German second-tier outfit Schalke announced on February 24 that it will be removing Gazprom sponsorship from the club’s shirts following advances by Russian troops onto Ukrainian soil.
A statement from the club reads: “In view of the events, development and escalation of the past few days, FC Schalke 04 has decided to remove the lettering of its main sponsor – “GAZPROM” – from the jerseys.
“This step follows discussions with GAZPROM Germania. Instead, ‘Schalke 04’ will be on the chest of the Royal Blues.”
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ℹ️ Following recent developments, FC Schalke 04 have decided to remove the logo of main sponsor GAZPROM from the club’s shirts. It will be replaced by lettering reading ‘Schalke 04’ instead.#S04 pic.twitter.com/9kpJLRzTQ7
— FC Schalke 04 (@s04_en) February 24, 2022
It is unclear at this point what will happen with the club’s overall relationship with Gazprom, as the Russian energy company is featured heavily around Schalke’s ground Veltins Arena.
In addition, four days later, UEFA announced it would end all affiliation with Gazprom. The Russian company’s branding had been a prominent feature at many of UEFA and FIFA’s largest competitions for a number of years.
Why is Schalke pulling its Gazprom shirt sponsorship?
After Russian troops crossed the Ukraine border on Feb. 24 at the direction of Russian president Vladimir Putin, concern for the support of Russian-backed companies has grown across Europe and the world.
Gazprom is a natural gas company headquartered in Saint Petersburg, Russia, and is the largest publicly traded company in the nation. While it is a publicly traded company, it is majority-owned by the Russian government via a subdivision of the Russian Ministry of Economic Development.
With the hostile actions of the Russian government towards Ukraine, concern for financial support of a company with such direct ties to the Kremlin has clubs around the continent concerned about their connection to the business.
Gazprom is not like most sponsors, who spend money to promote a product or brand. Instead, they advertise to promote a state-run organization with a product not readily sold directly to a consumer, with ties to political entities, decision-making, and maneuvering.
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It is notable that a German club is severing ties to the company. Earlier in the week, Germany announced it was suspending the certification of the Nord Stream 2 pipeline, a controversial project to build a massive oil pipeline from Russia to Germany, as a punitive measure in reaction to the hostile movements of the Russian military. This project was controversial as it would have increased Europe’s already significant reliance on Russian oil.
While much of Eastern Europe is heavily reliant on Russian oil, according to a Vox study in 2020 on Gazprom’s influence across European nations, Germany is thought to be a major company target for future sales increase.
What other clubs does Gazprom sponsor?
The Russian natural gas company has spent significant money to advertise around Europe.
Gazprom is the primary shirt sponsor of Serbian club Red Star Belgrade, a deal which has been consistent since 2010.
In addition, Gazprom has connections to Premier League side Chelsea FC, which is owned by Russian business magnate Roman Abramovich. While the Russian billionaire used to have a significant stake in Gazprom, he sold his holdings to the Russian government in 2005.
Gazprom’s official website claims the company is the official energy supplier of Chelsea’s Cobham training ground. Gazprom’s logo does not at this time appear at the bottom of Chelsea’s official website alongside other sponsors such as Nike, Three, and Trivago.
Gazprom also has an official sponsorship with UEFA, a deal which was renewed last May, and reportedly worth around $15 million. This sponsorship was terminated by UEFA in an announcement made on February 28.
UEFA has today decided to end its partnership with Gazprom across all competitions.
The decision is effective immediately and covers all existing agreements including the UEFA Champions League, UEFA national team competitions and UEFA EURO 2024.
— UEFA (@UEFA) February 28, 2022
The oil company is a heavy presence around Russian soccer, with the stadium in Saint Petersburg named Gazprom Arena. The 2022 Champions League final was scheduled to take place at Gazprom Arena, but reportedly will be pulled from the venue due to the hostilities.