Kitted Out: The Importance of Replica Shirts in Football

(Image: wallbol.net)

The biggest clubs in Europe have a lot to thank their fans for when it comes to funding new signings, stadiums and cup runs. But it’s not just about making the cash registers ring; it is also extremely important to build a brand presence.

We are all familiar with the financial successes enjoyed by the likes of Manchester United, Real Madrid and AC Milan; but what exactly do clubs gain by forming partnerships with sportswear suppliers?

Not always about the money

According to sports marketing research company REPUCOM, its European Football Kit Supplier Report 2013 showed that the value to a club of having an extensive and reputable supply network goes far beyond simply selling shirts.

“A kit supplier plays an integral role in the positioning of a club from a marketing perspective” says Andrew Walsh, Director of Enterprise Services at REPUCOM.

“The distribution networks of the leading sportswear brands create a certain image perception and accessibility, which are crucial for building a global brand for a club.”

“It is largely down to market consolidation within a tough economic period and consumers have been watching their pennies a bit more closely. Therefore, those brands that can offer value and ease of access through stronger retail distribution - and of course a top image and street credibility - have a strong advantage over the rest.”

Face value

It’s quite obvious that a company latching on to the latest footballing superstar is an effective marketing tool. A handful of examples in recent times would be Lionel Messi, Neymar and Cristiano Ronaldo. Image is everything, so the faces of the biggest players in the world being splashed across TV adverts and posters will do sales no harm. 

A certain well-known Englishman had a big part to play in the explosion of player endorsements in the modern game. David Beckham’s long association with adidas allowed the German manufacturer to attribute vast amounts of money to shirt and boot sales – it is also no coincidence that three of the clubs he played for after leaving Manchester United had kits supplied by adidas (Real Madrid, LA Galaxy and AC Milan).

“We have seen quite a few instances where expensive player transfers have been refinanced on the back of shirt sales” says Walsh. “For some clubs, with the right partnership (and ambition), a smaller up-front fee in return for a cut of merchandise income can be a very attractive long term prospect for them.”

What does it all mean?

REPUCOM’s report also showed that the average kit supply fee paid by manufacturers to clubs in the Premier League in 2012/13 was £6million, dwarfing that of the Spanish Primera Liga at just £3.4million. Andrew Walsh believes that this figure highlights the commercial appeal of the English top division.

“The league’s global reach makes it a very attractive prospect for the world’s top sports merchandise manufacturers” he said. “In turn, kit contracts are becoming an ever-more relevant source of revenue for the clubs, not only at the top level, but right down the divisions.”

This point is further emphasised when we look at the total value of deals being struck by English sides in that year. The total value of Premier League clubs’ kit supply contracts rose by 32% on the previous one; up to £117.3 million (€145.5 million).

That figure accounted for over 37% of the total revenue generated through kit supply deals across Europe’s top five leagues. This is made understandable, however, when looking at the actual volume of shirts sold.

The 2012/13 season saw the league‘s 20 clubs sell a combined total of approximately five million jerseys worldwide - around one million more than in 2011/12. Not only is this more than double the number sold by Germany‘s 18 Bundesliga sides, but is yet another indicator of the continuing growth of the English game’s popularity globally.

Volume is also reflected in the actual cost to the fan, with the study revealing that although the average price of a Premier League club shirt has risen roughly 8.3% year-on-year, English fans shouldn’t feel too hard done by; prices over here are by no means the highest in Europe.

The average price of a replica Premier League shirt was £47.60; the lowest average across the five European leagues - the others being in Spain, Germany, France and Italy. Primera División jerseys cost between £48.30 and £68.50 - an average of £54.60. The most expensive are found in the Bundesliga; costing fans an average of £59.10 per shirt.