With the end of the current campaign fast approaching and the publication of next season’s fixtures scheduled for June, the Football League are still currently in the process of trying to find a sponsor. A recent report from commercial business website Marketing Week raised the possibility that the League could be without a main commercial sponsor for the first time in 30 years if nothing is done.
This would be a strange turn of events but one that could have significant consequences for a number of clubs. NPower had a period of exclusivity for negotiations that ended in October. Within this period the energy company had the option of extending their current deal, but the deadline expired and meant the Football League were entitled to search elsewhere for a main sponsor.
So far, no such replacement has been announced, with the Marketing Week report suggesting that the Football League’s asking price is too high.
Whilst it would be highly unlikely that a sponsor will not be found, the time taken to finalise an agreement could have a negative effect on the revenue received by the Football League, as the closer it gets to the new campaign the more likely it is they will accept an offer below their expectations.
The Football League distributes the money it receives from nPower to the 72 clubs that make up its three divisions. Were there to be any significant change or depreciation in this value, it would mean clubs would receive less income. Clubs who budget for a percentage of income from the League’s sponsor could be adversely impacted.
The on-going negotiations mean that it is difficult to tell where the problem lies in this situation. On the face of it, the Football League, with the Championship as its main attraction for league competition, has a lot of positives to offer potential sponsors. Exposure has increased across the divisions in recent seasons with BskyB’s continued development and involvement. Yet it would seem that it does not appeal to as many as would have been expected.
This potentially gives weight to Marketing Week’s suggestion that the asking price is too much. Given the recent TV deal between BskyB, BT and the Premier League , with its astronomical figures, it is understandable that the Football League thinks it should receive more income for what is a highly popular league, especially when in some corners the Championship is seen as one of the most popular leagues in Europe ahead of some national premier divisions.
But there is a difference between asking for a perceived entitled valuation and being greedy, and for the sake of the clubs in the Football League, supporters must hope it is not the latter.
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