Wigan’s JJB sponsorship in jeopardy

The global depression in the economy is being reflected clearly in the sponsorship agreements of Premiership clubs. Healthy firms negotiated large sponsorship packages with clubs, and are now finding it difficult to sustain this cost combined with the financial market losses. Another firm that has found itself in this situation is JJB Sports. The firm specialises in clothing, sportswear, equipment and health clubs. It is the shirt sponsor of Wigan Athletic, with one on the key member on the JJB board (Honorary President and Founder), Dave Whelan, being the chairman of the club. They have been working together ever since 1994/95, also sponsoring the club’s stadium earning themselves the naming rights.

The deal between the two parties expires at the end of this season. However, as happened with XL and West Ham, the deal could be abandoned earlier if the financial difficulties persist. Dave Whelan is no longer on the board of the sportswear company after selling his stake in the club last year (29% of the shares). Wigan are now actively seeking new sponsors, both for the shirts and for the stadium. It is understandable that this situation is made more difficult by the state of the global economy. The shares of JJB fell by nearly half their value last week, and mid-yearly dividend that was proposed had to be abandoned. The company incurred losses of £9.7 million, and the future is still unclear.

Also in a similar situation are the sponsors of Manchester United (AIG) and Newcastle (Northern Rock), both having to be rescued by their respective government. This indicates that the multi-millionaire English clubs are not immune to the conditions in the financial market, and are suffering marketing losses as a result of these conditions.