Manchester United are missing out on a potential extra £26m revenue a season to keep the Old Trafford name, according to finance advisors Duff & Phelps.
Sky Sports reports, the Red Devils are not taking advantage of the chance to bring in more money for the club by selling the naming rights to their famous ground. Studies suggest that a sponsorship for United’s stadium could earn them £7m a year more than their fellow Manchester team – Man City – earn from their Etihad sponsorship.
Head of UK Sports at Duff & Phelps, Trevor Birch, has admitted that the valuations are not exact. He told Press Association that they are “potential, theoretic valuations that might not be achievable on the market,” reports Sky Sports.
However, the study did suggest that naming right sponsorships have risen hugely in the Premier League over the last 4 years, largely effected by the divisions top sides. It declares that the market has increased from £74.6m to £135.6m in that small period of time.
The study claims that Chelsea’s Stamford Bridge ground could potentially be earning the club a further £18m a season. While Tottenham’s new stadium is likely to earn the North London side £15.5m a year, putting their revenue from naming rights just above rivals Arsenal, who acquire a reported £15.3m annually from their Emirates sponsorship deal.
There are currently eight teams in the Premier League that have stadium sponsorship deals, but selling the naming rights of a ground is a subject that often does not go down well with fans.
The Manchester United faithful will surely be glad to know that reports have suggested that the club have no intention of selling out at the expense of the name of their home.
The study suggests that naming rights to an old stadium, like Old Trafford or Liverpool’s Anfield, can in fact also be unappealing to sponsors, as they are aware that the original name is likely to stick as the ground is famously known under that title.
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Sponsors also do not like to take on a stadium that has had previous sponsors for the same reasons. This has been proven in North America, where it is has become popular to sell the naming-rights to a stadium or arena.