Guild Esports, a U.K-based esports organisation co-owned by David Beckham, has announced in a press release that it has signed a three-year, £3.6m sponsorship deal with an unknown financial-technology company based in Europe.
This is the first major sponsorship deal agreed by Guild since its initial public offering (IPO) on the London Stock Exchange (LSE) earlier this month.
Related link: Team Diverge launched by JuJu Smith-Schuster
Under the terms of the agreement, the sponsor will pay a guaranteed 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 guaranteed over the three-year term.
The name of Guild’s new sponsor will be unveiled at a ‘global event’ on November 22nd.
Carleton Curtis, Guild Esports Executive Chairman, said in a press release: “We are delighted to announce our first major sponsorship deal which will generate significant revenues for the Company. The rapidly growing mass popularity of esports is attracting considerable interest from advertisers and consumer brands, which has generated a strong pipeline of potential business for Guild.”
The deal will enable the sponsor to promote its brand and logo through placement on team jerseys, digital overlays on the live-streams of Guild players, as well as other marketing initiatives.
Guild completed its floatation on the London Stock Exchange earlier this month with a market capitalisation of £41.2m, becoming the first esports organisation to enter onto the LSE.
RELATED: Ajax launches dedicated FIFA mobile ‘gaming academy’
Before David Beckham became an investor of Guild, the organisation entered into an “influencer agreement” with Footwork Productions, a Beckham-owned company that was created for the ‘exploitation of David Beckham’s name and image rights’, according to The Esports Observer. Beckham, in exchange for being ‘the face of Guild Esports’, is to be compensated around £15.25m during the term of the five-year agreement.
Guild currently has esports teams in two titles: Rocket League and FIFA. In Rocket League, Guild’s mostly-British squad is currently ranked third in Europe, while Guild’s sole FIFA player is the highly regarded Niklas ‘NRaseck’ Raseck, formerly of Rogue.
Esports Insider says: With little to no history in the industry, Guild Esports has raised significant funding. David Beckham’s likeness has been used strategically to build hype, but there is little evidence that the hype will be beneficial in the long-term. However, if Guild’s investment in titles is considerable, the marketing strategy is shrewd, and the branding is appealing, Guild Esports may well become a familiar name.