Business of Ligue 1, 2021-22 – Property Profile, Sponsorship and Media Landscape
Summary
An analysis of the current business landscape in Ligue in, including a look at the current state of the league’s media rights and club sponsorship profiles.
The collapse of Mediapro’s lucrative media rights deal with Ligue 1 was a huge financial blow for the French top tier, with millions lost in revenue for all 20 teams. Amazon Prime stepped in to agree a deal to broadcast eight games a week for the 2021-22 season, but Canal+ were left incensed at the valuation of the deal, especially considering the value of their own existing deal. Although BeIN were willing to potentially renegotiate the existing deal, Canal+ attempted to extricate themselves from their agreement, refusing to broadcast any matches for the 2021-22 season. However, a court ordered that Canal+ must fulfil their broadcasting obligations despite their ire, while Ligue 1 has been left to deal with the financial ramifications.
PSG’s $73.75 million shirt sponsorship deal is the second most valuable in Europe behind Real Madrid, over three times the estimated value of Ligue 1’s next most lucrative shirt deal. PSG’s lucrative kit supplier deal with Nike accounts for 66 percent of the total value of Ligue 1 deals, highlighting the clubs value relative to the other 19 teams. The signing of Lionel Messi, one of the world’s most recognisable athletes, will only bolster PSG’s stranglehold on the domestic commercial market, given that he was reportedly responsible for generating between 150-200m a year at Barcelona.
The attraction of superstars such as Lionel Messi, Neymar and Kylian Mbappe is pushing Ligue 1 towards Serie A in terms of commercial turnover, but still trailing the Bundesliga, La Liga and the Premier League. 17 out of 20 Ligue 1 shirt sponsors located in France demonstrates the limited international appeal of Ligue 1 compared to La Liga and the Premier League, where domestic sponsors are less common. Ligue 1 had hopes that their staggering TV deal with Mediapro would boost their commercial profile on a global scale, but the league must now find other ways to generate interest following its collapse, and the presence of Lionel Messi could be key to this.
Key Highlights
– GlobalData estimates Ligue 1 to generate $23m in sponsorship revenues. Almost three quarters of this value comes from the title sponsor deal with Uber Eats, reportedly worth $16.98m a year. The other three deals make up the remainder of the deal, with Betclic’s deal the most valuable, reportedly worth $3.5m a year. Ligue 1 has the lowest sponsorship revenue from confirmed deals for the 2021/22 season, with its total sponsorship revenue within $2m of Bundesliga, which has two more deals contributing towards its total.
– Ligue 1 currently has the fourth highest combined value of kit supplier deals when compared to other major leagues. While the combined value of Ligue 1 kit supplier deals is $7.6m greater than Serie A, Ligue still trails the Bundesliga, LaLiga and the Premier League by some margin. The latter two leagues have combined values of more than double that of Ligue 1.
– The total current spending from kit supplier brands for 2021/22 stands at $147.6m. PSG’s deal with Nike, estimated to be worth an annual $98.15m, is almost twice the combined value of the other 19 kit supplier deals in Ligue 1. The value of PSG, Marseille, Lyon and Monaco deals accounts for 90 percent of the league’s overall value.
– Currently, PSG has a significantly higher front-of-shirt sponsorship than other team in the league, and is three times greater than its closest rival, Lyon. PSG confirmed their agreement with AccorHotels in 2019, with the deal reportedly worth a huge $73.75m a year, making it one of the biggest sponsorship deals on the continent. This deal was made possible due to the wealth of their owners, combined with enormous domestic success off the pitch, and a regular presence in the UEFA Champions League.
– Construction and betting are the two most frequently featured industries in terms of Ligue 1 shirt sponsors, with three deals apiece. Despite this, neither come close to some of the more valuable sectors, which speaks to the commercial power that the PSG and Lyon deals have.
– Unsurprisingly, the value of sleeve sponsorships for France’s biggest clubs, which includes PSG, Lyon and Marseille is greater than the rest of the league. Combined, the three teams make up 64 percent of Ligue 1’s total sleeve sponsor values.
Scope
– This report provides an overview of the current situation regarding kit supplier, shirt sponsor and sleeve sponsor deals for all 20 Ligue 1 teams, and overall revenues generated from these avenues for each team.
– It also identifies the current state of the ongoing media rights saga in France, and the trouble that has been brought about by the collapsed deal with Mediapro.
– The report provides a detailed analysis of all 20 teams in Ligue 1, and their current sponsorship outlook as well as expiring deals, and newer upcoming ones that have been agreed.
– A look at Ligue 1 in comparison to other leagues in Europe, and how the French top tier lags behind its biggest competitors in the sport.
– A detailed look at the league’s sponsorship portfolio in comparison to other leagues, and generated revenue, as well as the challenges involved in growing the league’s commercial profile against vastly more popular leagues.
Reasons to Buy
– For those wanting an in depth analysis of how Ligue 1 is currently performing financially, and where its future might lie, especially in the wake of PSG’s recent signing of Lionel Messi.
– The report provides comparisons between Ligue 1 and Europe’s other top soccer leagues and will be of interest to those who are also interested in any of the Premier League, LaLiga, Serie and the Bundesliga. General metrics for these leagues such as sponsorship revenue, kit supplier values, shirt sponsor values, attendance numbers and social media followings are included.
– The report will also be of interest to those who are interested in the kinds of brands that have sponsorship deals in place with Ligue 1, and its clubs. Identified are the most prevalent sectors and brands, as well as the biggest revenue generators of these aforementioned sectors.
