Spanish telecommunications company Telefonica has decided against extending their major football sponsorship deals to support the brands new media rights business plans.
Telefonica is not extending its sponsorship deals with Spanish LaLiga giants Barcelona and Real Madrid. The company has also chosen not to extend its sponsorship deal with Spanish national football team.
Telefonica, according to Sports Sponsorship Insider, was reportedly spending over $34.8 million (€30m) on their prime Spanish football assets through its major brand Movistar.
The move is seen as a change in Telefonica’s business strategy after it recently acquired the Spanish broadcast rights for UEFA Champions League and Europa League as well as LaLiga. The company is expected to redirect the money saved from the severed partnerships to supplement the payments for these media rights.
Reports have also suggested that Telefonica is likely to keep on with the football business primarily through its television offerings. It will also continue with its sponsorship arrangements in other sports with a focus on those with a strong digital content offering, including esports.
Telefonica brand Movistar has been associated with La Roja since 2012 and was one of the three top-tier main partners under an extended two-year deal from 2017 until after the FIFA World Cup 2018 in Russia. The deal, which saw Movistar logo featuring prominently on the squad’s training wear, was worth between €7m ($8.15m) and €8m ($9.20m) per year.
The deal with Barcelona was signed in February 2015 under which Telefonica became a regional sponsor in Latin America. The three –year deal was worth €13 million ($15 million) per year. In February 2017, the company also signed a 17-month deal worth €10m per year pro rata with Real Madrid worth to become to become the club’s connecting partner and Global Sponsor.
Movistar also sponsors cycling’s Movistar Team and Movistar Estudiantes that plays in the top division of Spanish basketball. The Rafa Nadal Academy by Movistar will also continue its partnership agreement with the Telefonica.
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