£142 million = Value of Premier League Stadium Naming Sponsorships in 2019 (Source: Duff & Phelps)
May 21 2019
Consultant Findings (Duff & Phelps):
The value of Premier League sponsorship deals increased by 5% from £135.5 million in 2018 to £142.0 million in 2019. The study was conducted over the first quarter of 2019.
Premier League clubs are missing an opportunity when it comes to stadium naming rights.
Clubs are not utilizing naming rights revenue to their full potential, with only 30% of Premier League teams having a stadium sponsor compared to over 80% in the United States’ NFL.
[The NFL was used as a benchmark due to the fact that most revenue generating metrics between the NFL and Premier League are now broadly comparable.]
The Premier League’s ‘big six’ – Manchester City, Chelsea, Arsenal, Liverpool, Tottenham Hotspur and Manchester United – account for 82 per cent of the total market, up from 77 per cent in 2018.
70 per cent of clubs in English soccer’s Premier League are missing out on a major revenue opportunity by not having a stadium naming rights deal.
The potential cumulative value of Premier League stadium sponsorships climbed five per cent from UK£135.5 million (US$172 million) in 2018 to reach UK£142 million (US$180 million) this year.
Six Premier League clubs had stadium sponsorship naming rights agreements in place during the 2018-19 season:
- Brighton and Hove Albion
- Huddersfield Town
- Leicester City
- Manchester City
These deals are valued at a cumulative UK£44.05 million (US$56 million).
The remaining 14 Premier League clubs are consequently missing out on a combined UK£97.95 million (US$124 million) in potential revenue by not having a stadium naming rights sponsor.
Manchester United would stand to earn the most revenue from securing a stadium naming rights deal. Old Trafford Stadium’s naming rights are estimated to be worth UK£26.75 million (US$34 million) a year. Tottenham Hotspur have the second biggest potential deal, as Spurs’ new stadium could potentially command a fee of UK£17.5 million (US$22.2 million) annually.
Top Stadium Rights Revenue Earner
Manchester City are currently earning the most of any Premier League club with a stadium sponsor, with their deal with airline Etihad valued at UK£21.9 million (US$27.8 million) a year.
“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.
Weaver continued: “Few would have expected the level of growth we have seen in shirt sponsorship deals which is why there is a huge opportunity for sponsors to capture value in the stadium naming rights market in Europe.
“If a sponsor were to take out a long-term, fixed value naming rights contract with a good team this could shield them from paying significantly higher prices in the future as the market matures.”
2018/19 Premier League Club Stadium Naming Rights
Estimated (*=Actual) Value of Stadium Naming Rights in the Premier League per season (In UK£)
Manchester United 26,750,000
Manchester City 21,900,000*
Tottenham Hotspur 17,500,000
West Ham 5,550,000
Leicester City 3,200,000
Crystal Palace 1,400,000