LONDON: Barclays could end its £40-million-a-year sponsorship of the Premier League after senior figures at the bank said it has zero value in the UK, according to reports.
The Sunday Telegraph has reported that Barclays' leadership team is worried that the rapid rate of inflation for sports rights will mean the Premier League will demand a much higher price than £40 million for its next three-year deal.
Barclays has sponsored the Premier League for 13 years, and its current deal will run until the end of the 2015-16 soccer season. In 2012, the bank paid £120 million for its current rights, nearly double the amount it paid in the previous deal, which cost £82 million.
The financial services company is also reviewing its sponsorships of other high-profile events and venues, including Barclays Center in Brooklyn, NY, according to The Wall Street Journal.
Sources at Barclays told the newspaper that chief executive Antony Jenkins has yet to come to a final decision on the sponsorship deal, but it is understood that senior figures on its board do not believe the deal provides value.
The move is believed to be part of a major overhaul of Barclays' business, including job losses globally and the cutting of branches, while pulling out of “glamour projects” to focus on improved technology for customers.
In December, Barclays said it will not review its sponsorship of London's bike-sharing service, known locally as “Boris Bike,” after a “strategic review.” Barclays denied the decision had anything to do with cycling deaths that occurred in London at the time.
This story originally appeared on the website of Marketing.