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Is Arsenal’s new sponsorship deal good value and what does it mean for the club? | LadyArse

My take on Arsenal’s new deal with Emirates Airlines.

Is Arsenal’s new sponsorship deal good value and what does it mean for the club? | LadyArse.

As for the ever reliable Swiss Ramble, this is his twitter take from his sick bed.

“New deal covers 5-year extension in shirt sponsorship from 2014 to 2019 plus 7-year extension in stadium naming rights from 2021 to 2028.

This represents a significant improvement over current deal: £90m for 8 years shirt sponsorship plus 15 years stadium naming rights.

Likelihood is naming rights element of deal is worth very little. Current £90m deal includes £42m for naming rights, so only £2.8m a year.

If that is unchanged, then that would be worth around £20m of new deal (7 years x £2.8m).

That would leave £130m for shirt sponsorship (+ training kit), so £26m a year, compared to current £5.5m.

If naming rights extension effectively worth nothing, due to “stickiness” of Emirates name, then shirt sponsorship worth £30m a year.

Either way, this is higher than every other club with the exception of Manchester United’s Chevrolet deal (£45m).

The deal could also be worth more if team is successful, as bonus payments for success likely to be included in contract.

So, an impressive deal, though question is how good it will look in a few years time when other leading clubs renegotiate their deals.

Also, there should be a similar uplift when Arsenal renegotiate Nike kit supplier deal with Adidas strongly rumoured to be replacement.

 

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