GM-ManU Sponsorship Deal Shaking up Economics of Premier Leage
Back in 2012, General Motors inked a massive sponsorship deal with one of the most popular sporting teams in the world. No, it was not the Yankees or Lakers. It was a $559 million deal with a soccer team– Manchester United.
The seven year deal for $559 million amounts to almost $80 million per year, trouncing the previous sponsorship deal with AON for £20 million ($33.8 million). These numbers are shaking up the economics of the English Premier League– one of the most popular soccer leagues in the world.
The deal is the landmark one in a league that is seeing sponsorships on the rise. Three other teams have increased sponsorship deals, including Swansea (£2M increase), Hull (£600,000 increase) and Everton’s deal with Chang Beer (up £1.3M). Overall, sponsorship coin is up £23.6M (nearly $40 million), to £191.35M ($324 million). Most of this rise is on the back of the Man U deal.
But, check out the new jerseys (or “kit” as they call it). This represents a bit of a conundrum for American fans of international soccer. When I think of them, I think of someone who owns a BMW or Audi wagon, with ski or bike racks. How will that gel with the fact that if they support Man U, they will have to wear a shirt with the Chevy bowtie emblazoned on the front? Methinks the older Sharp-sponsored jerseys will continue to be in high demand.
Source: Sporting Intelligence