Liverpool's new $100m deal is perfect example of long-term FSG plan paying off

A new £80m ($100m/€93.1m) Liverpool deal is a perfect example of how FSG's long-term plan is paying off. When it comes to commercial partnerships, Liverpool has been focusing on retention for some time now. While the football club has welcomed new partners like UPS and Peloton recently, many of its deals have extended well beyond the first contract life cycle.

Carlsberg is perhaps the most famous example of a long-standing Liverpool commercial partnership. The Danish beer company signed a new deal with the club last December that will see the two entities aligned for an impressive 42 years by the time it concludes.

Last summer, Liverpool concluded their search for a front-of-shirt sponsor for the upcoming years. Despite receiving expressions of interest from companies across various sectors — from travel and tourism to electronics and cryptocurrency — it was financial services provider Standard Chartered who chose to extend until 2027, taking the total life of the deal to at least 17 years.

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Recently, there has also been a renewal with Expedia, the club's sleeve partner, while other extensions with brands like Nivea and EA Sports have been secured in recent seasons, reports the Liverpool ECHO.

Last month, Liverpool FC announced the renewal of its partnership with insurance giant AXA, a deal that not only extends the sponsorship of the Reds' training ground in Kirkby but also sees AXA taking on the naming rights for Melwood, the base for Liverpool Women, and fostering a tighter bond with both the men's and women's squads.

The agreement, which is set to run until 2029, is valued at about £20m ($25m/€23m) annually, and the cumulative £80m ($100m/€93.1m) deal is a testament to Liverpool's knack for maintaining long-term commercial relationships, something it has excelled at more than many of their rivals.

For the financial year 2022/23, Liverpool saw their commercial revenue jump by £25m ($31m/€29m) to £272m ($342m/€317m). This increase was crucial in keeping the club's total revenue figures steady over the last year, despite a dip in on-field success leading to reduced prize money and broadcasting revenues.

With a global strategy in place for its commercial ventures, Liverpool operates from offices stretching from their Anfield home all the way to New York, ensuring they consistently exceed partner expectations. Virginie Bercot, AXA's global brand director, shared with the ECHO: "The way they think about their sponsor, they are smart, open-minded, and we manage to co-create together with the club.

"I would say they create bold content when it comes to parity and diversity. We are now thinking strongly, for instance, about sustainability. They are bold enough to go with us but also to challenge us and bring their ideas to the table. It isn't just the usage of rights, it is about conveying the same values, conveying the same synergies, that are both a positive for the club and for AXA."

"In terms of how and why we have seen success, I think we have all the ingredients we need to have success and continue that success," commercial director Ben Latty said.

"When I talk about ingredients and what makes you an attractive partner for a blue chip brand, we have first and foremost really strong values. We have a respected and responsible ownership group who I believe, and I'm sure many others believe, run and operate the club in the right way and invest in the right areas that need investment, whether that's infrastructure or resources.

"We have a strong leadership team within football, a commitment to the women's game, an award-winning sustainability strategy, and a super-skilled sales team who instill trust from the beginning with partners, and we deliver for partners.

"We have unrivaled reach as a football club through our owned and operated digital channels and the TV audiences that we attract. When you throw all those ingredients into the mix I can't think of another rights holder, let alone another football club that has all of those ingredients, and we are seeing all of that come to fruition now."