Manchester United signs record shirt sponsorship deal

The Premier League club signed a four-year, GBP 56.5 million shirt sponsorship deal with insurance company American Insurance Group (AIG), a figure that makes the deal the richest in history. The deal averages to GBP 14 million per season.

The club has been looking for a new shirt sponsor since it cancelled the GBP 9 million-per-year deal with Vodafone, a deal that will end after the current season.

The influx of funds should also lessen the debt incurred by American tycoon Malcolm Glazer by his takeover of the club last year. The deal is second only to Italian Serie A club Juventus’ deal with Tamoil, which is reportedly worth GBP 15 million per season. Manchester United’s deal is equal to Spanish Primera Liga club Real Madrid’s deal with BenQ, set to start next season, and the GBP 11.4 million-per-season deal Tmobile signed with German Bundesliga Bayern Munich.

The deal beats the GBP 10 million-per-season deal Premier League rivals Chelsea FC signed with Samsung.

The move also comes after complaints by online casino company Mansion. The company claims that Manchester United verbally agreed to a GBP 70 million sponsorship deal, before the club pulled out. The club said that it never entered into exclusive talks with Mansion and that it was entitled to hold talks with other companies.

The deal with AIG could also return Manchester United to the top of the Deloitte list of the world’s richest clubs. Last season, after several consecutive years at the top, Manchester United was replaced by Real Madrid. The club has also slipped a bit on the pitch, with Chelsea winning last year’s Premier League title and on its way to wrapping up this season’s title. The club also failed to make it out of the group stage of the UEFA Champions League.

Despite the deal, manager Sir Alex Ferguson said the club's spending policy would not change. “The financial foundation will benefit the club as a whole and we can look forward to years of progress through that," he said. “But for me it's always going to be about how we can improve the team and nothing changes in that respect…I go to (chief executive) David Gill and say 'this is a player I'd like', then we assess how much it's going to cost and take it from there.”

The Sport Business Group of law firm Addleshaw Goddard was behind the deal, negotiation on behalf of AIG. AIG is the world's leading international insurance organization, operating in over 130 countries and jurisdictions. Its sponsorship of the Premiership club is part of a strategy to reinforce its global brand.

Head of Addleshaw Goddard's Sport Business Group, Andrew Price, worked alongside in-house lawyers from AIG and Manchester United, and said: “This is arguably one of the most high profile, global sports sponsorship opportunities in the market and we are delighted to have been able to advise AIG on its successful bid. To work for a new client on such a high profile deal is a massive endorsement of our expertise and reputation.”

Last year Addleshaw advised The Football League on its three-year broadcasting agreements with Sky Sports and ITV.