THE FA Cup is to be sponsored by a German energy company from next season after the FA confirmed yesterday that it had agreed a £32 million four-year deal.

E.ON, the parent company of Powergen, which also sponsors Ipswich Town and rugby league’s Challenge Cup, will be the lead brand associated with the oldest and most famous domestic trophy in the world.

The deal, worth about £8 million a year and the single most lucrative in the FA’s history, marks a return to a system of corporate backing for the FA Cup after a restructure of the FA’s sponsorship programme.

The previous system, giving five partners — Umbro, Pepsi, McDonald’s, Nationwide and Carlsberg — equal sponsorship rights across various parts of the game, was abandoned in favour of finding lead sponsors for the FA Cup and the England team, the FA’s two prime assets. The FA was approached by several companies about potential sponsorship but opted for E.ON, which had the most financially attractive offer and furthermore agreed to put money into marketing the Cup competition, which is celebrating its 125th year.

Another energy company, npower, which is also a supplier to the new Wembley, decided not to make an offer despite the fact that its name would be overshadowed by its German rival on Cup match days held at the stadium.

Before the deal was completed, some fans had expressed concerns about a German company taking over one of the best known English icons. However, having employed a foreigner to manage England, FA officials were not prepared to bow to xenophobia. Besides, the previous sponsor of the FA Cup until 2002 was Axa, a French insurance company.

“We are delighted to have a company of E.ON’s stature,” Brian Barwick, FA chief executive, said. “The FA Cup continues to capture the imagination of football supporters in England and around the globe with its unique blend of giantkillings and classic encounters between the country’s top teams. This deal will provide us with an opportunity to build on this reputation.”

The competition will be known as the FA Cup sponsored by E.ON and the deal includes the Women’s Cup, the FA Youth Cup and schools development.

The new deal is expected to result in an increase next season in prize-money, introduced in 2001-02, and television appearance fees.

“Already this season, we’ve seen some fantastic FA Cup moments and clubs such as Burton Albion and Colchester United are expected to make around £1 million each from their Cup runs,” Barwick said. “This comes from these FA payments combined with gate receipts.”

E.ON is expected to use the FA Cup to increase awareness of its name, which will gradually overtake Powergen as the primary brand. “This will give us the opportunity to expand our investments in the UK outside our core business of power and gas and to become integrally involved with football at all levels across England,” Dr Paul Golby, E.ON chief executive, said.

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