NEW DELHI: BYJU’S has reportedly suspended its three-year deal with Lionel Messi as a global brand ambassador.
It was in November 2022 that the embattled edtech major announced the onboarding of the football icon as the global brand ambassador of its social impact arm – Education For All.
The Argentinian superstar had reportedly signed on to the deal for an estimated $5-7 million per year. This was in addition to the $30-$40 million that the company had reportedly spent in the same year as one of the official sponsors of the FIFA World Cup Qatar 2022, which ran from 20 November to 18 December 2022.
It bears noting that news of the Messi’s onboarding had raised eyebrows at the time as it came less than a month after the then edtech decacorn announced 2,500 layoffs.
Fast forward to the present, and facing a severe cash crunch, the company has reportedly put the deal on hold and is “deliberating whether to terminate the contract prematurely or explore options for revival”.
Per The Economic Times, BYJU’S has thus far paid Messi for the initial year of the deal.
Messi, who plays for MLS club Inter Miami and captains the Argentinian team, was to promote the cause of equitable education during his association with BYJU’S.
“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.
“I chose to partner with BYJU’S because their mission to make everyone fall in love with learning perfectly aligns with my values. High-quality education changes lives, and Byju’s has transformed the career paths of millions of students worldwide. I hope to inspire young learners to reach and remain at the top,” Messi had said in a statement.
IANS adds:
Last week, the edtech company said investors have no voting rights on CEO change, after statements from a select few investors surfaced calling for an extraordinary general meeting to replace founder and group CEO, Byju Raveendran.
Think & Learn Private Limited, the parent of BYJU’S, said it will continue with the proposed $200 million rights issue after receiving encouraging responses from multiple investors.
In a separate letter to employees, the company accused certain investors of “conspiring” against the company in this time of crisis.
