[Source: Luna Rossa] The Board of Directors of PRADA S.p.A. is pleased to announce that on 27 February 2014 the Company, entered into a sponsorship agreement with Luna Rossa Challenge S.r.l. for the participation of Luna Rossa sailing team in the XXXV edition of the America’s Cup.
Sponsorship Contribution to be paid by the Company, Euro 50 million to be paid in installments over the period from February 2014 to October 2017
The Sponsorship Contribution has been determined on the basis of the budget for the preparation and participation of the Luna Rossa sailing team in all the prestigious international regattas, both preliminary and final races, of the Competition, including moving its operations to various destinations in which the races are held.
Sponsorship benefits to the Company: In consideration of the Sponsorship Contribution, the Company and, in general, the Group shall have the right to
- (i) benefit from the title of “Main Sponsor” of Luna Rossa sailing team during the Competition,
- (ii) promote Prada’s name and trademark jointly with Luna Rossa’s name and trademark,
- (iii) exhibit the PRADA trademark for advertising purpose within specified events including any international regattas and sporting activities that take place in the United States, Asia and Europe during the term of the Sponsorship Agreement and, in particular, the preliminary and final races of the Competition,
- (iv) exhibit the PRADA trademark on, among other things, (a) the hull, boom, drifts and sails of Luna Rossa yachts, (b) the clothing of the Luna Rossa crew, and (c) the backdrop and any communication support, for advertising purposes. The Company and, in general, the Group shall also have the right to use images of the Luna Rossa yachts and its crew for advertising purposes.
Annual Caps for the continuing connected transaction
The maximum amount of Sponsorship Contribution to be paid to Luna Rossa Challenge for each of the years ending 31 January 2015, 2016, 2017 and 2018 (the “Annual Caps”) is as follows:
|Annual Cap for the year ending 31.01.2015||Annual Cap for the year ending 31.01.2016||Annual Cap for the year ending 31.01.2017||Annual Cap for the year ending 31.01.2018|
|Sponsorship Agreement||€25 million||€24 million||€9 million||€4.5 million|
Each of the Annual Caps set out above was determined after taking into consideration the budget for the preparation and participation of the Luna Rossa sailing team in all of the prestigious international regattas, both preliminary and final races, of the Competition, including moving its operations to various destinations in which the races are held. The proposed Annual Caps have also taken into account the possibility of any advance payments to Luna Rossa Challenge which may need to be made depending on the timing of the actual races, hence why the aggregate of the annual caps equals Euro 62.5 million. However, the total amount of Sponsorship Contribution over the Term will not exceed Euro 50 million.