There could yet be a strong Irish angle to the negotiation that has been sparked by Barclay’s announcement that they are to end their association with the Premier League.
Sport for Business understands that the most likely single title sponsor to take over what is likely to be a £50 million plus per annum deal is Diageo, the parent company of Guinness and a host of global drinks brands.
The alternative is to adopt a similar model to the Champions’ League, and indeed our own GAA by grouping together a larger number of non competing partners.
It is thought that clubs are keen to explore the latter in some detail as this would provide the biggest cash boost on a shared model.
The clubs would have to give over many of the rights they have as independent entities and it would lead to issues around pitch side advertising which is currently different at each ground but which would have to come with a greater degree of uniformity in a shared sponsor deal.
The Champions’ League takes over the management of each ground for its games and brings its own partner branding to replace that which is normally on site.
The biggest impact this is likely to have would be on the betting and gaming sector which is by far the most obvious pitch side advertiser at Premier League games promoting not only to a domestic audience but to the much larger international viewership which the Premier League attracts.
At the partnership level it is likely that the minimum asking price to get involved would be somewhere north of £15 million a year for exclusive sector association.
Sponsor inflation though may yet drive that even higher. The deal signed between Toyota and the International Olympic Committee earlier this year is believed to be four times greater in financial weight than the previous average Top Tier Sponsor investment of around €25 million per annum.
Airlines, Automotive, Finance, alcohol and other universal brands would be among those to whom an proposal would be of interest.
Barclays is bringing to an end a 15 year association, having taken over from Carling in 2001 using the Barclaycard brand.
In a memo circulated to staff around the world last Friday Barclays senior management explained their decision to end the deal.
“Since we took on the sponsorship under the Barclaycard brand in 2001 the Premier League’s popularity has grown exponentially around the world.
“The sponsorship has been very successful for Barclays, but having carefully considered whether it is the right partnership for us given where we are as a business and a brand today, we have concluded the time is right to pass the baton on.
“The core consideration informing this decision was the balance between the benefit to Barclays and our brand versus the likely investment required to carry on.”
In February the Premier League signed new broadcast rights for the UK market with Sky Sports and BT Sport that will deliver over €6 billion to the sport and the clubs over the term of the next three year deal.
