27th Sep 2022 13:09
Guild Esports PLC - London-based e-sports company - Says it has renegotiated a five-year agreement with Footwork Productions Ltd, controlled by David Beckham, to reduce Guild's minimum payment obligations by GBP7.5 million over the next two years. Under the agreement, the footballer acted as a brand ambassador for Guild in return for 15% of all merchandising and sponsorship revenue over the course of five years. The agreement had a minimum guaranteed fee of GBP15.3 million.
The first two annual payments have already been completed, while the third, for 2022, will be payable in line with the original agreement. The remaining GBP7.5 million has been renegotiated, with the original GBP15.3 million minimum payment being scrapped. Instead, Footwork will receive 20% of merchandising and sponsorship, which will "significantly reduce" company's cash requirements and align the fees to its performance. Guild is also granting to Footwork warrants for 25.9 million Guild shares. The warrants have an exercise price of 2.7 pence and an expiry date of five years.
Blue Star Capital PLC, an investment fund with a 4.3% stake in Guild, said it was "delighted" to learn of the reduction in Guild's cash requirements.
Current Guild stock price: 2.80p, down 9.7% on Tuesday
12-month change: down 47%
Current Blue Star Capital stock price: 0.14p, up 1.4%
12-month change: up 11%
By Chris Dorrell; [email protected]
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