Cash bonanza for Chelsea? Talks for main kit sponsor heat up
Chelsea find themselves in a precarious financial situation as they head into the 2024-25 season without a confirmed kit sponsor.
This marks the second consecutive season the club has entered without a primary sponsor on their jerseys; an issue that has persisted since Todd Boehly’s BlueCo takeover in May 2022.
The lack of a shirt sponsor has significant financial implications; particularly for a club already grappling with the absence of Champions League action. What’s more, it also raises questions about the club’s future financial stability.
Chelsea‘s sponsorship woes began to surface prominently after the end of their partnership with telecommunications giant Three; it concluded at the end of the 2022-23 season. The club quickly moved to secure a deal with Infinite Athlete, a US-based sports data company, in September 2023. With a yearly worth of $53 million, this agreement helped alleviate some of the financial burden the team felt due to their inability to qualify for the Champions League. However, this deal was short. With Infinite Athlete’s removal from the Blues’ shirts, the club is now again seeking a new principal sponsor.
The impact of not having a front-of-shirt sponsor cannot be understated. It is not just a revenue stream but also a significant aspect of a club’s global branding. Shockingly, a team with such a large global fan base doesn’t have a sponsor’s logo on their game jerseys; in fact, it could potentially affect the club’s marketability and appeal to global brands.
Need for new investment
The financial implications of Chelsea’s current situation are severe. With no front-of-shirt sponsorship to bring in big bucks and no Champions League for another year in a row, the club might be in over $132 million in the red, Football Insider say.
This is a significant deficit for any club; let alone one that has been near the Profit and Sustainability (PSR) limits due to extensive spending on player acquisitions.
Since BlueCo took over, Chelsea have spent more than $1.6 billion on new players; with an outlay of $318 million this summer on new additions. This heavy investment in the squad has been necessary for on-field competitiveness. Unfortunately, it has severely strained the club’s budget, heightening the need to secure a large sponsorship contract.
So, the American owners will probably have to put more money into the club to make ends meet for the time being, according to the article; especially because the Europa League does not generate enough money to make up for the lost money.
Saudia Airlines: Potential new sponsor?
Despite these obstacles, reports indicate that Chelsea and Saudia Airlines are nearing the finalization of a contract for a possible front-of-shirt sponsorship for the new season.
This comes after earlier negotiations with another Saudi airline, Riyadh Air, fell through, reportedly due to the inability to agree on financial terms. The breakdown in talks with Riyadh Air is believed to have been influenced by Chelsea’s current absence from the UEFA Champions League, which may have diminished the club’s attractiveness to top-tier sponsors.
If the renewed talks with Saudia Airlines are successful, it would be a significant coup for the Premier League side.
A partnership with a global brand like Saudia Airlines would not only fill the financial gap left by the absence of Champions League action but also enhance the club’s visibility and branding in key international markets. For Saudia Airlines, this deal would offer substantial exposure and align the brand with one of the most recognized clubs in the world.
However, these negotiations are still ongoing, and neither party has received official confirmation, Footy Headlines reveal. The urgency to finalize a deal is palpable, with the new season fast approaching and Chelsea keen to avoid the embarrassment of starting another campaign without a main shirt sponsor.
Photo credits: IMAGO / Sebastian Frej : IMAGO / SOPA Images