The comments section is a must read too.
United Commercial Partnership Revenue
- Thread starter Baby Faced Assassin
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In the latest episode of the United Hour Podcast, Nik (@Rood) is joined by CEO Duncan Drasdo and Financial Director Andy Green from the Manchester United Supporters Trust for a special episode on all things behind the scenes at Old Trafford including a brief history of MUST and their aims today, views on INEOS and Sir Jim Ratcliffe so far, and the Old Trafford regeneration.
The comments section is a must read too.
The debts getting bigger despite such commercial success...when on earth will it start going down?
wow
wow
Another new sponsor. A warm welcome to Epson.
The Pall Mall boys are on fire!
The Pall Mall boys are on fire!
Any idea how much it is worth?
Manchester United confirm new multi-million pound sponsorship deal with Epson - Sports Sponsorship news - Soccer Europe - SportsPro Media
So at today's exchange rate that comes in at £1.6m per year. It's worth remembering that ever since the bond issue we've been agreeing sponsorship deals in USD in order to act as a hedge against the semi-annual interest payments on the dollar denominated bonds.
I expect our commercial revenue to hit £100m this year. Meanwhile you've got Arsenal languishing in the mid 40s and Chelsea in the late 50s.
This was the Glazers vision for Manchester United. They openly stated back in 2005 that United had ''unlimited'' potential for commercial revenue growth in this era of globalisation. Many people ridiculed them at the time and said they'd paid far too much for the club. Those same narrow minded people tried to destabilize the club in the wake of the bond issue earlier this year. They failed of course, just like they failed back in 2005. The Glazers are winners, not failures. I'd take them as the club's owners over that lot on the other side, every single time without a second thought.
What was it last year?
You have to give it to the Glazers for getting all types of different sponsorship deals.£81m. So you'll be looking at c. 25% growth year on year which is fantastic.
I agree! Is the £100 mill guaranteed or do you expect a few more deals to be signed in order to reach that figure?
Pretty much guaranteed I think. Perhaps signing another couple of additional commercial partners during the second half of the financial year would seal the deal though.
Commmercial partner number 26 is now on board:
Manchester United Official Web Site - Reds welcome airtel
Manchester United Official Web Site - Reds welcome airtel
Airtel's a good partner to have -- Indian company partially controlled by a Singaporean telco company. Part of their Asian strategy particularly trying to penetrate into India.
Yup, and more recently Africa too, which is reflected by this deal.
Airtel have already been mentioned in a previous post as an existing partner haven't they?
Yes, for a separate agreement covering India, Bangladesh and Sri Lanka. This one is for the African continent.
I suppose it isn't technically a ''new'' partner but it's certainly an additional telecom deal, so we'll count it as number 26
ahh I see, any idea what its worth? Also the only mention about what the partnership entails is of match highlights. Is that really going to be incentive enough for customers to subscribe to them? Because without strong numbers of new subscriptions I doubt these deals will get renewed by their respective companies.
EDIT: There's only 23 partners listed on the official site, any idea why?
Do you have any insight as to the limits of this commercial drive, GCHQ? It seems to be neverending, it's quite incredible really: a licence to print money in many ways.
and Hi Pyongyang to replace Hi Seoul as official destination partner. What the hell is a destination partner?
Just a fancy name for a commercial partner, I think. They pay United money to put their name on ad boards, endorsement, etc. to promote tourism to Seoul. And since they're a location, they're named "Destination Partner" just to sound cool.
I haven't heard any figures mentioned for this deal on the normal sports business websites but it's fair to say it will definitely be a seven figure sum. For instance we have two other partnerships with telecom companies in different African countries and those deals are reported to be worth £1.5m pa (MTN) and £3m pa (Globacom). The deal with Airtel Africa covers 11 African countries including the likes of Kenya. We've got 20 African countries covered now.
Here's a quote from David Gill in a separate article which explains a bit more about what's on offer to the telecom companies and their customers:
This is in addition to the ringtones, wallpapers etc. We're selling club owned digital content essentially.
EDIT - There are only 23 partners listed on the ''sponsors'' section of the official site because the Epson, DHL and Airtel Africa logos aren't up there yet. They will be in the not too distant future.
Yes, it's fantastic. I'd have thought the commercial success that the club has enjoyed since the Glazers purchased the club, particularly during the last 12-18 months, would be something that all United supporters would be delighted about but alas that isn't the case.
Due to the number of fast growing emerging markets around the world I think the opportunities for continued growth in the club's commercial division is pretty much unlimited. It really is phenomenal.
The Glazers are going nowhere for a good while yet.
You guys are a parody of the football fan. 'Great win last week' - 'Oh feck that for a game of soldiers - we've just signed another super-duper sponsorship deal'.
Its a clever strategy really. Let's ride on the coverage of the EPL and the history of United. I am not sure if others in footie or any other sports can do it globally like United or why they have not done it. Another frontier breaking move by United.
It would be fun to name potential "sponsorable" sectors that United can enter into:
1) Sports Beverage?
2) Food?
3) Hotel?
4) Bank?
5) Photo Printing/Developers
It would be fun to name potential "sponsorable" sectors that United can enter into:
1) Sports Beverage?
2) Food?
3) Hotel?
4) Bank?
5) Photo Printing/Developers
Tbf. How else would you expect football clubs to maintain paying footballers their globally competitive salaries which consist of at least 48% of all top line revenues in United's case and more in other clubs? If we want to attract the best players, we will also need to pay them well. Thats the reality of all teams.
Sure but you have two posters above who are never bothered to say anything about the football. Odd.
I say about football all the time, Pete, so sorry to burst your bubble. Would you rather we just ignored the financial side of the club though as if it didn't exist, would that make us better fans in your view? Highly hypocritical of you of course, since one of your favourite passtimes seems to be discussing the technical details and finances of a club you don't even support. So if you want to talk about odd, take a look in the fecking mirror; we're not doing this on your shitty Arsenal boards, are we?
Why, has it reduced ticket prices or effected their match going experiences positively in any way?
Nah but it's quashed any fears they may have had of us being skint.
Official Cider of Manchester United.
I like that.Arsene might hate you forever, what with his 'you can't put the financial state of the club in jeopardy' by saving 3 million on refusing to sign a goal keeper.
I suspect Arsen will have a few more sips of United's latest sponsorship when he thinks hard enough about that decision in the summer not to splash on Schwarzer:
To be fair, it's only GCHQ who's obsessed. And who hasn't been guilty of taking their work home with them on occasion?
As a Sports team we have unrivalled levels of support, particularly in Asia, which is the key behind our success in leveraging the brand and increasing our commercial revenues.
The Food and Hotel sectors are good shouts. Aigo covered the digital camera/photo sector up until recently so that's definitely another one we could look to fill. I don't think AON would be best pleased with another financial services partner on board so I'd probably rule out a Banking sponsor and Arctic Ice are our energy drink partner.
Men's Toiletries would be another potential sector I would have thought. The bond prospectus mentions the Energy and Information Technology sectors as key opportunities to expand our existing number of sponsors.
When you think that we have the likes of Epson and DHL on board, covering the printer and logistics sectors which you wouldn't classify as being typically associated with Sports sponsorship, then it really does show that there are very significant opportunities for growth going forward.
Absolute crap.
Seeing how much Barca are getting for a secondary shirt sponsorship logo from Qatar I fell United should have also gotten a middle eastern shirt sponsor instead of Aon.
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.
I'd love to know are these sponsors getting value for their money investing in some cases 2million to be sponsors of the club that most of us have never even heard of. I can understand the shirt sponsor and nike. They are well publicised, also the energy drinks sponsor gets their product on the telly for free. But the other ones, whats in it for them. Sure there's prestige in having United attached to your company, but they still have to go out and spend even more money telling people in TV adds and marketing campaigns. Doesn't really make sense to me.
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.
Just seems rather extravangant for companies to be paying millions to have your logo shown for a few seconds in the advertising billboards. Im sure ive never even seen some of theos companies on the billboards. I'm not complainging as its obviously great for the club.