SBD/January 29, 2013/Marketing and Sponsorship

ManU Reaping Benefits Of Sponsor Deals To Bring In High Commercial Revenue

ManU starting in '14 will have Chevrolet as shirt sponsor, with the first year worth $69M
EPL club Manchester United’s commercial revenue “is now approaching an astonishing” $204M (all figures U.S.) a year and “will only continue to rise,” according to Laurie Whitwell of the London DAILY MAIL. There are “no fewer than 32 companies listed as sponsors of the club on their official website and this does not even include three -- somewhat peculiar -- deals announced this month.” First there was “the tie-up with Indonesian tire manufacturer Multistrada on January 7, then came Wahaha, a Chinese soft drinks producer, a week later, and on January 18 we heard Japanese paint manufacturer Kansai had become the club’s first ‘paint partner.’” Each contract will run for three years, and business experts speculate they are worth between $1.6-3.1M annually. These are the “types of deals staff in United’s recently-opened office in Hong Kong are striving to sign; brands specific to regions.” There also is the club’s shirt sponsorship with Chevrolet, "which will come into effect from 2014.” At the start of that season it will be worth $69M a year, "increasing by 2.1 per cent annually to 2021 -- totalling an incredible” $559M. These numbers “do not make it into United’s current take home from sponsorship," but the $18.9M Chevrolet has paid to "have its logo on the Old Trafford dugout seats this season does.” Aon pays United $31M a year “to sponsor the shirt currently," while DHL since '10 has paid $16M a year "to feature on the team’s training kit.” In addition, it costs Nike around $40M “to supply United’s kit each season but talks will begin next month over a new deal which should dwarf that amount.” Brand Finance Valuation Dir David Chattaway, whose company “worked with United on a consultancy basis a few years ago," said that there was "plenty of mileage left in sponsorship deals and suggested Australia and USA would be the next markets targeted” (London DAILY MAIL, 1/29). Meanwhile, ManU today announced that Singha has renewed its deal as the official beer partner of the EPL club. The original three-year agreement is extended by another three years to '16 (ManU).
MANCHESTER UNITED CLUB SPONSORS
SPONSOR CATEGORY
ANNUAL VALUE (USD)
Nike Kit supplier
$40M
Aon Shirt sponsor
$31M
Chevrolet Auto
$18.9M
DHL Logistics
$15.7M
Hublot Timekeeper
$6M
Bwin Online game and betting
$3.8M
Singha Beer
$3M
Casillero Del Diablo Wine
$3M
Thomas Cook Travel
$2M
Smirnoff Responsible drinking partner
$1.6-3M
Toshiba Medical Systems Medical
$1.6-3M
STC Integrated telecommunications (Saudi Arabia)
$1.6-3M
PCCW Integrated telecommunications (Hong Kong)
$1.6-3M
Turkish Airlines Airline
$1.6-3M
Epson Office equipment
$1.6-3M
Mister Potato Savoury snack
$1.6-3M
Yanmar Global
$1.6-3M
TM Integrated telecommunications (Malaysia)
$1.6-3M
Globacom Integrated telecommunications (Nigeria, Ghana, Benin)
$1.6-3M
Viva Kuwait Integrated telecommunications (Kuwait)
$1.6-3M
MTN Integrated telecommunications (South Africa, Zambia, Rwanda, Uganda, Swaziland, Botswana)
$1.6-3M
Airtel Integrated telecommunications
(India, Sri Lanka, Seychelles, Bangladesh)
$1.6-3M
Zong Integrated telecommunications (Pakistan)
$1.6-3M
Globul Integrated telecommunications (Bulgaria)
$1.6-3M
Mamee Noodles (Asia, Oceania, Middle East regions)
$1.6-3M
Viva Integrated telecommunications (Bahrain)
$1.6-3M
Turk Telekom Integrated telecommunications (Turnkey)
$1.6-3M
A.P. Honda Motorcycle (Thailand)
$1.6-3M
Airtel Africa Integrated telecommunications (Burkina Faso, Chad,
Democratic Republic of the Congo, Gabon, Kenya,
Madagascar, Malawi, Niger, Sierra Leone, Tanzania,
Republic of the Congo)
$1.6-3M
Beeline Integrated telecommunications (Vietnam, Cambodia, Laos)
$1.6-3M
Bakcell Integrated telecommunications and broadcast partner (Azerbaijan)
$1.6-3M
Kagome Soft drinks (Japan)
$1.6-3M
Wahaha Soft drinks (China)
$1.6-3M
PT Multistrada Tire
$1.6-3M
Kansai Paint
$1.6-3M

MONEY, MONEY, MONEY: FORBES.com's Mike Ozanian reported ManU has become "the first sports team in the world" with a $3B valuation. Shares of the club, which were offered to the public last August at $14, "did poorly at first but have soared the past few days," closing at less than $17. The recent increase in its stock price has pushed up the club's enterprise value (equity plus debt) to $3.3B, the "highest value of any team in the world." The second most valuable sports team in the world is the Cowboys, worth $2.1B (FORBES.com, 1/27). The MANCHESTER EVENING NEWS noted the valuation "means a huge increase in the overall wealth of the Glazer family," who has a controlling interest in the club, and billionaire investor George Soros -- the 22nd richest person in the world -- who bought a 7.5% stake in ManU. The club's commercial growth "appears to be driving the share price up, with the club announcing several new sponsorship deals since August" (MANCHESTER EVENING NEWS, 1/28).
Return to top
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug