Royal Bank of Scotland set to axe lucrative sponsorship deals
The Royal Bank of Scotland has announced plans to axe up to £100 million of annual sponsorship predominantly in the world of sport. The largest impact will be felt by the Williams Formula One team which will be without the £10 million a year Royal Bank of Scotland sponsorship at a time when the racing industry is looking to slash costs in line with the economy. There will also be severe hits for the world of cricket, golf and a number of lucrative personal contracts for the likes of Andy Murray and Zara Phillips.
While there is no doubt that the decision to axe a number of external agreements has been welcomed by the government and shareholders of Royal Bank of Scotland, there is still the ongoing problem of the bonus package which has been proposed by the directors. It is all well and good seeing £100 million a year saved from sponsorship deals but if this is only used to feed the bonus culture within the bank then what is the point?
The relationship between sport and companies such as Santander and Royal Bank of Scotland for example has been very close over the years and hundreds of millions of pounds in sponsorship has been passed between the two. This will be a major blow for many areas of UK sport at a time when income is under pressure and costs continue to grow.
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