Sources: GM's Joel Ewanick Ousted For Not Disclosing Full Cost Of ManU Deal
General Motors Global CMO JOEL EWANICK was "fired last week for not properly disclosing as much as a third of the cost of a $559 million sponsorship deal with" EPL club Manchester United, according to sources cited by Klayman & Lienert of REUTERS. Ewanick was ousted after a whistleblower in the company's marketing department "questioned some aspects of the deal." Sources said that there are "no signs Ewanick profited personally from the deal, but GM continues to investigate not only this deal but other contracts he had agreed to." ManU said that the seven-year sponsorship deal "would bring in $559 million." GM will "pay fees of $18.6 million in this year's and next year's season, before paying $70 million" in the '14-15 season. GM's payments will rise 2.1% "each season thereafter," through the '20-21 season (REUTERS, 8/8). BLOOMBERG NEWS' Higgins & Green cited sources as saying Ewanick "was spreading the price" of the ManU deal "among several different marketing budgets to avoid his boss' spending limits." Sources said that "when confronted, Ewanick denied it" (BLOOMBERG NEWS, 8/8).