Potential market rates for English Premier League stadium naming rights have grown from £74.6m in 2013 to £135.6m in 2017, according to new research by global valuation and corporate finance advisor Duff & Phelps.
This is an increase of over 80% and comes as a result of the inexorable growth in the value of Premier League rights, according to the analysts.
Manchester United’s Old Trafford ground was the ‘most valuable stadium’ in 2017 and market naming rights could achieve over £26 million a season for the Manchester club, over £7 million more than the amount of its neighbour, Manchester City.
The top six clubs who regularly play in European competitions account for over 77% of the £135.6 million potentially attributable to seasonal Premier League naming rights.
The two Manchester Clubs alone generate over 33%, and the five London clubs over 40% of the total.
Chelsea FC is in third place with nearly £18 million per season potentially available, and Tottenham Hotspur FC, looking to move into a new stadium next season, might generate over £15 million per year.
Despite West Ham sitting mid-table in the Premier League, its new 66,000-capacity London Stadium provides the club with an opportunity to maximise its potential market worth.
With its 52,405 capacity at St James’ Park and dedicated fanbase, Newcastle United ranks in the top half of the table.
Leicester City FC, 2016 Premier League winners, have already secured a naming rights deal, and come in at mid-table in the naming rights league.
Trevor Birch, managing director and head of UK Sports at Duff & Phelps, said:
Sponsorship demand for the content rights of the top clubs in the Premier League shows no sign of abating. We have seen enormous increases in rights values of the elite clubs over the last couple of years, especially regarding shirt branding and product endorsement.
Although the UK hasn’t embraced Stadium naming rights as enthusiastically as the United States, its potential to become an important revenue stream is highlighted by these figures. Clubs are continually looking at ways to generate extra value, and given the gilt-edged international demand for the Premier League TV rights, we may be entering a period where we start to see clubs monetising their stadium rights.
This is potentially a huge opportunity for clubs, with 40% of Premier League clubs, including Arsenal, Man City, Leicester, Stoke City, Brighton and Hove Albion all granting stadium naming rights to their grounds in recent years.
The estimated values for each club are listed below.
Club Value of stadium naming rights per season
Man Utd £26.2m
Man City £19.1m
West Ham £4.8m
Crystal Palace £1.1m
West Brom £0.9m