Financial Concerns Surround Castore Amidst Athletic Agreement
Castore’s seven-season collaboration agreement with Athletic, signed in 2023, has raised concerns about the British firm’s financial stability. The agreement includes exit clauses that can be triggered if certain requirements are met, allowing either party to terminate the contract. Athletic’s increased brand value and international appeal in recent campaigns would make it easier for the club to find a new technical sponsor if needed.
Castore’s financial struggles have led to the termination of its partnership with Sevilla, which will now be sponsored by Adidas. The British company has also handed over the management of technical sponsorships for certain clubs to its strategic partner, Umbro, in an effort to alleviate logistical and stock issues.
Castore’s Financial Woes
Despite securing a 60 million euro credit line in 2022, Castore’s financial situation has deteriorated. The company reported losses of 35 million euros in 2023, doubling the previous year’s losses. The strategic collaboration with Umbro has led to the renunciation of certain sponsorships in an attempt to mitigate the financial damage.
Castore’s agreement with Athletic is worth over 4.5 million euros per season, with the potential for bonuses. However, the company’s financial struggles raise concerns about its ability to fulfill its obligations under the contract.