Ahead of the Game: Tottenham in crosshairs as Ratcliffe eyes more cuts
Sir Jim Ratcliffe and Ineos are set to continue cutting their investment in sport beyond Manchester United with the company’s commercial deal with Tottenham Hotspur unlikely to be renewed.
Spurs signed a five-year contract with Ineos Grenadier as their official 4×4 vehicle partner in 2022, having previously partnered with Ineos Hygienics as official hand sanitiser supplier during the Covid-19 pandemic.
Ratcliffe chose to continue the relationship after buying a 25 per cent stake in Manchester United last year, and its branding is prominent in both dugouts and on the electronic advertising hoardings at the Tottenham Hotspur Stadium, but has no plans to seek an extension.
The petrochemicals giant has slashed its sport spending in recent months, ending a partnership with four-time Olympic champion Sir Ben Ainslie following last year’s failed America’s Cup bid and incurring legal action from New Zealand Rugby after attempting to renegotiate a £3.7m-a-year sponsorship deal that does not expire until 2027.
In addition, the Daily Telegraph reported yesterday that Ineos’s one-third stake in the Mercedes Formula 1 team was in doubt earlier this winter amid negotiations over the terms of its sponsorship deal with the team.
It added that Mercedes-Benz went as far as sourcing financing to buy out Ineos. Mercedes said yesterday that its partnership with Ineos would remain in place this year.
Ratcliffe also appears to be reducing his financial commitment to the Ineos Grenadiers’ cycling team, who announced last month that they are seeking a second title sponsor. While Ineos has no plans to exit the Tottenham deal early as it is a modest financial commitment, numerous sources have indicated that it will not be renewed.
Ineos’s sporting retrenchment, which includes Ratcliffe’s major cost-cutting at Manchester United, comes as the company’s global financial health is under scrutiny.
Credit ratings agencies Fitch Ratings and Moody’s last week downgraded Ineos’s outlook to “negative,” pointing out that its £1.2bn debts are six times its annual earnings.
Champions Trophy winners short-changed
The winners of cricket’s Champions Trophy, which begins with hosts Pakistan facing New Zealand today, will take home less prize money than the White Ferns received for winning the women’s T20 World Cup last year.
In a clear sign of the International Cricket Council’s determination to equalise prize money, the Champions Trophy winners will receive £1.8m, fractionally less than the £1.85m collected by New Zealand’s women for their surprise victory in Dubai last October.
The ICC more than doubled the amount of prize money on offer for the women’s T20 World Cup between the 2023 and 2024 competitions, and its global tournaments now have roughly similar prize pots, with India picking up £1.9m for winning last year’s men’s T20 World Cup.
Ipswich co-owner hunts sister clubs
Ipswich Town shareholder Avenue Capital is exploring further investments in European football as it looks to expand further into the sport sector.
The New York-based company’s sports investment arm, Avenue Sports Fund, bought a stake in multi-club ownership group Mercury/13 last December, giving it part ownership of Serie A Femminile side Como Women.
Avenue is continuing to look for other investment opportunities in both the men’s and women’s game, particularly in England and Spain.
Co-founder and chief executive Marc Lasry joined the Ipswich board last summer after partnering with the club’s biggest shareholders, Bright Path Sports Partners, and is not actively involved in Avenue’s latest search.
Littler to say no to bookies
Luke Littler will resist offers of commercial deals from betting companies despite turning 18 last month.
The newly-crowned PDC World Champion already has a wide range personal endorsement contracts including Xbox, Skoda, KP Nuts, boohooMAN and Target Darts, but has no plans to add a bookmaker to the portfolio despite the likes of Paddy Power, Ladbrokes, Betfred and BoyleSports all sponsoring major events.
Having turned 18, Littler would be permitted to partner with a bookie, although due to Gambling Commission regulations his image could only be used to promote betting on a gambling operator’s website or in a shop.
Due to perceptions over the strong influence of young people on children, the Gambling Commission prohibits anyone under 25, or appearing under 25, from advertising betting products on television, social media or any forum where a bet cannot be placed.
ECB to pay not tax on Hundred sales
The England and Wales Cricket Board has reached an agreement with HMRC to minimise the amount of tax to be paid on the proceeds of the Hundred auction, with the result that over £520m will be reinvested into the sport.
The governing body will not pay any tax on the money raised from the 49 per cent stakes it has sold in each of the eight Hundred franchises, although host venues such as Yorkshire and Lancashire do face a liability on a portion of the 51 per cent stake they have sold on to the Sun Group and Sanjiv Goenka respectively, with tax due to be paid on 10 per cent of that transaction.
In addition, the new Hundred owners are liable for stamp duty and will be taxed on any future profits.