Premier League to ditch title sponsor

13 April 2016 - 02:18 By Bloomberg

For the last 15 years, Barclays has used the global popularity of Premier League soccer to gain footholds in new markets.Next month, the British bank's reign as title sponsor ends, reflecting the league's growing ambitions and the bank's shrinking ones.Barclays' strategy has changed dramatically in the three years since it last renewed the £40-million-a-year sponsorship.About £20-billion of profit has been wiped out by misconduct charges and plans for global dominance have receded.Since 2014 Barclays has withdrawn from its European retail operations in Spain, Italy and Portugal. In March it announced plans to leave Asia and Africa - two regions where the Premier League counts some of its most avid fans.As well as turning away from seven Asian countries, Barclays is looking for a buyer for a 62% stake in Barclays Africa. The focus now is on its UK and US core businesses.It has also pulled back from other high-profile sponsorships, including tennis's World Tour Finals. "The thing you pay the big money for - which is to put your name on the top - was no longer relevant for us as a business," Barclays head of global sponsorships, Nathan Homer, said.At the same time, the Premier League has grown unabated. Television revenue will be $2.5-billion next season and the value of the title sponsorship has grown more than tenfold in 23 years.To capitalise on its own popularity, the league has decided to forego a title sponsor entirely.Like the US's National Football League, the Fifa World Cup and the Olympics, the Premier League will, instead, look for sponsors in each of seven categories.Nike is the ball sponsor, Electronic Arts the sports tech partner and the official beer is about to be named. Barclays remains the official bank. Homer said this role would cost Barclays about 25% of what its title sponsorship cost.Reflecting on one of soccer's longest-lasting commercial relationships, Homer said Barclays got more than an advertising boost. The deal required the league to use the bank for all financial transactions, which have increased significantly in number and value."Overseas rights have gone from £50-million in year one to nearly £1-billion a year now," he said.Fourteen of the league's 20 teams bank with Barclays, giving the lender access to millionaire players, coaches and deep-pocketed owners.The relationship gave Barclays instant recognition in target markets - the Premier League is watched in 212 territories and its most famous team, Manchester United, claims a global following of 659 million...

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