Guild Esports (LON: GILD) stock soared over 55% this week as three exciting news items hit the headlines. David Beckham is a key shareholder in the company through his investment vehicle, Footwork Productions Ltd.
Now, Guild Esports has renegotiated its five-year agreement with Footwork reducing its payment obligations by £7.5m over the next two years.
The new agreement will see Guild provide Footwork with 20% of its merchandising and sponsorship revenue. This replaces the guaranteed minimum fee previously agreed upon and should help Guild reduce its cash requirements. Beckham will continue in his role as brand ambassador. Having high-profile celebrity backing has undoubtedly helped elevate the Guild Esports brand.
Sky’s First Esports Deal
In the second piece of notable news, Guild signed its biggest ever sponsorship deal in a 3-year contract with Sky. Indeed, Guild called it “one of the largest ever sponsorships signed in Europe.” Additionally, Beckham played a crucial part in helping Guild land the deal.
David Beckham said:
It’s great that Guild Esports has a fantastic new partner in Sky and I’m pleased to welcome them to the Guild family.
This is the first time Sky has sponsored an esports organization, and in return, it will benefit three-fold.
Guild’s head office in Shoreditch, London, will be renamed “Sky Guild Gaming Centre.”
Sky branding will appear on Guild’s team jersey.
Sky’s funding will allow Guild to launch an all-female Rocket League team generating further publicity for both brands.
The Sky Guild Gaming Centre will be fully kitted out with Sky branding, including a striking outdoor mural on the building. The centre will run on Sky Full-Fibre Broadband, providing Guild’s professional players and Academy students a speedier edge as they train and compete online.
And for gamers at home, Sky Broadband offers in-home gaming full fibre to millions of homes across the UK, with speeds of up to 900 Mb/s.
Additionally, Sky will be the headline partner on Guild’s team jersey for the 22/23 season.
The new jersey will be showcased by Guild X, the company’s all-female Valorant team, as they compete in Riot’s Game Changer tournament this week. Sky wants to help Guild provide greater opportunities for women in the esports industry, and this starts now.
Investor excitement is understandable as this partnership is a massive deal for the esports industry in the UK. Indeed, Sky is one of Europe’s leading media, entertainment and connectivity companies and together with Beckham’s presence, these forces combine to present a hugely exciting growth story.
Working together, the companies hope to elevate opportunities for women in gaming, lead the way in player performance and best practice coaching developments and fully engage audiences through the power of Sky’s dominant position in entertainment and sport.
Rory Moran, Director of Global Partnerships at Guild Esports, said:
We are incredibly proud to welcome Sky to Guild in their first major partnership in esports. Attracting a global media and entertainment powerhouse like Sky is testament to Guild's successes to date and plans for the future - in a partnership which will continue to drive us to the highest levels of performance in competitive esports. Our collective vision for success, shared values and commitment to driving the esports sector forward makes this one of the most exciting partnerships in global esports.
Stephen van Rooyen, EVP & CEO, UK and Europe at Sky, said:
Sky transformed the way families watch TV, now we want to transform the gaming experience. In esports every second counts, so Sky’s full fibre broadband will be perfect for Guild’s gaming HQ. Speed and reliability, hallmarks of Sky’s broadband service, will give the Guild team and gamers across the nation the edge over the competition.
In its third piece of news, Guild has announced the launch of a new all-female Rocket League team. This will complement the success of Guild X, its all-female Valorant team, which launched a year ago.
Since going public on London’s AIM stock market, Guild Esports has now signed eight impressive, revenue-generating sponsorship deals. In addition to Sky, partners include Subway, Bitstamp, Razer, Hyperice, HyperX, Samsung, and Coca-Cola.
About Guild Esports
According to Bloomberg, Guild Esports PLC operates a global esports business. The company develops video games for esports athletes based on the traditional sports academy model. The company runs video game tournaments, including FIFA, Rocket League, and Valorant, with its own branded teams taking part.
Guild Esports describes itself as a global team organization and lifestyle brand that serves customers worldwide.
The latest news reaffirms Guild’s status as a lifestyle brand to watch. The company is on a significant growth trajectory as it spans the lucrative worlds of influencer-driven notoriety and the exhilarating world of esports.