Aston Villa might earn up to £100 million from a brand-new, highly lucrative sponsorship agreement.
Villa is in great spirits as a result of placing in the top four this season, guaranteeing Unai Emery’s team a spot in the lucrative Champions League the next year.
Additionally, their achievements in the commercial department leading up to 2024–25 are a reflection of their success on the pitch.
The Birmingham team has already revealed two significant sponsorship agreements for the upcoming campaign: a kit agreement with German sportswear giants Adidas and a front-of-shirt partnership with online betting platform Betano.
Although the Adidas collaboration has long been discussed, the most recent information about it has shown how profitable Villa may find the contract to be.
Villa might profit up to £100 million from the Adidas partnership.
Łukasz Bączek, a reporter and football finance analyst, claims that if certain requirements are completed, the Adidas deal may have a value of up to £20 million every season.
Additionally, according to Bączek, the agreement is for five years, meaning that Villa might make up to £100 million during that time.
That outcome is not inevitable, though.
The season’s base salary is £10 million, with an additional £7-8 million if the team sells 300,0000 jerseys. There is also a £3 million bonus for making it to the Champions League.
Villa will therefore be counting on Emery to keep doing well on the pitch to spark excitement among fans and increase the number of shirts that are sold.
Regardless of how the £20 million package is broken down, this is by far the most profitable kit sale in the club’s history.
Is Villa able to make significant transfers this summer?
The two-year front-of-shirt contract with Betano and Villa’s record-breaking kit deal could serve as a lifesaver for the club, which is in danger of failing to meet financial fair play requirements.
Villa has made significant investments in order to reach their current level of success, and the majority of assessments of their FFP—now known as Profit and Sustainability Rules, or PSR—position place them above the cutoff.
If they are to maintain their place among the Premier League’s elite, every pound they can recover in sponsorship money will be another pound for the transfer budget.
But they will have to deal with the Premier League’s new FFP system, which is anticipated to be implemented following a final vote at a club executives’ meeting on June 6.
The new model has an eighty-five percent squad cost control ratio and a financial anchoring system that links clubs’ expenditure on wages, agent fees, and new signings to a multiple of the TV cash earned by the lowest-earning club in any given year.
Expert analysis on football financingRemoved According to The Pitch, Villa’s most recent set of annual accounts puts them between £67.6 million and £106.6 million over the limit.
And even though Champions League revenue next season will significantly reduce that, they will probably still need to break even in the transfer market the next season, if not in 2024–2025. This is because they are anticipated to report their highest-ever turnover rate the following season.
In any case, the sizeable payment from a reputable business like Adidas will serve as a welcome buffer and show their value as a business partner, maybe providing them an edge in future talks.
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