The FA and the search for a new sponsor: a game of two halves?

E.ON's withdrawal from sponsorship of the FA Cup, worth about £10m a year according to press reports, follows on from the blow suffered by the Football Association earlier this year with the demise of Setanta GB in June. The £425m transmission rights deal with the Irish broadcaster, which is still operating in the Republic of Ireland and Northern Ireland, was hailed by many as a fantastic achievement back in March 2007.

Two and a half years later, the League's financial situation is at best diminished, writes Richard Fox. And, whilst there is always a price at which a blue chip property such as the FA Cup will find willing sponsors, it's more than likely that any would-be replacement signatories would know they were in a relatively strong bargaining position. Intangible A cloud of uncertainty about the broadcasting of Cup games has hung over the competition for some time - and this may well have been a factor in E.ON's decision to pull out. Dealing with the often intangible benefits of association via sponsorship whilst still tackling the all-too-tangible effects of the credit crunch, potential sponsors need all the certainty and reassurances they can get.     Meanwhile, reports suggest that E.ON is keeping its options open as far as future sponsorship plans are concerned, with the FA talking about putting the competition onto the open market. And there's the rub: the temptation for the FA will be to go for a 'quick fix' and seal a deal in rapid order, to provide interested parties - clubs, bankers and other stakeholders - with the feeling that all is well. But in the current, possibly improving, financial climate, they might do better to wait and see. Finding a new sponsor in football can often be a game of two halves. If the FA bides its time and waits for new money to come back into this "open" market, it might well find that there is much to be gained. Going into the open market is fine; but presenting potential sponsors with an open goal is neither necessary nor would it be financially astute.