United Commercial Partnership Revenue

ciderman9000000 said:
The cost's predominantly for the pitchside electronic advertising, if you Google it I'm sure there'll be plenty of articles explaining how this can show value to a company.
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The digi boards are a small percentage of what sponsors get in return. Great exposure obviously but a small piece of a large jigsaw.
 
busbysaces said:
The digi boards are a small percentage of what sponsors get in return. Great exposure obviously but a small piece of a large jigsaw.
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Yup, one part of it is the pitchside digi boards, the website advertising and the annual promotional events at Old Trafford.

The other part, which is also of great benefit to sponsors, is the ability to utilise the Manchester United brand in their own marketing activities. You can imagine how valuable it is for Kumho Tires, for instance, to have Park Ji-Sung pictured in a Manchester United shirt for their Asia marketing campaigns.

If we use Kumho as a case study, this is what they said soon after the sponsorship deal was agreed:

Korean tyre maker Kumho has revealed further details of its four‑year Platinum sponsorship deal with Manchester United.

First announced during the Premier League club's pre‑season Korea tour (itself sponsored by Kumho Tires), the Platinum package entitles Kumho to advertise at the team's home ground of Old Trafford, and to use images of the team's players and the official club logo, among a whole range of marketing rights.

While it is clearly too early for Kumho to quantify the full effect of the new relationship, the company cites the following key reasons for its decision to sponsor Manchester United:

- Increased brand awareness and sales stemming from the fact that Europe and China are key strategic markets for both Kumho and the English Premier League

- The ability for powerful marketing of the Kumho brand to consumers through Manchester United‑related events

- Linkage to the general marketing power and premium image of arguably the most famous football club in the world

Steve Tidmarsh, MD of Kumho Tyre (UK) Ltd, added, "We are very excited about this deal, which we feel will be a major boost for our rapidly growing brand. We have a great reputation among those who know us. The relationship with Manchester United will hopefully bring us to the attention of many more prospective customers far quicker than would otherwise have been the case."
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Then in September of this year the Kumho CEO, Jong-Ho Kim, made the followings comments about the partnership:

Our sponsorship of Manchester United, the English premium football league team, is also the result of a strategic decision that China is the country where the biggest numbers of MU FC fans live (about 60 per cent of all MU fans live in China and South-East Asia, an estimated 190 million people).

As the markets in Europe and China became more important, in 2007 we made a platinum sponsorship agreement with Manchester United, the world’s leading football club, deciding that a partnership could produce a synergy effect between the two of us. In 2007, Kumho Tires achieved magnificent marketing effects valued at 20 billion won (£11.1 million) from this sponsorship and media exposure due to the high popularity of MU, including Korean player Ji sung Park. In 2009, the sponsorship’s value reached over 30 billion won.

We give a special meaning to this sponsorship as it could significantly enhance our brand power and corporate image which can’t be calculated with money, especially through the MU Safe Player campaign to focus on traffic safety for children.
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I think it's fair to say that they're very happy with how the sponsorship deal has gone. It should therefore be of no surprise that more multi national companies are now lining up to sponsor the club, particularly companies who are targeting Asia for growth.
 
don't know if this one has been posted yet.
Football-Tanzania: Bharti Airtel signs deal with Manchester United
News - Africa news
Tanzania - Bharti Airtel yesterday announced an exclusive partnership with Manchester United Football Club and signed a four year partnership agreement. This is a first of its kind partnership signed between Bharti Airtel and Manchester United in the African continent.

Through the partnership Manchester United will support the Airtel Allstars search for young African football talent, while airtel customers in the country will have the opportunity to win tickets to watch the Red Devils play in Manchester, take part in coaching sessions and access exclusive Manchester United news and download highlights, ringtones and wallpapers through the airtel Live mobile portal.

Kelvin Twissa, Airtel Tanzania Marketing Manager said: "Football is the universal passion of Africa and there's no bigger club in the world than Manchester United.

I'm tremendously excited about the opportunities for airtel customers to interact with the brand, win exclusive match tickets and signed shirts and have the chance to train with coaches from one of the leading academies in world football.

"Manchester United's Old Trafford home is known as the Theatre of Dreams and that is exactly what we hope to fulfil: The dreams of thousands of airtel customers over the next four years. We're also launching our ambitious airtel Allstars initiative, in association with Manchester United, to find and nurture African talent to make it right to the top of the professional game."

Also speaking during the press briefing on the sponsorship, Airtel Tanzania Head of Corporate Communications, Beatrice Singano said, "As we are announcing today, we have two Tanzanians who have won fully paid tickets and will be travelling to Manchester to watch one of the biggest games between Manchester United and Liverpool FC on 9th January 2011. These are Omari Mohammed Mhina from Mtwara and Shabani Mohammed Mhina from Dar es Salaam."

Announcing the deal, David Gill, chief executive officer, Manchester United said: "We're delighted to announce a new four year partnership with Airtel in Tanzania, one of the most innovative mobile operators in Africa.

This deal gives Airtel exclusive rights as the official mobile communications partner of Manchester United in Tanzania with access to unique mobile phone content, including player interviews, goal replays and match reports.

He added: "This ground breaking partnership will bring the action of Manchester United direct to our millions of fans in Tanzania and we're pleased to support Airtel in developing the rich pool of young football talent through the Airtel Allstars initiative."

Airtel will be featured on the club's website, which is the most visited sports website in the world. Airtel customers will also have regular opportunities to take part in competitions and prize draws to win all expenses paid trips to attend Manchester United matches.

Each year Airtel and Manchester United will run training sessions at the Manchester United Academy, one of the world's most prestigious football training centres.

There will be opportunity for customers to attend coaching sessions with Manchester United coaches in the region.

Andre Beyers, Bharti Airtel's chief marketing officer, said: "Sport can be a powerful vehicle for social change, bringing people together and instilling values of teamwork and personal standards. Mobile communications is also a facilitator of social change and economic development and we hope that our association with Manchester United will help drive us towards achieving those goals."

Daily News Reporter

Tanzania Daily News
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GAngel said:
Just signed a deal with epson unless this is old news.
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Just after signing up with White Star Line as our official cruise partner. ;)

GCHQ, a question on the goodwill amortisation. How have the Glazers gotten away with valuing the club at so little without anyone questioning it?
 
GCHQ said:
There's no need to account for any of the appreciation in value until the club is sold.
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So does that suggest that the Glazers have put a useful life (to them) on the club? Otherwise wouldn't they be looking at impairment reviews?
 
So who allows them (and others) to declare what they do as fair value? Is the fair value that is used in such purchases ever questioned?
 
GCHQ said:
It's a standard GAAP.
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So how does that compare to the sum of the shares being pretty much the quoted market price of the club at the time they bought the shares? If they can get away with it fair dos to them, just seems a considerable underestimation of the club that hasn't been brought into question.
 
UnitedRoadRed said:
So how does that compare to the sum of the shares being pretty much the quoted market price of the club at the time they bought the shares? If they can get away with it fair dos to them, just seems a considerable underestimation of the club that hasn't been brought into question.
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The market priced in the club's brand value and its future earnings potential (not accurately though as can be demonstrated by the growth achieved under the Glazers ownership over the last five years).
 
So basically the Glazers were claiming that the club's individual components are worth a lot less than the whole? How can they use that when FRS10 talks about like for like purchases?
 
UnitedRoadRed said:
So basically the Glazers were claiming that the club's individual components are worth a lot less than the whole? How can they use that when FRS10 talks about like for like purchases?
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Worth more than the fair value of its identifiable assets, yes. They paid what they did due to the club's brand value and its future earnings potential. Both of those measures aren't ''identifiable assets'' and were therefore reflected in the amount of goodwill charged to the club's balance sheet when the takeover was completed. I'm not sure where you're going with this really.
 
ciderman9000000 said:
The Aon deal's worth £20m a year compared to Barca's £25m, there's not that much in it. I'm willing to bet that just being middle Eastern has little baring on the pricing of such a contract.
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That is quite a lot to be fair. 20%

Its three-five of these little sponsorship deals you get so excited about.
 
I suspect United believe they undersold there's when you see Barca getting £25m and even Liverpool's is worth £20m/season isn't it
 
GCHQ said:
Worth more than the fair value of its identifiable assets, yes. They paid what they did due to the club's brand value and its future earnings potential. Both of those measures aren't ''identifiable assets'' and were therefore reflected in the amount of goodwill charged to the club's balance sheet when the takeover was completed. I'm not sure where you're going with this really.
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Chill, there's no ulterior motive.
 
Unprecedented commercial success forces Manchester United’s London move

Manchester United Football Club is set to expand its commercial operations in London by moving to new offices in Mayfair.

The Manchester-based Premier League club already has a commercial team in Pall Mall tasked with securing lucrative sponsorship contracts from around the world, however, owing to the commercial success generated from the move made three years ago the club is now looking to expand its offices in the capital with a move to the heart of London's West End.

According the Daily Telegraph, Manchester United has previously stated that its commercial team, under control of director Richard Arnold who was appointed in November 2007, has increased revenue by as much as US$60.5 million.

In June 2009 Manchester United signed a four-year deal with American insurance giant Aon worth US$30 million pa, which, at the time, became the largest shirt sponsorship deal in the history of soccer.

While Manchester United is renowned for drawing a large amount of supporters from London, the move will do little to placate Manchester-based fans who feel that the club's owners, the Glazer family, have lost touch with the teams traditional roots.

Additionally, the Telegraph reports that Manchester United will pay rent of almost US$129 per square foot of space at their 11,500 square foot new Mayfair offices. Club officials refused to disclosed the exact location of the team's new London base.
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Unprecedented commercial success forces Manchester United’s London move - Notes & Insights - SportsPro Media sports blog - SportsPro Media
 
The Telegraph article.

Manchester United moves to Mayfair

Manchester United is set to expand its commercial operations by moving to new offices in Mayfair, London.

The football club has agreed a deal to occupy 11,500 sq ft of luxurious new office space in the heart of London's West End.

The deal will do little to help United's reputation for attracting more supporters from London than Manchester, and exacerbate frustration from the club's fans who feel the Glazer family have lost touch with its roots.

However, the deal also highlights the commercial success the Glazer's, who bought United in 2005, have enjoyed since launching operations in London three years ago.

The club set up a team in a Pall Mall office building designed to secure new sponsorship deals from around the world. It said London was a more practical base for overseas companies travelling to the UK for sponsorship talks.

However, the 45-man operation is understood to have grown too large for the St James's office, leading to the move to Mayfair.

Under commercial director Richard Arnold, United say the team has increased commercial revenues from £42.5m to £80m through deals with the likes of Aon, the US insurance broker, worth £20m a year.

United will pay rent of almost £80 per sq ft at the Mayfair office, but the club does not want its specific location disclosed.
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Manchester United moves to Mayfair - Telegraph


We should generate £100m commercial revenue in the current financial year. Fantastic to see the club continuing to expand its extremely successful commercial operation.
 
logo-mr-monopoly.jpg
 
45 Employees in an £80 per square foot office?:eek:

They'd better be raking in some extar revenue, just to cover their own costs - I make that at least £10,000,000 per year on rent before we even start on their salaries and other costs!:smirk:
 
I presume he included the wages of 45 employee's on a "Mayfair" wage. Although I doubt they are all on > £200,000 a year O.o
 
GCHQ said:
Well no, obviously he didn't otherwise he wouldn't have said: ''before we even start on their salaries and other costs!''

And the Mayfair boys certainly aren't on 200k per year salaries.

EDIT - Just delete the post in future finneh. ;)
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Apologies, I just saw the figure of £10m and presumed that he could only come to that conclusion if he included grossly inflated wages of 45 people (unless maybe he took the rent as monthly?)
 
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