For any major football team, the proximity of a major association creates a need to see what comes next and make sure it’s better than what came before.
There are few more valuable commercial offers for Liverpool than the one on the front of their shirts. Since 2010, that partnership has been with financial services giant Standard Chartered, a deal that has risen in value since the £20m a year, four-year deal that was signed under the ownership of George Gillett and Tom Hicks in 2009. It’s a deal that’s now worth twice as much annually, having risen from £20m a year to £30m a year in 2015, and a further £10m in 2018.
Standard Chartered has the option to continue their partnership with the Reds and they have expressed an interest in doing so, ECHO understands, with discussions said to be ‘live and ongoing’. But Monday morning saw the development that the club was looking at other avenues, including the new and still controversial cryptocurrency and blockchain market.
As it stands, however, little has changed. Liverpool is in the process of canvassing companies from a range of industries about the partnership, largely to determine how much value the partnership has in 2022, how it compares to rivals and how much leverage success on the pitch has changed its ability to maximize. income.
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When Standard Chartered agreed a deal to extend its partnership with Liverpool until the end of the 2022/23 season, it was done at a time before the club had won the Champions League in 2019, won the Premier League in 2020 and had already seen his The huge global brand continues to grow by virtue of its continued success and the appeal of having a star-studded team with the charismatic Jurgen Klopp at the helm.
The bargaining position for Liverpool and owners Fenway Sports Group is stronger than ever, and that will likely be reflected in a new record deal that moves them away from parity with Arsenal and Tottenham Hotspur, beyond a tumultuous Manchester. United and following the trail of what Manchester City has to offer, which is helped somewhat by a sympathetic relationship with the Gulf states, where their owners have considerable influence.
Cryptocurrency, blockchain, media, travel & tourism, fast-moving consumer goods, electronics and financial services firms have been courted and through conversations with these firms the club will gain a better understanding of the strength of the market. and, more importantly, your position in it.
While the interest of cryptocurrency firms may cause some concern for some, their presence in the conversation will likely be key, even if they are not the front-of-shirt sponsorship partners for the 2023/24 season and beyond. there of. There is a reason for that. This is the first foray into the market for a Liverpool main shirt sponsor since before the pandemic and things have changed for certain industries, with some growing and others such as travel and tourism being hit hard. One industry that has grown tremendously has been crypto, and that growth has seen a flood of capital come into the market, and crypto companies are willing to spend a lot of money thanks to that flood of capital on marketing and sponsorship. Deals have been struck with Formula One and the NBA, as have deals with individual teams across global sport.
The presence of crypto companies in the conversation will likely help drive the market price higher, meaning that what could potentially have been a less buoyant sponsorship market has had its values increased through the willingness and ability to spend of cryptocurrencies. crypto companies. That doesn’t mean whoever writes the biggest check gets the deal, but what it does mean is that the value of the partnership will rise through other industries knowing they’ll have to keep racking up big numbers to compete.
Liverpool is currently in something of a fishing exercise, and determining market value will also be key to Standard Chartered understanding where they sit and how much it will cost to maintain their relationship, which has been described as “extremely positive”. ‘ passing beyond 2023.
The increase from 2009 to 2015 was £10m per season. The increase from 2018 was a further £10m. The Reds’ success over the last three years will mean a raise of more than a further £10m a year will likely be required to secure the partnership. The strength of the Premier League’s appeal has remained despite the pandemic, as seen in the record TV revenues that have been traded globally for the coming cycle domestically and internationally. With Liverpool being one of the most watched clubs, whose presence in European competition runs deep, whose global appeal is matched by very few now appearing in front of more eyes than ever before, FSG is confident of achieving great financial success with whoever they meet. team up with the club below, whether it’s the status quo with Standard Chartered or someone new.
Liverpool’s commercial success is one of the key factors in them being able to invest on and off the pitch given FSG’s more business-focused approach compared to some of its rivals. Ensuring they are flexing their muscles when it comes to leveraging their global position will be important in the years to come. They have never had a stronger hand to play.