In a significant turn of events, Manchester United co-owners Ineos have reportedly agreed to pay millions of pounds to terminate their sponsorship deal with Tottenham. The decision comes after the company's association with Spurs began undermining its brand strategy.
Back in 2022, Sir Jim Ratcliffe’s company had entered into a five-year agreement to become the official 4x4 partner of Spurs via their Grenadier vehicle. This lucrative partnership was worth several million pounds per season for Tottenham, who showcased advertising for Ineos on dugouts and big screens during home matches.
However, the contract came under scrutiny when Ineos acquired a controlling stake in United in February 2024. The sight of the company’s name associated with Tottenham’s Premier League rivals started grating on fans and negatively impacting the brand image.
Amicable termination talks
Spurs and Ineos initiated friendly discussions about terminating the deal since mid-February. These talks have now concluded successfully, resulting in an early withdrawal from their five-year sponsorship deal. As per reports from reports, this termination has cost Ineos a 'not insignificant sum' running into millions.
The absence of any visible branding during Spurs' recent 3-1 win over AZ Alkmaar further confirmed these developments. This move aligns with recent trends within Ineos as they scale back their involvement across various sports sectors. Last month saw New Zealand Rugby initiating legal action against them for prematurely exiting their £3.7m-a-year deal due to reasons like "deindustrialisation of Europe".
In addition to this, they also withdrew financial support for Sir Ben Ainslie’s Americas Cup sailing team and are contemplating reducing their one-third stake in Mercedes F1 team - decisions that have raised both eyebrows and legal concerns.
Ineos under spotlight at United
The early withdrawal from Spurs coincides with a period of intense scrutiny for Ratcliffe and Ineos at United. The petrochemicals billionaire has implemented a significant round of redundancies over the past 13 months, including an additional 200 job losses announced in late February.
Ratcliffe defended these decisions as necessary measures to improve the club’s financial sustainability and enhance operational efficiency. He stated that without these cutbacks, the club could have faced potential bankruptcy in December.
Despite his current unpopularity, Ratcliffe remains confident about his strategies. He believes that these tough decisions will eventually put Manchester United back on track to compete with top-tier clubs like Liverpool or Real Madrid.
