AIG to remain Manchester United's sponsor

American insurance company AIG, one of the federally bailed-out financial institutions, cancelled sports team sponsorships valued hundreds of millions of dollars.

AIG has not renewed long-term sponsorship relationships with likes of the New York Yankees, New York Knicks, Houston Rockets, Houston Astros, Madison Square Garden, AIG Japan Open (Tennis), Irish Champion Hurdle (Horseracing), and New Orleans Jazz Fest.

AIG is currently paying GBP 14 million a-year to English Manchester United in a contract which runs to 2010. AIG spokesman told USA Today that the club's sponsorship won't be abandoned but that the company is "reviewing all sponsorships to identify any relationship that might be essential, to maintain the value of the business and service customers, so we can repay the (government) loan."

If AIG will abandon the deal, Korean electrical firm LG and Saudi Telecom are lining up their cash and showing an interest in taking over the sponsorship deal.