, AIA, will receive significantly less value than in previous seasons. Spurs’ fair market value for the upcoming 2023/24 season stands at £26.9 million, well below the reported £40 million annual payment made by AIA. Similarly, Liverpool’s longstanding sponsorship deal with Standard Chartered brings in a reported £50 million per year, but their fair market value for the upcoming season falls short by £12.2 million. Despite their challenging season, Standard Chartered remains satisfied as the partnership continues to deliver value. Liverpool excels in cultural relevance, with a strong social following, fan relationships, and star power, largely attributed to the presence of global icon Mo Salah. These factors, combined with Liverpool’s reputation for history and success, alleviate any concerns regarding sponsorship. Methodology: The Sponsor’s research methodology for determining the fair market value of each Premier League team’s sponsorship combines real-world sponsorship deals reported by The Athletic with The Sponsor’s comprehensive sponsorship scorecard. This unique approach enables a regression analysis that accurately calculates the fair market value of each sponsorship. The Sponsor’s scorecard evaluates each team based on three strategic categories: reputation, awareness, and contribution to society. Emphasising awareness measures, the scorecard considers factors such as the club’s history, quality, cultural relevance, innovation, social following, digital presence, in
Sam Allcock
Sam Allcock
With over 20 years of experience in the field SEO and digital marketing, Sam Allcock is a highly regarded entrepreneur. He is based in Cheshire but has an interest in all things going on in the North West and enjoys contributing local news to the site.
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