Guild Esports PLC (LSE:GILD, OTCQB:GULDF) said it renegotiated the terms of its five-year agreement with David Beckham and his image rights company, Footwork Productions.
Under the new terms of the agreement, Beckham’s firm will receive 20% of Guild’s merchandising and sponsorship revenue in the fourth and fifth years of the contract.
According to a statement, the move “will significantly reduce the company’s cash requirements and align the fees to its business performance and continued success” and is expected to reduce the total minimum payment obligation by £7.5mln over the next two years.
Original terms allowed Guild to acquire Beckham’s services as a brand ambassador for 15% of merchandising and sponsorship revenue, with a minimum of £15.25mln guaranteed over the five-year period.
So far, the first two annual payments have been made, with the 2022 payment totalling £3mln to be paid under the existing terms.
Beckham will continue to perform an ambassadorial role for Guild, having yesterday played a part in securing Guild’s largest ever sponsorship deal with Sky.
As part of the renegotiation of the influencer agreement, Guild granted over 25mln warrants to Footwork, with an exercise price of 2.7p and an exercise period limit of five years, vesting immediately.