SBD Global/May 17, 2013/Finance

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  • Alex Ferguson Brought Estimated $1.5B Boost To Manchester Economy During Time At ManU

    Alex Ferguson has brought a $1.5B boost to the Manchester economy.

    The "Fergie factor" gave the city of Manchester's economy a boost worth more than £1B ($1.5B) during his 26 years at the club, according to Adam Jupp of the MANCHESTER EVENING NEWS. Experts have calculated the extent to which the success outgoing Manager Alex Ferguson brought to the club "delivered more riches to Manchester" than the U.K.'s other footballing cities. Figures show that at the end of the '92-93 season, "as the Premier League was just getting going," ManU had revenues of just £25.2M. That rose to the "eye-watering" £335M it stood at in '11-12. Between '00 and last year, ManU earned £4.2B, compared to the £2.7B of Liverpool. And researchers at ManU think tank New Economy have converted that into Gross Value Added -- "the boost a business delivers to an area's economy." In United's case, it stands at £1.3B for that period, compared to £800M for Liverpool. With that growth "directly linked to success on the pitch," that places the value of the Fergie factor for '00-'12 at around £500M. It is estimated "the worldwide exposure United's success has given to Manchester since the Premier League started" is worth the equivalent of £1B in advertising spend (MANCHESTER EVENING NEWS, 5/16).

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  • Seven Of 11 F1 Teams Are In Financial Trouble And Can't Afford New Engines For '14

    Seven of the 11 F1 teams "are reportedly unable to afford the new engines for the '14 season," according to Helmut Uhl of BILD. Besides the top four teams, Red Bull, Ferrari, McLaren and Mercedes, "the rest of the field is in financial trouble." The three engine suppliers, Mercedes, Ferrari and Renault, "experienced it first hand when they annouced the prices of the new 1.6 liter V6 turbo engines for the '14 season." Renault is asking up to €23M ($30M) per team for the whole season. Out of four teams that Renault currently supplies, only Red Bull would be able to pay for the '14 engine. The other three teams, Caterham, Williams and Lotus, have already said that "they are unable to afford it." Toro Rosso, which currently gets its engines from Ferrari and is rumored to switch to Renault engines in '14, "would also be unable to pay" the steep price of €23M. Mercedes has already reduced the prices for its engines from €20M ($26) to €18M ($23M), so McLaren and Force India "might be able to afford them." And Sauber, which gets its engines from Ferrari, "is to be unable to afford" the €15M ($19M) that Ferrari wants for its engine (BILD, 5/16).

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