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West Ham loses £7.5m sponsor
Robert Mendick, Chief Reporter12 Sep 2008
West Ham faces losing millions of pounds from the collapse of XL, the club's shirt sponsor.
The East End club signed a £ 7.5million sponsorship deal - £2.5 million a year over three years - last year.
XL also has close links with Landsbanki, the Icelandic bank whose main shareholder is West Ham owner Bjˆrgólfur Gudmundsson.
He is also a major shareholder in Eimskip, an Icelandic shipping group which stands behind a £ 164million loan guarantee to XL.
West Ham will now be forced to seek a new shirt sponsor at a time of turmoil-for the club. Alan Curbishley quit as manager just over a week ago, complaining players were being sold against his wishes.
The Italian Gianfranco Zola was unveiled as Curbishley's successor only yesterday and was due to begin a full day's work at the club today. The demise of XL could leave him with a huge hole in any future transfer budget.
At the time of the sponsorship deal, West Ham's then chairman Eggert Magnusson said: "The XL deal says a lot about the financial muscle of West Ham."
A number of West Ham fans may well be stranded by the collapse of XL. As part of the sponsorship deal, the travel company was given access to West Ham's database of fans.
Many are likely to have booked holidays though XL - out of loyalty to the club and through links on the club's website.
The club's players were encouraged to take their holidays with XL through its more exclusive brand Aspire, which has also collapsed.
The sponsorship also entitled XL to pitchside advertising and a "bespoke XL design" to cover the roof of one stand.
Reader views (1)
Hello London,
RE: Collapse of X.L.Air and travel Company.
Sponsorship to a football team is the last thing on peoples minds right now.The travel company should of got its priority right and looked after itself more,£7.5m is one hell of a lot of money to spend when clearly the pot was empty.
The loss of peoples jobs is going to be a nightmare when bills have to be met,and to the travelling public dreams shattered,.....who's going to be next I wonder?. G.B. is going to the wall like lambs to slaughter, and the Government has said its going to be a rough ride?... to all GOOD LUCK... VIVA THE REVELOUTION!!!!!
- J.L., Scarborough N.YKS., 12/09/2008 11:44
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