(Alliance News) - Guild Esports PLC on Friday said it has ended a sponsorship deal with a fledgling European fintech company as it is yet to receive any cash which formed part of the GBP3.6 million contract.
Guild said the sponsor's launch has been delayed, likewise any payments the esports company was due to receive.
"Under the terms of the agreement, the sponsor was due to commence payments from the date of their global brand launch and unveiling. To date, Guild has not been given any clear timeline for their launch and none of the amounts scheduled under the contract have been paid," Guild said.
The company added that there is "strong appetite from other brands to partner with Guild".
"In addition, the company is working closely with its existing global sponsorship partners with whom relations are excellent and in line with expectations," Guild explained.
The company announced the deal a year ago. It said in October 2020 that it signed a three-year sponsorship deal worth GBP3.6 million with a new European fintech company serving esports fans. Under the terms, the sponsor would have paid a guaranteed annual fee of GBP1.1 million in the first year, GBP1.2 million in the second year and GBP1.3 million in the third year.
Shares in the company were 8.8% lower at 3.92 pence each in London on Friday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Guild Esports . (GILD)