Barclays Will Not Renew Premier League Sponsorship Amidst Fear Of Rising Costs

Barclays Premier League logo

The Barclays Premier League might soon sound something else as reports have emerged that the bank will not renew their deal with the Premier League when it expires next year.

Premier League backers Barclays will end their A?40million-a-year deal when the current one expires at the end of next season, that is 2015-16. The decision will bring an end to the 15-year association of Barclays and the English Premier League as they have sponsored the League since 2001 when they first used the sponsorship to promote their Barclaycard brand.

The reason for the apparent decision is the ever increasing costs. Barclays had agreed a three-year deal worth A?120m in 2012 for the present rights which was almost A?40m, close to 50 percent, on their previous A?82m contract.

From next season onwards, Sky and BT Sport will be paying an incredible A?5.1billion for TV rights and Barclays fear the cost of the next sponsorship will also rise considerably again just like in 2012. In addition to the sponsorship cost, they must also include the costs of promoting it through advertising, public relations and social media.

Barclays have become somewhat of an icon around the World thanks mainly to the popularity of the League. With games broadcast into 650 million homes in 175 countries, the League is undoubtedly the most watched around the World compared to other European League like the Spanish La Liga or even the Bundesliga which are slowly gaining popularity especially the latter with Germany’s World Cup triumph. Barclays have promoted the League themselves throughout the world, in particular Africa and Asia. It’s popularity abroad is one of the major reason’s as to why the bank have decided to continue with their sponsorship for close to 15 years.

Last year, there were reports indicating that Barclays had decided to end the deal over ‘sexist’ emails that were leaked from Premier League chief executive Richard Scudamore’s mail. Andrew Jenkins, Barclay’s boss, did not like the incident as he felt it would hamper his a clean upa Barclays image. However, the incident was later resolved as acting chairman at the time, Peter McCormick, had revealed that his a genuine and sincere apologya had been accepted.

The fans around the world will hope that something can be worked out amongst the two parties as they will definitely not like the idea of the Premier League having a different name in front of them.

 

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