The rush to China

Barcelona is the latest European football club to invest in China on the back of President Xi Jinping’s plans for a football revolution.  They have opened a €4m complex featuring a football school, Barcelona shop and fan zone on the island of Hainan.  They believe that revenues from China will be critical to Barcelona’s target of generating €1bn of revenue by 2021, up from €679m in the 2015/16 season.

Big success for Brand Beckham

David and Victoria Beckham received more than £15m in dividends last year after profits at their business empire rose by 400 per cent.   The couple have cashed in £28.1m in dividends in the last three years.

Beckham Brand Holdings recorded a pre-tax profit of £39.5m on revenue of £47.1m in the year to 31 December.   This was up from a profit of £9.9m on £51.5m of revenue in 2014.   The company could be worth £316m with the Beckhams’ share worth about £208m.

New hope for Everton

If you look at today’s Premier League table there are the top six clubs (three from London, two from Manchester, one from Merseyside) and then nine points behind the last of the top six can be found Everton.  Given their history, Everton fans feel that they also qualify as a top club.

Farhad Moshiri has a 49.9 per cent stake in the club and he has made them a £80m interest free loan. He has vowed to return them to the elite of English football.

Big shirt sponsorship deal for Barca

FC Barcelona have signed a short sponsorship deal worth at least €220m with Japanese retailer Rakuten. The four season deal is worth €55m a year, a similar amount to the £47m a year that Manchester United earns in its contract with Chevrolet.

Barcelona has also signed deals to capture the Turkish electronics giant Beko on its shirtsleeves and US semiconductor company Intel unusually on the inside of its shirts.   It’s a long way from just having Unicef on its shirts.

Getting round the rules

One can devise rules to restrict external investment in football clubs, but it is also possible to find ways of getting round them.   That is what the German Bundesliga has found.

RB Leipzig are currently second in the top German league.   They are sponsored by Red Bull, the energy drinks manufacturer, and play at the Red Bull Arena.   They are affiliated to New York Red Bulls and Red Bull Salzburg, the Austrian champions, both of whom play at grounds called the Red Bull Arena.

London Stadium naming deal in trouble

The latest crowd trouble at West Ham’s London Stadium is going to make securing a naming deal more difficult.   The spectacle of fighting fans is not one a sponsor needs to boost their image.

It was always going to be difficult because what is on offer is really the sponsorship of West Ham.  The stadium would have to be debranded for other events such as the World Athletics Championship next summer.   Moreover, sponsors prefer to put their name to a new stadium.

New Chelsea kit sponsorship deal

Chelsea has signed a kit sponsorship deal with Nike worth £900m, the largest of its kind in the Premier League.  The 15-year deal is reported to be worth £60m a year.

The size of the contract reflects the rapid rise in the cost of football kit and sponsorship deals as the international audience for Premier League games has grown.

Chelsea ended its previous kit relationship with Adidas in May.   That deal had been worth £300m over ten years, but the club decided that it was well below market value.