LIVE
...

Follow us on

News

Arsenal proved spot-on as £200m off-pitch deal officially triggered

Arsenal have entered a lucrative new phase of one of their key partnerships, validating their long-term strategy.

It had been a fallow few seasons on the pitch for Arsenal until 2022-23, when they ran Man City close for the Premier League title, a feat they replicated in 2023-24.

Their lack of Champions League football, with its prize money and various commercial benefits, in that that time has meant the club’s revenue has not risen as fast as they would have liked.

Photo by Matthew Ashton - AMA/Getty Images
Photo by Matthew Ashton – AMA/Getty Images

But their return to Europe’s premier competition last season has had a major financial impact, generating around £80m for the Stan Kroenke-owned club in total.

Enhanced income from sponsorship and merchandise sales will also be reflected in the clubs 2023-24 accounts.

One of the main drivers in the commercial department is the club’s deal with Emirates, which is one of the longest-running partnerships in Premier League history having begun in 2004.

And the latest news illustrates that the deal is just as fruitful for both parties as it has ever been.

Arsenal begin next phase of key deal

As relayed by football finance expert Łukasz Bączek via , the next chapter of the Arsenal-Emirates relationship officially began on Monday (1 July).

Arsenal announced in August last year that they had renewed their partnership with the United Arab Emirates-based airline until 2028.

The new terms of that deal formally kicked in at the start of the new financial year, with the overall value of the contract believed to be worth £200m.

The partnership is seen as a gold-standard within the sponsorship industry, admired by the likes of Qatar Airways as they shape their own sponsorship strategy.

Significantly, research also shows that Arsenal are getting above-market value from the deal, which includes both front-of-shirt and stadium naming rights

Arsenal on course to break commercial record

While Arsenal’s commercial income has not risen at the same rate as their peers in the so-called ‘Big Six’, it is still sitting at record levels.

They banked £173m in commercial revenue in 2022-23 and they will best that figure once again when they release their 2023-24 accounts.

Expect to see the club approach the £200m mark in 2024-25, reflecting the new training ground sponsorship deal with Sobha Reality.

Photo by Stuart MacFarlane/Arsenal FC via Getty Images
Photo by Stuart MacFarlane/Arsenal FC via Getty Images

It will now be the job of commercial chief Juliet Slot and new partnerships director Omar Shaikh to bring their commercial income in line with Man City (£341m), Man United (£303m), Liverpool (£272m), Tottenham (£228m) and Chelsea (£228m).

In an era when clubs’ transfer spending is intrinsically tied to their revenue because of Profit and Sustainability Rules (PSR), this project could play a key role in their performances on the pitch in the coming years too.