Chelsea’s front shirt sponsorship agreement, worth £40 million annually, is crucial to their need to produce income following a significant transfer expenditure. However it is still in uncertainty. Since Todd Boehly and Clearlake Capital acquired Chelsea in May 2022, the club has been a strong player in the global transfer market. More than £900 million has been spent on transfer fees. The most recent one being the £170 million plus deal to acquire Moises Caicedo and Romeo Lavia. Although Chelsea has recovered about £250 million in transfer fees. The Blues used the accounting strategy of providing longer contracts in order to distribute the amortisation charges for transfer fees as they seem in the accounts. However the London team will be without lucrative European football at least for this season. This will result in fewer matchdays at Stamford Bridge, which increases revenue.
Chelsea eager to find a new front shirt sponsor after the deal with Three ended
The front of a team’s jerseys can be one of the key assets sold to generate income. In the instance of Liverpool, they signed a contract renewal with Standard Chartered last summer. The deal valued at £50 million plus every season. This agreement will extend the two parties’ long-standing relationship through the end of the 2026–2027 season and for a total of 17 years.
Chelsea’s current campaign hasn’t had a front-of-shirt sponsor. The club had been unable to reach a deal with a company for the amount they desired until earlier this month. The discussions over who would take over the £40 million per year deal after their deal with Three ended. They are unable to earn a UCL spot to offer partners this season. In addition no guarantee of it for next season too.
Chelsea unlikely to partner up with Stake.com
A short-term agreement was discussed with the gambling company Stake.com until supporters forced a backpedalling. Some football clubs have found that relationships with gambling and cryptocurrency companies serve a dire need. These companies are frequently ready to pay above market rates for sponsorship spots. These firms sign shorter-term agreements with clubs. The Blues are aware of the 2025 imminent ban on front-of-shirt connections with gambling companies.
It’s critical for Boehly and Clearlake to maintain the value of their primary jersey sponsor. Given Chelsea’s dismal performance on the pitch and their lack of negotiation power, achieving an uplift was always going to be extremely tough. However, maintaining the status quo prevents the issue of accepting less and having reduced their negotiating position in future seasons. It would not be an inviting appearance for the club, nor would it be an encouraging financial development, to see the value of its main sponsorship contract decline at a time when the club has lifted the bar for the rest of English football by smashing the British transfer record twice in eight months.
Blues looking forward to reach an agreement with Infinite Athlete
Earlier this month, the club signed a multi-year contract with Infinite Athlete, a Sports-focused technology company. At least Chelsea would have been put in a holding pattern with an estimated £40 million per year contract, giving them more negotiating power the next time they went to the table to discuss the worth of their sponsorship assets. However, the Telegraph claims that the Premier League is reviewing the agreement in accordance with its “fair market value” criteria. As with their match against Liverpool, Chelsea faced West Ham United without a front jersey sponsor.
The relationship between Boehly and Clearlake Infinite Athlete, a company that was just recently formed through the merger of two businesses, Tempus Ex Machine and Biocore. This is what is reportedly the subject of the investigation. In April, Tempus Ex Machine signed a contract to become Chelsea’s technology partner for a period of seven years. One of the problems is that US private equity firm Silver Lake, which has made big investments in American sports apparel company Fanatics and Eldridge Industries. The investment company is owned by Boehly and is listed as a major investor in Infinite Athlete.
Premier League to investigate the Blues’ sponsorship deal
While those ambiguous investment relationships will probably pass the sniff test when it comes to the Premier League. However those in charge of looking into the matter may be more concerned about Infinite Athlete’s $15.4 million annual revenue. They will investigate how the financials for a £40 million per year contract with Chelsea will stack up. The Premier League has not yet made a decision, so Chelsea is left to await their decision. They might consider the possibility of going several more weeks without a shirt sponsor. This will have an impact should they need to go back to the negotiating table for new sponsors given that the season has already begun and offers partners exposure opportunities.
In order to avoid the headache of possibly reduced revenue at a time when they are outspending everyone else on global football, Chelsea will hope that the Premier League will look favourably upon their bid for a partnership with Infinite Athlete.
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