Manchester United and AIG.

18 09 2008

In 2006, AIG signed a record deal to sponsor Manchester United, the famous English football (soccer) club to the tune of £56.5 over 4 years (about $14 million USD per year). This unprecedented deal was followed two years later by another unprecedented deal, this time by the US government to bail out AIG – lending the insurer $85 billion.

As of today, AIG is reviewing its business operations and is discussing options to improve business. The stock is down and Wall Streeters have concerns about large financial underpinnings such as this some $14 million/year sponsorship of Manchester United.

No amount of matches won on the pitch will get shareholders back what they’ve lost. Apparently, Manchester United is confident their deal will stay in tact, but the club (owned by Tampa Bay Buccaneers owner Malcom Glazer) won’t be financially troubled even if the deal evaporates.

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One response

21 10 2008
Tudor

Tricky times for forecasting. I’m looking to see which (Premier) clubs are most vulnerable as a result of the financial crisis.

Press stories these last few weeks seem to be based a bit on analysis a bit more on guesswork and a nose for a headline.

I can’t see that AIG future will be a major factor for MUFC viability

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