Promising signs for £50m Arsenal deal as three more business agreements confirmed

Arsenal’s star is rising again after several years of below par performance had a significant impact on their appeal as a brand.

The return to the Champions League in 2023-24, where they reached the quarter-finals, was the most single most financially transformative event in the last few years for the North London club.

After a seven-season absence, Arsenal will have recouped around £65m in prize money, plus bonuses from sponsors and less quantifiable but just as significant leverage in future negotiations.

That is just as well, because the Gunners’ commercial income has not risen at the same pace as their direct rivals in the so-called Big Six in recent years.

In 2022-23, the last full financial year on record, Arsenal earned £173m from sponsorship and merchandise.

A respectable sum in isolation, but it pales in comparison to even the next team above them in the commercial revenue table, Chelsea, whose income across the same metric was £210m.

Man City meanwhile earned almost double Arsenal’s sum, and Man United and Liverpool were not far behind them.

Given that Stan Kroenke wants Arsenal to self-fund – as well as the limits imposed by Premier League PSR/FFP – this means the club are starting at a significant disadvantage to their peers.

The last thing they need in this situation is for any of their commercial partners to pull the plug.

And the latest news from the world of sports business will, therefore, be welcomed in N5.

Emirates agree three new deals

Few commercial relationship in football have stood the test of time better than Arsenal’s association with Emirates.

The Middle Eastern airline became both Arsenal’s front-of-shirt and stadium naming rights partner back in 2006, paying £100m for the privilege.

The partnership has been renewed several times since, most recently in August last year.

That latest renegotiation will see Emirates pay Arsenal £50m per season up until the end of 2027-28, with the partnership now expanded to also include training kit sponsorship rights.

There is no indication that either party will want to suspend the relationship after that juncture.

And the fact that Emirates have just signed three new major sports sponsorship deals signals that they remain committed to and see value in the sector.

Emirates have signed an extension of their principle partnership with the FA Cup, as well a new shirt deal with Portuguese side Benfica and a renewal of their alliance with the US Open tennis tournament.

• READ MORE ARSENAL NEWS: Arsenal trump Man United as new off-pitch deal to help smash £140m record

What part might Emirates have to play in Arsenal’s stadium expansion plans?

Arsenal co-chair Josh Kroenke has revealed preliminary plans to expand the Emirates Stadium, although these have not yet progressed past the internal stage.

Speaking exclusively to TBR Football, Liverpool University football finance lecturer Kieran Maguire forecasted Arsenal could potentially spend £500m and increase capacity to 80,000.

That would of course deliver a huge matchday income boost, especially with an increased emphasis on corporate hospitality and the wider matchday experience.

However, it would also deliver a major upswing in commercial revenue.

Arsenal could potentially renegotiate with Emirates, who would likely be keen to continue their association with the stadium in its would-be new era.

The naming rights component of the £50m-a-year deal is only worth around £4m at present, but analysis from industry experts Kroll has found that Arsenal’s rights are worth double that.

In a revamped stadium, the North London club could realistically expect to bank £15m from naming rights, and Emirates may even pay a premium to ensure their continued association.