Post by QPR Report on Jan 17, 2009 1:04:36 GMT
The Times
Premier League deal secure despite fears over BarclaysKevin Eason, Sports News Correspondent
One of the biggest sponsorship deals in football was declared safe last night as the credit crunch closed in on sports across Britain.
Fears were growing that Barclays, the embattled High Street bank, was about to pull the plug on its massive sponsorship of the Premier League as its shares plunged and concern grew that the bank was struggling to survive the global financial crisis.
But it emerged from sources that the Premier League has already banked the ÂŁ66 million due from the three-year contract for Barclays to sponsor the worldâs most commercially successful league. Unlike many sponsorship deals, which are paid over instalments, the Barclays contract was settled up front more than a year ago, cushioning the 20 Premier League clubs from the crisis that threatens to envelop sport.
Not only football is at risk, though. The bank disclosed last month that it was undergoing a thorough review of all of its sponsorship deals, which are spread across a raft of sports.
Libby Chambers, Barclaysâ global retail and commercial banking chief marketing officer, said that the bank was investigating whether it was getting âa strong return on investment across the boardâ. This morning, the return might have faded as a priority with the funds for investment threatening to dry up as Barclays is squeezed by the desperate economic conditions.
Apart from the Premier League, Barclays also sponsors the Scottish Open and Singapore Open golf tournaments, rugby unionâs Churchill Cup and the Dubai tennis tournament. There is also Barclaysâs commitment to the grass roots, which, in football, has been one of the most successful schemes in the country. The ÂŁ30 million Barclays Spaces for Sport programme has invested in almost 200 communities, providing facilities and coaching in deprived areas to become a flagship example of corporate commitment to grass-roots sport.
Under the Barclays banner for the past seven years, the Premier League has become the richest league in the world, which is why Barclays was quick to renew its contract. Richard Scudamore, the Premier League chief executive, was not expecting to have to open negotiations on title sponsorship until the second half of the year, with the Barclays deal in its second season of the three-year contract.
www.timesonline.co.uk/tol/sport/football/premier_league/article5534098.ece