Online Gaming sponsors 50% of EPL teams

Jake Cooper | 05 Jul 2017

Online Gaming sponsors 50% of EPL teamsFootball is an increasingly well-oiled money making machine. Lying under every move made is a marketing and advertising agenda meant to get the highest profit from every investment. Competition is as fierce as a starving lion, and the advertising spaces put up for sale are multiplying in cost like wildfire: from the names of stadiums to the back pockets of the pants we wear. 

Even so, the front of the football jersey has remained the most sought-after advertising space, ever since the German liqueur brand Jägermeister made it open season on hunting for football sponsorships in 1973. The front of the jersey is an advertising medium that has attracted large amounts of capital from brands. For instance, the 58 football clubs in the three largest leagues (those of England, Spain and Germany) received €546.77 million from sponsorships for the season which has just passed - nearly 30 million more than in the previous year.

This formula for advertising, when broken down by leagues, reveals differences which can be explained by each country’s current cultural and socio-economic situations. These are the conclusions reached after studying the brands’ industries, their places of origin and the types of agreements they have reached with the different teams. The following diagram, which takes a closer look at the relationship between those with economic power and those with power in the world of football, shows that they are not always directly related.  

In terms of supremacy, the English League stands out from the rest by quite a margin. The total investment by different brands in the English league teams (€260 million) amounts to 225% of the amount invested on the Spanish League (€115.27 million) and 151% of that spent on the Bundesliga (€171.3 million) for the season past. Nevertheless, investment in the Premier League only grew by 0.92% from one season to the next, whereas the increase was 16.6% for the Spanish League and 3.97% for the German League. This is an obvious sign that Spain is recovering from its economic crisis, which also affected its football teams and sponsors.

Coming back to the Premier League, though, it is interesting to see how much foreign capital flows through these clubs. Of these teams, 75% are sponsored by companies or brands whose country of origin is not in the United Kingdom. It is an aspect that speaks volumes about the global impact of the English League, with the biggest following in the world. The foreign money brought in by clubs in La Liga amounts to 60%, while, in what is a fine demonstration of Germany’s economic potential, just 16% of the Bundesliga’s teams rely on investors from other countries.

Despite this, the other attention-grabbing piece of data found on our diagram is that 50% of the teams in the Premier League bear the emblem of a company related to online entertainment on the front of their jerseys. The sports-related segment of the online entertainment sector has traditionally been very highly regarded in the British Isles.

While the Premier League is dominated by these companies, the situation relating to this sector in the Spanish League or the Bundesliga, with one club sponsored in each championship, is vastly different. Online sports betting is of some importance in these countries, but not nearly to the same degree as in England. The dominant sectors in Spain and Germany are industries which are generally seen as the most powerful in their respective economies.

In the case of La Liga in Spain, the food and cuisine sector and tourism are the best represented, with three clubs; though it should be pointed out that five out of the twenty teams that take part in the league do not have one main sponsor. This is a tangible result of the financial havoc still besieging southern Europe. This is not the case in Germany, where all of the teams have a company logo appearing on the front of their jerseys, with the food and cuisine sector the most common (with four teams), followed by technological brands.

All of these details can be found on the following infographic. There are various industries which advertise, including the ones which invest the most money to which ones have the highest exposure... and much more. You will not want to miss it.