Liverpool’s new $100m deal is the perfect example of FSG’s long-term plan paying off

A new £80m ($100m/93.1 million euros) The Liverpool deal is a perfect example of how FSG’s long-term plan is paying off. When it comes to commercial partnerships, Liverpool have been focusing on retention for some time. While the football club has recently welcomed new partners such as UPS and Peloton, many of its deals have extended well beyond the lifecycle of the first contract.

Carlsberg is perhaps the most famous example of a long-standing commercial partnership with Liverpool. The Danish beer company signed a new deal with the club last December which will see the two entities aligned for an impressive 42 years until it ends.

Last summer, Liverpool completed their search for a front shirt sponsor for the coming years. Despite the fact that we have received expressions of interest from companies in various sectors — from travel and tourism to electronics and cryptocurrencies — financial services provider Standard Chartered has chosen to extend to 2027, bringing the total duration of the deal to at least 17 years.

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There has also recently been a renewal with Expedia, the club’s sleeve partner, while other extensions with brands such as Nivea and EA Sports have been secured in recent seasons, reports the Liverpool ECHO.

Last month, Liverpool FC announced the renewal of their partnership with insurance giant AXA, a deal that not only extends their sponsorship of the Reds’ training ground in Kirkby, but also sees AXA take on the naming rights for Melwood, Liverpool Women’s home base. and promoting a closer bond with both the men’s and women’s teams.

The deal, which is due to run until 2029, is valued at around £20m ($25m/€23m) per annum, and the cumulative £80m ($100m USD/€93.1 million) is a testament to Liverpool’s knack for maintaining long-term commercial relationships, something they have excelled at more than many of their rivals.

For the 2022/23 financial year, Liverpool saw their commercial income rise by £25m ($31m/€29m) to £272m ($342m/317 of millions of euros). This growth has been crucial to maintaining the club’s overall revenue figures over the past year, despite a decline in success on the pitch which has resulted in reduced prize money and broadcast income.

With a global strategy in place for its commercial ventures, Liverpool operate from offices stretching from their home in Anfield to New York, ensuring they consistently exceed partner expectations. Virginie Bercot, AXA’s global brand director, shared with the ECHO: “The way they think about their sponsor, they’re smart, open-minded and we get to co-create with the club.

“I would say they create bold content when it comes to parity and diversity. Now we think strongly, for example, about sustainability. They are bold enough to accompany us, but also to challenge us and bring their ideas to the table. it’s not just about using the rights, it’s about passing on the same values, passing on the same synergies, which are both positive for the club and for AXA.”

“In terms of how and why we’ve seen success, I think we have all the ingredients we need to be successful and continue that success,” said Chief Commercial Officer Ben Latty.

“When I talk about ingredients and what makes you an attractive partner for a blue chip brand, we have really strong values ​​first and foremost. We have a respected and responsible ownership group that I believe, and I’m sure many others believe, are running and operating the club in the right way and investing in the right areas that need investment, whether it’s infrastructure or resources.

“We have a strong football leadership team, a commitment to the women’s game, an award-winning sustainability strategy and a highly skilled sales team that instills confidence from the start in partners and we deliver to partners.

“We have unrivaled reach as a football club through the digital channels we own and operate and the TV audiences we attract. When you put all those ingredients into the mix, I can’t think of another rights holder, let alone another football club that has all those ingredients and we’re seeing it all come to fruition now.”