Naming rights: A new way for clubs to save some money

Have you ever asked yourself: How do soccer clubs make money?

Acording to Stefan Symanski on his book “Money and Soccer” , the basic operating components of soccer clubs are player costs, stadium costs and revenues.

Like the players, the stadium is supposed to be an investment, but in the longer term. The difference is that a player contract is usually for 3 years, while the expected life of the stadium is around 40 years. However, it costs a lot of money to build a stadium, and there is also a bigger risk, because revenues tend to decline when the performance is poor.

As a consequence of this, some of the soccer clubs have been forced to finance their stadiums through three different ways:   Bank loans, government and recently a great strategy for the soccer clubs to focus their resources in other needs. On the other hand, this type of sponsorship might not increase the ROI of a brand, but it reminds the consumers that the brand is there. This type of partnership also offers a huge return on advertising dollars that is far above what we can be archived through other marketing channels. Thus, it is a win-win situation.

Some of the greatest naming rights deal in European soccer stadiums are: Bayern Munich (Allianz Arena), Borussia Dortmund (Signal Iduna Park), PSV Eindhoven (Philipps Stadion), Galatasaray (Türk Telekom Arena), Manchester City (Etihad  Stadium), Leicester City (King Power Stadium) and Arsenal (Emirates Stadium). In America is not as common as in Europe, but some of the clubs in Liga MX and Campeonato Brasileiro have started with clubs like: Monterrey (BBVA Bancomer), Puebla (Multiva), Xolos (Estadio Caliente), Palmeiras (Alianz Parque). Whereas in MLS all of the stadiums are named for corporate sponsors.

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