Chelsea sponsors Hyundai suspend their deal with the club after sanctions on Roman Abramovich by the UK Government
According to the Athletic (Subscription Required), South Korean car company Hyundai has suspended their shirt sleeve sponsorship with Chelsea after sanctions were placed on Roman Abramovich by the UK Government.
Abramovich had his assets, including Chelsea, frozen by the UK Government in the wake up of Russia’s invasion of Ukraine. The Blues saw restrictions placed on their travel budget, matchday budget, contract renewal, ticket sales among others as a result of the sanction.
However, the Blues saw the license amended yesterday which gave them a little bit of leeway with respect to matchday budgets and receiving the prize money for the competitions they play in this season. The momentary joy was, however, short-lived with sleeve sponsors Hyundai suspending their sponsorship.
Hyundai is not the first to pull out of a sponsorship deal, with shirt sponsors ‘Three’ also suspending their ties with the London based outfit.
“Through our partnership with Chelsea FC, we are proud supporters of the players. However, in the current circumstances, we have taken the decision to suspend our marketing and communication activities with the Club until further notice.”
Financial troubles for the Blues?
Losing the main kit and sleeve sponsors could imply huge financial troubles for Chelsea. Sponsorships are major sources of revenue and considering the current predicament, the developments with Three and Hyundai is something the Blues would not have wanted.
The London based outfit are already set to lose out on revenue due to the ban on ticket sales to matches at Stamford Bridge. Taking into account all these factors, the new owners at Chelsea may have some financial troubles to mitigate when they take over the club.
Although it remains to be seen if the sponsors come back if and when we cut off all ties with Roman Abramovich and function under a new owner. But in that case, fans would certainly remember how the sponsors abandoned the club when we perhaps needed financial support the most.
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Then again, in a capitalist economy, it is also hard to fault them for protecting their best interests and reputation. From a neutral observer’s perspective, perhaps the companies did what they thought was best to temporarily look after their brand name and image.
A turbulent time awaits the Blues as they embark on a new era under new ownership. The new people at the helm of Stamford Bridge will have to be strategic and clever to help navigate Chelsea out of this distress and make sure a glorious reign at Stamford Bridge continues.