Edtech major Byju’s has reportedly put on hold its deal with football icon Lionel Messi a year after he was signed on a three-year deal as a global brand ambassador. Messi was signed for three years for an ‘education for all’ campaign as part of its social impact arm, with the Argentine earning an estimated $5-7 million per year.
Citing executives directly aware of the development, a report by The Economic Times said that Bjyu’s has already paid Messi for the first year.
“Bjyu’s paid Messi for the first year; it is yet to be decided whether the deal will be terminated before full term, or whether Byju’s plans to revive the contract in due course. This is on account of the liquidity crisis and other matters of serious concern within the company,” one of the executives was quoted as saying.
In January last year, Messi had written on his Instagram page: “@byjus_app and their world-changing initiative#EducationForAll are helping children from underserved communities with access to world-class educational resources. I believe that this simple initiative has the power to change the world.”
“The association with one of the world’s most popular sportspersons is in sync with the expanding global footprint of BYJU’S and its commitment to make education accessible, equitable, and affordable for all,” the company had said.
Byju’s facing fund crunch
Byju’s is facing a severe cash crunch and its crisis include a shareholder agreement tussle where a group of investors in the edtech platform launched a campaign to oust leadership.
Byju’s has been known to invest heavily in advertising and marketing. The company has also shelled out money to be on the Indian Cricket team’s jersey and picked up official sponsorship of the Fifa World Cup 2022 in Qatar.
The publication also claimed that Byju’s had also not renewed its endorsement contract with actor Shah Rukh Khan after it ended mid-2023, reportedly because Khan did not want to be associated with the platform given its constant regulatory scrutiny.
Citing executives directly aware of the development, a report by The Economic Times said that Bjyu’s has already paid Messi for the first year.
“Bjyu’s paid Messi for the first year; it is yet to be decided whether the deal will be terminated before full term, or whether Byju’s plans to revive the contract in due course. This is on account of the liquidity crisis and other matters of serious concern within the company,” one of the executives was quoted as saying.
In January last year, Messi had written on his Instagram page: “@byjus_app and their world-changing initiative#EducationForAll are helping children from underserved communities with access to world-class educational resources. I believe that this simple initiative has the power to change the world.”
“The association with one of the world’s most popular sportspersons is in sync with the expanding global footprint of BYJU’S and its commitment to make education accessible, equitable, and affordable for all,” the company had said.
Byju’s facing fund crunch
Byju’s is facing a severe cash crunch and its crisis include a shareholder agreement tussle where a group of investors in the edtech platform launched a campaign to oust leadership.
Byju’s has been known to invest heavily in advertising and marketing. The company has also shelled out money to be on the Indian Cricket team’s jersey and picked up official sponsorship of the Fifa World Cup 2022 in Qatar.
The publication also claimed that Byju’s had also not renewed its endorsement contract with actor Shah Rukh Khan after it ended mid-2023, reportedly because Khan did not want to be associated with the platform given its constant regulatory scrutiny.
