Arsenal can strike ‘improved’ Emirates shirt and naming rights deal amid £500m development

It wasn’t that long ago that Arsenal were the ugly duckling of the Big Six when it came to revenue from sponsorship, retail and events. But according to their latest accounts, they have now overtaken Chelsea and are closing in on Tottenham and Liverpool.

Sales have been helped by the club’s performances under Mikel Arteta, whose side are fighting on four fronts this season and are favorites to win both the Premier League and – for the first time – the Champions League.

As part of the self-sufficient business model pursued by Stan Kroenke and his colleagues in north London, the £263 million they earned from commercial sources last season will be reinvested into the club, funding transfer and wage expenses as well as increasing operational costs.

After the Adidas partnership, the naming rights and front-of-the-shirt sponsorship of Arsenal constitute the club’s most valuable commercial deal.

Arsenal’s association with Emirates dates back to July 2006, making it one of the oldest in football. The latest version of the agreement, signed in the summer of 2023, will extend the partnership until at least 2028.

Speaking to City AM’s Matt Hardy last week, Boutros Boutros, Emirates’ vice president of corporate communications, marketing and brand, highlighted the importance of longevity in the company’s partnerships. Referring to the deal with Arsenal, alongside their shirt partnership with Real Madrid, he described it as a “good strategy” and said “we should continue on this path”.

Importantly, Arsenal are planning to expand the Emirates Stadium, potentially by up to 70,000 seats or more, at a cost of over £500 million.

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So what impact would Emirates 2.0 have on the club’s leverage with the UAE airline, which currently pays around £50m a year, when the rights are renegotiated in two years’ time?

“There will be natural advancements in the Emirates deal that will be linked to Arsenal’s success on the pitch,” Maguire tells Arsenal Insider.

“But if they can make the Emirates a more assertive stadium, I think you can also leverage that in naming rights negotiations. Arsenal need to be able to use what they achieve on the pitch in commercial negotiations.

“They are a successful club and Emirates is a successful airline. They are based in an iconic city and are highly regarded. They have enormous leverage in terms of sellers in negotiations.

“So yes, I think they certainly have the opportunity to seek improved terms from Emirates while continuing what has been a very successful relationship.”