Arsenals weakness arises from the fact they had to tie themselves into long-term deals to provide security for the stadium financing, which arguably made sense at the time, but recent deals by other clubs have highlighted the lost opportunities. The Emirates deal was worth £90 million, covering 15 years of stadium naming rights (£42 million) running until 2020/21 and 8 years of shirt sponsorship (£48 million) until 2013/14. Similarly, the club signed a 7-year kit supplier deal with Nike for £55 million until 2011/12, but that has since been extended by 3 years until 2013/14.
So, following step-ups, the shirt sponsorship deal is reportedly worth £5.5 million a season, which compares highly unfavourably to the £20 million earned by Liverpool from Standard Chartered and Manchester United from Aon. Its the same story with the kit deal, which now delivers £8 million a season, compared to the £25 million deal recently announced by Liverpool with Warrior Sports and the £25.4 million paid to Manchester United by Nike (yes, the same company that pays Arsenal much less).
Its not overly dramatic to say that Arsenal leave over £30 million a season on the table, because of their poor commercial deals, which is the equivalent of one great player a season.
Arsenals new owner Stan Kroenke has said that he intends to use his experience to help Arsenal continue to grow its global brand, including persuading Wenger to take his side on a pre-season tour to Asia, but he might also consider whether it would be worth buying out these punitive commercial contracts, as Chelsea did a few years ago.
Arsenal have restructured their commercial team at great expense, recruiting Tom Fox from the NBA in August 2009, but to be perfectly candid they have not delivered much to date. In fact, commercial revenue actually fell £4 million in 2009/10. They might argue that their hands are tied with the long-term deals, but if that is the case, what was the point in hiring such costly executives? In any case, they should be able to work freely on secondary sponsor deals, which has been an important source of Uniteds impressive growth. When the interim results were announced, Gazidis said that fans would begin to see some results over the next year lets hope so.