The Price of Integrity: Chelsea's Stand for Sponsorship Value
A KORE Data Intelligence Sponsorship Strategy Spotlight: Lessons from Chelsea FC and Three UK
In the high-stakes world of sports sponsorship, decisions to end partnerships can have ripple effects, especially in social value. The sponsorship landscape recently saw an illuminating example, shared in last week's Adweek webinar, of how brand value can shift dramatically.
Three UK, previously Chelsea FC’s shirt sponsor, saw its social media engagement and sponsorship value plummet by over 90% following its exit from Chelsea. The decision reveals key takeaways about the cost of undervaluing sponsorship assets and the significance of maintaining pricing discipline, especially for major brands and sports teams.
Effects of a Partnership Breakup
The telecom giant Three UK had a prominent presence on Chelsea’s men’s and women’s kits but decided to part ways after the 2022-23 season. The decision coinciding with Three’s extended struggle with a major merger and regulatory challenges in the UK left Chelsea searching for a new sponsor. Rather than lowering its valuation, Chelsea chose to leave the space empty, for the second consecutive year—a rare move in Premier League sponsorship for even just one season.
This disciplined approach sent a powerful message about the club’s commitment to upholding the value of its brand. The story reveals the potential costs of undervaluing a sponsorship position and shows how brands can benefit from sticking to strategic valuation—even at the risk of vacant inventory.
“In a saturated market, Chelsea FC’s choice to keep its kit sponsor-free rather than sell it at a discount exemplifies a powerful commitment to value integrity,” said KORE’s Pete Abels . “Such discipline helps rights holders reinforce brand strength, even when market pressures mount.”
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Impact on Three UK
The drop in engagement and visibility was profound for Three UK. By not capitalizing on this high-profile sponsorship asset, their adjusted ad value took a significant hit. For brands, this illustrates the risks tied to reducing visibility in sports partnerships. Maintaining a high-profile partnership can be critical to ensuring sustained social engagement and brand recall.
Key Takeaway for Brands and Rights Holders
Chelsea’s approach offers a lesson for teams and rights holders: undervaluing assets to secure a sponsor can undermine brand strength. By holding out for the right partner at the right price, Chelsea preserved the value of its kit sponsorship for future deals, maintaining an image of exclusivity. This is particularly notable as jersey sponsorship saturates markets in major U.S. leagues, where rapid adoption of logos on uniforms has sometimes led to discounted deals. “For rights holders,” added Pete Abels, “it’s critical not to fall into the trap of easy money by lowering the price of marquee assets—these decisions shape long-term brand equity and market perception.”
More Resources
To dive deeper into success stories and gain insights into how brands are maximizing their edge through social posting strategies, be sure to watch the recording of our Adweek webinar featuring KORE’s Partnership Marketing Analyst, Daniel Foltz, and Brand Leader, Pete Abels. Discover the impactful strategies discussed, from enhancing fan engagement to optimizing sponsorship value.
Additionally, learn why KORE, the market leader in sports partnership data intelligence, has joined the Two Circles family—positioning both companies at the forefront of sports and entertainment data solutions.