“Olympique de Marseille and Cazoo, the European leader in online car sales, are pleased to announce today the signing of a multi-year agreement. From the start of next season, Cazoo will become the main partner and sponsor of the new Olympique de Marseille shirt.. This is what OM said on March 24, fulfilled by the signed society. Perceptible enthusiasm also in the words of Pablo Longoria, president of the Marseille club. “We are delighted to welcome Cazoo, a young company that is already at the level of the largest international companies, to the Olympique de Marseille family. Beyond sharing values such as excellence and combativeness, this association symbolizes our common desire to play on the European stage and continue to grow together, each in their area of expertise. Therefore, we are very proud that Cazoo is committed to our side for years to come.”.
A stillborn contract?
yes but here it is. The years mentioned by the leader of Marseille will ultimately never come to pass. Effective from July 1, the partnership between Cazoo and Marseille is already dead, despite the great promises shown by the British company. “Cazoo has been one of the fastest growing in Europe for the past two years, pioneering online car buying in England, and has been listed on the NYSE since August 2021, raising over $800 million to develop the brand and its infrastructure to transform the experience of buying and selling cars in the UK and Europe”. In serious financial difficulties for several months – the stock market value of the company collapsed at the beginning of June, with losses in 6 months going from 100 to 290 million euros in a year – Cazoo finally decided to withdraw from the European market.
A decision in line with the announcements made by the firm’s founder, Englishman Alex Chesterman, who announced, on August 2, a layoff plan for 750 people, and a reorientation of Cazoo’s activities in the British market. A decision that directly impacts many European formations, today in the same case as OM. Thus, in addition to the Marseillais and not to mention the Welsh rugby team and various billiards, golf, darts or cricket competitions, Lille, Valence, Aston Villa, Real Sociedad, Everton or even Bologna are also affected by this sudden and unexpected withdrawal. . The direct consequence of an ambitious but totally failed strategy. Founded only in 2018, this start-up, which has recently exported internationally, had chosen sports sponsorship to make itself known. Mission accomplished, but at what cost?
A resource to the Cazoo?
In its press release, Cazoo indicates that “The company is in consultation with its staff representatives in France and Italy. Cazoo will facilitate a structured closure for its customers, employees and suppliers and has informed the relevant employee representatives and unions in each market.. Therefore, the association could legally continue until the end of the season before stopping and, due to a contract signed at the beginning of the season, OM and LOSC could be paid until the end of the season. exercise. But nothing is certain, not even at this level since the press release published on Thursday adds: “Cazoo proposes to end its activities in continental Europe to focus on the main market of the United Kingdom. Following a review of a variety of strategic options, management concluded that the correct course of action is for Cazoo to now focus exclusively on its main opportunity in the UK, a huge market with around 8 million used car transactions. and worth over £100 billion a year. Accordingly, the Company intends to commence an orderly liquidation of its operations in Germany and Spain and is in consultation with its employee representatives in France and Italy..
If Cazoo could no longer wear the OM and LOSC shirts next season, the clubs affected by this withdrawal have, in any case, every interest in looking for a new sponsor. An exit that will have, in addition to the economic impact, a consequence for the fans. Not to mention the work that awaits all these formations in the search for a new society, how to deal with the embittered fans of having already bought the shirt with the herd of this resigning sponsor? Will OM, LOSC and the other clubs mentioned receive the money committed by this signed contract? Will the jersey sponsor remain on the robes in question until the end of the season? According to CMROM, for its part, has not been informed as of the date of an early termination of this company. Therefore, Cazoo could, at best, continue his collaboration with the Phocaeans until 2025 without then renewing his commitment. Unless the company decides to anticipate the end of this partnership… Could the leaders be concerned about Cazoo’s financial health at the time of the deal? Probably not. One thing is certain, this story is not done talking. Meanwhile, protect yourself in the cazoo.
#consequences #LOSC #withdrawal #Cazoo