Updated
Updated · Bloomberg · Jun 12
Telefónica Seeks Exit From €25 Million Movistar Deal as Cycling Sponsorship Costs Rise
Updated
Updated · Bloomberg · Jun 12

Telefónica Seeks Exit From €25 Million Movistar Deal as Cycling Sponsorship Costs Rise

1 articles · Updated · Bloomberg · Jun 12

Summary

  • Telefónica is exploring ways to cut its Movistar Team commitment, including selling the sponsorship contract or bringing in partners to share the cost, according to people familiar with the matter.
  • The review centers on a deal worth about €25 million a year that includes naming rights for the team and runs through 2029.
  • Rising costs in top-tier road cycling are driving the move, which is part of a broader review of the Spanish carrier’s marketing spending.
  • Any change would affect one of the sport’s premier championship teams and could reshape how Telefónica maintains its long-running presence in cycling.

Insights

Is Telefónica's review of its €25M deal a sign that pro cycling's sponsorship-dependent financial model is fundamentally broken?
As Telefónica backs football's World Cup path, why is it reconsidering its sponsorship of cycling's biggest race, the Tour de France?