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Astute Analytica: Global Football Sponsorship Market to Hit Valuation of US$57.99 Billion by 2032 at 4.4% CAGR

Published

9 months ago

April 3, 2024

Reading Time: 6 minutes

According to Astute Analytica, the global football sponsorship market was valued at US$39.36 billion in 2023 and is projected to attain a market valuation of US$57.99 billion by 2032 at a CAGR of 4.4% during the forecast period 2024 to 2032.

Football enjoys incredible global popularity, making it a massively attractive sponsorship space. Major international brands like Nike, Adidas, Emirates and Coca-Cola are leading this charge, showcasing the universal appeal of football across various industries. Wherein, European football clubs, particularly giants like FC Barcelona, Manchester United and Real Madrid, dominate the football sponsorship market in terms of sponsorship revenue. Manchester United’s kit deal with Chevrolet, worth £64 million annually, and Arsenal’s multi-million-dollar agreement exemplify their commercial strength. Real Madrid’s massive digital footprint, with over 500 million social media followers, further amplifies its attractiveness to sponsors in this evolving digital landscape. The Lionel Messi and Cristiano Ronaldo’s introduction of sleeve sponsorships highlights this evolving market, where clubs are finding new and innovative ways to partner with brands.

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Broadcast Reach and Growing Opportunities

Football broadcasts command substantial sponsorship revenue in the football sponsorship market. The Premier League’s record-breaking £4 billion domestic broadcast rights deal and the $1.7 billion in sponsorship generated by the 2022 FIFA World Cup underscore the sport’s massive commercial potential on a global stage. Women’s football is also becoming a significant player with the Women’s Super League’s partnership with Barclays signifying a shift towards greater inclusion within the sponsorship landscape.

Individual Stars and Changing Dynamics

Superstars like Lionel Messi and Cristiano Ronaldo wield immense influence with their personal endorsement deals rivalling those of clubs. Meanwhile, tech companies like Rakuten and Tencent are making inroads into the sponsorship scene, signalling changing market dynamics. Even nostalgia has become a marketable asset, seen in Manchester United’s successful retro-themed merchandise collaboration with Adidas.

Key Findings in Football sponsorship Market

Market Forecast (2032)	US$57.99 billion
CAGR	4.4%
Largest Region (2023)	Europe (34.9%)
By Type	Team Sponsorship (35.6%)
By Origin	Domestic Sponsorships (61.2%)
By Sponsorship Provider	Industries/FMCG/Brand (45.5%)
Top Trends	Increasing importance of technology and digital activation in sponsorship campaigns Growing focus on corporate social responsibility and cause-related partnerships Emergence of new sponsorship categories, such as cryptocurrency and blockchain
Top Drivers	Expanding global fan base and increasing demand for international brand exposure Rising investment from the Middle East in top-level football clubs worldwide Fragmentation of the broadcasting landscape, making sponsorship a crucial revenue source
Top Challenges	Difficulty in measuring return on investment (ROI) for sponsorship deals Uncertainty caused by the COVID-19 pandemic, affecting live events and sponsorship value Generational shifts in consumer behavior and preferences, impacting sponsorship strategies

Football Sponsorship Market, Investment Outlook: Gambling Companies are Becoming Leader, Team Sponsorship Contribute over 35% Revenue

The 2023/24 Premier League season showcases a diversity of clothing brands sponsoring its 20 teams. Adidas, Nike and Umbro are among the most prominent suppliers. Notably, Puma continues its sponsorship of defending champions Manchester City, a partnership that began in the 2019/20 season. In fact, Astute Analytica’s study reveals that team sponsorship segment dominated the global football sponsorship market by capturing more than 35.6% revenue share.

Wherein, gambling companies have a significant presence in the Premier League with eight out of the 20 clubs displaying such sponsors on their shirts. However, this trend may see a shift as the Premier League intends to gradually remove gambling sponsorship on matchday shirts by the 2026/27 season. Financial services are also well-represented with five shirt sponsors belonging to this sector. Sleeve sponsorships are a major revenue source for clubs with 19 out of the 20 clubs securing deals for the season. These deals range in value from half a million to ten million pounds. The Premier League boasts ten official partners listed on their website, which includes the official licensee Sorare.

Global Football Investments, FMCG Sectors is Leader with 45.5% Revenue Share

Industries/FMCG/Brand holds the lion’s share at 45.5% of the global football sponsorship market. The synergy between football’s global reach and brand recognition is potent. Global brands such as Coca-Cola and Pepsi have historically spent about 12% of their total advertising budgets on football sponsorships. These brands in the football sponsorship market recognize the power football has in influencing consumer behaviour; stats from 2022 revealed that 15% of surveyed consumers were more likely to purchase a product endorsed by their favourite football team.

Additionally, the trend of emerging industries seeking visibility like tech companies and e-commerce platforms added another 10% to this segment in recent years. The airline industry is an emerging investor in football sponsorships with the total value of these deals surpassing $521 million. Notable examples include Paris Saint-Germain’s $80 million deal with Qatar Airways and Real Madrid’s agreement with Emirates Airlines, worth between $68.1 million and $70 million.

Real Madrid takes the lead in the 2024 sponsorship arena with two major deals: Fly Emirates at €70 million and HP at the same value. Following closely is Paris Saint-Germain’s €65 million sponsorship by Qatar Airways and Barcelona’s €57 million deal with Spotify. Standard Chartered Bank leads as Liverpool FC’s top sponsor with an annual contribution of $59.50 million. Liverpool has partnered with 24 brands in total and its top-five partners generate 80% of the club’s overall sponsorship income.

Sports Sponsorship Trends

The sports sponsorship market is projected to experience a CAGR of 7.4% from 2024 to 2032. The Middle East continues its position as the leading investor in football sponsorship market with its major airlines heavily involved. Global brands like Red Bull and Coca-Cola demonstrate the extensive scale of sports sponsorship investments through their multi-billion-dollar deals. Brands are strategically seeking favourable valuations with a marketing value-to-cost ratio of 1.5 to 2 becoming an increasingly common trend. There’s also a growing focus on niche sports and sponsorships with strong ties to corporate social responsibility (CSR) initiatives.

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Top Recent Sponsorship Deals

Emirates and Real Madrid: In 2022, the airline extended its shirt sponsorship with the club through 2026 for €70 million annually.
Spotify and Barcelona: Audio streaming giant Spotify became Barcelona’s main sponsor in a four-year, €280 million deal starting in 2022, covering stadium naming rights and shirt sponsorship.
Adidas and Manchester United: In 2023, Adidas renewed its kit supply deal with Manchester United for ten years at £75 million per year.
Jeep and Juventus: The automaker extended its shirt sponsorship with the Italian club through 2024 at €45 million per season.
Standard Chartered and Liverpool: The bank has sponsored Liverpool’s shirts since 2010 with the current £40 million annual deal running through 2023.

Europe Dominates Global Football Sponsorship Market With Revenue Share of over 34%

Europe is leading the global football sponsorship landscape, commanding a substantial 34.9% market share. The prestigious Champions League is a major revenue driver, having generated €3.2 billion in broadcast and sponsorship fees in 2023 alone with €2 billion of that going directly to participating clubs. The United Kingdom stands out as Europe’s sponsorship powerhouse with its football clubs boasting an average sponsorship and commercial revenue of €136.8 million in 2023. France’s Ligue 1 has also witnessed impressive growth with sponsorship revenues soaring from €355 million in 2016 and has been growing at a CAGR of 8% ever since. Even smaller clubs aren’t left behind with Nike inking an impressive $5.95 million, five-year kit sponsorship deal with Dutch club AZ Alkmaar.

Global sportswear giants Adidas and Nike, along with Emirates, remain dominant players in European football sponsorship market. The English Premier League has the highest sponsorship valuation, reaching £321 million for its top club in 2021. Interestingly, the gambling industry leads sponsorship activity within the Premier League while La Liga sees a strong presence of financial services companies. Iconic clubs like Real Madrid and Barcelona hold some of the most lucrative sponsorship deals in the game with Fly Emirates and Spotify as their respective partners. Overall, the European football sponsorship market was a behemoth in 2022, hitting a valuation of €29.05 billion.

A notable trend is the domestic focus of sponsorships with 66% of shirt sponsors for top European clubs in 2019/20 hailing from the same country as the club. However, the Middle East is a significant source of funding for leading European clubs, contributing a hefty €250 million in sponsorship deals. Premier League clubs continue to rake in the cash, earning a total of £349.1 million from shirt sponsorships in the 2022/23 season. Individual deals like Manchester United’s £64 million per year agreement with Chevrolet and Arsenal’s £50 million per year Emirates deal (including stadium naming rights until 2028) highlight the magnitude of these partnerships.

The future of European football sponsorship market looks bright. The 2023/24 Premier League season features eight different kit suppliers, a testament to the diversity of brands involved. Notable events like Chelsea starting the season without a primary shirt sponsor and Manchester United’s extended Adidas deal underscore the dynamic nature of this market. Insurance companies are also stepping up their game, investing $583.6 million in sports sponsorships in 2022 with a substantial portion targeting the football world.

Global Football Sponsorship Market Key Players

Adidas AG
Barclays
Betway Group
Deloitte
Electronic Arts Inc
Macron E-Commerce Piva
Nike Inc
PepsiCo Inc
Puma SE
Red Bull GmbH
Samsung Electronics Co Ltd
The Coca-Cola Company
The Emirates Group
Under Armour Inc
Other Prominent Players

Key Segmentation

By Type:

Individual

Kit Sponsorship
Match day Sponsorshi

Team Sponsorship

Kit Sponsorship
Match day Sponsorship
Media Sponsorship
Title Sponsorship

Association Sponsorship

Kit Sponsorship
Match day Sponsorship
Title Sponsorship
Media Sponsorship

Event Sponsorship

International Events
Regional Events
National Events
Local Events
Others

By Sponsorship Provider:

Industries/FMCG/Brand
Media Houses
Sports Agency
Others

By Origin:

Domestic
International

By Region:

Americas

United States
Brazil
Mexico
Rest of Americas

Europe

United Kingdom
Germany
France
Italy
Spain
Portugal
Netherlands
Belgium
Turkey
Rest of Europe

Pacific

Australia
Rest of Pacific

Africa

Nigeria
Ghana
Rest of Africa

East Asia

China
Taiwan
Macau
Hong Kong
South Korea
Japan
Rest of East Asia

West Asia/Middle East

UAE
Saudi Arabia
Qatar
India
Israel
Rest of West Asia/Middle East

ASEAN

Brunei
Cambodia
Laos
Indonesia
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam

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Digitain Announces New Slogan and Vision Ahead of ICE Barcelona

Published

12 hours ago

December 26, 2024

George Miller

Reading Time: < 1 minute

Digitain announces a bold new vision and slogan that embodies its forward-thinking approach and highlights its commitment to innovation and excellence.

Digitain, a global leader in Sportsbook and iGaming solutions for over 20 years, proudly presents its new company slogan: “BUILT TO LEAD.”. Announced ahead of ICE Barcelona 2025, this slogan highlights Digitain’s fresh perspective on its vision, positioning, strategic pillars, and essence.

Digitain’s new vision reflects its dedication and commitment to creating genuine connections, ensuring meticulous attention to detail, and maintaining a dynamic, leading-edge approach to innovation. The company’s lasting success is grounded in the strength of its partnerships, an obsession with achieving excellence, and a relentless drive to set new industry benchmarks. Guided by its strategic pillars—next-generation product innovation, unsurpassed service, industry expertise and pioneering new standards—Digitain is further solidifying its position as the trusted partner of choice for leading operators worldwide.

Aregnaz Hakobyan, Group Chief Marketing Officer at Digitain, stated: “A strong foundation and well-defined brand architecture are the cornerstones of our success and the roadmap to our future. The Brand Reboot Project was a project that we have worked for over 4 months and is more than a refresh—it’s a powerful step forward that enhances our value and clearly articulates our purpose. Our slogan,’BUILT TO LEAD.‘ encapsulates who we are and where we are heading, embodying our unwavering commitment to excellence and leadership. It also signifies that our company has reached a pivotal point—leading the iGaming and tech industry with innovation and unmatched expertise.

Our vision clearly indicates that we are shaping the future of iGaming as the leading technology giant and the partner of choice for top-tier operators globally. With unrivaled service and a passionately committed team, we are setting new industry standards, making iGaming safer and more socially accepted than ever before.”

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North Star Network acquires Soccernet.ng to strengthen Nigerian presence

Published

12 hours ago

December 26, 2024

George Miller

Reading Time: 2 minutes

North Star Network (NSN) has announced its acquisition of Soccernet.ng, a prominent Nigerian sports media platform, marking a significant expansion into the Nigerian sports scene and underscoring its ambition to solidify its footprint in the African media landscape.

Founded in 2014, Soccernet.ng has become a trusted authority on Nigerian football, providing in-depth daily coverage of local football alongside trending stories from the global soccer world. Known for its quality journalism and passionate team of football enthusiasts, the platform has achieved significant recognition, including the Sport Blog of the Year award at the Nigerian Blog Awards.

A Strategic Move into Africa

The acquisition of Soccernet.ng is part of North Star Network’s strategy to expand its portfolio in Africa. The platform joins NSN’s roster of over 30 respected sports media brands, which includes Afrik-Foot, Top Mercato, Football Whispers, Sportsmole, and Vringe.

Julien Josset, Co-founder of North Star Network, expressed enthusiasm about the acquisition:

“We’re excited to welcome Soccernet.ng into the North Star Network family. Their passion for Nigerian football and commitment to quality journalism align perfectly with our global vision of bringing fans closer to the game they love.”

Preserving Soccernet.ng’s Legacy

Soccernet.ng will retain its original team of dedicated journalists, ensuring the platform’s authenticity and unique voice remain intact. The website currently engages readers not only in Nigeria but also across over 150 countries, including the UK, USA, Canada, and Spain.

Biyi Akangbe, Founder of Soccernet.ng, reflected on the platform’s journey:

“We started as a small website 10 years ago with a passion to deliver news about Nigerian footballers to readers. We’ve since grown into a globally recognized source for Nigerian football news. This acquisition by North Star marks an exciting new chapter for our brand.”

Co-founder Lolade Adewuyi will continue to contribute to the site as a columnist, maintaining the brand’s strong connection with its loyal readership.

Expanding Global Reach

The acquisition of Soccernet.ng reinforces North Star Network’s dedication to amplifying local voices in key regions while offering unparalleled sports coverage. With its innovative strategies and growing portfolio, the group is poised to drive sustainable growth across its media brands.

North Star Network is a leading global sports media group, operating in over thirty countries and committed to delivering world-class sports content to fans worldwide.

This acquisition sets the stage for a new era in Nigerian sports journalism and highlights North Star Network’s continued efforts to connect fans to the heart of the game.

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GamCare releases Annual Report following record breaking year of support on the National Gambling Helpline

Published

3 days ago

December 24, 2024

George Miller

Reading Time: 2 minutes

GamCare’s National Gambling Helpline received a record 55,228 calls and online chats from people experiencing gambling harm in 2023-24 – a 25% increase from the previous year – according to the charity’s Annual Report.

In a year marked by uncertainty over the future shape and structure of the gambling harms treatment sector following the previous government’s white paper on gambling reform, the charity continued to prioritise those at-risk of, or currently experiencing, gambling harm.

Of all calls and online chats that were responded to on GamCare’s Helpline in 2023/24, 41,070 (74%) were classed as supportive interventions. This includes supporting people with initial guidance and advice as well as delivering a seamless entry point into structured treatment services, with individuals completing treatment reporting a significant reduction in gambling-related distress and financial harm.

In March 2024, the Office for Health Improvement and Disparities published an assessment of the gambling treatment system, highlighting that 57% of individuals engaging in treatment were referred by the National Gambling Helpline. This underscores the Helpline’s critical role in connecting people to the support they need. Over 9,100 free treatment sessions were delivered in the year to April 2024, with an average of just 2.1 days’ wait from point of referral.

GamCare’s targeted programmes aimed at young people, women, and the criminal justice system provided training on how to spot the signs of harms and where to signpost into support for 10,344 professionals, and education for 53,324 young people, children and parents. The Women’s Programme, in partnership with organisations such as Refuge, trained 3,813 professionals to recognise and address gambling-related harm among women.

Margot Daly, Executive Chair of GamCare’s Board, says: “Throughout a challenging year and with heightened demand for our services, GamCare’s staff have got on with the job of preventing harm where possible and treating harm where necessary. While we expect important changes in the gambling harms landscape, we have been determined not to let this uncertainty affect our relentless focus on the people who really matter – those at-risk of or currently experiencing gambling harms.

“I would like to thank and pay tribute to our frontline staff who provide 24/7 support for all those at risk or in distress. I also want to thank GamCare’s senior executive team who have steered GamCare through a period of sustained change, and to my fellow trustees for their guidance, unwavering support and the time each has dedicated to ensuring that the charity stays on course and on mission.

“As we look ahead to how the future of the gambling harms sector is shaped, we are committed to working proactively with the NHS and other partners and commissioners to ensure that people are continually able to receive the right support at the right time.”

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