Gareth Maybin Signs USD50m Deal with Sportsrisq
April 5, 2011
European Tour golfer, Gareth Maybin has agreed a sponsorship deal with leading sports risk advisory Sportsrisq Capital that includes bonus payments of up to $50m. The landmark deal is believed to be the largest sponsorship agreement ever signed in professional golf.
John Nagle, Managing Director at the London based company said “We’re delighted to be backing such a promising golfer as Gareth. He has the potential to be a major force on the tour for years to come and we’ll hopefully be along for the ride.”
The eye-watering bonus structure is made possible because of Sportsrisq’s expertise in pricing performance. Nagle said “We were able to leverage that to create and manage the bonus structure. All the risk is placed through our risk capacity partners so we can cheer on Gareth without worrying about the huge liabilities.” While the exact details of the structure are confidential, it is primarily based on tournament finishing positions and The Race to Dubai rankings. A cumulative effect would trigger the $50m payout.
Bonus structures are an integral part of most sports sponsorship deals. With the Maybin deal Sportsrisq was able to showcase their product in a way that was both relevant and easy to understand. “Our clients are sponsors and agencies so this is a great way to show the possibilities of what we can do. At the same time we’re demonstrating our commitment to professional sport by becoming a sponsor. We’ll continue to explore innovative sponsorship opportunities as we grow.”
Conor Ridge of Horizon Sports Management, Maybin’s management company, said “The Sportsrisq deal represents an exciting, new type of sponsorship deal that both Gareth and Horizon are proud to be involved with. Gareth doesn’t need any more motivation but the prospect of $50m certainly won’t hurt!”
Maybin tees off on the road to $50m in Agadir, Morocco next Thursday.