England's Football Association next month will announce Budweiser as the "new title sponsor for the FA Cup, replacing E.ON," according to John Reynolds of MARKETING MAGAZINE. The deal is "thought to be worth around" US$13M a year. E.ON "resigned its four-year title sponsorship in 2009," and "subsequently negotiated a further extension, which ends this year." The FA also "held discussions with LG over sponsorship opportunities." IMG handled the search for a title sponsor (MARKETINGMAGAZINE.co.uk, 5/18). In London, Lawton & Sale reported the Budweiser deal "has incensed" current FA sponsor Carlsberg. The Danish beer company has "deals in place, with their pouring rights for Wembley and secondary sponsorship contracts around Team England and the FA Cup, and believe bringing in Budweiser would be in breach of exclusivity clauses." Carlsberg, which "declined the chance to become lead sponsors of the FA Cup, will be expecting a severance cheque from the FA" (London DAILY MAIL, 5/14). The FA already has had to "pay out severance to Fiat after they signed rival car firm Vauxhall as partners of the England national team and will be keen to avoid a similar situation following this new agreement" (UKMARKETINGNEWS.com. 5/18).
