Arsenal can use both their revival on the pitch and ambition to expand their stadium as leverage in negotiations with primary sponsor Emirates, says Kieran Maguire.
Speaking exclusively to Arsenal Insider, the University of Liverpool football finance lecturer gave his views about the Gunners’ booming commercial income, which has outstripped their peers’ in recent seasons.
Not long ago, Arsenal were the ugly duckling of the so-called Big Six when it comes to revenue from sponsorship, retail and events. But per their last set of accounts, they have now surpassed Chelsea and are closing in on Tottenham and Liverpool.
Sales have been helped by the club’s performance under Mikel Arteta, whose side are fighting on four fronts this season and favourites to win both the Premier League and – for the first time ever – the Champions League.
Under the self-sufficient business model pursued by Stan Kroenke and his consiglieres in North London, the £263m they earned from commercial sources last season will be reinvested in the club, funding transfer and wage spending as well as soaring operational costs.
After the kit partnership with Adidas, Arsenal’s naming rights and front-of-shirt sponsorship deal is the club’s most valuable commercial contract.
Arsenal’s association with Emirates dates back to July 2006, making it one of the longest in football. The latest iteration of the deal, signed in the summer of 2023, will take the partnership to at least 2028.
Speaking to City AM’s Matt Hardy last week, Emirates’ Vice President of Corporate Communications, Marketing and Brand, Boutros Boutros, emphasised the importance of longevity in the company’s partnerships. Referring to the Arsenal deal, alongside their shirt partnership with Real Madrid, he described it as a “good strategy” and said “we should continue with it.”
Significantly, Arsenal are planning to expand the Emirates Stadium, potentially to 70,000 seats or more at a cost of £500m-plus.
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So, what impact would the Emirates 2.0 have in the club’s leverage with the UAE airline, who currently pay around £50m annually, when the rights are up for renegotiation in two years’ time?
“There will be natural step-ups in the Emirates deal that are linked to Arsenal’s success on the pitch,” Maguire tells Arsenal Insider.
“But if they can make the Emirates more of a statement stadium, I think you can leverage that in naming rights negotiations too. Arsenal have got to be able to use what they are achieving on the pitch in commercial talks.
“They are a successful club and Emirates are a successful airline. They are based in an iconic city and held in high regard. They have an awful lot in terms of the sell side in negotiations.
“So yes, I think they certainly have scope to look for improved terms from Emirates while also continuing what has been a very fruitful relationship.”
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