Winners and losers after bail-out

Published on Thursday 26 August 2010 15:36

SPECULATION over the future of RBS sponsorship deals has been rife ever since the bank had to be bailed out by the UK government in September 2008.

Politicians demanded that RBS cut back on major sponsorship agreements in the wake of its 20 billion bail-out from the taxpayer.

Within months, the firm pledged to slash sponsorship costs from 200 million to 100m by the end of 2010.

But the only major deal to be axed completely by RBS to date has seen the end of its involvement in Formula One.

Instead, the bank has made major savings by imposing swingeing cuts on trackside advertising and corporate hospitality.

Rugby's Six Nations Championship has been spared after a new four-year 20m contract was agreed.

However the bank has been renegotiating its deals with major stars like Andy Murray, cricketer Sachin Tendulkar, golfer Jack Nicklaus and motor racing legend Sir Jackie Stewart.

RBS has been a high-profile supporter of many of Edinburgh's major events in recent years. It recently announced an extension of its backing for the Royal Highland Show. A new deal with the Royal Edinburgh Military Tattoo is expected to be officially unveiled before the end of this year.

With the Fringe's deal expected to run out within weeks, the spotlight is expected to fall on the RBS's backing of the Edinburgh International Book Festival, where it supports one of the main tents.

Edinburgh's major events and venues have been broadly successful in maintaining sponsorship levels in recent years. The Assembly Rooms is backed by Bulmers after losing a deal with Belhaven, Foster's sponsor the Edinburgh Comedy Awards, which were previously backed by Intelligent Finance, and the Fringe is sponsored by Deuchars, produced at the capital's Caledonian Brewery. .