Source: Daily_Mail
EXCLUSIVE: E.ON opt against extending FA Cup sponsorship deal
The Football Association have suffered a financial hammer blow at the start of a World Cup season with one of their biggest sponsors E.ON not renewing their FA Cup deal when it expires next May.
The withdrawal of energy suppliers E.ON, whose four year contract was worth £9million a year, comes at the worst possible time for the FA, who have yet to fill the £70m void in their FA Cup TV rights following the collapse of Setanta in June.
The two big setbacks combine to make a staggering £106m hole in the FA accounts. The Setanta demise — and the on-going uncertainty over TV coverage of the FA Cup this season — was the final straw for German-owned E.ON, who have had a turbulent relationship with English football’s ruling body during their sponsorship.
E.ON
E.ON have opted against extending their sponsorship of the FA Cup
This came to a head halfway through the E.ON deal, struck when the FA Cup TV rights were shared by the BBC and Sky, which had resulted in a great renaissance in the Cup’s profile.
But the FA, chasing the extra money on the table, opted to go with ITV and Setanta instead — a decision that is still unravelling in its frightening repercussions for the FA’s future — without giving BBC and Sky the opportunity to match the rival offer.
To make it even worse for E.ON, the new TV contract was signed without the advertising guarantees the company had enjoyed under Sky and BBC that allowed them to promote the sponsorship before, after and during FA Cup programmes.
To the fury of E.ON’s top brass, they had to pay further seven-figure fees to buy the same advertising space on ITV and Setanta that they had previously received as part of the contract.
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It is also understood that E.ON had on occasions felt treated like second-class citizens by the FA, who believed they should be grateful to be associated with the world’s most famous club football competition.
A more diplomatic E.ON spokesman said: ‘After careful consideration, we will not be entering another term of sponsorship beyond the end of the 2009-10 season, due to an evolution in sponsorship strategy within the UK business. Over the past three years, the FA Cup has been a great success for us in establishing the E.ON business and brand domestically.
‘We remain absolutely committed to our final year, but we will be keeping our options open regarding our future sponsorship plans.’
E.ON have not ruled out another football sponsorship, which will only increase FA tensions over the termination of their Cup interest. There will be a number of companies keen to replace E.ON as FA Cup sponsors, but it will be very difficult in the current climate to find one to pay anywhere near E.ON’s £36m over four years.
Adding to the FA’s current difficulties will be ESPN yesterday agreeing a rights deal for Europa League matches for three years.
The extra rights, added to their already extensive football portfolio, means there is even less incentive for them to up their ‘cautious’ bid for Setanta’s FA Cup rights, which the FA dismissed out of hand.
And ESPN still remain the most likely FA Cup buyers. An FA spokesman said: ‘We now look forward to taking the FA Cup sponsorship opportunity to the open market.’
