2015 has been a bit of a roller coaster ride when it comes to sports sponsorship. On one side of the spectrum we have extremely lucrative deals taking place (LeBron lifetime deal with NIke, Chelsea and Yokohama $3000m sponsorship deal) while on the other side there were deals that were terminated (Jon Jones and Reebok) or will not be renewed (Rabobank and Dutch cycling). LetÌs take a look at the 10 biggest endorsement deals that will end once the calendar flips to 2016.
1) FIFA - Emirates, Sony, Castrol, Continental, and Johnson & Johnson
It's no secret that FIFAGate has damaged FIFA's financial situation. Since 2014, when the scandals of bribery and corruption came to light, FIFA's governing body has not signed any new sponsors. Meanwhile major sponsors such as Emirates and Sony have decided to distance themselves from the organization. In 2014 FIFA earned more than $300 million from corporate sponsors. However due to many sponsors walking away, 2015 will mark first year the organization will report a financial loss since 2001.
2) NBA - Adidas and Sprint
Having worked with the NBA for 10 years, Adidas is going to be replaced by Nike as the official uniform and apparel supplier of the NBA beginning with the 2017-2018 NBA season. The NBA and Adidas signed the 11-year, $400 million contract back in 2006. In addition, Sprint will not be extending its contract with the NBA. The #3 cell phone carrier signed a 4-year, $222 million sponsorship deal in 2011. At the time it was the biggest sponsorship deal in league history.
3) Premier League - Barclays
The British Premier League, perhaps the most competitive soccer league in the world, will not have a title sponsor beginning with the 2016-2017 season. The league extended the sponsorship deal with Barclays for 3 years and $182 million back in 2012. However the BPL just sold its broadcasting rights for a record breaking $7.6 billion. This deal contributed towards the end of the partnership between the Premier League and Barclays. The distribution of the money earned from the broadcasting rights allowed the 20 teams to agree to the league's "clean brand" decision.
4) NASCAR - Sprint
After deciding not to renew its sponsorship deal with the NBA, Sprint also announced that its partnership with NASCAR would end after 2016. Sprint has worked with NASCAR since 2004. The last year of sponsorship is worth approximately $25 million. NASCAR is looking for a new title sponsor and is looking to score a 10-year $1 billion sponsorship deal.
5) ATP World Tour Finals - Barclays
It's Barclays again! The British financial services company decided not to extend its partnership with the ATP World Tour Finals. The 5-year, $7 million a year contract will come to an end after 2015. Its partnership with Barclays has contributed towards the ATP World Tour Finals enjoying an increase in popularity and a spike in attendance. Recently, the tennis tournament signed one of the biggest tennis sponsorship deals when it partnered with Emirates.
6) McLaren - Johnnie Walker, TAG Heuer, and Hugo Boss
After finishing disappointing 9th place finish in the 2015 Formula One season, McLaren will take a major blow when it comes to corporate sponsors. Johnnie Walker, TAG Heuer, and Hugo Boss all declined to renew their partnership with McLaren. Johnnie Walker had teamed up with the racing team for 10 years, paying the team $22 million annually. In addition, both TAG Heuer and Hugo Boss have worked with McLaren for over 30 years. The sponsorship loss will lead to a loss of around $60 million. Need some perspective? Fernando Alonso and Jenson Button made close to this amount.
7) La Liga - BBVA
The Spanish football league is switching its title sponsor from BBVA to Mazda. The partnership with BBVA and La Liga, worth more than $31 million a year, will end after this season. Mazda will be the new title sponsor starting next season.
8) Inter Milan - Pirelli
The Serie A club Inter Milan finally ends the partnership with Pirelli, which has sponsored the team for 20 years. The long-lasting relationship between Inter Milan and Pirelli has supported the team financially as the tire manufacturer shells out $16 million a year.
9) FC Porto - MEO (owned by Portugal Telecom)
Portugal Telecom's subsidiary MEO has sponsored the country's top three football clubs - Porto, Benfica, and Sporting Lisbon - over the last couple of years. Starting with the 2015-2016 season, the partnership between MEO and F.C. Porto will end however. It will result in the team having to wear its kit without a major corporate sponsor. The four-year sponsorship with MEO was worth $16 million annually.
10) Jon Jones - Reebok
MMA superstar and former UFC Light Heavyweight Champion Jon Jones's endorsement with Reebok was terminated this past April. Battling with Nike to win the sponsorship, Reebok officially signed Jon Jones in 2014. Unfortunately, the endorsement didn't last long - Reebok terminated the contract after Jon Jones was suspended and stripped of his UFC Light Heavyweight title following felony charges.
Perhaps the most interesting sports sponsorship deal that will end is the British Premier League - Barclays partnership. The end of the partnership can be due to the extremely rapid growth of the BPL. One would assume the organization seems to not need the money from title sponsorship anymore and would prefer to go without a title sponsor. Though title sponsorship could be lucrative in scale, the sale of the leagueÌs broadcasting rights will enable each team to gain at least $100 million equally and annually. While Diageo reportedly offered $68 million year to the title sponsor of the league, the BPL had already made the "clean title" decision and closed negotiations.
One can also argue that financial services companies are likely struggling financially. Barclays is walking away from the Premier League and the ATP World Tour Finals, BBVA is saying goodbye to La Liga, Maybank is not supporting the Malaysian National Badminton Team anymore, and Rabobank announced this year that it would end all of its professional sports sponsorship after 2016. While the financial service industry has always been tied to sports sponsorship, the stagnant financial industry has slowed down the companies' plan to partner with sports right holders. Perhaps after the financial industry gains strength they will turn back to sponsoring teams and leagues around the world.