UNITED SIGN MEGA DEAL

Manchester United has signed a record shirt sponsorship deal with the American carmaker General Motors. The deal, which could see Manchester United pocket around £ 210 million over seven years, easily beats the current recordholder Manchester City by many millions, according to the Man City news website.

City enjoyed the status of having the record shirt sponsorship deal due to the fact that their sponsor pays around £ 25 million per season. Manchester United’s sponsor – General Motors, though, will pay around £ 30 million per season for the next seven years in order to remain on the Manchester United kit. This record-breaking deal comfortably eclipses the previous deal Manchester United had with the American insurance company AON.

The club recently were placed on the New York stock exchange with shares selling for around $ 20. It is estimated that the club hopes to raise around £ 300 million by way of this listing. Around £ 150 million will be directly going into servicing the debt, which currently stands at £ 450 million. It has hampered the progress of the club a lot in recent times, with the manager Sir Alex Ferguson unable to compete with the best in terms of the transfer fees. Manchester United recently had to lose out on the signing of Eden Hazard because they were unable to match the European champions’ offer.

“We have been partners with Chevrolet for only six weeks, but already they have produced some fantastic ideas that will benefit both the partnership and our 659 million followers around the world,” said the commercial director of the club, Richard Arnold, on the official website of the club. Manchester United are definitely one of the biggest clubs in the world and they are valued at around $ 2.5 million in the latest report released by the US magazine Forbes. Manchester United’s Old Trafford stadium is also the biggest club ground in the UK.

UNITED NOT WORRIED BY DEBTS

Manchester United are one of the most successful football clubs in the world and they certainly do not seem to be worried about the spiralling debts.

In a recent interview given by the Chief Executive David Gill, Manchester United may have significant debts due to the purchase made by the Glazer family in 2005, but they have enough income in the form of TV revenue and various other venues to service the debt. Recently, Manchester United managed to bring down their debts – that were in the region of almost £ 1 billion – to just around £ 500 million.

UEFA will be introducing the FairPlay regulation rules from 2013 onwards, which will demand clubs to make only around £ 35 million of losses over a three-year period. David Gill believes that Manchester United will be able to comfortably meet this requirement by UEFA.

David Gill also said that it is the structure of the Premier league that makes English football extremely competitive when compared with other leagues across the world like Spain. For example, he quoted the fact that Manchester United received only £ 60 million for winning the Premier league title last season, while the bottom team received a £ 40 million. This gap is much more profound in Spain.

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TV THE MAIN INCOME

It is a well-known fact that Manchester United are one of the greatest football club in the world and a majority of their income comes from the TV money. Of course, being the champion of England numerous times in the last few years certainly helps.

Manchester United on TV is a very much normal occasion, as they are pretty much on TV throughout the weekend. One of the most recent matches in which Manchester United attracted a lot of TV viewers was in the FA Cup fourth-round match against Liverpool. Manchester United are coming into the match after having beaten Manchester City in a thrilling encounter.

The third round fixture between the two Manchester clubs ended in a 3-2 win for Manchester United, which has boosted the expectations for the match against Liverpool– another arch rival for Manchester United. One of the things that has spiced up the encounter is the record Manchester United have been having at Anfield in recent seasons. Manchester United manager Sir Alex Ferguson has not left Anfield with a win since 2006. As expected, Manchester United again struggled against Liverpool in the match. Manchester United finally ended up losing 2-1 to a Liverpool side that was missing Luis Suarez.

However, the match has turned out to be a huge commercial success for Manchester United due to the TV income that it has generated. It has been estimated that around 6 million viewers tuned in to watch the match. The Saturday’s FA Cup match between the two great clubs was seen by around 6 million viewers during the peak time. The match was shown on both ITV1 HD and ITV1. Compared to this, the match between Sunderland and Middlesbrough attracted only 4 million viewers on Sunday. The Manchester United match had a market share of 32.1 percentage on ITV1.