According to a new report from International Marketing Reports, overall primary shirt sponsorship deals are greater for the English Premiership, but averaged out by club, the Germans just edge it. For the 2011/12 season, total shirt sponsorship spend for the Premier League amounted to (Euros) E128m, whereas Bundesliga clubs achieved E121m.
However, there are 20 clubs in the English Premiership giving an average deal value of E6.4m whereas in Germany there are 18 clubs, meaning the average deal is slightly higher at E6.72m.
Commenting on the findings, report author, Simon Rines, says that there are other reasons for the Germans to be satisfied.
“If you look at the deals in detail, there is much less polarity in German deals than in the UK. The highest price paid in Germany is E26.5m for Bayern Munich’s deal with Deutsche Telekom, with the lowest being FC Ausberg’s E1m agreement with car components manufacturer AL-KO. There are, however, very few deals below E3m in Germany and 12 are above E4m. In England, the highest deals are for the two Manchester clubs, both on E22m, with the lowest being Blackburn Rovers on zero (charity partner) and Norwich on E0.3m (Aviva). Significantly, only 9 Premiership clubs achieve more than E4m and 11 achieve less than E3m.”
Rines also points out that the business sectors backing the Bundesliga show a more mature picture.
“In England, there are seven gambling sponsors. This is a concern because gambling companies tend to be short-lived and do little to help develop the image of a club. For example, it is not, appropriate to run joint promotions with a sponsor involving children if that sponsor is a gambling or alcohol company. In Germany there are no shirt sponsors from either category.”
The report also shows that Spain’s La Liga is the biggest struggler in terms of sponsorship investment. Several clubs went through the season without a shirt sponsor and if it wasn’t for the massive E32m deal between Barcelona and the Qatar Foundation and Real Madrid’s E21m from BWin, the total spend in the country would have been just E9m, an average of E0.5m for the remaining clubs.
“The figures highlight the polarity of income for La Liga clubs,” says Rines. “The difference in the size of TV deals that Barcelona and Real Madrid have compared to the rest of La Liga is already huge, but when sponsorship income is added, the financial imbalance just grows. With a deteriorating Spanish economy, the likelihood is that the situation will get even worse. A lot of the sponsorships in the division are with national companies and it is almost inevitable that they will be cutting back on their marketing budgets.”
Published with permission from Arunava about Football.