New info on three Arsenal off-pitch deals worth £141m

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New information has come to light regarding three Arsenal business deals worth a total of £141m.

In isolation, Arsenal’s commercial income – which is key to how much Mikel Arteta can spend in the transfer market because of the Premier League and UEFA spending rules – looks impressive.

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

However, that figure is comfortably the lowest of any of the clubs in the so-called ‘Big Six’.

Closest challengers Chelsea trousered £210m over the same period, while biggest earners Man City’s commercial revenue was almost twice Arsenal’s.

That figure will rise sharply when the club releases its 2023-24 accounts thanks to Arsenal’s return to the Champions League.

But the gap between themselves and the rest of their peer group will not be eliminated entirely and will likely take several years to address.

In the latest news, a new study may have zeroed in on one of the reasons that Arsenal are lagging behind.

Arsenal reliant on ‘big three’ sponsors

Arsenal have 29 sponsors in total, with the most recent big addition to their portfolio being the training ground naming rights deal with Dubai-based property company Sobha Realty.

But by far the most lucrative deals engineered by chief commercial officer Juliet Slot are the front-of-shirt deal Emirates, kit deal with Adidas and sleeve deal with Visit Rwanda.

A new analysis from industry experts Sports Business Institute Barcelona has found that 81 per cent of Arsenal’s commercial income comes from these partnerships.

That is £141m annually.

Significantly, the 81 per cent ratio is by far the biggest of any of the top-10 revenue generating clubs worldwide.

For context, North London rivals Tottenham’s ratio is 36 per cent.

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TBR Analysis: How can Arsenal increase commercial income?

Supporters may not like their club being referred to as a ‘brand’ – and justifiably so.

But commercial experts will tell you that Arsenal have one of the biggest brands in world football and that they need to better monetise it if they are to continue to compete at the highest level.

The new training ground naming rights deal will help.

That Sobha Realty deal is reportedly worth £15m for the next four years, which will lower the dependency on Adidas, Emirates and Visit Rwanda.

The Visit Rwanda deal, which pays £10m per season, is itself up for renewal after 2024-25.

The shirt sleeve market has grown significantly since Arsenal first partnered with the country’s tourist board, so they can expect an uplift on that figure next time around.

The Gunners have also rightly earned plaudits for branching out into streetwear through their partnership with Adidas, a strategy which has proved enormously lucrative for the likes of Paris Saint-Germain.