Stefan Borson: Arsenal sponsor paid ‘premium’ to agree controversial deal
Arsenal have decided to move on from their sponsorship deal with Visit Rwanda at the end of this season.
Visit Rwanda has been Arsenal’s sleeve sponsor since 2018, but it has been a highly controversial deal among the club’s supporters.
Arsenal held talks about extending their partnership with Visit Rwanda before confirming last month the two parties had “mutually agreed to conclude their partnership” when it expires at the end of this season.
There have been suggestions Arsenal hijacked Chelsea’s sponsorship talks with Deel, but it is understood that isn’t the case.
The American payroll and HR company has agreed to become the Gunners’ sleeve sponsor from the start of next season.
Arsenal to land £10m windfall after sponsor deal agreed
Former Man City financial adviser Stefan Borson exclusively told Football Insider Visit Rwanda likely paid a “premium” to agree the sleeve sponsorship deal with Arsenal seven years ago.
Arsenal fans have protested against the partnership on various occasions, with Rwanda’s government accused of investing in sport to improve its image globally.
Speaking exclusively to Football Insider about the Gunners’ agreement with Deel, Borson said: “I think all things being equal, you’re probably looking at around £10million, which is broadly what they were getting from Visit Rwanda.
“Although I would have thought that Visit Rwanda would have had within the deal a little bit of a premium for the sort of slightly questionable nature of the advertiser.
“I think when Visit Rwanda did the deal, I would have expected them to have to have paid a premium to Arsenal of let’s say 20 per cent to get Arsenal to go with that deal.”
It is widely known Rwandan president Paul Kagame is an Arsenal fan, raising questions around whether the sponsorship deal has really represented value for his country.
How much commercial revenue do Arsenal generate?
Borson insisted the negotiations with Deel will have been easier due to the size of the company.
“Obviously, a company like Deel is much more straightforward,” said Borson.
“Therefore, it just becomes about what they’re prepared to pay. But I think it’s sort of £8-10m. That sort of range feels about right.”
The Gunners’ latest published accounts for 2023-24 revealed their commercial income increased from £169m in 2022-23 to £218m.
That helped Arsenal generated the third-highest revenue in the Premier League in 2023-24, with their turnover surging from £467m to £617m.
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