Real Madrid have reached an agreement with the Turkish Tourist Office, who will sponsor the team’s training kit for 12 million euros per season.
This will be the first time Los Blancos’ training gear will have a sponsor, although the club have an agreement with Fly Emirates for their kit until 2022, earning 70 million euros per year.
Madrid have managed to clinch the best sponsorship deal in Europe ahead of Manchester United, who earn 62 million euros per year from Chevrolet, and Barcelona, who collaborate with Rakuten in exchange for 55 million euros.
The Blaugrana have Beko as sponsor for the training kit, after reaching a 57 million euro deal with the Turkish company for three years.
Normal in the Premier League
Manchester United were the first team – back in 2011 – to reach a deal for their training kits with DHL for four seasons in exchange for 46 million euros.
They currently have a sponsorship contract with AON, while Liverpool have had an agreement with BetVictor since 2016 and Chelsea signed with Carabao in 2015.
Agreement with Providence
In 2018, Real Madrid reached a four-year agreement with the Providence investment fund, to provide the club financing in advance in exchange for a share in the benefits generated by the sale of sponsorships; a business that last season saw Real Madrid earn around 240 million euros.
This alliance, along with the arrival of Canadian executive Dave Hopkinson as global sponsorship director in July 2018, has brought notable changes in Real Madrid’s business policy.
New routes of income
Los Blancos have long been looking for new ways to generate income to diversify their business and give it greater economic stability to ensure that revenues don’t exclusively depend on the sporting activity.
For this reason, and given that the business stagnated in the last year with a rise of just 0.4 percent despite coinciding with a cycle of enormous sporting success in the Champions League with four titles during the last five years, Real Madrid have intensified the search for new income formulas, such as the training kit sponsorship.
The new Santiago Bernabeu is key
To compete with teams owned by Arab powerhouses such as Paris Saint-Germain and Manchester City, it will be essential the Estadio Santiago Bernabeu to generate considerably more than 175 million euros reached last year.
Club president Florentino Perez has always insisted that the remodelling the stadium is of great importance and Los Blancos will invest 575m euros to make that happen.
The target is to achieve a boost of 150m euros in annual profit.
Sponsor on the shirt sleeve and Valdebebas
Real Madrid have extended their collaboration with Adidas until 2028, doubling the 52m euros that the German manufacturer previously paid each season.
The club are also exploring other options such as getting a sponsor for their shirt’s sleeve as Barcelona already do with Beko or selling the naming rights to their training ground in Valdebebas.