I'm not saying it looks good (although I do find it inoffensive), but what else can they do? It's got to cover the old sponsor, they can hardly just dump thousands of shirts.
why couldnt they just manufacture a number of new shirts for the first team to wear? the shop has sold out of med and large shirts anyway by the looks of things?
sell off the remaining ones at a discount, as they will be in a few months anyway, job done.