Guild Esports PLC (LSE:GILD, OTC:GULDF) said it terminated the three-year sponsorship deal with a European fintech company it had announced last October after delays in the sponsor's launch and the payment of sums due under the contract.
The esports teams organisation and lifestyle brand said talks with other potential sponsors are at “an advanced stage of negotiations”.
Under the terms of the previous agreement, the sponsor was due to commence payments from the date of their global brand launch and unveiling, but Guild said it has not been given any clear timeline for their launch and none of the amounts scheduled under the contract have been paid.
The company said given the uncertainty about the contract and what it said was strong appetite for partnerships from other brands, it decided to terminate the contract with immediate effect.
It added its new business pipeline remains robust, it continues to generate strong and active interest from consumer brands in a wide range of sectors, and has excellent relationships with its other existing global sponsorship partners.
Kal Hourd, chief executive of Guild Esports, said: "We have been very accommodating and patient about this contract but have decided to terminate it due to increasing uncertainty over their launch plans. We are in active negotiations for new sponsorship deals and look forward to announcing these soon."