Guild Esports PLC Agreement with David Beckham renegotiated (7098A)
September 27 2022 - 2:00AM
UK Regulatory
TIDMGILD
RNS Number : 7098A
Guild Esports PLC
27 September 2022
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014, as retained as part of
the law of England and Wales. Upon the publication of this
announcement via the Regulatory Information Service, this inside
information is now considered to be in the public domain.
Press release
27 September 2022
Guild Esports PLC
("Guild Esports" or "the Company")
Agreement with David Beckham renegotiated
Grant of Warrants
Guild Esports (LSE: GILD), a global team organisation and
lifestyle brand, is pleased to announce that it has renegotiated
the terms of a five-year agreement with Footwork Productions Ltd.
("Footwork") that will reduce the Company's total minimum payment
obligations by GBP7.5m over the next two years.
The original agreement enabled the Company to procure David
Beckham's services as a brand ambassador in return for 15% of all
merchandising and sponsorship revenues, with total minimum
guaranteed fees of GBP15.25m payable in cash instalments over the
five-year lifetime of the deal. The first two annual payments have
already been satisfied by the Company and the third annual payment
for 2022 amounting to GBP3m will be payable in line with the terms
of the original agreement. Further annual payments of GBP3.5m and
GBP4m were also due in respect of the fourth and final year of the
contract, as disclosed in the Company's prospectus.
As part of the updated agreement, the minimum fee due to
Footwork for the fourth and fifth years has been renegotiated.
Instead of the remaining guaranteed minimums, Footwork will receive
20% of Guild Esports merchandising and sponsorship revenue, a move
that will significantly reduce the Company's cash requirements and
align the fees to its business performance and continued success.
Mr Beckham will continue to perform ambassadorial services for the
Company.
Grant of Warrants
As part of the renegotiation of the influencer agreement, Guild
has granted 25,930,868 warrants (the 'Warrants') over ordinary
shares of par value GBP0.01 in the Company ('Ordinary Shares') to
Footwork . The Warrants have an exercise price of 2.7p and an
exercise period limit of five years, vesting immediately.
For further information please contact:
Guild Esports
Kal Hourd via Tancredi +44 207 887
Chief Executive 7633
Neil Thapar
Investor Relations
+44 7876 455 323
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Tennyson Securities
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Corporate Broker
Peter Krens +44 207 186 9030
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Zeus Capital
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Corporate Broker
Benjamin Robertson +44 203 829 5000
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Tancredi Intelligent Communication
Media Relations
-------------------------
Salamander Davoudi
Helen Humphrey +44 7957 549 906
Charlie Hobbs +44 7449 226 720
guild@tancredigroup.com +44 7897 557 112
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About Guild Esports:
Guild Esports PLC is a global fan-focused team organisation and
lifestyle brand that fields professional players in gaming
competitions under the Guild banner. Our in-house training academy
aims to attract and nurture the best esports talent, and our goal
is to provide the ultimate entertainment experience alongside a
distinctive lifestyle brand authentic to the esports community
worldwide. Guild is led by an experienced management team of
esports veterans and co-owned by David Beckham. The Company is
headquartered in the UK and its shares are listed on the main
market of the London Stock Exchange (ticker: GILD) and on the OTCQB
Venture Market in the United States (ticker: GULDF). Please visit
www.guildesports.com for more information.
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