Sarries salary scandal puts sponsorship millions at risk
SARACENS have been warned that millions of pounds worth of sponsorship revenue is at jeopardy if they are found guilty of breaching the salary cap.
The English and European champions have until tomorrow to appeal a £5.36million fine and 35-point deduction for underhand overspending on their title-winning squad.
Their primary sponsor, insurance giants Allianz, have invested well over £8million in a deal that runs until 2021 but that could be under threat.
‘If Saracens are found guilty of financial misconduct, it may well jeopardise the long-term security of the club’s primary sponsorship with Allianz,’ said Andy Sutherden, whose work led to David Beckham becoming the first global face of Gillette and who is now international head of brand consulting at Creative Artists Agency.
‘As the world’s number one insurance brand, Allianz will be keeping a very close eye on all developments.
‘Like all companies involved in sponsorship, especially financial service providers, the number one requirement they have of any partner is implicit trust and integrity.
‘If I were Allianz that has built a global business around the principles of trust and integrity, financial irregularity would be top of the list when considering the reasons that may trigger a breach of contract.’
With the looming threat of relegation in the Premiership, Saracens have named a weakened team for today’s Heineken Champions Cup tie against Racing 92, who will start with Scotland star Finn Russell at fly-half.
Rival English clubs have threatened boycotting matches against Sarries if they proceed with the appeal and Sutherden believes the ongoing headlines will not sit well with new Premiership investors CVC.
‘In any event, CVC will be deeply frustrated that the afterglow of the World Cup for Premiership Rugby is tarnished by unwanted headlines,’ added Sutherden.
‘As for Gallagher, an insurance company sponsoring a competition with its star club caught up in accusations financial irregularity, it’s another reminder that modern-day sponsorship brings reputational risk as well as opportunity.’