Manchester United closes in on record deal

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Despite struggles on the pitch, the Premiere League club is confident of success when it comes to a new sponsorship deal.

The club is negotiating with Sony and UAE-based Etihad Airways for a world-record package in excess of GBP 15 million. The deal would replace the GBP 9 million deal with Vodafone that was cancelled two years early by the communications company.

The club have struggled with their form this season, exiting the lucrative Champions League and currently far behind Premiere League leaders Chelsea. However, club chief executive David Gill claimed the club’s reputation and appeal is as strong as ever. “We are having detailed negotiations with a number of companies in different sectors and we are very positive about the outcome,” Gill said. “We need only one sponsor, we've got many more discussions ongoing and we're confident that we will secure a record deal. That is what we are aiming to do and director Andy Anson and his team is working extremely hard in that area. “Vodafone paid GBP 9 million a year but, based on our discussions - and, of course, you have to turn interest into a financial contract – we’re very hopeful of beating that, and that demonstrates the attractiveness of Manchester United. Our following is still very great around the world.” Gill said the interest shown by companies in the club prove its still among the world’s best. “We're still a big story. Still one of the biggest, if not the biggest, name in club football, and being on the shirt only comes up once every so often,” he said. “The market has moved on since we did the Vodafone deal and that is why we are confident we can secure a ground-breaking deal for the club.”

Spanish Primera Liga club Real Madrid (GBP 14 million a year with Siemens), German Bundesliga club Bayern Munich (12 million with T.com) and Chelsea (10 million with Samsung) currently boast the largest sponsorship deals.

The new deal provide further evidence that the club is doing well financially, after concerns that new owner Malcolm Glazer straddled the club with debt when he bought the club for GPB 790 million. Glazer reportedly borrowed GBP 540 million to complete the deal, with nearly have of that debt tied to the club’s assets.

“Manchester United will not implode by finishing third in the Premiership,” Gill said. “Neither our internal business plan nor the bank financing plan is based on first, first, first, cup, cup, cup. It is based on the sensible levels we were following as a (Premiere League club), which were fairly conservative and based around finishing fourth in the Premiership and getting into Europe. It is about the same now.

“The debt itself is serviceable because our cash generation will improve through the expansion of the stadium and other things.”