Income from jersey sponsorship drops across Europe, Bundesliga overtakes Premier League 25/11/2008
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Total revenue from football jersey sponsorship deals in top European
leagues* has dropped significantly for the first time in 10 years to EUR 393.2 mill. This is one of the results of the tenth edition of the European Jersey Report by global sports marketing consultancy SPORT+MARKT. After being the leading league last season, the FA Premier League now occupies second position with EUR 85.5 mill, having slipped behind the German 1st Bundesliga with EUR 102.9 mill. Despite a decrease in overall income, the Premier League still accounts for two of the top 5 deals.
The main reason for the lower cumulated sum of jersey sponsorship engagements in the six European top leagues are lower sums generated in Spain and England and the reduced strength of the British pound. Lacking jersey partners and the weak currency are also the main reason why the Premier League could not keep up with the increased income from jersey sponsorship in the Bundesliga. Hartmut Zastrow, Executive Director of SPORT+MARKT, views the success throughout the whole German league: “No other league has reached such a consistency of sponsorship deals for all teams.”
The weak British currency is not only the reason for lower accumulated income in the Premier League but is also to blame for the ranking of best contracts. Although Bayern Munich and Manchester United have continuing deals with their sponsors, Bayern now tops the list. In addition, this is the reason for the stagnation of average income of the Premier League teams. Gareth Moore, International Sales Director, SPORT+MARKT, predicts: “If the currency or the teams that are lacking a paying sponsor recover, the Premier League will top the ranking of the Jersey Report again next season.”
Despite the financial crisis, the finance and insurance sector still contributes the lion’s share to European income from jersey sponsorship. The branch still invests the highest sum with EUR 80.7 mill. In comparison to last season’s European Jersey Report by SPORT+MARKT, this only represents a minus of about three million Euro. Altogether, 34 financial or insurance companies are on the jerseys of Europe’s six top leagues – four less than last season. “As contracts are fixed over a long period of time, the jersey report proves that sport sponsorship is not affected by the financial crisis – yet,” comments Zastrow. Due to the attractiveness of the platform and the unchanging high interest in sport and especially football, he does not see the threat for sport sponsorship that will affect classical advertising. Instead, he predicts a shift of sectors: “While the financial sector – and for example the construction industry in Spain – will be forced to withdraw, other industries and markets, such as the betting industry, will be happy to fill this gap.”
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