Summary
Overview
Paul Scholes and fans are joined by Adam, a sports marketing expert behind Football CCO on TikTok, for an in-depth discussion about the evolution of football sponsorships, commercial deals, and how clubs navigate the complex world of modern sports marketing. The episode explores everything from stadium naming rights to controversial partnerships, with insights into how clubs like Liverpool and Arsenal excel at sponsorship activation while others struggle with authenticity.
Evolution of Football Sponsorships and the Arms Race
Adam explains how football sponsorships have transformed from local community partnerships in the early Premier League days to massive global commercial deals driven by returns on investment. The discussion covers the pivotal moment when Manchester City's Etihad deal changed the landscape, jumping from £1.5 million with Thomas Cook to £40 million, creating an arms race among top clubs. This shift fundamentally altered how clubs approach commercial partnerships, with brands now demanding measurable returns rather than simply associating with teams they love.
- Early Premier League sponsorships were local businesses like electronics companies and breweries, but evolved into telecoms (Vodafone, O2) and gambling companies
- Gambling companies dominated because it's easy to tie deals directly to measurable returns
- Manchester City's Etihad deal jumped from £1.5m to £40m per season, starting the sponsorship arms race among top clubs
- Brands now sponsor clubs for audience reach and ROI, not because they love the club
" The day that you accept a deal for £35 million, not only could it potentially piss off your other sponsors, but also your brand is then worth less than Spurs. "
Revenue Streams and PSR: Why Sponsorship Matters More Than Ticket Prices
The discussion reveals why commercial revenue has become more critical than matchday income for clubs trying to comply with PSR regulations. Adam breaks down the four main revenue streams—transfers, broadcasting, matchday, and commercial—explaining why raising ticket prices by £10 won't significantly impact a club's finances. He uses Stockport County's example of spending £21 million on stadium expansion for only £1 million additional annual revenue to illustrate why sponsorships are the more viable path to financial growth.
- Four main revenue streams: transfers, broadcasting, matchday, and commercial
- Premier League broadcasting revenue is fairly evenly split between first and 20th place, making it harder to gain competitive advantage
- Stockport County example: £21 million stadium expansion yields only £1 million additional revenue per season—21-year payback period
- Sponsorship is the best way to compete with PSR without selling players or pricing out fans
" I'm constantly banging on about how football fans, the day's gone where it's fan-funded. You know, putting our prices up by 10 pound is not going to make the difference to a football club. "
" This game was literally built on the working class. It was built on people that are being driven out of it. "
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