Getty Images USG signed three-year shirt and sleeve sponsorship with Premier League club in 2019
Deal is said to be worth UK£3.5m per season
Australian-based firm went into administration earlier this month
English top-flight soccer club Sheffield United could be on the lookout for a new principal sponsor after their current partner Union Standard Group (USG) fell into administration amid an investigation into its trading platforms.
The Australian-based global multi-asset broker, which signed a three-year deal with the Blades in , appointed administrators this month after facing allegations by the Australian Securities and Investments Commission (ASIC) that it and its representatives had acted unconscionably towards customers.
ASIC this week suspended USG’s financial services, which operates the trading platform USGFX, as investigations continue.
The Sydney Morning Herald reports that creditors to the company have filed claims that indicate USG owes AUS$30 million (US$21.2 million). It has assets of about AUS$6 million (US$4.2 million) but may have access to AUS$40 million (US$28.2 million) held on trust in China.
The firm’s deal with Sheffield United is apparently worth UK£3.5 million (US$4.4 million) per season through to 2022. The agreement covers front of shirt and sleeve sponsor branding.
The Premier League outfit released a statement earlier this month asserting that it was business as normal regarding the pair’s relationship.
‘A spokesperson for USG has confirmed the following. The directors and management of USGFX are committed to continue working with all parties and assisting with matters to ensure all legal requirements are satisfied,’ said the statement.
‘USG Group, known as USG, consists of several companies, including USG AU, USG UK and others. The news relates only to USG AU and does not influence the financial status or service of USG.‘The UK operation, USG UK, which is regulated by the FCA is not affected by this situation and continues to trade as normal.’However, the group’s administrator, Peter Krejci of insolvency firm BRI Ferrier, confirmed the sponsorship deal was through USG’s Australian arm, casting fresh doubt over the contract.“The sponsorship is on the Australian balance sheet as a pre-payment to Sheffield United,” Krejci said.While USG’s UK and Australian entities are separate companies, the two share directors. The UK business is majority owned by Myanmar-based Hein Min Soe, who is also a director of the Australian operation.The news comes after the Sydney Morning Herald and the Age revealed earlier this year that representatives from USG had prepared faked Commonwealth Bank […]