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Chevrolet Deal Will Blunt Champions League Disqualification For Manchester United
Manchester United is an example of how being one of the world’s most valuable sports brands can help smooth the income statement when a team goes through a rough patch on the field.
The iconic English soccer team will not finish among the top five spots in the Barclays BCS +0.9% Premier League this season and will therefore not participate in the next Champions League. The Champions League is the world’s richest annual tournament, and for making it to the quarter-finals this year Manchester United will rake in about $55 million this fiscal year.
For most teams such an economic loss would be devastating. But Manchester United will weather the storm relatively easy due to its record-breaking seven year, $559 million shirt deal with Chevrolet that kicks in this summer. The Chevrolet shirt deal, worth an average of $80 million a year, is replacing the Aon AON +1.3% shirt deal, which paid an average of $32 million a year.
But the net difference next year is not $49 million because the Chevrolet deal, which increases annually, starts at $70 million and General Motors GM +0.06% has already paid Manchester United $18 million despite not appearing on the team’s shirt until the 2014-15 season. So next year team will book about $52 million from GM.
Deduct from the $52 million the $32 million the team would have received from Aon and it’s a net $20 million gain for Manchester United, meaning no Champions League next year will amount to a loss of $35 million. Not easy to overcome, for sure. But certainly a lot easier than $55 million.
http://www.forbes.com/sites/mikeozan...hester-united/
Manchester United is an example of how being one of the world’s most valuable sports brands can help smooth the income statement when a team goes through a rough patch on the field.
The iconic English soccer team will not finish among the top five spots in the Barclays BCS +0.9% Premier League this season and will therefore not participate in the next Champions League. The Champions League is the world’s richest annual tournament, and for making it to the quarter-finals this year Manchester United will rake in about $55 million this fiscal year.
For most teams such an economic loss would be devastating. But Manchester United will weather the storm relatively easy due to its record-breaking seven year, $559 million shirt deal with Chevrolet that kicks in this summer. The Chevrolet shirt deal, worth an average of $80 million a year, is replacing the Aon AON +1.3% shirt deal, which paid an average of $32 million a year.
But the net difference next year is not $49 million because the Chevrolet deal, which increases annually, starts at $70 million and General Motors GM +0.06% has already paid Manchester United $18 million despite not appearing on the team’s shirt until the 2014-15 season. So next year team will book about $52 million from GM.
Deduct from the $52 million the $32 million the team would have received from Aon and it’s a net $20 million gain for Manchester United, meaning no Champions League next year will amount to a loss of $35 million. Not easy to overcome, for sure. But certainly a lot easier than $55 million.
http://www.forbes.com/sites/mikeozan...hester-united/
Paul Marin -19 is one thing, 20 is a whole other matter. It gets even worse if they win the UCL. *groan*. 
05/18/2011.MU fans naah cough, but all a unuh a vomit?-Lazie 1/11/2015
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