SBD/August 22, 2011/Marketing and Sponsorship

DHL Inks $16.5M Per Season Sponsorship Deal For ManU's Training Jerseys

DHL deal marks first time club has inked separate sponsor for training kit
EPL club Manchester United will have its training jersey sponsored by DHL in deal worth $16.5M (all figures U.S.) per season, reportedly the "first time a club has secured a second sponsor just for its training kit," according to Daniel Farey-Jones of MARKETING magazine. The club's game jerseys “have been sponsored since last season by financial giant AON,” which struck a four-year deal worth $33M per season. It is “not yet clear how long the DHL deal will last.” The amount DHL is paying is “greater than many other Premier League shirt sponsorships.” DHL's relationship with ManU "started in February with a seven-figure, three-year deal giving the company responsibility for the distribution of United's range of merchandise” (MARKETINGMAGAZINE.co.uk, 8/22). Meanwhile, BLOOMBERG NEWS’ Vallikappen & Panja cite sources as saying that ManU “will sign a sponsorship deal with Malaysian snacks maker Mamee Double Decker Bhd. next month.” The sources said that deal will reportedly be with Mister Potato, a "brand of potato crisps and chips made by the Kuala Lumpur-listed company.” A source said that the deal with Mamee Double Decker “will allow the use of Manchester United’s Red Devil logo and images of star players.” Vallikappen & Panja note ManU's “overall commercial revenue is close to passing 100 million pounds for the first time, which would bring it in line with the team’s broadcast and match day income.” Sources said that the deal comes as ManU “plans an initial public offering in Singapore to raise $1 billion later this year” (BLOOMBERG NEWS, 8/22).

GO EAST, MY FRIEND: FINANCIAL TIMES’ Kevin Brown cited sources as saying that Singapore billionaire Peter Lim, who tried to buy EPL club Liverpool last year, has been “approached to act as a cornerstone investor” in the $1B IPO by ManU, but he “has doubts about the valuation.” Singapore state investment agency Temasek also has “been approached to invest in the IPO, expected to take place in Singapore in the fourth quarter of the year, but has made no decision.” ManU is “expected to offer 25-30 per cent of its shares, valuing” the EPL club at more than $3B. Brown writes Lim’s hesitation "this time around suggests that Manchester United may not find it easy to realise the high valuation.” Lim has “a reputation as a savvy investor, and has commercial links with Manchester United through an interest in a chain of themed restaurants and bars in Asia that are based on the club” (FINANCIAL TIMES, 8/22). In Manchester, Kevin Feddy reports ManU today “underlined its appeal in the Far East by signing a three-year deal with Beeline, a Vietnamese mobile telecoms company” (MANCHESTER EVENING NEWS, 8/22).
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