Arsenal are on course to smash a £173m club-record thanks in part to their latest high-profile commercial deal.
The Gunners have fallen behind the so-called Big Six in terms of commercial income in recent years, with their revenue from sponsorship and merchandise now approximately half of Man City’s total.
But the Gunners’ brand is, according to the latest analysis, worth £840m, which is the fourth-highest in the Premier League and seventh in world football.
A general view of the Arsenal badge on a corner flag during Arsenal v Chelsea: The Mind Series at Emirates Stadium on August 1, 2021 in London, Eng…
The problem they face is how to monetise their brand and their overseas following in a crowded marketplace.
One are in which they have had great success in recent years is merchandise, with Arsenal’s £60m-a-year partnership with Adidas yielding excellent results in terms of shirt and sportswear sales.
Now, the North London club’s latest commercial initiative is set to propel them past the high bar they set for themselves last season once again.
Arsenal to surpass merchandise and sponsorship record
According to an official UEFA report, Arsenal earned £75m from shirt sales and merchandise in 2022-23, the last season for which financial data is available.
That campaign was their fourth with German sportswear giants Adidas, who will remain Arsenal’s kit manufacturer until 2030 at least.
As well as releasing three kits per year, Adidas have also collaborated with Arsenal on special merchandise ranges, such as their Stella McCartney-branded range or one-off all-white No More Red charity kit.
On Thursday, as part of the launch of their new away kit, Arsenal officially unveiled a new range designed by Labrum London.
The release is celebrating Arsenal’s relationship with its African supporters, with the kit featuring “traditional pan-African colours.”
As well as a large Arsenal-supporting African diaspora in North London, the club also remain hugely popular on the continent.
A 2015 BBC study found that the Gunners are the most popular Premier League club in North and East Africa.
Capitalising on these links in tandem with the club’s wider commercial strategy means Arsenal are easily on course to smash their £173m commercial income record.
Part of that strategy is Arsenal’s shirt sleeve partnership with Visit Rwanda, which was engineered by Arsenal-supporting Rwanda president Paul Kagame.
TBR Analysis: What is PSR and how is it affecting Arsenal?
The business and sporting side of football are inextricably linked, and Arsenal’s commercial income directly affects how much Mikel Arteta and Edu can spend in the transfer market.
The Premier League’s Profit and Sustainability Rules limit clubs to losing no more than £105m over a rolling three-year period, with allowable deductions for things like youth and infrastructure spend.
Analysis from finance expert Swiss Ramble has found that Arsenal have roughly £94m worth of PSR headroom for the three years up to 2023-24.
Essentially, that means the Gunners could have lost an extra £94m over that period and still remain compliant with PSR.
An Adidas sign at the entrance to the store on August 12, 2021 in Miami, Florida. Adidas is reported to have reached an agreement to sell its Reebo…
Climbing commercial income and the return of lucrative Champions League football to the Emirates mean that they are not in danger of a breach any time soon.
However, Stan Kroenke and his son, Josh, who has assumed more day-to-day responsibilities at the club in recent years, will be keen to ensure that their baseline metrics hold firm to ensure maximum flexibility
