Spanish soccer giants Real Madrid are poised to announced a major new sponsorship agreement with telecoms company Telefónica.
The deal will reportedly run for two years and will be officially unveiled at a ceremony on Thursday attended by club president Florentino Perez (pictured) and his opposite number at Telefónica, Jose Maria Alvarez-Pallete.
While financial terms are unlikely to be disclosed, Spanish newspaper El Pais reports that the deal is worth €15 million (US$16.1 million) in total and will run until the end of next season.
It is understood that the deal will promote Telefónica’s Movistar brand, while the company will provide Wi-Fi at Madrid’s Santiago Bernabeu stadium and launch a Real-themed app.
As well as sponsoring Real’s successful soccer team, Telefónica will also support the club’s basketball squad. In return, it will receive the right to use player images and club marks for marketing purposes.
Telefónica is a prominent backer of sport in Spain. Last week it agreed a deal to continue its sponsorship of the country’s national soccer team until next year’s Fifa World Cup in Russia, while it also has partnerships in other sports such as cycling, basketball, futsal and MotoGP.
Real’s bitter domestic rivals FC Barcelona also have a deal with Telefónica, although that agreement only covers Latin America.