For any great football team, approaching a major partnership brings with it the need to see what comes next and ensure it is better than what has come before.
There are few trade deals more valuable to Liverpool than the one that sits on the front of their shirts. Since 2010 that partnership has been with financial services giant Standard Chartered, a deal that has risen in value from the four-year £20million-a-year deal that was signed under the ownership of George Gillett and Tom Hicks in 2009. It’s a deal that’s now worth double a year, rising from £20m a year to £30m a year by 2015, and a further £10m in 2018 .
Standard Chartered have the option of continuing their partnership with the Reds and they have expressed an interest in doing so, according to ECHO, with talks said to be ‘live and ongoing’. But Monday morning saw the development that the club was looking for other avenues, including the still controversial new cryptocurrency and blockchain market.
As things stand, however, not much has changed. Liverpool are in the process of sounding out companies from various sectors over the course of the partnership, largely to determine the value of the partnership in 2022, how it compares to its rivals and how successful leverage is on the pitch. changed their ability to maximize revenue.
READ MORE: Mohamed Salah bluntly clarifies priority as Liverpool give major advantage
READ MORE: Liverpool and Man City ‘discuss’ £33m striker as defender could leave
When Standard Chartered reached an agreement to extend their partnership with Liverpool until the end of the 2022/23 season, it was done at a time when the club had failed to win the Champions League in 2019, won the Premier League in 2020 and had already seen its huge global brand continue to grow due to its continued success and the allure of having a star-studded team with the charismatic Jurgen Klopp at the helm.
The negotiating position of Liverpool and owners Fenway Sports Group is stronger than it has ever been, and that will likely be reflected in a record new deal that takes them away from parity with Arsenal and Tottenham Hotspur, after a Manchester restless. United and keeping track of what Manchester City are capable of delivering, which is helped somewhat by a simpatico relationship with the Gulf States where their ownership has considerable influence.
Cryptocurrency, blockchain, media, travel and tourism, fast-moving consumer goods, electronics and financial services companies have all been courted and through conversations with these companies, the club will have a better idea of the strength of the current market and, more importantly, their position in it.
While interest from cryptocurrency companies may worry some, their presence in the conversation is likely to be key, even if they are not the shirt front sponsorship partners for the 2023/24 season and into -of the. There’s a reason for that. This is the first foray into the market by a main shirt sponsor for Liverpool since before the pandemic and things have changed for some industries, some have grown and others, such as travel and tourism, have been badly affected. One industry that has grown tremendously has been crypto, and that growth has seen a flood of capital come into the market, and crypto companies are willing to spend a lot of money with that flood of capital for marketing and sponsorship. Agreements with companies such as Formula 1 and the NBA have been made, as have individual agreements with teams in the sports world.
The presence of crypto companies in the conversation will likely help push the price up in the market, meaning what could have been a less buoyant sponsorship market has seen its values rise thanks to the willingness and ability of crypto companies to spend. This doesn’t mean whoever writes the bigger check wins the deal, but it does mean that the value of the partnership will be increased through other industries knowing they will have to keep racking up the big numbers to be competitive.
Liverpool are currently carrying out something of a fishing exercise, and determining market value will also be key for Standard Chartered to understand where they stand and how much it will cost to maintain their relationship, which has been described as ‘extremely positive’ . ‘ beyond 2023.
The rise from 2009 to 2015 was £10m per season. The upside from 2018 was an additional £10m. The success of the Reds over the last three years will mean that it will likely take a raise of more than an additional £10million a year to secure the partnership. The strength of the Premier League’s appeal has endured despite the pandemic, as evidenced by record TV revenues that have been traded globally for the next cycle domestically and internationally. With Liverpool one of the most watched clubs, whose presence in European competition runs deep, which has global appeal matched by very few who now appear before more eyeballs than ever before, FSG will be confident of delivering financial success. major with whoever the club’s next partner is, be it the status quo with Standard Chartered or someone new.
Liverpool’s commercial success is one of the key factors allowing them to invest on and off the pitch given FSG’s more commercial approach compared to some of their rivals. Ensuring they flex their muscles when it comes to leveraging their global position will be important over the next few years. They’ve never had a stronger hand to play.