Expert: Man City profit from ‘brilliant’ plan after £43.2m reveal
Other Premier League clubs are starting to follow the commercial strategy of Man City when it comes to completing sponsorship deals with associated parties.
That is the view of finance expert Dr Dan Plumley, who spoke exclusively to Football Insider about the recent partnership between the Premier League champions and Indian communications company Jio Platforms.
Man City released an official statement last Thursday (5 January) stating that they were partnering with India’s leading digital services brand.
Jio and Man City’s parent company – City Football Group – both have ties to Abu Dhabi, with Sheikh Mansour owning CFG while Abu Dhabi Investment Authority (ADIA) has a 1.6 per cent stake in Jio Platforms purchased in 2020.
It’s the latest of many sponsorships that include partnering with an Abu Dhabi-associated company, and it’s a strategy that has resulted in resounding success for the club.
In their latest financial reports, Man City revealed a £43.2million growth in revenue for the 2021/22 season, with the club attributing the success to rises in commercial and matchday revenues.
Plumley was not surprised to see Man City using their ownership model to secure sponsorship, and explained that it’s a trend many Premier League clubs are starting to adopt.
“The way the ownership group has operated in the past, this was always going to be part of the strategy,” Plumley told Football Insider.
“Associated party deals are becoming the norm, not just for Man City but across the Premier League.
“From the club point of view, they’re looking to capitalise on whatever they can in the market, which explains why many of their deals have been with associated parties.
“It’s about capitalising on the leverage you have got in the market and if you can get into valuable companies through your ownership group then you can see why it’s been such a brilliant strategy for City in recent years.”
In other news, Gabby Agbonlahor suggests Kalvin Phillips ‘won’t forgive’ Pep Guardiola at Man City