ManU Dominates New Sponsorship Trend Of Localized Partnership Deals
ManU is leading the way in capitalizing on new localized sponsorship deals, generating more than 350% more income via this new strategy than the next biggest earner, Barcelona, according to Repucom’s latest European Football Club Income Stream Report. The report examines a selection of 20 of the biggest revenue-generating clubs in Europe, whose combined cumulated income totals approximately €5B ($6.6B). Alongside the traditional match day, broadcasting, licensing and retail revenues these clubs continue to produce, there is a growing trend toward capitalizing on localized sponsorship strategies. The jump in income generated through this approach, where a club sells its commercial rights locally within a specific market instead of globally and exclusively, is now producing significant returns. During the '13-14 season, 84 localized sponsorship deals accounted for more than €54M ($72M) in income for European clubs. More than 59% of that revenue was generated by ManU alone, totaling approximately €32M ($43M) through 38 deals. Other clubs in Europe to take advantage of this approach last season were Chelsea (13 deals), Barcelona (11 deals), Arsenal (eight deals), and Man City (six deals). The strategy is growing in popularity. Repucom’s football expert Andrew Walsh said, “Whilst broadcast rights remain the biggest income stream for clubs in Europe, commercial activities are the second largest contributor" (Repucom).