Premier League clubs lose £98m in stadium naming rights: Report

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Duff & Phelps has reported that Premier Clubs in England have lost £98 million for not having naming rights deals for their stadiums. The Financial advisory firm has put the cumulative sponsorship rights value of the Premier League stadiums at £142 million in 2019.

The report states that “clubs are not utilising naming rights revenue to their full potential” as only 30% of top flight teams have a stadium sponsor, compared with more than 80% in American football’s NFL.

Only six teams –Bournemouth, Arsenal, Brighton, Huddersfield Town, Leicester City and Manchester City – have had a stadium sponsor in the 2018-19 season even though the potential value of Premier League stadium sponsorship deals, according to the report, has increased by 5% from £135.5m in 2018 to £142.0m in 2019.

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The report further adds that 70% of the Premier League clubs are missing out on a major revenue opportunity by not having a stadium naming rights deal. Only 30% of the Premier League clubs have a naming rights deal last season.

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The report, conducted during the first quarter of 2019, also reveals that the ‘big six’ – Manchester City, Chelsea, Arsenal, Liverpool, Tottenham Hotspur and Manchester United – account for 82% of the total market, up from 77% in 2018.

The report has also given the stadium rights values of the Top ten Premier League stadiums with Manchester United having the best value of £ 26.75 million:

Manchester United : £26.75m

Manchester City : £21.90m

Tottenham Hotspur : £17.50m

Liverpool : £16.90m

Chelsea : £16.75m

Arsenal : £16.65m

West Ham : £5.55m

Newcastle United : £3.90m

Everton : £3.30m

Leicester City : £3.20m

Source: Duff & Phelps

While Manchester United, whose Old Trafford naming rights are reportedly worth 26.75 million per annum, are the biggest losers, rivals Manchester City are currently earning the most of any club with a stadium sponsor for their £ 21.9 million deal with Etihad airline.

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“Multimillion-pound Premier League shirt sponsorships have been signed, multimillion-pound sleeve sponsorships are being signed, and it is only a matter of time until multimillion-pound stadium sponsorship follows,” said Michael Weaver, managing director and head of UK valuation advisory at Duff & Phelps. “Brands just have to be courageous enough to take the first step which will bring the market alive.”

Duff & Phelps says its naming rights values were calculated based on each club’s shirt sponsor and technical partner values, social media followers, TV rights and current naming values, as well as transfer spend and team performance over the past three seasons.

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