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SBD Global/December 3, 2013/Facilities

Manchester Clubs Lead Way For EPL Stadium Naming-Rights Value, Report Finds

A report states that ManU could get nearly $30M for Old Trafford naming rights.
Valuation firm American Appraisal said that ManU is missing out on an estimated £16.93M ($27.7M) a year for stadium naming rights, according to Paul Nicholson of INSIDE WORLD FOOTBALL. ManU, which said that it "will never rebrand Old Trafford," came in second in a list of Premier League stadium rights valuations -- to neighbor Man City, which is valued at £18.23M ($29.93M). The reason for the lower valuation is that "there is a risk attached to rebranding an iconic stadium, with opposition from supporters the biggest concern, and the impact that could have on other revenues if a fan campaign turned aggressively against the club ownership." In contrast, Man City valuation "is driven upwards by the size of its Etihad Airways sponsorship package." But there "is some scepticism around the true value as the deal has been criticised for being artificially inflated to allow the club more spending power" to get around UEFA's Financial Fair Play regulations. FFP stipulates that clubs can not "spend more than they earn" (INSIDE WORLD FOOTBALL, 12/2). In London, Jack de Menezes reported of the £75M ($122M) generated by all 20 clubs, £35M ($457M) "would be taken up by the two Manchester clubs," with Arsenal sitting in third with its current £6.75M ($11M) per year deal for the Emirates Stadium. Liverpool, Tottenham and Chelsea then follow, meaning that cumulated points over the last five seasons "have been crucial in determining the income generated" (INDEPENDENT, 12/2). For a complete list of EPL stadium sponsorship values, click here.
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