United Commercial Partnership Revenue

The DHL sponsorship deal was officially announced earlier today:


DHL deal for Reds

DHL, the world’s leading express and logistics company, has signed a contract to become the Official Logistics Partner of Manchester United. DHL will undertake a range of logistics services on behalf of the club over three years.

The contract provides the opportunity for a wide range of integrated business-to-business and consumer marketing activities and events across many platforms including digital advertising perimeter boards, matchday programme, club website and selected events at Old Trafford.

In addition, DHL will work with the Manchester United Foundation in the development of a series of programmes to improve the lives of vulnerable young people in our local communities. More detail on the specific initiatives will follow in the coming months.

David Wilson, Senior Vice President Sales, DHL Express (Europe) said: “This agreement adds another world-class property to our wider portfolio of global logistics partnerships. Teaming up with prestigious partners such as Manchester United reflects our ability to provide unparalleled logistics services for quality-focused customers across the industry.”

Phil Couchman, Chief Executive Officer, DHL Express (UK and Ireland), added: “By partnering with Manchester United we have teamed up with a brand whose international footprint mirrors our own. A major part of our business is to help businesses grow by offering them an efficient and effective international offer. The way that Manchester United has grown from humble beginnings formed by a group of railway workers into a worldwide brand with 333 million followers shows how small businesses can emerge into world leaders.”

Reds' Chief Executive, David Gill, is delighted to announce the deal. “DHL are a globally recognised organisation and their commitment to excellence and high standards makes them an ideal partner for Manchester United," he said. "I’m delighted to welcome them to our family of sponsors and look forward to the opportunities this partnership will create.”

United Commercial Director, Richard Arnold added: “This deal underlines the continuing global strength of Manchester United. DHL are a like minded global brand with a track record in sports sponsorship and a strong presence in many of our key territories around the world. We're excited at the opportunities this partnership will create for DHL and our fans around the world.”


Manchester United Official Web Site - DHL deal for Reds
 
London's been a bit quiet lately, eh GCHQ?

Taken from Andersred's blog on our third quarter financial results:

Commercial

The impact of the automatic Nike step-up, the extra Aon income and the raft of secondary sponsors continues to drive this area of the business. Continued growth into next year relies on further deals, something the ever optimistic Edward Woodward spoke confidently about on the conference call.
 
Many years ago we signed a deal with nike worth £300 million over 10 years in exchange for the right to manufacture, sell and keep all income from Utd branded sportswear.

GCHQ has it better then me, I must have remembered the details wrong
 
Taken from Andersred's blog on our third quarter financial results:

Tbf GCHQ, I can't really see him saying anything else though. Do you genuinely think that United can match this year's rate of growth in the commercial sector next year as well? If so, we're going to need to announce a fair few deals in the next few months.
 
So it'll be worth around £27.5m in another three years and that being the final increase before it ends?

it's interesting to know, if anyone does, what our rivals currently receive per annum for their deals at the minute.
 
Tbf GCHQ, I can't really see him saying anything else though. Do you genuinely think that United can match this year's rate of growth in the commercial sector next year as well? If so, we're going to need to announce a fair few deals in the next few months.

It could be the case that a lot of deals are signed yet are embargoed (if that's the right word) in order to protect current 'commercial partners'.

If, for example, you paid £1m a year to be the United's official after match wank lube provider, you'd be a little peeved if prior to the conclusion of you're deal, the company were already announcing their new partner in gentleman's hand relief to the world, wouldn't you?

It's possible similar is happening here.
 
So it'll be worth around £27.5m in another three years and that being the final increase before it ends?

it's interesting to know, if anyone does, what our rivals currently receive per annum for their deals at the minute.

Around the same amount, if not slightly less, mind you we should look for a significant increase when renewal comes around though, especially given the deal that the FFF recently negotiated with Nike (~£35m).

@GCHQ, would you say that it'd be realistic for us to negotiate a deal worth ~£50m?
 
It could be the case that a lot of deals are signed yet are embargoed (if that's the right word) in order to protect current 'commercial partners'.

If, for example, you paid £1m a year to be the United's official after match wank lube provider, you'd be a little peeved if prior to the conclusion of you're deal, the company were already announcing their new partner in gentleman's hand relief to the world, wouldn't you?

It's possible similar is happening here.
In that case, it'd be a like for like replacement then, it wouldn't really contribute too much in the way of a rise in commercial revenue.
 
Around the same amount, if not slightly less, mind you we should look for a significant increase when renewal comes around though, especially given the deal that the FFF recently negotiated with Nike (~£35m).

@GCHQ, would you say that it'd be realistic for us to negotiate a deal worth ~£50m?

I mentioned something like that a while ago but people shot me down. Certainly though if the French can get £35m it isn't beyond the realms of possibility or even likelihood that we would be able to match that I'd have thought.
 
In that case, it'd be a like for like replacement then, it wouldn't really contribute too much in the way of a rise in commercial revenue.

Not necessarily. If we look at the difference between AIG and AON, that was 'like for like' in that respect but we got around 40% more per year with the latest deal.
 
Tbf GCHQ, I can't really see him saying anything else though. Do you genuinely think that United can match this year's rate of growth in the commercial sector next year as well? If so, we're going to need to announce a fair few deals in the next few months.

He wouldn't have spoken so confidently about future commercial growth in a conference call to investors and bond holders unless there were already several new deals lined up. Having said that I don't think anyone has suggested that we'll match this year's c. 30% growth next time around. 15% growth (a c. £15m increase) would be excellent and I think that's achievable.
 
He wouldn't have spoken so confidently about future commercial growth in a conference call to investors and bond holders unless there were already several new deals lined up. Having said that I don't think anyone has suggested that we'll match this year's c. 30% growth next time around. 15% growth (a c. £15m increase) would be excellent and I think that's achievable.

Last year's rise was £19m right? If so, £15m would be very good going indeed. If revenues continue to grow at this rate and if we can control wage growth, we'll be in an extremely comfortable position in the near future.
 
Isn't it prudent to expect that much of the new commercial partners will be in the area of telecommunications? It looks as if a lot of our deals in that respect were signed back in 2008 and you'd expect they'd be coming to an end soon enough
 
Is this MUML thing important at all? I see it's a joint venture between United and Nike, presumably as part of the sponsorship deal. Seems a bit all in-compassing. Would that be another area of potential revenue growth after the Nike deal concludes?
 
So it'll be worth around £27.5m in another three years and that being the final increase before it ends?

it's interesting to know, if anyone does, what our rivals currently receive per annum for their deals at the minute.

Yes.

Liverpool - current deal with Adidas worth £12m per annum. New deal with 'Warrior' starting from June 2012 will be worth £25m pa.

Arsenal - £13m pa agreement with Nike until June 2013.

Chelsea - £10m pa agreement with Adidas until 2016.

Tottenham (are they a rival?) - current deal with Puma worth £5m pa. New deal with ''Under Armour'' starting from June 2012 will be worth £10m pa (ends June 2017).

Man City - current deal with Umbro worth £5m (?) pa until June 2019

Barca - £26.3m pa agreement with Nike until June 2013.
 
Around the same amount, if not slightly less, mind you we should look for a significant increase when renewal comes around though, especially given the deal that the FFF recently negotiated with Nike (~£35m).

@GCHQ, would you say that it'd be realistic for us to negotiate a deal worth ~£50m?

£50m is possible I suppose but £40m-£45m would be more realistic.
 
Last year's rise was £19m right? If so, £15m would be very good going indeed. If revenues continue to grow at this rate and if we can control wage growth, we'll be in an extremely comfortable position in the near future.

I think the current year's increase (financial year ends June 30 2011) will end up being £22m-£23m.
 
Isn't it prudent to expect that much of the new commercial partners will be in the area of telecommunications? It looks as if a lot of our deals in that respect were signed back in 2008 and you'd expect they'd be coming to an end soon enough

Yes, I'd expect that to be the case. The majority of the telecom deals were signed in late 2009 and early 2010 and according to my records (yes, I really am that sad) only one of those nine deals expires before June 2013.
 
Is this MUML thing important at all? I see it's a joint venture between United and Nike, presumably as part of the sponsorship deal. Seems a bit all in-compassing. Would that be another area of potential revenue growth after the Nike deal concludes?

MUML generated annual revenue of £19m and EBITDA of £8.2m in the year to May 31 2010. There is a profit sharing agreement between the club and Nike but it's never really amounted to a significant sum. I thinks it's unlikely that the club would want to take the merchandising operation back ''in house''.
 
15:45 I was over at Carrington earlier for a press conference for a new sponsor - you can find out more about that tomorrow - and while I was there at had a nice chat with Sir Bobby Charlton. He said he can't wait for Saturday's Champions League final and says he has positive vibes about the game. "I'm feeling lucky," were his exact words. Let's hope he passes some of that luck onto the players. (GT)


Manchester United Official Web Site - Today at Old Trafford
 
Branded Honda Mopeds in Thailand, according to the daily mail

Manchester United can't lose as global brand booms

The extraordinary commercial operation at Manchester United is expected to double in size by 2015, no matter what happens in Saturday's Champions League final against Barcelona.

United's off-pitch deals - the latest seven-figure contract being for branded Honda mopeds in Thailand - already bring in £100m a year.
They're at it again: United celebrated a record 19th title on Sunday

They're at it again: United celebrated a record 19th title on Sunday

The club have kept their growing commercial department - now employing 70 people in London and Manchester - under the radar.

There is still no United sign inside or outside the seventh floor of their Pall Mall headquarters, which was controversially set up in the capital by the owning Glazer family in 2007.

But United, buoyed by their remarkable growth and a slight relaxation of Glazer opposition, are now prepared to be more open about their numerous licenses to print money.

A United badge might even be put on the door when the workforce move to bigger premises in Mayfair this summer.

The extent to which the Glazers, who are only occasional visitors to Old Trafford, concentrate on maximising brand value is clear from Joel Glazer's relationship with commercial overlord Ed Woodward, who reports directly to the Tampa-based family. The pair often talk five times a day.

United, who dismiss Liverpool claims that their £20m-a-year Standard Chartered shirt sponsorship is worth more than United's Aon deal, are banking on another massive hike in value when they renegotiate their Nike kit supply deal well before it expires in 2015.

Read more: Manchester United can't lose as brand booms - Charles Sale | Mail Online
 
That'll be our official "2-wheeled transportation partner" then

Yeap. But along with the Glazer's philosophy.... "doing more, with less" kind of red devil transporter:

5964817-lg.jpg
 
Liverpool do fecking well in the commercial department for some reason even though they haven't been successful on pitch for so long?
 
Liverpool do fecking well in the commercial department for some reason even though they haven't been successful on pitch for so long?

Hmmm... it reads like a statement but is punctuated like a question... could this be an as yet undiscovered form of life!

^
(Punctuation ironic)