We can all agree that the Covid-19 crisis has affected everyone’s lives and a lot of businesses in every sector. Some have been affected more, some have been affected less. Premier League clubs have been affected too as they have lost thousands if not millions of pounds of revenue because of the lack of football action.
The big question now for football clubs is how do they move forward and how much have their relationships with their sponsors been affected because of this crisis. Let’s not forget that sponsors are a major factor when it comes to a clubs finances and profitability. Without big sponsors, revenue goes down and consequently spending for transfers goes down.
Sponsors have already paid money for adverting via their sponsorships but with no football action there is no return to investment for them. Football behind closed doors with no fans is not good enough for most sponsors especially match day, programme sponsors, stadium sponsors etc.
We also don’t know the contract duration for these sponsorships, if there are any early exit clauses etc.
Chelsea has a principal partnership with Nike and Yokohama. These relationships are very unlikely to be affected for various reasons. But what about the other official partners? We don’t know how have they been affected by this crisis and what their plans are moving forward. Some of them have definitely been affected more than others.
For example MSC Cruises, an official Chelsea sponsor, will probably see a big drop in revenue Year on Year as people won’t be going on cruises this period (at least definitely not at the same rate as before).
Maybe we will see sponsors from other industries that haven’t been affected so much from the crisis like the gambling industry. Casinos and especially live casinos online have seen a big boost during that period. With lack of sporting events, there was no betting, so gamblers entertained themselves with live casino games. Roulette, poker blackjack and slots games is what traditional sports betting gamblers turn to.
A lot of Premier League teams have gambling sponsors already. But we all also probably remember the fiasco with 1xBet sponsorship that has been withdrawn soon after agreed due to the investigation by the UK Gambling Commission. So with that in mind Chelsea will have to consider very carefully any potential gambling sponsorships.
It will be interesting to see any changes in the sponsorships and what effect these will have on the clubs finances and maybe on the clubs transfer budgets.