Arsenal trump Man United as new off-pitch deal to help smash £140m record

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Arsenal and Man United, historically two of the three biggest names in English football, compete on the pitch and the commercial department.

Arsenal‘s mini renaissance on the pitch in recent years is starting to bear fruit financially, with the club expected to break the £500m mark for revenue when they release their 2023-24 accounts.

However, the North London club are still some way behind their peers in the so-called Big Six in terms of their turnover and, more specifically, their commercial earnings.

Man United by contrast, whose former CEO Ed Woodward famously said they don’t need to win trophies to remain attractive to sponsors, earned nearly £650m in 2022-23, with £303m in commercial income.

In the era of Profit and Sustainability Rules (SPR), the gap between Arsenal and United’s turnover means the Gunners are at a considerable disadvantage season on season.

They are taking steps to rectify this. Arsenal’s deal with Adidas, for example, is focusing on the athleisure and sportswear market and is proving highly successful.

Another area where Arsenal are attempting to make gains is the depth of their sponsorship portfolio.

They list 28 official partners on their website, while United have 43.

But the latest developments have tipped the scales somewhat.

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Sponsor leaves Man United for Arsenal

In 2018, the Scotch brand Chivas Regal became Man United’s official spirits partner in a deal worth £3.5m per year.

However, Arsenal have now announced that they have embarked on a multi-year commercial partnership with the company.

The brand will have a presence on matchdays at the Emirates Stadium with an on-site bar, as well as supplying to their product to local Arsenal pubs.

According to football finance and business journalist Łukasz Bączek, Arsenal’s new deal is worth £3m per season.

Arsenal’s sponsorship income was around £137m in 2023-24 and, with the new partnership factored in, will easily reach a new club-record £140m from 2024-25.

In fact, it will likely surpass that figure by quite a margin thanks to Arsenal’s new £15m-a-year training ground naming rights deal with Sobha Realty, as well as a number of other partnerships.

Is PSR or FFP a concern for Arsenal?

When Stan Kroenke bought Arsenal, he did so with the intention of helping the club to stand on its own two feet as opposed to continuously bankrolling losses.

The Missouri-born billionaire, whose son Josh now takes a more hands-on approach at the Emirates than himself, has departed from that philosophy somewhat in recent years.

However, the long-term ambition continues to be to break even, so as too demonstrate the value of Arsenal to potential new investors.

So while Arsenal do not have PSR issues, they will continue to live within their means in the transfer market.