Chelsea shirt sponsor Three suspends £40m partnership with club – and wants logo removed from kit

Chelsea are facing the risk of losing more sponsors after Three, one of their main commercial partners, suspended its deal with the club and asked for its logo to be removed from the team’s kits.

The mobile network operator said the suspension of its sponsorship with Chelsea, thought to be worth around £40 million per year, was the “right thing to do” in response to the sanctions placed on Roman Abramovich.

Three’s decision came after a day in which Chelsea fielded urgent calls from its sponsors, with at least one other partner known to be considering ending its deal with the club.

Plan International, one of Chelsea’s charity partners, also brought an end to its partnership. Their agreement was due to end at the end of this season, but that has now been brought forward.

The withdrawal of a major sponsor and a charity partner, and the possibility of others soon following their lead, could have a significant impact on the valuation of the club as buyers continue to circle Stamford Bridge.

Chelsea’s latest financial accounts, for the year ended June 30, 2021, showed commercial revenues of £153.6m, down from £170.4m in the previous year due to the impact of the Covid-19 pandemic.

A Three spokesperson said: “In light of the Government’s recently-announced sanctions, we have requested Chelsea Football Club temporarily suspend our sponsorship of the club, including the removal of our brand from shirts and around the stadium until further notice.

“We recognise that this decision will impact the many Chelsea fans who follow their team passionately. However, we feel that given the circumstances, and the Government sanction that is in place, it is the right thing to do.”

Three has been a Chelsea sponsor since 2020 and its agreement with the club is set to expire at the end of next season.

Other sponsors, including on-demand delivery app Zapp and car manufacturer Hyundai, said on Thursday that they were reviewing their deals with the club as expert analysts warned that commercial partners will be “wary of guilt by association”.

Conrad Wiacek, head of sport analysis at analytics firm GlobalData, said the UK Government’s sanctions on Abramovich had “cast a shadow” over Chelsea’s numerous and lucrative commercial agreements.

“While Chelsea has a sporting licence to continue trading as a soccer club, many brands will be wary of guilt by association,” said Wiacek.

“Chelsea FC is still one of the biggest clubs in the world and its on-field success still makes it an attractive commercial partner. However, given the rate at which many brands are looking to dissociate themselves from the Russian state, some may be wary of continuing partnerships.”

Sponsors are scrambling to understand the contractual and commercial implications of the sanctions placed on Abramovich and what they meant for the club, with Chelsea’s commercial department telling partners they are in discussions with the Government.

A spokesperson for Hyundai told Telegraph Sport that the company “supports the sport to be a force for good”, adding: “We are currently assessing the situation with Chelsea FC.” Hyundai’s deal is reported to be worth around £10m per year. Zapp, meanwhile, said that its own arrangement with the club is now “under review”.

Chelsea are in the midst of a long-term kit deal with Nike, the most lucrative commercial arrangement in their history, which is worth £60m per year. Nike said it was not commenting on the developments. Chelsea’s other “principal partner” online hotel search firm Trivago, has said: “We are looking forward to a transition of ownership as soon as possible and want to support the club in this process. We will provide any update to our business relationship if and when appropriate.”

In total, Chelsea have 16 official partners listed on their website, including insurance company Vitality, luxury watchmaker Hublot and confectionery company Cadbury. They are also charity partners with Plan International, the global children’s charity, and Soccer Aid.

Chelsea had planned for this season to mark a return to normal commercial operations following the disruption created by the pandemic over the previous two campaigns.

Bruce Buck, the club’s chairman, said in December, upon the announcement of Chelsea’s latest annual financial results: “The strength, stability and long-term approach of our financial operation means our revenue streams remain strong, however, Covid-19 will continue to have an impact going into the next financial year as our commercial operations resume normal activities.”