What it entails is the end of their sponsorship of the Williams Formula 1 team when the current contract expires in 2010. Also a reduction of the contribution to their sports ambassadors including Andy Murray, Zara Philips and Jack Nicholas as well as other lesser deals. The net effect is a 50% reduction of their tens of millions in sponsorship.
Dr Andrew McLaughlin, RBS group director said:
"We recognise that we are now operating in a very different economic
environment and have been reviewing all of our activities since
"It is imperative that we respond to the reality of the situation we face
and that we do so in an orderly way that respects the commercial agreements we
have in place and the implications for our partners and the jobs they support."
As a sportsman in my past I well recognise the benefits that sponsorship can bring to events and individuals. But as an Economics graduate I also realise that investment in sponsorship does not have a direct impact on the money making potential of a company and when times get tough will be seen as needless luxury that is hard to justify. Therefore RBS are making a sound business decision for themselves. Those they have sponsored will have to get on the treadmill and find out if anyone(s) else will take up the slack and the hole left in their budgeting.
Although Williams will have to replace their £10m per annum deal Sir Jackie Stewart is beleived to he holding out for his £4m deal, unlike Andy Murray who is happy to renegotiate his deal.