Byju’s to put footballer Lionel Messi’s contract on hold: Report
Byju Raveendran-founded company had signed Messi as its global ambassador in November 2022 for three years for its ‘education for all’ campaign. It was estimated that Messi was roped in for an estimated $5-7 million per year.
- Feb 5, 2024,
- Updated Feb 5, 2024 11:13 AM IST
Beleaguered edtech company Byju’s has reportedly put its three-year deal with ace footballer, Lionel Messi, on hold. The edtech had signed the deal with the Argentinian footballer in 2022 amid a spate of criticism as it had, at that time, laid off thousands of employees.
According to a report in The Economic Times that quoted an unnamed executive, Byju’s has paid for Messi’s contract for the first year but it is yet to be decided if the deal will be terminated before full term or whether the edtech company will revive the contract in due course. The executive said that the reason behind the decision is the liquidity crisis and other matters of “serious concern” within the company.
Byju Raveendran-founded company had signed Messi as its global ambassador in November 2022 for three years for its ‘education for all’ campaign. It was estimated that Messi was roped in for an estimated $5-7 million per year.
However, when Byju’s announced the campaign, it was received with a lot of criticism. It had come only a month after the edtech company laid off nearly 2,500 employees.
Not only the legendary footballer, Byju’s has not renewed its endorsement contract with actor Shah Rukh Khan after it ended in the middle of 2023. As per industry executives, the decision was mutual as Khan did not wish to be associated with the company given its constant regulatory scrutiny, the report stated.
Byju’s has been embroiled in a severe crisis with shareholders wanting to oust founder Byju Raveendran and bring in a leadership change. The shareholders said that they were deeply concerned about the future stability of the company. The statement was made public by Prosus that holds 9 per cent stake in the company. As per a Reuters report Sofina and Peak XV, formerly known as Sequoia Capital India supported the statement.
Byju’s, responding to the call for a change in leadership, said that the investors who want Raveendran to move out have no voting rights.
Further reports stated that the company was delaying January salaries to its employees. Raveendran, in a letter to the employees on Sunday, said that he has credited all pending salaries. "I know you were told that you will get your salaries by Monday. You did not have to wait even till Monday. I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve," Raveendran said in this letter, as per a report in Moneycontrol.
Also read: Byju’s shareholders want to show founder Byju Raveendran the door
Also read: Investors looking to oust Byju Raveendran have no voting rights, says Byju’s
Also read: 'Have been moving mountains for months': Byju Raveendran after Byju's pays January salaries
Beleaguered edtech company Byju’s has reportedly put its three-year deal with ace footballer, Lionel Messi, on hold. The edtech had signed the deal with the Argentinian footballer in 2022 amid a spate of criticism as it had, at that time, laid off thousands of employees.
According to a report in The Economic Times that quoted an unnamed executive, Byju’s has paid for Messi’s contract for the first year but it is yet to be decided if the deal will be terminated before full term or whether the edtech company will revive the contract in due course. The executive said that the reason behind the decision is the liquidity crisis and other matters of “serious concern” within the company.
Byju Raveendran-founded company had signed Messi as its global ambassador in November 2022 for three years for its ‘education for all’ campaign. It was estimated that Messi was roped in for an estimated $5-7 million per year.
However, when Byju’s announced the campaign, it was received with a lot of criticism. It had come only a month after the edtech company laid off nearly 2,500 employees.
Not only the legendary footballer, Byju’s has not renewed its endorsement contract with actor Shah Rukh Khan after it ended in the middle of 2023. As per industry executives, the decision was mutual as Khan did not wish to be associated with the company given its constant regulatory scrutiny, the report stated.
Byju’s has been embroiled in a severe crisis with shareholders wanting to oust founder Byju Raveendran and bring in a leadership change. The shareholders said that they were deeply concerned about the future stability of the company. The statement was made public by Prosus that holds 9 per cent stake in the company. As per a Reuters report Sofina and Peak XV, formerly known as Sequoia Capital India supported the statement.
Byju’s, responding to the call for a change in leadership, said that the investors who want Raveendran to move out have no voting rights.
Further reports stated that the company was delaying January salaries to its employees. Raveendran, in a letter to the employees on Sunday, said that he has credited all pending salaries. "I know you were told that you will get your salaries by Monday. You did not have to wait even till Monday. I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve," Raveendran said in this letter, as per a report in Moneycontrol.
Also read: Byju’s shareholders want to show founder Byju Raveendran the door
Also read: Investors looking to oust Byju Raveendran have no voting rights, says Byju’s
Also read: 'Have been moving mountains for months': Byju Raveendran after Byju's pays January salaries