The company BYJU’S founded by Byju Raveendran signed Messi as its global ambassador in November 2022 for a three-year term for its ‘education for all’ campaign. It was estimated that Messi was brought in for a yearly sum of $5-7 million.
The embattled edtech firm Byju’s has reportedly suspended its three-year agreement with star footballer Lionel Messi. The company had inked the deal with the Argentine athlete in 2022 amidst a wave of criticism, coinciding with mass layoffs like 2500 employees at the time.
According to a report, Byju’s has honored Messi’s contract for the initial year, but the fate of the agreement beyond that remains uncertain. It remains to be seen whether the deal will be prematurely terminated or if the edtech company will reconsider it at a later stage. It has been cited that the liquidity issues and other significant concerns within the company as the rationale behind this decision.
Deal with SRK too uncertain
In addition to the renowned footballer, Byju’s has also not renewed its endorsement contract with actor Shah Rukh Khan after it expired in the middle of 2023. According to industry executives, the decision was mutual as Khan preferred not to be associated with the company due to its ongoing regulatory scrutiny.
The unending crisis for Byju’s
Byju’s has found itself in a severe crisis, with shareholders advocating for the removal of founder Byju Raveendran and advocating for a leadership change due to deep concerns about the company’s future stability. The call for leadership change was publicly announced by Prosus, which holds a 9% stake in the company.
According to a Reuters report, Sofina and Peak XV, previously known as Sequoia Capital India, have also backed this statement.
In response to the demand for a leadership change, Byju’s stated that the investors pushing for Raveendran’s departure lack voting rights.
Additionally, reports indicated that the company had postponed January salaries for its employees. In a letter to the employees on Sunday, Raveendran assured them that all pending salaries had been credited. “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 the letter.
