UK-based esports organisation Guild Esports has announced the termination of its partnership with an unnamed European fintech company.
In the release, the company has cited ‘delays in the sponsor’s launch and the payment of sums’ as the main reasons for the deal’s cancellation.
RELATED: Guild Esports announces £3.6m deal with European tech firm
The partnership was first announced on 19 October 2020. The unnamed partner was supposed to provide Guild with an annual fee of £1.1m in the first year, £1.2m in the second year, and £1.3m in the third year, equalling a total of £3.6m. The company previously announced that the sponsor’s identity would be revealed in November 2020.
According to Guild Esports, the partner brand was due to commence payments from the date of its official global launch. The company explained that it had not been given any clear timeline for said launch and none of the payments have been made.
Kal Hourd, chief executive of Guild Esports, commented: “We have been very accommodating and patient about this contract but have decided to terminate it due to increasing uncertainty over their launch plans. We are in active negotiations for new sponsorship deals and look forward to announcing these soon.”
RELATED: Guild Esports appoints Edgar Chekera as first Performance Manager
Since the organisation’s listing on the London Stock Exchange, the UK-based organisation has secured partnerships with Subway, HyperX and Samsung, among others. Despite this recent announcement, the company has claimed that it continues to generate ‘strong and active interest’ from a variety of consumer brands across a range of sectors.
According to Market Watch, the company’s shares dropped 9.3 percent as a result of the news.
Esports Insider says: The mysterious partnership with an unnamed brand has fallen through for Guild. The question of who the partner actually was might never be answered, but this cooperation paints a picture of the uncertain landscape of esports partnerships. The esports organisation will now have to focus on finding new a partner.
Find out more about ESI London