Several of the England national team's sponsors will secure insurance plans for the World Cup.GETTY IMAGES
England’s footballers have "more than just pride riding on the outcome of this year’s World Cup in Russia," according to Sabah Meddings of the LONDON TIMES. With millions of fans watching England's first game, "everything from the team’s boots to the half-time drinks will have a commercial sponsor." As sportsmen and women command "ever more lucrative sponsorship deals," the financial risks for leading brands are "multiplying." Big bookmakers and niche insurance companies are "stepping in to absorb the risk of an unlikely underdog creeping through to the late stages of the World Cup" -- and leaving a kit sponsor or other brand partner "on the hook for an unexpected bill." As a result, a market is "being created in corporate sporting risk and spawning new products, competitions and services." Airton Risk Business Development Manager Ross Garvey is "hoping Harry Kane does not score in Russia" -- and not just because he is Irish. Airton Risk, a division of Paddy Power Betfair, is "among those that have been locked in talks with national football teams and sponsors ahead of the World Cup." If England does well, Garvey "expects to be paying out to sponsors to cover their higher player bonuses." Garvey said, "Often you’ll have a bit of a sweat when you’re watching the tournament, because if one player wins, you could be £300,000 ($401,553) in the clear, but if it goes the other way, you could be £4 million ($5.3M) behind. Sponsors will often agree to pay a certain amount, but if the player wins the league, they’ll be on the hook for an astronomical bonus." Garvey, who would not name his clients because of confidentiality agreements, said that "several of the England football team's sponsors will have taken out insurance or a hedging contract" (LONDON TIMES, 6/10).
