UK-based, publicly-traded esports organization Guild Esports (LSE: GILD) made two announcements related to sponsorships and partnerships on Tuesday. First, the organization announced that it has signed a three-year sponsorship and merchandising deal with global sportswear apparel company Hummel International Sport & Leisure A/S (or hummel, for short) and its UK license and rights holder SportsPro.
Guild claims that the deal is projected to generate roughly £700K ($872K USD) in revenues for the company over that three year deal. As part of the deal hummel will serve as Guild’s official technical kit partner, “receiving exposure on the front of Guild’s team jerseys,” according to a release.
Also part of the deal, hummel will gain exclusive rights to the production and sale of Guild-branded apparel, which will be sold online via hummel’s website and “potentially” at “major retailers in the UK and Ireland, subject to confirmation in due course.” The first fruits of this partnership will be released in October, and will include a line of branded jerseys, lifestyle hoodies, sweatpants, headwear and luggage.
Guild said that it will receive a “double-digit share of the merchandising revenues sold through hummel,” which includes performance-linked payments based on “certain sales targets being achieved.” Based on its sales projections, the sponsorship and merchandising deal is estimated at approximately £1M ($1.24M USD) over the three-year contract term if all things go as planned.
The organization also announced Tuesday that it has mutually agreed to terminate its partnership with crypto currency exchange Bitstamp one year early. The company said in a release that the “early termination of the contract will have no impact on Guild’s expected revenues for the current year ending 30th September 2023.” Guild signed a three year partnership agreement with Bitstamp in January of 2022 valued at around £4.5M (roughly $6.08M USD in January of 2022).