Europe: Heineken could walk from European Cup

Heineken has said that it is prepared its sponsorship of the European Rugby Cup if clubs in France and England follow through with boycott threats and pull out of the competition, a source said, April 13.

Heineken has been the principal sponsor of the since the competition began 13 years ago and if it withdrew its sponsorship it would mean a massive blow to Irish rugby.

An exit clause in its sponsorship contract means that Heineken can withdraw its sponsorship if there is a major change in the competitions structure. It is believed it is concerned about the effect the loss of France and England would have, weakening the European Rugby Cup.

It is also understood that Toyota Ireland and Bank of Ireland are examining their sponsorship deals with Munster and Leinster respectively in light of the decision the two biggest rugby nations in Europe.

France voted last week to boycott the tournament next season and it has support from English clubs as well. As well as Heineken, the tournament also has lucrative deals with Italian telecom company Alice, Fedex and Ford.

The contracts are worth about €160 million, however all the companies can re-negotiate their deals if the boycott goes ahead.

13 April, 2007