Arsenal capitalise on £10.4m opportunity as new off-pitch deal announced

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Arsenal have proven themselves to be one of the best run clubs in the Premier League in recent years.

It now seems a long time ago that the relationship between the supporters and the board was at breaking point.

And while the wounds of the Kroenke regime’s attempt to take Arsenal into the European Super League will take longer to heal entirely, success on the pitch is the best healer.

Under Mikel Arteta and Edu Gaspar, the Gunners have finished 2nd in the Premier League in successive seasons, coming the closest to disrupting Man City’s dominance.

They will mount another title challenge in 2024-25, when the odds for them to lift the trophy will likely be the shortest they have been in many years.

That is thanks in part to the club’s departure from their self-sufficient financial approach in recent seasons.

Stan Kroenke has sanctioned greater investment, bringing the likes of Declan Rice and Kai Havertz to the Emirates in two of the three biggest deals in the club’s history.

This summer, Arteta has seen a combined total of around £65m spent on making David Raya’s move from Brentford permanent and signing highly-rated defender Riccardo Calafiori from Bologna.

Real Sociedad midfielder Mikel Merino meanwhile could be the next Arsenal addition, with the North London club expected to have to pay £25m for the Spain international’s signature.

In an era when spending is tied to revenue under the Premier League’s Profit and Sustainability Rules, commercial income is central to Arsenal’s ambitions in the transfer market.

And, with that in mind, the latest official news emerging from the Emirates will be welcomed by Arsenal fans.

READ MORE ARSENAL NEWS: Fabrizio Romano relays big Mikel Merino update amid Arsenal links

New commercial deal for Arsenal

Arsenal earned £173m from sponsorship, merchandise sales and events in 2022-23, the last season for which financial data is available.

That figure is likely to rise again when the club releasees its accounts for 2023-24, then again for the upcoming season.

That is thanks in part to the continued success of their relationship with Adidas, as well as a new training ground naming rights deal with Sobha Realty.

Now, their coffers are set to be receive another modest boost thanks to Arsenal’s recently announced deal with Athletic Brewing Company.

In a fresh update, football finance expert Łukasz Bączek via X that the deal is worth up to £2m per year over the course of its multi-year contract.

It is no secret that Stan Kroenke ultimately sees Arsenal as a capital appreciation project and will eventually flip the club for a huge profit.

Commercial income is central to the club’s value.

Applying a 5.2 revenue multiplier based on Chelsea’s sale to Todd Boehly in 2022, the Athletic Brewing deal adds £10.4m to Arsenal’s enterprise value overnight.

TBR Analysis: How does Arsenal’s commercial income compare to their Big Six rivals?

While in isolation £173m is a very impressive commercial income figure, Arsenal’s total is lower than any other so-called Big Six club – and by quite a margin.

For context, North London rivals Tottenham recorded £228m, while Man City earned almost twice as much as Arsenal over the same period.

Arsenal’s figures will rise over the next few seasons, but they need to innovate to catch up with their peer group.

Perhaps most worryingly, they have the least diversified sponsorship portfolio among the Big Six.

Their three deals with Emirates, Adidas and Visit Rwanda account for over 80 per cent of their commercial income, while Spurs and Liverpool were around 35 per cent.