This is what is happening now with the CS contracts in sports

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The Paradeplatz earthquake in Zurich also affects Swiss sport. After all, over the course of many decades, Credit Suisse has become a fixture not only in the financial market, but also in the local sports scene with numerous partnerships.

Christian Lang, head of sports management at the University of St Gallen and a marketing expert, knows how important it has become for Swiss sport. «CS has for many years been one of the most generous Swiss sports sponsors with very long-term and lasting commitments. She thus became title sponsor and namesake of Super League as football faced a very uncertain future due to the Covid pandemic.”

Not just football in the portfolio

According to information from Blick, Credit Suisse, as the name giver of the highest Swiss football league, pays about 8 million francs per season. Every year another CHF 5 million flows into the treasury of the Football Association (SFV). It is also estimated that by the end of 2022, the bank was paying tennis icon Roger Federer about 10 million francs a year. It is also an important element in the financial structure of the Swiss Sports Aid Foundation, supports the largest international golf tournament in Switzerland and, in equestrian sports, the CHI Geneva and the White Turf horse races in St. Moritz.

But what happens after the takeover by UBS? Legally, the starting position is clear. When one company buys another, all rights and obligations are transferred to the new owner – and thus all contracts. Unless a specific exit clause has been agreed that gives one party the option to terminate the contract early. In these cases, however, according to the industry, this cannot be assumed.

It is therefore not surprising that the previous contract partners of CS reacted quite soberly to the shocking news from Paradeplatz. RingierSports AG, as marketer of the Swiss Football League (SFL) and thus contract partner of CS, says: “These contracts remain valid until the end of the 2024/25 Credit Suisse Super League season. We currently assume that we will continue this cooperation. We are in contact with Credit Suisse about this.”

The major bank, which has been absorbed by UBS, says in the meantime: “We will continue to implement our associated commitments unchanged for the time being.” CS had direct contact with the SFV on Monday. “We have been assured that the contracts will be honored with financial obligations until June 30, 2024,” said media spokesman Adrian Arnold.

CS also in the Zurich stadium project

The city clubs FCZ and GC from Zurich also react calmly to the historic bank deal. She is linked to Credit Suisse through the project that aims to finally give a football stadium back to Switzerland’s largest city on the Hardturm site.

“We do not know the future strategic orientation of the banks involved, therefore we cannot comment further on this situation,” GC writes on the website. FCZ chairman Ancillo Canepa says something similar, but adds: “However, to what extent such contracts are extended after the contract period has expired is another question. That will then have to be decided by the responsible management.”

For marketing expert Lang, however, it’s almost clear what’s about to happen. “I strongly expect that a large proportion of these contracts will not be renewed.” He sees a major problem in the fact that this sponsorship will still be linked to Credit Suisse in the future. “It is highly questionable whether UBS or any other successor organization would actively invest in this association.”

Source : Blick

Emma

I’m Emma Jack, a news website author at 24 News Reporters. I have been in the industry for over five years and it has been an incredible journey so far. I specialize in sports reporting and am highly knowledgeable about the latest trends and developments in this field.