Israel Loses National Soccer Team Sponsorship In 2024, Why Puma Said It Wasn't Because Of Boycotts, War In The Middle East
Portfolio Pulse from Chris Katje
PUMA SE (OTC:PUMSY) is ending its sponsorship of Israel's national soccer team after 2024, citing business reasons and a 'fewer-bigger-better strategy', not due to boycotts or the Middle East conflict. The BDS movement claims credit for the end of the sponsorship, which began facing boycotts in 2018. Puma also plans to end its partnership with Serbia's team after 2024 and will evaluate other partnerships. The news comes as Israel competes for a spot in Euro 2024, with Fox Corporation (NASDAQ:FOX)(NASDAQ:FOXA) holding U.S. TV rights. Puma is a major player in soccer, sponsoring top players and clubs, and was the third-largest sponsor at the 2022 World Cup. Unilever PLC (NYSE:UL), through its brand Ben & Jerry's, faced similar BDS pressure, leading to a halt in sales in the West Bank.
December 15, 2023 | 5:07 pm
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POSITIVE IMPACT
Fox Corporation holds the U.S. television rights to the Euro 2024 soccer tournament, which could gain more attention if Israel qualifies and the Puma sponsorship ends.
Israel's potential qualification for Euro 2024 and the associated end of Puma's sponsorship could drive higher viewership for FOX, which holds the broadcast rights, potentially benefiting the stock in the short term.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
PUMA SE is ending its sponsorship with Israel's soccer team and Serbia's team after 2024, focusing on a 'fewer-bigger-better strategy'. The company remains a key player in soccer sponsorships and is set to announce a new high-profile partnership soon.
PUMA's decision to end certain sponsorships is part of a strategic move rather than a reaction to external pressures, indicating a neutral to potentially positive impact on the stock as the company refocuses its marketing efforts.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
Unilever's brand Ben & Jerry's faced BDS pressure similar to Puma, leading to a halt in sales in the West Bank. This reflects on Unilever's handling of political pressures and corporate responsibility.
The mention of Unilever's past experience with BDS pressure could remind investors of potential risks associated with political and social issues, possibly affecting the stock negatively in the short term.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 30