Finance guru: Man City could take ‘big hit’ after £80m deal terminated
Uefa’s decision to terminate their deal with Gazprom will hit Man City directly – but the sponsor pool is big enough to absorb the worst
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Champions League’s aborted commercial tie-in.
Uefa confirmed yesterday (28 February) that the deal with state-owned Russian energy company Gazprom has been cancelled in response to the crisis in Ukraine.
The Times reported last Saturday (26 February) that the sponsorship is worth £80million over the remaining two years of the contract.
City were one of the only teams in Europe to turn a small profit, £2.4m, in 2020-21 thanks to their run to the Champions League final.
Plumley explained that the Manchester giants will feel the pinch after the Gazprom deal came to an abrupt end.
“Uefa will have to deal with this hit first and foremost,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“They are one of the biggest sponsors financially. They will presumably also be looking for a new sponsor.
“You assume that some of that money goes into prize money but we don’t have an exact breakdown of how much of each deal goes into the pot.
“Broadcasting drives a lot of it, so it’s tough to get an exact figure. Prize money for the Champions League this season is around £2billion.
“Some of that must be sponsor money. So it could theoretically hit clubs big in the future
“But hopefully for the likes of City the bank of sponsors will ensure it isn’t too severe.”
Uefa and Fifa have suspended Russian club and national teams from all competitions.
The Champions League final has also been relocated from St Petersburg, the birthplace of Vladimir Putin, to the Stade de France in Paris.
In other news, pundit “amazed” by Bernardo Silva amid Man City transfer update from Spain.