Premier League clubs face another major financial blow as the jersey sponsorship bubble burst.
Sportsmail revealed on Thursday that Liverpool had agreed to delay the start of their Nike kit deal so that they could lift the trophy in their current New Balance kit.
And now, clubs in the lower half of the Premier League are threatened with losing substantial financial income from match day sponsorship deals and training kits as the coronavirus crisis continues to tighten its grip. on football.
Liverpool, currently wearing a New Balance kit, has agreed to delay the start of a lucrative deal with Nike
Arsenal and Visit Rwanda deal worth £ 30 million over three years
Sponsorship agreements on jerseys and sleeves have become a stable source of income for clubs and have become an integral part of their marketing strategies.
For example, the Manchester United deal with automakers Chevrolet is expected to be worth £ 64 million a year, while Chelsea will pocket around £ 40 million a season thanks to its deal with communications company Three, which will start the next season. The contract between Arsenal and Visit Rwanda is worth £ 30 million over three years.
But clubs are increasingly worried about the lowest clubs in the top tier that these deals will become much less lucrative for them as businesses around the world curb their spending.
West Ham’s deal with Betway is worth around £ 10 million a year, while Everton’s deal with betting company SportPesa is worth around £ 9.5 million per season.
Clubs towards the lower half of the upper category rely on these jersey offers to supplement their long-term income.
West Ham is sponsored by Betway, but betting companies may be forced to cut spending
Smaller Premier League clubs rely on lucrative jersey sponsorship deals to boost revenues
But there is a growing resignation from small Premier League clubs that potential sponsors will no longer be as up to the level of investment as they currently have.
Of particular concern is that betting companies – which account for more than half of Premier League jersey transactions – will have no choice but to limit marketing expenses.
Such offers for top flight elite clubs, especially those in the Champions League, are still very lucrative, but smaller teams seem likely to see their income from reduced jersey business.