Hard Times Ahead for West Ham Sponsors

Looks like XL are in for a hard time. I am not quite sure of the financial implications of this for our chairman Bjorgolfur Gudmundsson. Perhaps greater financial minds than me might enlighten us.

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24 Responses to Hard Times Ahead for West Ham Sponsors

  1. Geoff Pikey says:

    Eimskip, and in particular their ‘significant investor’ Bjorgolfur Gudmundsson, would have made allowances for this happening when they sold XL and included the offer. So it’s not like it’s a sudden demand out of the blue for a lump sum, anyway it may still not be necessary. Still it must be tough for the Icelandics especially when your down to your last $290m. Reefer logistics on the other hand sounds quite interesting!!

  2. getoutofthat says:

    I booked a flight with XL this year. They sent me my tickets and then a week later sent me a letter explaining that they were cancelling this service and therefore my flight. I rebooked elsewhere at additional cost to myself and swore never to use their services again. I am not in the least surprised that they are in trouble. I’m only shocked that such a ramshackle operation has got away with it for so long.
    Heaven help us if the same mob running that mess have any influence at the club…

  3. Paul Nixon says:

    Iain, I’m ever the optomist: What all of this: XL as sponsors, BG’s interest in the club and the Zola appointment mean to me, is that at least there is a plan. XL may go belly up, but we’ll have new sponsors sharpish if that happens because we’re run by a businessman with a clear goal, acumen and long term plans

    Apart from Zola’s record; his frank openess and his reliability, Zola was appointed because he will attract players, interest on the continent, and sponsors. BG and the board aren’t so stupid after all – they’re businessmen first – it’s about time the ramshackle organization known as West Ham were transformed into a first rate team with a backbone of accountability and long term plans. BG bought West Ham because we are a big name club with infrastructure and a reputation; what WHUFC has never been though is well run. If you are businessman, they are the investments you want to make.

    I think we have a bright future. There will be hickups, set backs and shake ups, but BG seems to know what he wants.

    Paul

  4. Graybo says:

    I gather that people who have booked holidays and flights with XL and who are already abroad will be covered by the travel bond under which XL operated, so that’s a relief.

    With XL in administration what are the implications for finding a new sponsor… I’d have thought the Zola announcement would help attract new backers.

  5. Greenmantle says:

    Yup,… Telegraph this morning says “Thousands stranded as Holiday firm collapses”

    Hope we got the cheque up front!

  6. paul says:

    at the end of the day how much does this affect west ham

  7. alan says:

    well people im due to fly with xl in 2 weeks im gutted looks like i may have to wait for months if not longer for a refund i doubt ill get a full one at that oh well happy days but i do hope it dose not affect west ham but at £50 a shirt looks like it may affect the fans more as a new sponcer will be found

  8. Roshi says:

    It shouldn’t impact at all. The £7m reported sponsorship would be made in installments, with 2 years to run, and knowing that there has been a continual effort to refinance over the past few months, again as reported in the financial papers, it would be unlikely that this seasons installment have hit the WHUFC bank account.
    Now knowing that the Chairman is involved in the company supporting the loan guarantee, I can understand that why XL is still featured on the team shirts, it will be interesting to see if this is the case at the weekend.
    The annoying thing is the amount of shirts that have been sold to parents and supporters featuring XL, more annoying is the poor bloke down at Gatwick today with no chance of getting away for the annual family fortnight.
    West Ham will get another sponsor, it’s a bit like F1, high profile and appealing to the masses, a marketing mans dream.
    However wouldn’t it be great if we could do away with a sponsor name altogether, to be fair we have had our fair share of dodgy names “Dagenham Motors”, Ford would have been OK and as for “Jobs Worth” or whatever it was, it made us sound like a Conference side.
    Lets start a campaign, because in the overall scheme of things £7m over 3 years does not seem a massive amount of money to a team prepared to pay off players contracts etc. GET RID OF SHIRT SPONSORSHIP (GROSS)

  9. alan says:

    roshi good point

    also i think that all shirts brought after the releace of the new away shirt should be exchanged for a shirt without a sponcer on it and when a new one is found free printing on the shirt but……………and heres the big but as west ham fans do we think west ham fc will do this???……….i hope so but i doubt it……

    sorry for the spelling just a little p****d off as at this time im not going on my holliday (flying with xl of all airlines)

  10. Roy says:

    The latest I’ve read on the XL situation is that the administrators have entered the building and the company is still running. Whether it will be able to meet its commitments to those people who have booked holidays / flights remains to be seen. The administrators first duty is to try to keep the company running by re-structuring / re-financing / finding a buyer (for all or part of the operation) at the best price they can get. . This latter route usually leads to people looking for a bargain to start circling around and is one that many football clubs have gone down in the past few years and that are still operating under new management / ownership who bought the assets.
    The loan guarantees would, I would think, be with the company and not our chairman’s personal assets.
    It would be great if we could operate without a shirt sponsor but a few million each year has to be beneficial. With the increased profile of the club and Zola’s appointment we could attract a better deal than the one we had with XL although the credit crunch could make this harder to achieve as companys are more liable to wlak away from this sort of non-tangible investment in times of financial uncertainty.

  11. Lamb Behrami says:

    This must be grounds for getting a refund/replacement on any shirt with XL on it. If you’ve bought any, try getting your money back!

  12. IanG says:

    I think this may affect us more than we realise. BG, although he has some footballing history, is a businessman. The fact that he is involved with both the club and the sponsors is even more worrying. I don’t think he will concentrate on the club but rather protect his investments generally. We had all hoped that, after Terence Brown, somebody was stepping in who would put money into the club to take it to the next level with the expectation of recouping that investment. Has he done this? Is he going to do this now he has to watch his, albeit considerable, finances? I agree that our situation is nothing compared to those stuck with XL flights and holidays (and I happene to know of somebody who was supposed to be flying home with XL today). I hope I’m wrong but won’t be surprised if Deano and Green are sold in the next transfer window for a healthy profit.

    P.S. Ian, excellent website and long may it continue.

  13. Eric says:

    Can Iron Maiden sponsor us?

  14. e1 says:

    The Fans will get hit in the pocket again, Why don’t we give boris a ring and advertise LONDON 2012 olympics we would’nt get any money but might get an option on the stadium. Bobby Moore Charity start a trend rather than earning money raise awareness for charities and donate x £ per shirt give the supporters a short list each season and lets us choose who the charity should be.

  15. Tony says:

    The club have suspended sales of replica kits.

    Anyone who believes the current board are doing a good job of running the club must be living in cloud cuckoo land.

    I hope XL didn’t fly you their?!

  16. Donald Rump says:

    So let’s see if i’ve got this right. BG owns the bank that financed the loan for whoever to buy XL while also being a significant investor to the company that sold XL, who as part of the deal also promise to bail XL out if it ever needs help in the future. Only BG then offers to bear the brunt of this loan if needs be, effectively oweing himself money!! while XL pay him £2.5m a year for his football plaything to advertise them on it’s shirts. Is that right? if so, no wonder we’re skint and have to sell whichever players we can. What are the odds that he’ll be connected in some way to the clubs new sponsors?

  17. Goatygav says:

    They have a shipping firm, Eimskip, that used to own a portion of XL. When they sold their shares they agreed to stand guarantour to the tune of 207M Euros. As Eimskip is a profit making organization the “HIT” is one that can be taken. I’m sure they will also have credit insurance against this (would surprise me if a banker didn’t). BG and AF are both Billionaires (US Dollars) in their own rights. They insure against this type of risk with many of their customers so I don’t think it’s going to be as meaningful as many of the press are making out. It won’t be the first time they’ve been taken for a few quid because of companys going to the wall.

  18. Goatygav says:

    So far as the sponsorship goes they paid last season’s £2M but not this season’s. New sponsors are lining up apparently so we may be able to negotiate an even better deal with someone else and be even better off.

  19. Wes says:

    I would love to see the sponsor logos off the shirt front as well. Maybe the players could receive a fee for a sponsor tattoo on their calves. 😉

  20. Plaistow54 says:

    Iain, i am not an economist but this is my view on it. West Ham will have sponsors queuing up. The amount of money that we have lost is not that much in real terms. It is a shame for those who have recently purchased shirts, but after i am dead & gone they may be collectors items. I doubt that this will affect the club much. What Gudmundsson appears to have done is refuse to keep funding a sinking business. Why keep pouring money into an open hole. The CEO of XL Leisure Phil Wyatt said that he was devastated & believed that the company could be saved with an injection of funds. However, he said that they had to pay for their fuel in cash. That suggests to me a company that has big credit problems. There are many reasons why this has happened, the mortgage crisis, the price of oil & the fact that the consumer does not have the funds now for luxuries. If you have a product to sell & no one has the money to buy it, you don’t have a business. In my mind, the system is collapsing from the bottom upwards at the moment. Greed. Would you like a loan with that, sir ? West Ham will be ok. Duxbury says we spend now. Gudmundsson would have done his figures before he made any decision. Lets see what happens in January.

  21. irontc says:

    We should shave all the players heads, and like air new zealand plan to, put adverts / sponsors on the back of their nuts !

  22. mike from Hornchurch says:

    Interesting article in Mail on Sunday today.

  23. Ian Smith says:

    What ever is happening with our sponsors, at the moment, please sign the petition that is flying around at the moment. The petition simply asks the club that they considering putting the Bobby Moore Fund for Cancer Research UK on the front of their shirts for the rest of the season. The petition has already attracted over 3,000 signatures. Just go to http://www.PetitionOnline.com to sign up. What a great idea. I am sure it will sell more shirts than enough. Plus the club can donate 50p for every shirt sold.

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