Football's global reach and massive fan base make it a sponsorship goldmine. European clubs dominate, but Asia offers the fastest growth. Team sponsorships are key, driven by FMCG brands and lucrative airline deals. Gambling's role is significant, though regulations may cause shifts. Digital innovation, social responsibility, and new categories like crypto will shape the future of football sponsorship.
New Delhi, April 02, 2024 (GLOBE NEWSWIRE) -- [709+ Pages Report] According to Astute Analytica, the global football sponsorship market was valued at US$ 39.36 billion in 2023 and is projected to attain a market valuation of US$ 57.99 billion by 2032 at a CAGR of 4.4% during the forecast period 2024–2032.
Football enjoys incredible global popularity, making it a massively attractive sponsorship space. Major international brands like Nike, Adidas, Emirates, and Coca-Cola are leading this charge, showcasing the universal appeal of football across various industries. Wherein, European football clubs, particularly giants like FC Barcelona, Manchester United, and Real Madrid, dominate the football sponsorship market in terms of sponsorship revenue. Manchester United's kit deal with Chevrolet, worth £64 million annually, and Arsenal's multi-million-dollar agreement exemplify their commercial strength. Real Madrid's massive digital footprint, with over 500 million social media followers, further amplifies its attractiveness to sponsors in this evolving digital landscape. The Premier League's introduction of sleeve sponsorships highlights this evolving market, where clubs are finding new, innovative ways to partner with brands.
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Broadcast Reach and Growing Opportunities
Football broadcasts command substantial sponsorship revenue in the football sponsorship market. The Premier League's record-breaking £4 billion domestic broadcast rights deal and the $1.7 billion in sponsorship generated by the 2022 FIFA World Cup underscore the sport's massive commercial potential on a global stage. Women's football is also becoming a significant player, with the Women's Super League's partnership with Barclays signifying a shift towards greater inclusion within the sponsorship landscape.
Individual Stars and Changing Dynamics
Superstars like Lionel Messi and Cristiano Ronaldo wield immense influence, with their personal endorsement deals rivaling those of clubs. Meanwhile, tech companies like Rakuten and Tencent are making inroads into the sponsorship scene, signaling changing market dynamics. Even nostalgia has become a marketable asset, seen in Manchester United's successful retro-themed merchandise collaboration with Adidas.
Key Findings in Football sponsorship Market
| Market Forecast (2032) | US$ 57.99 billion |
| CAGR | 4.4% |
| Largest Region (2023) | Europe (34.9%) |
| By Type | Team Sponsorship (35.6%) |
| By Origin | Domestic Sponsorships (61.2%) |
| By Sponsorship Provider | Industries/FMCG/Brand (45.5%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Football Sponsorship Market, Investment Outlook: Gambling Companies are Becoming Leader, Team Sponsorship Contribute over 35% Revenue
The 2023/24 Premier League season showcases a diversity of clothing brands sponsoring its 20 teams. Adidas, Nike, and Umbro are among the most prominent suppliers. Notably, Puma continues its sponsorship of defending champions Manchester City, a partnership that began in the 2019/20 season. In fact, Astute Analytica’s study reveals that team sponsorship segment dominated the global football sponsorship market by capturing more than 35.6% revenue share.
Wherein, gambling companies have a significant presence in the Premier League, with eight out of twenty clubs displaying such sponsors on their shirts. However, this trend may see a shift as the Premier League intends to gradually remove gambling sponsorship on matchday shirts by the 2026/27 season. Financial services are also well-represented, with five shirt sponsors belonging to this sector. Sleeve sponsorships are a major revenue source for clubs, with nineteen out of twenty clubs securing deals for the season. These deals range in value from half a million to ten million pounds. The Premier League boasts ten official partners listed on their website, which includes the Official Licensee Sorare.
Global Football Investments, FMCG Sectors is Leader with 45.5% Revenue Share
Industries/FMCG/Brand holds the lion's share at 45.5% of the global football sponsorship market. The synergy between football's global reach and brand recognition is potent. Global brands such as Coca-Cola and Pepsi have historically spent about 12% of their total advertising budgets on football sponsorships. These brands in the football sponsorship market recognize the power football has in influencing consumer behavior; stats from 2022 revealed that 15% of surveyed consumers were more likely to purchase a product endorsed by their favorite football team. Additionally, the trend of emerging industries seeking visibility, like tech companies and e-commerce platforms, added another 10% to this segment in recent years. The airline industry is emerging investor in football sponsorships, with the total value of these deals surpassing $521 million. Notable examples include Paris Saint-Germain's $80 million deal with Qatar Airways and Real Madrid's agreement with Emirates Airlines, worth between $68.1 million and $70 million.
Real Madrid takes the lead in the 2024 sponsorship arena with two major deals: Fly Emirates at €70 million and HP at the same value. Following closely are Paris Saint-Germain's €65 million sponsorship by Qatar Airways and Barcelona's €57 million deal with Spotify. Standard Chartered Bank leads as Liverpool FC's top sponsor with an annual contribution of $59.50 million. Liverpool has partnered with 24 brands in total, and its top five partners generate 80% of the club's overall sponsorship income.
Sports Sponsorship Trends
The sports sponsorship market is projected to experience a CAGR of 7.4% from 2024 to 2032. The Middle East continues its position as the leading investor in football sponsorship market, with its major airlines heavily involved. Global brands like Red Bull and Coca-Cola demonstrate the extensive scale of sports sponsorship investments through their multi-billion-dollar deals. Brands are strategically seeking favorable valuations, with a marketing value-to-cost ratio of 1.5 to 2 becoming an increasingly common trend. There's also a growing focus on niche sports and sponsorships with strong ties to corporate social responsibility (CSR) initiatives.
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Top Recent Sponsorship Deals
- Emirates & Real Madrid: In 2022, the airline extended its shirt sponsorship with the club through 2026 for €70M annually.
- Spotify & Barcelona: Audio streaming giant Spotify became Barcelona's main sponsor in a 4-year, €280M deal starting in 2022, covering stadium naming rights and shirt sponsorship.
- Adidas & Manchester United: In 2023, Adidas renewed its kit supply deal with Manchester United for 10 years at £75M per year.
- Jeep & Juventus: The automaker extended its shirt sponsorship with the Italian club through 2024 at €45M per season.
- Standard Chartered & Liverpool: The bank has sponsored Liverpool's shirts since 2010, with the current £40M annual deal running through 2023
Europe Dominates Global Football Sponsorship Market, With Revenue Share of over 34%
Europe is leading the global football sponsorship landscape, commanding a substantial 34.9% market share. The prestigious Champions League is a major revenue driver, having generated €3.2 billion in broadcast and sponsorship fees in 2023 alone, with €2 billion of that going directly to participating clubs. The UK stands out as Europe's sponsorship powerhouse, with its football clubs boasting an average sponsorship and commercial revenue of €136.8 million in 2023. France's Ligue 1 has also witnessed impressive growth, with sponsorship revenues soaring from €355 million in 2016 and has been growing at a CAGR of 8% ever since. Even smaller clubs aren't left behind, with Nike inking an impressive $5.95 million, 5-year kit sponsorship deal with Dutch club AZ Alkmaar.
Global sportswear giants Adidas and Nike, along with Emirates, remain dominant players in European football sponsorship market. The English Premier League has the highest sponsorship valuation, reaching £321 million for its top club in 2021. Interestingly, the gambling industry leads sponsorship activity within the Premier League, while La Liga sees a strong presence of financial services companies. Iconic clubs like Real Madrid and Barcelona hold some of the most lucrative sponsorship deals in the game, with Fly Emirates and Spotify as their respective partners. Overall, the European football sponsorship market was a behemoth in 2022, hitting a valuation of €29.05 billion.
A notable trend is the domestic focus of sponsorships, with 66% of shirt sponsors for top European clubs in 2019/20 hailing from the same country as the club. However, the Middle East is a significant source of funding for leading European clubs, contributing a hefty €250 million in sponsorship deals. Premier League clubs continue to rake in the cash, earning a total of £349.1 million from shirt sponsorships in the 2022-23 season. Individual deals like Manchester United's £64 million per year agreement with Chevrolet and Arsenal's £50 million per year Emirates deal (including stadium naming rights until 2028) highlight the magnitude of these partnerships.
The future of European football sponsorship market looks bright. The 2023/24 Premier League season features 8 different kit suppliers, a testament to the diversity of brands involved. Notable events like Chelsea starting the season without a primary shirt sponsor and Manchester United's extended Adidas deal underscore the dynamic nature of this market. Insurance companies are also stepping up their game, investing $583.6 million in sports sponsorships in 2022, with a substantial portion targeting the football world.
Global Football Sponsorship Market Key Players
- Adidas AG
- Barclays
- Betway Group
- Deloitte
- Electronic Arts Inc.
- MACRON E-COMMERCE PIVA
- Nike, Inc.
- PepsiCo, Inc.
- Puma SE
- Red Bull GmbH
- Samsung Electronics Co., Ltd.
- The Coca-Cola Company
- The Emirates Group
- Under Armour, Inc.
- Other Prominent Players
Key Segmentation:
By Type
- Individual
- Kit Sponsorship
- Match day Sponsorship
- Team Sponsorship
- Kit Sponsorship
- Match day Sponsorship
- Media Sponsorship
- Title Sponsorship
- Association Sponsorship
- Kit Sponsorship
- Match day Sponsorship
- Title Sponsorship
- Media Sponsorship
- Event Sponsorship
- International Events
- Regional Events
- National Events
- Local Events
- Others
By Sponsorship Provider
- Industries/FMCG/Brand
- Media Houses
- Sports Agency
- Others
By Origin
- Domestic
- International
By Region
- Americas
- The U.S.
- Brazil
- Mexico
- Rest of Americas
- Europe
- The UK
- Germany
- France
- Italy
- Spain
- Portugal
- Netherlands
- Belgium
- Turkey
- Rest of Europe
- Pacific
- Australia
- Rest of Pacific
- Africa
- Nigeria
- Ghana
- Rest of Africa
- East Asia
- China
- Taiwan
- Macau
- Hong Kong
- South Korea
- Japan
- Rest of East Asia
- West Asia/Middle East
- UAE
- Saudi Arabia
- Qatar
- India
- Israel
- Rest of West Asia/Middle East
- ASEAN
- Brunei
- Cambodia
- Laos
- Indonesia
- Malaysia
- Myanmar
- Philippines
- Singapore
- Thailand
- Vietnam
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