Last updated on August 15th, 2022
Over the years, you may have seen your favourite teams carry the names of various companies on the front of their jerseys.
Football teams began to appear with sponsors on their jerseys in the 1970s and 1980s. Only recently, in the Premier League, a move has been made by clubs to stop betting companies from sponsoring clubs in the league.
However, sponsors have now expanded to multiple apparel, including the players’ shorts, training jerseys and even sleeves!
| Apparel | Sponsor (Club) |
|---|---|
| Jersey | Three (Chelsea) |
| Jersey | TeamViewer (Manchester United) |
| Jersey | Spotify (Barcelona) |
| Jersey Sleeve | WhaleFin (Jersey Sleeve) |
| Jersey | Gypsy King (Morecambe) |
| Jersey Sleeve | Nexen Tire (Manchester City) |
There are usually many more sponsors behind the scenes that work with these football teams, and here’s what you need to know about all of them.
Contents
Why Do Football Teams Have Sponsors?
A sponsorship is an agreement between the team and a company or individual that benefits both parties, where they are dependent on the other for their continued existence. At the end of the day, such partnerships are struck with an aim to increase profits.
Here are some of the other possible reasons why sponsors are needed:
#1 It reduces the cost of running a football team
When clubs can secure sponsors, it makes it much simpler for them to handle their operations. A club requires money to do several things, including travelling to matches, purchasing players, paying those players, etc.
By entering into sponsorship agreements, the club can earn money, which enables it to take care of such needs.
For instance, as part of the agreement reached between Manchester United and the German software company TeamViewer, the latter will fork over an astounding £47 million to the former on an annual basis beginning in 2021 and continuing for a total of five years.
Similarly, athletic apparel manufacturers such as Nike struck a contract with Chelsea in 2016 worth £900 million over the course of 15 years. The money given to these clubs by their sponsors goes a long way toward ensuring the smooth operation of the club.
In 2022, when Chelsea was sanctioned for the association of their owner with the government of Russia, evidence of the importance of sponsors to the functioning of a team was seen when the club was slapped with a barrage of sanctions. The decision of the government of the United Kingdom to impose sanctions on the club resulted in major issues for the club, including the loss of sponsors.
The telecommunications company “Three” was their most significant sponsor, and their name appeared on the front of their shirt. However, the company suspended its agreement with the club and even requested that the club remove its company logo from the front of the club’s jerseys after the company’s sponsorship was suspended.
This move also resulted in the loss of financial support for the club in the form of sponsorship funds during the period in which their agreement was suspended.
Similarly, sponsors of national teams are responsible for covering expenses such as the team’s travel, hotel, and, in some cases, even the direct payment of the players. In Nigeria, the national team is sponsored by “Air Peace.” The company also arranges the team’s flights whenever they compete in a match outside of Nigeria.
#2 It eases the burden of kit production
The quantity of football gear that a professional football team must purchase is just enormous. Every match requires the players to wear the same uniform: a jersey top, shorts, and socks. They also require travel clothes, bibs, training tops, and other equipment.
During the course of a season, the club’s staff members are required to wear tracksuits and other similar gear.
If a club wanted to create these kits on their own, it would be costly because the total number of kits typically amounts to hundreds. Imagine a situation in which a club must design and produce jerseys for every match out of their pocket.
The implications for the club’s finances would be draining, and it could even lead to situations in which the players would be required to repeat kits multiple times during the course of a season due to the unsustainable nature of the situation.
Here is where athletic gear manufacturers like Nike, Adidas, Puma, New Balance, Castore, and others of its ilk come into play. They enter into contracts with the clubs to make the jerseys and subsequently pay the teams for the privilege.
The vast majority of teams have lucrative kit partnerships with these businesses;
| Brand | Teams Sponsored |
|---|---|
| Nike | Paris Saint-Germain, Chelsea, Liverpool, Tottenham Hotspur, and others |
| Adidas | Arsenal, Manchester United, and others |
| Puma | Borussia Dortmund, Manchester City, and others. |
#3 It gives the team corporate exposure
When a business decides to sponsor a sports team, that team is immediately included in the history of the business and vice versa. Consequently, the club can rely on its sponsors in some exceptional circumstances.
As an illustration, during the COVID-19 pandemic, former Chelsea owner Roman Abramovich allowed healthcare workers employed by the NHS to use the Millennium Hotels and Resorts, which are situated on the same premises as Stamford Bridge and are one of the club’s sponsors. The hotel itself currently serves as one of the club’s sponsors.
Why Do Companies Sponsor Football Teams?
When a company sponsors a football team, both the company and the team benefit. However, the firms that sponsor football teams also stand to benefit in specific ways. These firms can receive unrestricted brand exposure because they sponsor football teams, which is the primary benefit of this arrangement for the companies. This happens because the teams that are sponsored by various businesses almost always proudly display the names and logos of such businesses on their uniforms.
In addition, the stadiums of the various teams each contain areas in which the logos and names of their respective sponsors are prominently displayed for the attendance of the various fans. Furthermore, the players themselves serve as brand ambassadors for the respective firms.
As a condition of their contracts, they may be asked to promote the companies’ various goods and services.
How Do Football Sponsors Make Money?
Companies make their money from sponsoring clubs through various means, some of which include:
#1 Acquisition of specific licenses
When a business agrees to sponsor a football team, the two sides enter into a contract in which they each make specific commitments. For instance, Nike’s sportswear business can sell copies of official team jerseys and kits after acquiring the exclusive rights to do so. However, the corporation is only required to pay royalties equal to a set proportion of the profits they make from the sales.
#2 Advertisement by teams and players
The football teams and players act as moving billboards for the various businesses that support the sport. Because of this advertisement, the goods and services that the companies provide become well-known worldwide, resulting in a rise in the number of customers that patronise the company.
Why Don’t National Teams Have Sponsors?
In contrast to club teams, national teams do not display the emblems and trademarks of their sponsors anywhere on their uniforms or equipment. However, this in no way suggests that national teams do not have sponsors of any kind. On the other hand, national teams typically have many sponsors who care for their needs when national team camps are open.
These needs might include everything from travel to hotel accommodations to the provision of kits.
The only distinction that can be made between the sponsorship of a national team and that of a club is that national teams are not required to display the names of their sponsors on their uniforms.
The major reason why this is in place is because of FIFA regulations. FIFA believes it needs to protect the integrity of international competitions and the interest of the sponsors of such competitions.
Conclusion
The topic of sponsorship in football requires the insight of football industry professionals to decide the terms and conditions associated with such arrangements.
Because of the enormous expenditures associated with successfully operating a football team, it is essential to remember that no football team can endure for an extended period without sponsorship.
This is because sponsors are responsible for successfully keeping these football teams’ hearts pumping.
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