From Ade Oshinloye :
Commercial revenues are intrinsically linked to :
Performance in major competitions
Global Reach
Mutual Relationships
1) Performance
Arsenal has not won a major trophy since we won the League in 2004.
In this instance, The FA Cup does not apply, as the greatest commercial reward for winning the FA Cup is a place in European competitions – Arsenal achieves this already by being in the Top 4.
In order to persuade sponsors to fork out serious funds, you need to be able to demonstrate the ability to ‘flip’ their investment into returns. As such:
– Winning competitions (every time an advert is shown for a competition, images/video of the winners of the previous season are shown – with sponsors in full view.
– Simply showing you’ve put their money to good use, and you can be trusted with more.
Arsenal Rating: 3/5
2) Global Reach
Sponsors benefit from a transfer of goodwill, an intangible benefit commercial partners receive by being associated with a brand. Chevrolet is a good example of this as they have a strategy going forward to expand their customer base beyond the USA. Man Utd’s training kit sponsorship is a good method, as Chinese supporters of the Red Devils will recognise the Chevy badge on cars and plump for it as there is some subconscious level of trust.
This is the major reason for Arsenal players taking group selfies after matches – they’re not necessarily celebrating the result as the dinosaurs in the British media/punditry/football community think – but giving fans around the globe emotional capital to reinforce their support of the team. The more emotional capital fans or casual viewers are given, the greater the revenues generated for all involved in the business side of football.
Arsenal rating: 4/5
3) Mutual Relationships
Arsenal are absolutely pitiful at this, and it is very much because of Wenger’s disdain for modern football practices. In order to fulfill this there are two methods:
– Super Agents
– Player Sponsors
Super Agents
The likes of Jorge Mendes attach themselves to the most commercially viable players geographically – James Rodriquez being a fatter cash cow than Messi is for example (in South America). Wenger hates dealing with super agents, and therefore loses out on the opportunity to recruit players that will add more clout to our commercial negotiations.
Player Sponsors
The other route is to be strategic in the recruitment of stars according to who their primary sponsor is.
The best example of this Man Utd’s (again) signing of Pogba. With Adidas being both the primary sponsor of the club and the player, it strengthens United’s negotiating position during renewal or interim renegotiation talks.
This is a route Arsenal could’ve conceivably gone down if we consider players we’ve been heavily linked to, namely the return of Cesc Fabregas, as well as the annual summer link to Marco Reus. Signing marquee players such as Antoine Griezmann, Sergio Aguero and Gianluigi Donnarumma would have a Pogba-esque effect for Arsenal.
For reference, here is a link on the Arsenal Official Website with a page dedicated to players signed to Puma:
http://www.arsenal.com/the-club/sponsors-partners/puma/arsenal-players-wearing-puma
Arsenal Rating 1.5/5 (Cazorla, Giroud and Bellerin being worth half a star each)
In summary, it is actually very unfair to lay the brunt of it at Gazidis’ feet.
He has actually done quite well given the circumstances of having a Board full of dinosaurs, and being the only CEO in the world that is less powerful than his subordinate (Wenger).
Negotiating the front-load of the Puma sponsorhip – funding Sanchez’ signing, as well as the ones that followed – was a masterstroke, and it demonstrates he has it in him to deliver. He just needs more to work with.
Love the blog as always.
Adefolahan Oshinloye
Capital Moments Limited
Website: www.capital-moments.com/