LD Sports pull out of deal

Southampton at the start of the week it was reported was in financial trouble as their main shirt sponsor LD Sports withdrew their sponsorship deal with the club. It is reported that the deal could cost the club as much as £15 million in lost revenue too. 

LD Sports walk away 

LD Sports are a company that was clearly keen to hit the UK market as on their website in their about page they say;

LDsports is a sports enterprise headquartered in Southampton, UK. As a well-known sports brand, LDsports has built a complete industrial chain in the global sports market. In addition to the well-known youth sports training projects, LDsports has also successfully arranged various sports projects such as venue and equipment leasing, coach team, Event Hosting, sports mall and sports media. In many countries and regions around the world, LDsports chain venues. Every year, the number of customers who enjoy the service in Letong has reached tens of millions.

Then why would the company withdraw their £7.5million a year sponsorship that was due to run until 2022? The English side has only just brought out their new shirts for the up and coming season with the LD Sports logo right on the front of the shirt. 

While the company withdrawing from the deal as yet to be made official, it does look very likely the news will be announced by the organisation this week. 

It is understood there was a clause in the contract that the company could pull the sponsorship after one season so there will be no break of contract. 

This comes as Blackburn Rovers deal with Chinese gambling company 10 BET has also come to an end, while it is expected other Chinese investment in England could be under threat. 

This comes as tensions rise between the UK and China politically, plus investment concerns due to ongoing uncertainties due to COVID-19. The countries have fallen out over issues including Hong Kong, tech giant Huawei and alleged human rights abuses against China's Uighur ethnic group.

It will all be a worry too for Wolves who are owned by Fosun International a Chinese investment company, for sure this is a story to keep your eye on.