Is your Premier League team in need of external financial backing? It’s quite probable they’re already receiving such support, unbeknownst to you.
Commencing next season, the league will transition from Profit and Sustainability Rules (PSR) to Squad Cost Ratio (SCR) regulations, signifying the newest alteration in English football’s financial panorama. Consequently, boosting income beyond the pitch to influence performance on it has gained unprecedented importance.
Whereas PSR concentrated on a club’s earnings or deficits across all income streams within a three-year rolling timeframe, permitting a peak £105 million loss, SCR mandates that clubs limit their expenditure on team-related expenses—primarily player transfers and salaries—to 85% of their overall income. This framework mirrors the one utilized by UEFA’s Financial Fair Play, though it limits spending for clubs participating in continental tournaments such as the Champions League to 70%.
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SCR represents one element of a perfect storm.
Starting next season, the Premier League will prohibit front-of-shirt advertisements from betting firms. This implies that 11 out of the 20 clubs must secure new primary sponsors for the 2026-27 season when the ban takes effect. West Ham United vice chairman Karren Brady asserted during a House of Lords debate in November 2024 that the decision to forbid front-of-shirt gambling promotions “will result in a decrease of approximately 20% of their total commercial revenues.”
So, where might clubs seek alternatives? One solution lies in utilizing external agencies to unearth novel commercial expansion prospects. This is a common practice in U.S. sports, but it has been uncommon in England until recently.
‘The initial query is how do I bridge that income shortfall?’
Precisely half of England’s top 44 clubs—encompassing the Premier League and the second-tier Championship—are predominantly owned by American investors. This surge in U.S. ownership has prompted teams to look to the States for innovative approaches to securing creative sponsorship agreements.
The U.S. market remains relatively unexplored for the Premier League regarding commercial expansion. Industry figures estimate that American brands now account for 61% of global sponsorship expenditure in sports, yet only one in six European football sponsorships involve U.S. brands.
Playfly Sports stands at the forefront of this transformation. The sports marketing, media, and technology enterprise promotes itself as the “foremost revenue optimizer in the sports sector.” The Premier League itself has now engaged Playfly to expand and monetize its fanbase in the U.S. Industry informants have informed ESPN that roughly half of the clubs in England’s top division currently collaborate with retained commercial agencies in some capacity. In 2023, that figure was around 10%.
Dan Lipman, Playfly’s co-managing director for Europe, conveyed to ESPN: “American owners involved in the Premier League also hold ownership stakes in other clubs across different sports. Playfly collaborates with every team in the NBA, MLB, NHL, and those American owners have observed the sophistication with which we have handled those commercial incomes: the methodology to date, the wealth of brands, and the connections we provide.
“It is not an unrelated trend that as these proprietors invest in European football, they are turning to agencies. Many American sports executives visit a U.K. sports match and remark on the scarcity of advertised brands and the limited activation. In the U.S., it is entirely different. With SCR impending and betting removed from shirts, the primary concern for individuals is where they can compensate for that revenue deficit?”
Until recently, commercial arrangements at most Premier League clubs were driven by personal connections, such as chief commercial officers leveraging their professional network to secure sponsorship agreements. Analogous to the modernization of player recruitment, which has transitioned from traditional scouting to the utilization of analytics, data can now play a pivotal role in commercial strategy, and clubs are increasingly willing to seek external assistance with this endeavor.
Football finance specialist Kieran Maguire informed ESPN: “Some Premier League clubs with substantial budgets have adopted the habit of employing external agencies to effectively delegate their ambition to diversify income sources.
“For instance, Tottenham Hotspur hosts more non-football events with a fully occupied stadium than football events, so how can they customize these for revenue maximization? Counsel on pricing, catering, and merchandise sold by third parties—the club might not necessarily possess the expertise there because it is still a relatively recent addition to their array of tools for maximizing income.”
‘The largest brand payments will originate from the U.S.’
Last August, Crystal Palace declared SunExpress as an official airline collaborator, the club’s first since 1991. The agreement was secured by Playfly, replicating a tactic employed in the U.S. of introducing airline brands to professional and collegiate teams. In college football, Southwest Airlines provides supplementary flights for game days as part of its alliance with the SEC, while Alaska Airlines serves as the official airline for the Big Ten’s four West Coast teams.
The American model is attractive because, simply put, the figures continue to climb. Last October, the NFL reported a revenue surge of 14% for the previous fiscal year. MLB incomes reached a record $12.1 billion in 2024, while NBA sponsorship increased by 8% according to data firm SponsorUnited.
“A U.S. owner arrives, they hire a U.S. chief commercial officer who has performed this role for them in the U.S., who then engages a U.S. agency to assist them in organizing media sponsorship, TV-facing signage, and there’s confidence,” Lipman stated. “That’s how it is developing.”
Tottenham became the latest club to align with this trend when they appointed Alex Scotcher—previously with the U.S.-based sports agency firm Elevate—as their new commercial director last month. Chelsea’s president of commercial, Todd Kline, held a similar brief role at Spurs, having also served the Miami Dolphins; Liverpool’s Kate Theobald was formerly employed by the New York Yankees.
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The new SCR regulations pose a significant challenge. Maguire remarked: “The rule modification permits clubs to allocate 85% of revenues to player expenses, placing them under additional pressure to generate that incremental revenue because 85% can be dedicated to player costs.”
Lipman conveyed: “The commercial earnings for the Big Six clubs surpass their broadcast revenue. It stands at about 40-60%
of their overall income.
“Every squad is exploring external patronage assistance, given its profound impact. Substantial brand payments are primarily sourced from the United States, which fundamentally relies on established connections.
“SCR is undeniably more connected to business earnings, as its focus is on consistent income streams; PSR, conversely, concerns the annual financial outcomes of profit and loss. Upon examining income streams, what tends to be consistent and foreseeable? That would be commercial earnings – specifically multi-year and enduring collaborative agreements.
“Engaging in initiatives with a club that could generate tens of millions in annual gross initial income profoundly affects their allocation for athlete salaries, subsequently influencing their capacity to attract new talent.”
‘Broader Advertising Display’
The Premier League’s elevated prominence and worldwide visibility position its teams advantageously over competing European divisions when tapping into the American market. Domestically, in England, a competitive scramble for commercial advantages is emerging.
Arsenal is charting its distinct course, presently in the third year of what they term a novel business approach, aiming to double earnings from secondary sponsors. Their previous year’s fiscal outcomes underscored both the continuation and expansion of their Emirates collaboration, alongside the renaming of their practice facility to the Sobha Realty Training Centre. Nevertheless, their American proprietors, led by billionaire Stan Kroenke, will undoubtedly assess additional opportunities within the United States as they materialize.
Professionals within the sector anticipate that the commercially-focused, U.S.-oriented, and agency-affiliated appointments at Chelsea, Tottenham, and Liverpool will heighten those clubs’ vigilance in this particular domain.
Therefore, how might supporters witness this unfold going forward? Mike Schreiber, the executive chairman of Playfly Sports, informed ESPN: “An increased array of venues for promotional content — the presence of available slots, be it within televised transmissions or inside sporting arenas. A greater volume of advertisements in an expanded number of locations. This is a prevalent concept in the U.S. and is now shifting here. Also, elevated experiences for spectators.
“This trend has spread widely across the U.S. and is beginning to gain momentum in the U.K. It is feasible to decrease the stadium’s seating capacity yet generate increased revenue. Though it may seem illogical, establishing more spacious and superior seating, direct food delivery to one’s spot, or dedicated hospitality zones – these are all aspects of transformation where business-focused agencies can thrive and expand.”
Observe this (promotional) area.