Liverpool FC Forum

by **Reg** » Mon Apr 13, 2009 9:44 pm

Why Manchester United Must Ask Prudential for More Money to Replace AIG Sponsorship April 13th, 2009 @ 11:13 am

Prudential is in talks with Manchester United to replace AIG as the club’s shirt sponsor, according to the BBC. Man Utd need at least £56 million (about $100 million) to replace or increase the revenue from AIG.

The club’s AIG deal ends with the close of the 2009/2010 season, which means that some of the U.S. taxpayer bailout money has found its way into the pocket of Cristiano Ronaldo, the fearsome Portugese striker with an unfortunate tendency for falling over in the penalty area.

The news comes as Man Utd’s parent company, Malcolm Glazer’s Red Football Joint Venture, released its financials. They reveal that despite the club’s blue-chip lineup of sponsors the club is a hair away from defaulting on its debts.

In addition to AIG, Man Utd’s sponsors include Saudi Telecom, Diageo, and Seoul Metropolitan Government - and renewed deals with Budweiser, Travelcare, and GSK.

The club made a pretax loss of $65 million, mainly due to its onerous debt payments. The club owes £650 million, mainly from leverage Glazer used to buy the club in 2005. Its annual debt payments are neary £70 million pounds.

Sales from game tickets were only £101 million, a revenue stream that is largely capped because Man Utd’s games tend to be completely sold out.

That financial picture means Man Utd will likely be forced to ask Prudential for much more than the £56 million that AIG paid.

The consequences for Man Utd failing to balance its books could be severe: Any club that goes into administration is automatically docked 10 points in the league. For some clubs, that penalty can be fatal and league to relegation from the Premier League. That’s not likely in Man Utd’s case (they could still finish midtable even with that handicap), but it might well cost them a league championship.

* Disclosure: The author is a Liverpool FC who would be happy to see Man Utd enter bankruptcy.

by **das20093** » Mon Apr 13, 2009 10:19 pm

UTD are going bankrupt. i think a deduction of 50pts will do. CYA in the championship Mannure

by **yolz** » Tue Apr 14, 2009 3:47 am

What with all the successes Man U Suck have been having, people seem to be ignoring the mounting debts in Man U
There will come a day when Man U finds itself having to sell players or face bankruptcy
Hope that comes sooner rather than later!!!!

by **Judge** » Tue Apr 14, 2009 1:48 pm

lets hope they default on payments and go into administration

by **LegBarnes** » Wed Apr 15, 2009 9:07 am

might as well merge this with my post tbh mods.

http://www.liverpoolfc-newkit.co.uk/viewtopic.php?t=26039

by **LegBarnes** » Wed Apr 15, 2009 9:08 am

yolz wrote:What with all the successes Man U Suck have been having, people seem to be ignoring the mounting debts in Man U
There will come a day when Man U finds itself having to sell players or face bankruptcy
Hope that comes sooner rather than later!!!!

could be as soon as a year many of lead to believe.

by **Kash_Mountain** » Wed Apr 15, 2009 7:53 pm

The Mwancks have just scored.

by **Cream of Europe** » Mon Apr 27, 2009 7:38 am

If only we could attract sponsors with that amount of dough.... I love Carlsberg, but we are one of the largest clubs in the world, and don't get squat on the amount of sponsorship United get. I'm more worried about the size of debts on our club then theirs

by **Puniverse** » Mon Apr 27, 2009 11:38 am

No point gloating on the debts of United. We ourselves are in deep :censored:

.

by **bigmick** » Mon Apr 27, 2009 11:53 am

"We ourselves" :laugh:

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Manchester united must ask prudential for more mon - To replace aig sponsorship

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