Sports sponsorship, if used effectively, is one of the most powerful avenues of brand marketing. Precisely why brands are investing millions in maximising the sports platform, from community-level football to the top level professional sports. European Sponsorship Association, in its research ‘The 2024 ESA Sponsorship Market Overview’ with Nielsen Sports states that the total value of Europe’s sponsorship market is €30.86bn in 2023 out of which sport sponsorship sector is €22bn
Football, the most dominant sport, plays a special feature in the sponsorship industry. It’s evident from the continuous and consistent y-o-y growth of sponsorship-led commercial revenue generated by ‘big five’ leagues. In 2022-23, the five leagues aggregated approximately 28% or €6.1bn of the total European sports sponsorship market
In our earlier blog, we discussed about the revenue growth and industrial sectors dominating. Today, we discuss about some interesting trends happening in European football in 24/25
Return of Crypto
2021, that was the time when crypto boomed, its rise partly fueled by hobby-investing by ordinary investors stung by pandemic. With it, surged the nonfungible tokens, the crypto-based collectibles known as NFTs. It was natural for the industry to look at sports sponsorships in a big way. In the US market, crypto industry signed 42 new deals, notably Crypto.com’s $700mn deal for the naming rights of Staples Center, FTX’s $210mn sponsorship with esports group Team SoloMid
Some serious values!
In European football, Manchester United, Chelsea, and Inter Milan are among the earliest clubs who secured sponsorships. As per Coinmarketcap, in 2021, football saw 9 new sponsorship deals, followed by 10 in 2022
And then came the crash of 2022! Some of the most prominent crypto firms were exposed as frauds, people who had poured their savings into crypto lost everything. The decline culminated in November 2022 when the FTX crypto exchange, founded by Sam Bankman-Fried, collapsed after the equivalent of a bank run, costing customers $8 billion
It seems now is the revival period, notably led by institutional investors, rather than the hobby-investors of 2021. In terms of sports sponsorships, 26 new deals across sports have been signed in 2024 as per beincrypto.com with football leading as the popular sport. Some of the biggies include Crypto.com’s UEFA deal and Bitget’s LaLiga partnership
Another very interesting development is the formation of a new independent division by Chiliz, the parent company of fan token firm Socios, to broker sponsorships between sports properties and blockchain brands. Named Chilliz Sports, they are designed to identify opportunities and partners, providing support, advice and guidance, in other words, a specialised sports sponsorship agency focusing on crypto
Crypto is determined to be in for a long run!
US-Based Tourism Boards Increasing Presence
Tourism, as a category, always had a close relationship with European football. As per Globaldata, there are currently 211 tourist board deals in place in 2024 with an annual estimated value of $22.11bn and primarily, it’s football that is leading the way. Some of the key deals of football clubs with tourist boards market
- La Liga and Visit Saudi
- UEFA and Visit Qatar
- Fulham and Go Mongolia
- Real Madrid and Visit Dubai
AC Milan is reportedly in discussions with Democratic Republic of Congo for a sponsorship deal to promote tourism in the central African country
However, the interesting bit is a push from US based tourism boards across Premier League clubs. As per SponsorUnited, the Premier League has seen tourism partnerships nearly triple to a record 11 deals in the 2024–25 season out of which 6 are from the US-based tourism boards. Further, the report states, Florida-based tourism brands comprise two-thirds of the league’s US sponsorships
- Experience Kissimmee – Brighton & Hove Albion
- Visit Jacksonville – West Ham United
- Visit Lauderdale – Wolves
- Visit Tampa Bay – Brentford
Others include
- Las Vegas Tourism – AFC Bournemouth
- Enjoy Illinois – Crystal Palace
The Sponsorship Negotiation
All that being said, ever wondered how football clubs identify potential sponsors? Or what are the common challenges when negotiating sponsorship agreements? And how clubs are using data to optimize sponsorship sales?
To give you an understanding, we’ve organized a webinar with Richard Lamb, former commercial executive at Manchester United, Inter Milan and West Ham United. Richard is also the Academic Director for SBI’s Master in Football Business & Management.
The webinar will be held on Monday, September 30th at 8:00 pm, local time in Spain. You can register here and take advantage to gain key insights from a seasoned football executive
It’s 100% free!
