In fact, back in the early 90s and during the start of the first-ever Premier League season, there was a rather homespun approach to things.
A trip back in time to Bramall Lane on the 15th of August 1992 will show just that as Brian Deane scored the first-ever goal in the Premier League’s history.
On this occasion, Deane bundled in a header from close range to open the scoring against Manchester United and in doing so sent a sun-soaked Bramhall Lane into euphoria. This prompted an enraged Sir Alex Ferguson to head for the dugout to bemoan his team’s defending to anyone that would listen. Perhaps this was where Ferguson’s permanent red face began as Deane would slot home a penalty during the second half to seal all three points on a day that the Blades fans will never forget.
September 26, 2016
Anyone watching the triumphant Deane wheel away to celebrate with the home fans on that balmy afternoon in August nearly 30 years ago, would have seen that he was wearing a shirt sponsored by Laver. Laver, of course, was a local timber merchant based in the city. Regional sponsorship wasn't a rarity during those heady days of 1992 and certainly wasn’t exclusive to just Sheffield United.
Indeed, during that swashbuckling performance from the Blades in Yorkshire, Norwich were down the M1 beating Arsenal 4-2. On the opening day, the Canaries ran out onto the Highbury pitch with Norwich and Peterborough Building Society proudly displayed on their kit. Meanwhile, Southampton were on the south coast playing out a goalless draw with Spurs and had Draper Tools - a family-owned tool company in the area- plastered across their home shirt. Wimbledon on the other hand, who were the victims of a Lee Chapman masterclass at Elland Road on that opening day, didn’t even have a shirt sponsor.
As mentioned, it was a slow start in terms of sponsorship in the Premier League and elsewhere around Europe during the early 90s. The multinational companies hadn’t yet decided to throw their weight behind football. But that of course changed as Europe’s Big Five leagues made their way into more and more living rooms around the world.Fast forward to 2021 and the landscape has changed beyond recognition.
The Ships Came in for the Class of '92
To illustrate just how much things have changed, let’s take a look at how the fortunes of Sheffield United and Norwich have swung in terms of sponsorship these days. The Canaries no longer come out of the tunnel at Carrow Road with a local building company as their main kit sponsor, but rather that of Dafabet.Now, Dafabet has secured lucrative contracts with major football clubs like Celtic and Fulham, as well as the Welsh national team. Tellingly, UK players can’t access the casino and betting services of Dafabet, which does give you a good indication of the global reach of football in the United Kingdom. Players from other countries can take advantage of a range of markets across multiple sports, as well as a sign-up offer and a variety of promos.
As for Sheffield United, well, they have parted ways with their once trusted local timber merchant and have instead unveiled the largest-ever commercial transaction in the club's history. By signing a three-year sponsorship deal with Union Standard Group, they are rumoured to bring in the region of £3.5 million a season.
These are of course huge and impressive sponsorship deals that Norwich and Sheffield United have managed to land and they’ve come a long way financially since 1992, but they are still some way off the rarefied atmosphere of the top clubs in Europe in terms of lucrative endorsements.
The Clubs with the Highest Sponsorship Revenue in World Football
Take a walk around Old Trafford on matchday and ask those in the stadium concourse about their feelings on current chief executive Ed Woodward. You’re likely to receive a fair amount of dissent in the feedback with the majority not convinced about the 49-year-old’s record, given that trophies have dried up since the departure of Sir Alex Ferguson. The general feeling among the Old Trafford faithful is that Woodward has been brought in to run Manchester United as a business with the overriding criticism being that he is more interested in turning a profit than delivering trophies.
December 30, 2020
Whilst the latter may well be a bit of an overly simplistic conclusion given that you can’t typically make money without winning trophies, you certainly can’t argue the merits of the former.
Woodward Weaves His Magic
Astonishingly, in 2018 Woodward secured 69 different sponsorship deals that yielded the club a staggering £235 million in endorsements for the season. The current kit deal that Woodward’s Manchester United has with Chevrolet earns the Red Devils £70 million a season alone and will run until the end of the 2021 campaign. It won’t come as any surprise, then, to learn that Manchester United generates the most money through sponsorships out of any football club in the world after hitting revenue records never seen before at the club.
With that in mind, Real Madrid can boast the same amount for a shirt sponsor as Manchester United, with the airline Emirates paying Los Blancos £70 million a year to fly their flag on the famous white shirt on matchday.
Fellow Spanish giants Barcelona are third on the list with an annual sponsorship turnover of £231 million. The Catalans owe most of this to lucrative shirt sponsor deals with Rakuten who shell out £55 million a season to have their names on the Barca kit.
As far as kit deals go, PSG comes in just behind Barcelona after negotiating themselves a bumper deal with Accor worth £50 million a season. Initially, Emirates were sponsoring the Paris giants but only offered £25 million per season which you would have to say is probably the going rate for sponsorship in France’s Ligue 1. Unsatisfied with this, however, PSG chairman Nasser Al-Khelaifi shopped around and managed to shake hands with Accor on a deal that was double what they were getting from the Dubai based airline. Incidentally, in the process of doing so, Al-Khelaifi ended a partnership with Emirates that went back to 2006.
The Most Lucrative Leagues in the World
As far as the Big Five leagues in Europe go, the Premier League earns the most out of sponsorships as it generates over £1 billion a year from 440 different endorsements. The Bundesliga comes in second with 617 deals that generate £641.5 million and La Liga third with £592.4 million a season from various sponsorships. This illustrates how slim the pickings are for teams that aren’t Barcelona or Real Madrid, as the league is only third for sponsorship deals in Europe, despite having the two biggest clubs in the world playing in it.
Unsurprisingly, Serie A is fourth with the Italian league generating £383.6 million in sponsorship deals. But that is still above the amount of Ligue 1, with the French top-flight turning over £312.4 million a year.
When you add that all up, you’ll find that the Big Five leagues in Europe generate over £3.4 billion a year through countless sponsorship deals.
Those are eye-watering amounts and seem a universe away from the day that Brian Deane ran around a sunny Bramhall Lane advertising a local timber company to the world.
FAQs
Is sponsoring a football team worth it? ›
Sponsorship is important for a football club as it can help to fund necessities to ensure the club can continue to run. Not only does it provide the means for your club and team to operate, but it also, on a vanity level, demonstrates that you're a professional club.
How does football clubs make money? ›Sponsorships. This is a significant source of revenue for the major teams in the world. In the form of kit sponsorships, stadium naming rights, shirt sponsorships, sleeve sponsorships, and other sponsorships you can think of. Top brands spend a lot of money to be associated with clubs.
How much money does the Premier League get in sponsorship? ›...
| Characteristic | Annual revenue in million GBP |
|---|---|
| Manchester City (Etihad) | 67.5 |
| Liverpool (Standard Chartered) | 50 |
| Manchester United (TeamViewer) | 47.5 |
| Tottenham Hotspur (AIA) | 40 |
There are three main ways in which a football club 'makes money': The Matchday revenue and merchandising (for example through the sale of tickets and other related packages that all adds to the match-going experience) Broadcasting income.
Do sponsors get anything in return? ›Sponsors offer funding or products and services to support events, trade shows, teams, nonprofits, or organizations. In exchange, you get business exposure and a chance to connect with new customers.
What do sponsors get in return? ›By sponsoring events, companies enjoy a set of perks that typically include the following: Increased brand exposure through the event itself, event advertising, and media coverage. In-event speaking opportunities that help boost their brand equity. Direct contact with an audience full of relatively warm leads.
Do football clubs turn a profit? ›The football industry has become one of the most lucrative and competitive industries in the financial world. The value of football clubs have soared over the last 30 years and entrepreneurs from around the world are now desperate to try and get involved within a market that is still yet to reach its ceiling.
How do football club owners make profit? ›Owning a football club is far from being a charitable work, and thus, the owners can make money either by selling their shares (wholly or partially) while making a profit, or by earning dividends, and finally by picking up a salary on some occasions.
Which football club makes the most profit? ›...
European Football Clubs with the Highest Revenue [Top 10]
| European Club | Revenue (Annual) |
|---|---|
| Liverpool | £814 Million |
| Bayern Munich | £736 Million |
| Real Madrid | £700 million |
| Characteristic | Value in million U.S. dollars |
|---|---|
| Real Madrid (Emirates) | 70 |
| Paris Saint-Germain (Accor) | 65 |
| Barcelona (Spotify) | 57.5 |
| Manchester City (Etihad) | 55 |
How much do sponsorships pay? ›
2. How much do sponsors pay? Sponsors paid anywhere between $0.035 to $0.15 per view to YouTubers in 2020 for sponsored video content on the platform. So in 2022 you can expect to pay up to 10-25% more as demand for creator partnerships on YouTube is steadily increasing.
How much do Man Utd get from sponsors? ›...
Manchester United revenue from jersey sponsorship from 2009/10 to 2021/22 (in million GBP)
Profits are typically generated through the sales associated with your business or event which the sponsors made possible. However, with a well-planned and executed sponsorship recruitment plan and business or event marketing plan, you might exceed your contribution goals.
Do sponsors pay teams? ›Sponsorships make up the majority of income for esports teams. Playing esports for a living doesn't come without its costs; teams can't just rely on tournament prizes to keep food on their tables and roofs over their heads. That's what sponsors are for.
How do paid sponsorships work? ›In the online world, sponsorship is where a business pays to have it's branded content on a site that's relevant to its audience. This content could include a blog post, social media post, videos, a logo or a review of your products.
What do sponsors really want? ›- Companies want exposure. They want people to see their generosity in action.
- Companies want relevant recognition. ...
- Companies need data to support their investment. ...
- Companies want good communication.
If the amount of money and efforts invested into a live experience do not bring a company the expected results, one can start talking about failure. Similarly, a sponsorship can be considered a failure when the event organiser is not able to demonstrate the value of the investment to the brand overall.
Can you be sponsored twice? ›You can only have sponsored two approved spouses, de facto partners or fiancés? Further to this, you cannot have another sponsorship (whether you were sponsor or are sponsoring) approved under any of the Partner of Prospective Marriage visas for 5 years after the first visa application was made.
Is sponsorship a good idea? ›Sponsorship Generates Sales Leads
Along with letting a company aim its sales tactics at a particular demographic, sponsorships are a great idea for generating sales in general. The more public exposure a company has, the more likely they are to run into a potential customer in any demographic.
- Provides Access. One of the biggest advantages of building a partnership with a team, individual, or sports property is the opportunity to not only build positive brand association, but also to activate and enhance the fan experience. ...
- Guarantees Engagement. ...
- Generates Exposure.
Why is sponsorship important for a football club? ›
Sponsorship is a key driver of revenue for a Club and has to be handled professionally to a) obtain initial funding and b) maintain ongoing funding. Sponsorship is a mutually beneficial business relationship between two parties, the business and the club.
Is sponsorship a good idea? ›Sponsorship Generates Sales Leads
Along with letting a company aim its sales tactics at a particular demographic, sponsorships are a great idea for generating sales in general. The more public exposure a company has, the more likely they are to run into a potential customer in any demographic.
Sponsoring a sports team, event or athlete is one of the most effective and efficient ways to market your product or service. According to a study by IEG, sport sponsorship generates an average return on investment (ROI) of $6.20 for every dollar spent.
What are positives and negatives of sponsorship? ›...
Disadvantages of Sponsorship:
- Poor Planning.
- Goal Ignorance.
- Dependency on Results.
- Low ROI for the Money Spent.
- Poor conversion rates.
- Pro: A quick boost in income.
- Con: Tarnishing the reputation/brand.
- Pro: It’s attractive to buyers.
- Con: Instability.
- Pro: Build relationships.
- Con: Bad link neighborhoods.
Sponsorships make up the majority of income for esports teams. Playing esports for a living doesn't come without its costs; teams can't just rely on tournament prizes to keep food on their tables and roofs over their heads. That's what sponsors are for.
Which football club has the highest sponsorship deal? ›...
Top football club shirt sponsorship deals as of 2022/23 (in million euros)
The financial support of sponsors is often for cost reduction around the club. This could be of players, of uniforms and competitions while also supporting the general running of the club. Sponsorship may be in the form of cash, donated goods and services or access. Whether that is to resources or staff of the sponsor.
What are three advantages of sponsorship? ›- Increase return on investment. ...
- Build business relationships. ...
- Gain valuable insights. ...
- Expand its content strategy. ...
- Foster a positive reputation. ...
- Generate leads. ...
- Reach sales goals. ...
- Benefit from association.
2. How much do sponsors pay? Sponsors paid anywhere between $0.035 to $0.15 per view to YouTubers in 2020 for sponsored video content on the platform. So in 2022 you can expect to pay up to 10-25% more as demand for creator partnerships on YouTube is steadily increasing.
How much should a sponsor make? ›
You must meet certain income requirements to become a sponsor. The most common minimum financial requirement is an annual income of $22,000. This figure is calculated to be at least 125% above the Federal poverty level based on the ASPE.
Why do sponsorships fail? ›If the amount of money and efforts invested into a live experience do not bring a company the expected results, one can start talking about failure. Similarly, a sponsorship can be considered a failure when the event organiser is not able to demonstrate the value of the investment to the brand overall.
Which sport has the highest sponsorship? ›Football's biggest clubs have generated legions of fans around the world, and as those supporter armies continue to swell so do the opportunities for sponsorship. It comes as no surprise that football dominates this list above all other sports.
How much do sponsors pay for stadiums? ›| Stadium Name | Sponsor | Avg. $/Year |
|---|---|---|
| Delta Center | Delta Airlines | $1.3 million |
| Edward Jones Dome | Edward Jones | $2.65 million |
| FedEx Field | Federal Express | $7.6 million |
| FedEx Forum | Federal Express | $4.5 million |
Many sponsors measure the impact of their partnerships by quantifying the output: the visibility of the logo, the traffic on site, the TV or web audience, the media coverage, the number of interactions with the public, etc.