According to football finance expert, Stefan Borson, Tottenham Hotspur could be in line to receive compensation from Man Utd’s co-owners INEOS after they decided to renege on an agreement that they have with the North London side.
Sir Jim Ratcliffe’s INEOS, who own 25 per cent of Manchester United, announced a multi-million-pound, five-year deal in December 2022 with Spurs to promote INEOS Grenadier car as the club’s ‘official 4×4 vehicle partner’.
However, it emerged a few days ago that talks are underway to end the sponsorship deal between Spurs and INEOS two years before it runs out, with the United owners being the ones to initiate talks over an early termination.
It was explained that INEOS are being forced into major cost-cutting measures, which they claim is a result of “the high energy costs and extreme carbon taxes.”
Daniel Levy expected to demand compensation from INEOS
Stefan Borson believes that the termination of the sponsorship will not have much of an impact on Tottenham’s bottom line as other brands will be ready to jump in and fill in the vacuum.
The football finance expert suggested that Spurs themselves would want the sponsorship to end after INEOS involvement with Man Utd but claimed that Daniel Levy will expect the petrochemicals company to pay a termination fee.
When asked about the talks to end the sponsorship agreement, Borson told Football Insider: “Levy is in the driving seat, he’s got a contract. But, I doubt he likes having INEOS having plastered on the side of the pitch when they own 25% of United now. I doubt it’s ideal, but it’s cash. Unless Levy can find someone to replace INEOS, I doubt he will play ball.
“The most likely scenario is that Spurs have someone in mind to take on the asset, the sponsorship, and they will effectively replace INEOS with them having to pay some sort of termination fee.
“Spurs will probably want to get to a position where they make a bit of money, but I think it is possible that everyone can be happy with the scenario. There could be a termination fee paid which gives Tottenham a bit of upside early on, and they then go and find a replacement for INEOS.
“The bottom line is that Spurs won’t be out of pocket here. There’s no way they will let a company like INEOS walk away from a sponsorship agreement. Tottenham have done nothing wrong and have filled their part of the bargain.”
Discussions between the two parties are amicable
While reporting on this discussion to end the sponsorship agreement, The Telegraph revealed last week that the talks between the parties have been “amicable” so far.
That is to be expected as Levy and Jim Ratcliffe will be keen to preserve their business relationship, with the pair likely to work together closely over the years now that the latter has got involved at Man Utd.