e-commerce in Bangladesh

Monday, July 06, 2009

Vodafone to Terminate Sponsorship Deal with England Cricket Team

(This entry was originally published in this blog December 2008 and it is based on the information of that time.)

Mobile phone company Vodafone has confirmed that it will not continue sponsoring England cricket team after the completion of the current sponsorship deal at the end of the England’s tour of South Africa next winter. Vodafone is one of the major three sponsoring companies of England and Wales Cricket Board. Deals with two other major sponsors: NatWest and Npower- are also due to be renewed pretty soon. However, contract extension with NatWest and Npower is not yet confirmed.

Telegraph reported:

In November, the ECB’s executive committee were told Npower are likely to pull out of their sponsorship of the Twenty20 Cup, although they are expected to continue to sponsor England’s Test matches when their current deal expires. However, the position of NatWest is clouded in uncertainty due to the troubles of their parent company, Royal Bank of Scotland.

ECB earns £14 million, constituting 13 to 14 percent of their annual budget, from sponsorship deals and a big part of their sponsorship deals come from these 3 companies. However, ECB may not need to worry about their broadcast deal following contract renewal, worth £300 million, with Sky Sports.

England is now suffering from economic recession and it is very natural that sponsoring companies may pull out of their sponsorship deal after the current deal expires. So, it will be a challenging task for ECB to manage their annual budget and continue their activities in the years to come. You already know that West Indies and Sri Lanka cricket boards are already going short of money at this moment.

No comments:

Post a Comment