Arsenal have announced an extension to their shirt sponsorship deal with Emirates which takes the partnership forward to 2019. What does it mean for the club?
Firstly, the new deal means Arsenal will receive an extra £24 million per year until the end of the 2018/2019 season which is when the contract runs out. This £24 million is to be invested back into the team and squad which means Arsenal should benefit dramatically as Chief Executive Ivan Gazidis recently promised.
The cash means Arsenal will be able to cope with the new break even rules which are coming into effect in the near future. Arsenal are already run as a business at a profit so that additional cash means the club will be pulling in £30 million through their kit sponsorship, £6 million from the previous deal plus the £24 million from the new deal on top.
Arsenal can work hard on competing on both domestic and European fronts knowing that the finances of the club are safe and secure and knowing that qualification and legitimate participation in competitions such as the Champions League is a formality for the club.
Arsenal can invest this money directly into the team via one of two methods. They can use additional cash to buy more players with transfer fees at a higher level than ever before. However, this has never been the Arsene Wenger style as the Frenchman prefers to buy players at lower prices before turning them into stars.
The second method is that Arsenal could add the extra cash onto their wage budget. Wenger has been heavily criticised in the last few season for allowing top players to leave the club and financially, Arsenal will be in a better position to incentivise the best players to stay.
It also means they will be able to afford the wages of the best players from around Europe meaning they are less likely to miss out to Manchester United, Manchester City, Chelsea or another top European side. This means Arsenal can throw their weight around and Wenger can assure fans that they have a path back to the glory days of the Invincibles.
Arsenal fans are paying more than ever before to watch their football with the most expensive match day ticket and the most expensive lower level season ticket both found at the Emirates stadium. However, it means that Arsenal will become a much stronger force over the next few years.
Have faith Arsenal fans because you could easily become the richest club in the world by the time this shirt deal goes down the pan.
image: © michael hilton
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