Arsenal has a significant opportunity to finalize a lucrative commercial deal, thanks to developments in Africa.
The Gunners are among the few global brands in the Premier League and European football, alongside Liverpool, Man United, and increasingly Man City, who are all intensifying their efforts to capitalize on emerging markets.
This strategy has led Arsenal to secure commercial deals with entities like Omani property developer Sobha Realty and maintain their ongoing partnership with UAE airline Emirates. Arsenal’s front-of-shirt deal with Emirates and kit deal with Adidas are secured until 2028 and 2030, respectively.
However, the third most lucrative sponsorship element is nearing renewal.
Since 2018, Arsenal has featured Visit Rwanda’s logo on their shirt sleeves. The partnership, last extended in 2021, is worth £40m over its four-year term. As the 2024-25 season marks the final year of this deal, Arsenal is now evaluating the terms for potential renewal.
Rwanda’s recent political stability could aid this renewal.
Rwanda’s president, Paul Kagame, a dedicated Arsenal fan who regularly attends games at the Emirates, was re-elected for a fourth term in a landslide victory. His support was crucial for the initial commercial link-up, and his continued leadership bodes well for the partnership’s renegotiation, which both parties deem successful.
Despite facing criticism and calls to end the deal with Visit Rwanda, especially following the UK Supreme Court’s ruling on the Conservative government’s Rwanda asylum plan in late 2023, Arsenal has maintained the agreement, dismissing accusations of ‘sportswashing.’
TBR Analysis: Bridging the commercial gap between Arsenal and the Big Six
Arsenal’s commercial income, last recorded at £173m, lags behind their rivals in the ‘Big Six,’ with Man City, the highest earners, making almost double. Part of this discrepancy is due to Arsenal’s recent absences from the Champions League, unlike Man United, who have navigated similar absences without as significant a drop in commercial income.
While Arsenal is making strides in this area, they need to innovate to close the gap with their elite Premier League peers. A 2022 report from industry experts CLV Group suggested that Arsenal could potentially increase their revenue by £79.9m by enhancing direct-to-consumer experiences in emerging markets.