Leicester City are three points from writing their own happy ending to one of the greatest sporting stories of modern times. What’s more, their closest rivals to claiming the coveted silverware are not one of the traditional ‘Big Four’, but Tottenham Hotspur. An unlikely pairing and an unlikely tale for the richest football league in the world.
With a new name set to be engraved on the trophy, an exciting new avenue of commercial opportunities is set to be opened up, but who’s set to benefit from this?
Put simply, the club will make more money. Considerable amounts of money.
Let’s start with the basics – the winners of the Premier League will not only take home the trophy, but will also bank a £24.7m cheque for their efforts. Plus, with UEFA Champions League revenues to come for both clubs next season, they can look forward to anything between £10m to £55m of additional income. To put these figures into perspective, Leicester City’s commercial and sponsorship income in 2012 was just £5.2m.
The financial impact goes beyond just prize money – the real commercial win comes through an expanded fan base, both at home, and, more lucratively, abroad. The recent trend has seen Premier League clubs spend their pre-season on money-making tours in the Far East and America – emerging markets where they can capitalise on both fan engagement and brand investment.
Winning the Premier League will undoubtedly gain Leicester an army of new fans across the globe (their story has already won them hearts on home shores). If you don’t believe it, just look at the differences between the Twitter exchanges – both in terms of language and pure numbers – when Leicester announced they were safe from relegation in last season, to when they announced they had made the Champions League this season.
A global fan base can lend itself to a new approach to sponsorship – dividing up regions and sponsor categories to allow for the monetisation of countless deals. Manchester United claim an ‘Official Casual Footwear Partner for South Korea’, Chelsea boast an ‘Official Whiskey Partner in Myanmar’, while Arsenal have an ‘Official Telecommunications Partner in Indonesia’. Could we soon see these types of deals for Leicester?
In terms of adding fans, there isn’t just a global benefit, but a local one too. Leicester’s average attendance in the League two seasons ago was 24,990, which is close to 10,000 fans below stadium capacity. This season, you can’t get a ticket for love nor money at the King Power Stadium, with reports that touts are selling tickets to Leicester’s final game of the season for £15,000. The demand to watch the Foxes live – and be a part of the fairytale – is greater than ever.
Leicester don’t just become more attractive to potential sponsors because of the additional reach and bigger fan base. The authentic money-can’t-buy narrative will have brands falling over themselves to be part of it. In sport, the greater the odds of success, the greater the story, and the odds have never been greater in the Premier League. A Cinderella rags-to-riches story that provides a welcome relief from past rhetoric of wealth that surrounds the likes of Manchester City and Chelsea.
THE PREMIER LEAGUE
The Premier League will be delighted at how the season has played out. Now, they can rightly claim back their title of being the most exciting league in the world. In Spain, just three different teams have won the title over the past decade, with FC Barcelona dominating with six wins in the past 10 seasons. In Italy, again it’s just three teams, with Inter Milan and Juventus splitting the success between them, and AC Milan winning once.
This season, by contrast, the Premier League has been entirely unpredictable. The likelihood of Leicester finishing top of the table was almost impossible in August, and only a fool would have placed any money on their starting odds of 5000/1 to win the league. Don’t we all wish we were fools…?
And that £5bn the Premier League sold the broadcast rights for? It increasingly looks like better value for the broadcasters that shelled out. This exciting season has captured the imagination of fans around the world and will have re-inforced the unique appeal of English football..
As the Premier League seeks global domination in search of more riches, stories like that of Leicester City can only help. Historically viewed as the flashiest, most commercial, most money-obsessed league (both in terms of wages and ticket prices), this season has turned this stereotype on its head. Riyad Mahrez and Jamie Vardy cost the Foxes less than £1.5m combined. In fact, Claudio Ranieri’s entire squad cost a total of £54.4m – one eighth of big spending Man City, and still one third of their nearest title rivals Tottenham Hotspur.
A huge PR win for the Premier league, and let’s face it, you can’t buy coverage like this…
Yes, that’s Leicester City Football Club, on the front cover of the Wall Street Journal – heady times for the club.
Where once Wayne Rooney, Didier Drogba, Sergio Aguero and Luis Suárez were the darlings of sponsors, these household names may soon be replaced by younger, fresher names like Alli, Kane, Kanté, Vardy and Mahrez. Players catapulted from relative obscurity into the limelight, not burdened by huge deals and with the ability to make the most cynical football fan appreciate their talent. It’s reasonable to assume that they will soon be boosting their earning power exponentially through personal sponsorship deals. As an example, Rooney is estimated to be making around £5m a year from private endorsements alone.
And it doesn’t stop there. Vardy’s meteoric rise from Non-League to Premier League has been likened to that of a Hollywood script…and media reports suggest that this could actually happen. When you consider the only other movies in recent times about football careers were about the Class of ’92 – charting the most successful team in English history – and Cristiano Ronaldo, it highlights how enraptured the public are with Vardy’s story.
Most of the ‘Golden Generation’ have retired, having disappointed fans with their underachievement for over a decade. There has been a noticeable lack of excitement and enthusiasm for the national team…until this season.
Leicester City and Tottenham Hotspur boast English talent like Harry Kane, Dele Alli, Jamie Vardy, Eric Dier, Danny Rose and Danny Drinkwater. These new names have revived a nation’s hope and expectation with their young, fresh approach to the game (and beating Germany in their own backyard didn’t hurt).
This fresh crop of England players, not tainted or weighed down with past failures, will shift shirts in huge numbers before EURO 2016, which is great news for Nike. Fans have once again been drawn back towards the national team and it’s these players’ names that will grace the back of England shirts up and down the country – even Rooney’s kids want Vardy on theirs.
Mars, Vauxhall, Lidl and other England sponsors will also benefit – they have seen much of the cynicism around their prize assets disappear this season, transformed into newfound hope and positivity around the team.
It’s clear that pound signs will be flashing in the eyes of the winning club, the Premier League, the players, the FA and sponsors. The big question is whether this is a one-season wonder or the start of a new order. Can Leicester build on this and become truly dominant forces on the pitch in England and Europe, and around the world commercially?
Even Spurs, should they finish second, will have stepped out of the shadow of the dominant clubs in the Premier League and stand to gain financially off the pitch. One thing’s for certain: if Leicester and Spurs manage to continue their charge in the UEFA Champions League next season, the Big Four could start to shift uncomfortably in their boardroom chairs.
By Reema Babakhan on April 27th, 2016