Record-breaking off-pitch Aston Villa deal could hit £100m as new details emerge in last 24 hours
Posted By Joe E
May 22, 2024
6:02 pm
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Aston Villa could rake in as much as £100million from a brand new blockbuster commercial deal.
Villa are riding high after finishing the season in the top four, meaning Unai Emery’s side will play lucrative Champions League football next season.
And their success on the pitch is being mirrored by their exploits in the commercial department ahead of 2024-25.
The Birmingham club have now announced two major sponsorship deals for next season, a front-of-shirt deal with online betting platform Betano and a kit deal with German sportswear giants Adidas.
The Adidas has deal has been mooted for a long time, but the latest details about the partnership have revealed just how lucrative the agreement could be for Villa.
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Villa could bank as much as £100m from Adidas deal
According to football finance analyst and reporter Łukasz Bączek, the Adidas deal could be worth up to £20m per season if certain conditions are met.
Bączek also reports that it is a five-year deal, which means Villa could potentially net as much as £100m over the duration of the partnership.
However, that is not a foregone conclusion.
The base figure is £10m per season, topped up by £7-8m if the club sells 300,0000 shirts and a £3m bonus for qualifying for the Champions League.
So Villa will hope that Emery can continue achieving on the pitch in order to drive interest among supporters, prompting more and more shirt sales.
Regardless of the breakdown of the £20m package, the deal represents the most lucrative kit deal in the club’s history – and by quite a margin.
Can Villa spend big again in the transfer market this summer?
Villa’s record-breaking kit deal with Villa, whose value is matched by the two-year front-of-shirt deal with Betano, may prove to be a life jacket for the club, whose position under financial fair play is precarious.
Villa have spent big in recent years to achieve their current success and most estimations of their FFP (now called Profit and Sustainability Rules, or PSR) position have them over the threshold.
Every pound they can eke back in sponsorship revenue will be another pound for the transfer budget, which will be crucial if they are to consolidate their position among the Premier League elite.
However, they will have to grapple with Premier League‘s new FFP system, which is expected to be introduced after a final vote at a meeting of club officials on 6 June.
The new model features a squad cost control ratio of 85 per cent and a financial anchoring system that ties clubs’ spending on new signings, wages and agent fees to a multiple of the lowest-earning club’s TV cash in any given year.
Analysis from football finance experts Off The Pitch puts Villa at between £67.6m and £106.6m over the limit based on their latest set of annual accounts.
And while Champions League cash next season will make a major dent in that, they will likely still have to break even in the transfer market, if not in 2024-25 then the following season – even though they are expected to announce their biggest ever turnover next term.
Either way, the huge sum from a blue-chip company like Adidas will be a welcome cushion and one that demonstrates their appeal as a commercial partner, potentially giving them an advantage in other commercial negotiations further down the line.