By Paul Jones
Global brewing giants Heineken are to step down as title sponsors of rugby’s Champions Cup, leaving tournament organisers with a big financial gap to fill before their two tournaments kick off in December.
Heineken have been the only title sponsor of the main tournament since it began back in 1995. They pulled out, along with the English clubs, in the 1998-99 season, when Ulster won what was known for one season as the European Rugby Cup, but returned after a one season political hiatus.
The Heineken Cup grew to become the best club rugby tournament in the world, attracting world record crowds to matches and packed out stadia for its finals. Then another political change saw the organisation of the competition alter.
ERC (European Rugby Cup) became EPCR (European Professional Club Rugby) in 2014 in a coup organised by the English and French clubs aimed at ending governing body involvement. At the time, the ERC turnover was around €47m and Bath owner Bruce Craig, one of the major catalysts for change, triumphantly announced the new TV deals for the revised 20-team Champions Cup competition was worth €57m over its initial four-year period.
European rugby league announces new Heineken Champions Cup format https://t.co/ce2xjM7fCi
— Business Post (@businessposthq) June 14, 2023
The revamped tournament cast aside Heineken as title sponsor, preferring instead to seek a suite of commercial partners. For four years Heineken remained loyal to the tournament as a leading partner, with Turkish Airlines eventually joining them, before returning as title sponsor for 2018-2023.
Craig bullishly predicted a bright financial future for the new EPCR organisers at the time of the change, but his hopes and dreams of more than doubling the old ERC annual turnover failed to materialise.
“We’ve just achieved an increase of 60% on TV rights alone,” Craig proudly announced in 2018 at the time of the scheduled TV contract renewals.
“In four years’ time our overall turnover will exceed €100m per year. I don’t think, I know. When we say we’re going to do something, we do it.”
That bold prediction was based on EPCR recruiting four main partner sponsors, each paying €4m per season. Heineken were the only ones in EPCR’s first season in charge and Turkish Airlines joined them for a further three years.
🗳️ | 2023/24 @ChampionsCup format announced by EPCR.
Read the full story here 👉 https://t.co/UhhPkaY291#FromTheGroundUp pic.twitter.com/6LscDMF96u
— Leinster Rugby (@leinsterrugby) June 14, 2023
With a drop off in commercial revenue, rather than the predicted increase, the way was cleared for Heineken’s return as the title sponsor at the start of the 2018-19 campaign.
The Heineken Champions Cup ran for five more years, eventually seeing the Dutch company as title sponsors for 23 finals, but now they are due to step back. They are expected to remain attached to the tournament, but in a reduced capacity.
It means EPCR, who didn’t get off to the greatest of starts in charge of the revamped tournament after getting into a muddle with giving away free tickets for their first final at Twickenham in 2015, will have to find a replacement title sponsor to help refill their coffers.
A post-COVID recovery saw full houses for the semi-finals and final last season, and it is believed EPCR will be able to distribute around €50m to the clubs in their three participant leagues – Gallagher Premiership, BKT URC and Top 14 – as a result.
A reminder of today’s news about a revised format for the 2023-24 EPCR Challenge Cup.
There are three groups of six, with the top four in each pool going through to the round of 16.
The draw takes place on Wednesday June 21.https://t.co/KxU4J6qesj pic.twitter.com/mmGwMoFecQ
— Newcastle Falcons (@FalconsRugby) June 14, 2023
