Online car retailer exercises option to exit pact after three seasons.
Scottish soccer has suffered a financial blow with the news that Cinch has opted to end its league sponsorship deal two years early.
The online car retailer will end its partnership with the Scottish Professional Football League (SPFL) at the end of this season.
Cinch signed a five-year deal in 2021 which was said to be worth about UK£1.6 million (US$1.9 million) a year.
An SPFL statement read: “The SPFL and cinch signed a five-year contract in 2021, which gave Cinch the option to exit after three seasons.
“The deal played its part in helping the SPFL deliver record-breaking revenues back to its 42 clubs in the last 12 months.”
The deal proved controversial as domestic giants Rangers refused to provide coverage for Cinch, citing an existing commercial deal with the car retail firm owned by then chairman Douglas Park.
After lengthy litigation, the SPFL apologised to Rangers in June this year and agreed to meet some of the club’s legal costs while setting up a review to ensure there was no repeat.
Neil Doncaster, SPFL chief executive, added: “Cinch has been an excellent sponsor for the SPFL and has been clear on the significant boost to its brand awareness from our partnership.
“Working closely with Scottish Football Marketing, we will now begin the process of securing a new title sponsor for next season and beyond, and anticipate strong interest from businesses which recognise the unique value of partnering with Scotland’s premier football competition.”
The SPFL later announced that interim fee payments to all clubs would increase by ten per cent from next season.
Each Premiership club will receive at least UK£950,000 (US$1.2 million) in central payments by April 2024 and the figure will rise to UK£1.045 million (US$1.269 million) the following year. Further payments are made dependent on final league positions.
Doncaster said: “We are delighted that the continuing commercial success of the SPFL, including the broadcast contract extensions signed with Sky Sports, BBC Scotland, and Infront last year, has enabled us to increase interim fee payments to all 42 SPFL clubs.
“The SPFL continues to go from strength to strength, with further growth expected over the next few seasons.”
Source: sportspromedia.com