Manchester United has been described as a global brand; a 2011 report by Brand Finance, valued the club's trademarks and associated intellectual property at £412 million – an increase of £39 million on the previous year, valuing it at £11 million more than the second best brand, Real Madrid – and gave the brand a strength rating of AAA (Extremely Strong).[98] In July 2012, Manchester United was ranked first by Forbes magazine in its list of the ten most valuable sports team brands, valuing the Manchester United brand at $2.23 billion.[99] The club is currently ranked third in the Deloitte Football Money League (behind Real Madrid and Barcelona).[100] In January 2013, the club became the first sports team in the world to be valued at $3 billion. Forbes Magazine valued the club at $3.3 billion – $1.2 billion higher than the next most valuable sports team.[101]
The core strength of Manchester United's global brand is often attributed to Matt Busby's rebuilding of the team and subsequent success following the Munich air disaster, which drew worldwide acclaim.[91] The "iconic" team included Bobby Charlton and Nobby Stiles (members of England's World Cup winning team), Denis Law and George Best. The attacking style of play adopted by this team (in contrast to the defensive-minded "catenaccio" approach favoured by the leading Italian teams of the era) "captured the imagination of the English footballing public".[102] Busby's team also became associated with the liberalisation of Western society during the 1960s; George Best, known as the "fifth Beatle" for his iconic haircut, was the first footballer to significantly develop an off-the-field media profile.[102]
As the second English football club to float on the London Stock Exchange in 1991, the club raised significant capital, with which it further developed its commercial strategy. The club's focus on commercial and sporting success brought significant profits in an industry often characterised by chronic losses.[103] The strength of the Manchester United brand was bolstered by intense off-the-field media attention to individual players, most notably David Beckham (who quickly developed his own global brand). This attention often generates greater interest in on-the-field activities, and hence generates sponsorship opportunities – the value of which is driven by television exposure.[104] During his time with the club, Beckham's popularity across Asia was integral to the club's commercial success in that part of the world.[105]
Because higher league placement results in a greater share of television rights, success on the field generates greater income for the club. Since the inception of the Premier League, Manchester United has received the largest share of the revenue generated from the BSkyB broadcasting deal.[106] Manchester United has also consistently enjoyed the highest commercial income of any English club; in 2005–06, the club's commercial arm generated £51 million, compared to £42.5 million at Chelsea, £39.3 million at Liverpool, £34 million at Arsenal and £27.9 million at Newcastle United. A key sponsorship relationship is with sportswear company Nike, who manage the club's merchandising operation as part of a £303 million 13-year partnership established in 2002.[107] Through Manchester United Finance and the club's membership scheme, One United, those with an affinity for the club can purchase a range of branded goods and services. Additionally, Manchester United-branded media services – such as the club's dedicated television channel, MUTV – have allowed the club to expand its fan base to those beyond the reach of its Old Trafford stadium
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In an initial five-year deal worth £500,000, Sharp Electronics became the club's first shirt sponsor at the beginning of the 1982–83 season, a relationship that lasted until the end of the 1999–2000 season, when Vodafone agreed a four-year, £30 million deal.[108] Vodafone agreed to pay £36 million to extend the deal by four years, but after two seasons triggered a break clause in order to concentrate on its sponsorship of the Champions League.[108]
To commence at the start of the 2006–07 season, American insurance corporation AIG agreed a four-year £56.5 million deal which in September 2006 became the most valuable in the world.[109][110] At the beginning of the 2010–11 season, American reinsurance company Aon became the club's principal sponsor in a four-year deal reputed to be worth approximately £80 million, making it the most lucrative shirt sponsorship deal in football history.[111] Manchester United announced their first training kit sponsor in August 2011, agreeing a four-year deal with DHL reported to be worth £40 million; it is believed to be the first instance of training kit sponsorship in English football.[112][113]
The club's first kit manufacturer was Umbro, until a five-year deal was agreed with Admiral Sportswear in 1975.[114] Adidas received the contract in 1980,[115] before Umbro started a second spell in 1992.[116] Umbro's sponsorship lasted for ten years, followed by Nike's record-breaking £302.9 million deal that will last until 2015; 3.8 million replica shirts were sold in the first 22 months with the company.[117][118] In addition to Nike and Aon, the club also has several lower-level "platinum" sponsors, including Chevrolet and Budweiser.[119]
On 30 July 2012, United signed a seven-year deal with the American automotive corporation General Motors, which will replace Aon as the shirt sponsor from the 2014–15 season. The new $80m[120] a year shirt deal is worth $559m over seven years and will feature the logo of General Motors brand Chevrolet.[121]
Ownership and finances
The core strength of Manchester United's global brand is often attributed to Matt Busby's rebuilding of the team and subsequent success following the Munich air disaster, which drew worldwide acclaim.[91] The "iconic" team included Bobby Charlton and Nobby Stiles (members of England's World Cup winning team), Denis Law and George Best. The attacking style of play adopted by this team (in contrast to the defensive-minded "catenaccio" approach favoured by the leading Italian teams of the era) "captured the imagination of the English footballing public".[102] Busby's team also became associated with the liberalisation of Western society during the 1960s; George Best, known as the "fifth Beatle" for his iconic haircut, was the first footballer to significantly develop an off-the-field media profile.[102]
As the second English football club to float on the London Stock Exchange in 1991, the club raised significant capital, with which it further developed its commercial strategy. The club's focus on commercial and sporting success brought significant profits in an industry often characterised by chronic losses.[103] The strength of the Manchester United brand was bolstered by intense off-the-field media attention to individual players, most notably David Beckham (who quickly developed his own global brand). This attention often generates greater interest in on-the-field activities, and hence generates sponsorship opportunities – the value of which is driven by television exposure.[104] During his time with the club, Beckham's popularity across Asia was integral to the club's commercial success in that part of the world.[105]
Because higher league placement results in a greater share of television rights, success on the field generates greater income for the club. Since the inception of the Premier League, Manchester United has received the largest share of the revenue generated from the BSkyB broadcasting deal.[106] Manchester United has also consistently enjoyed the highest commercial income of any English club; in 2005–06, the club's commercial arm generated £51 million, compared to £42.5 million at Chelsea, £39.3 million at Liverpool, £34 million at Arsenal and £27.9 million at Newcastle United. A key sponsorship relationship is with sportswear company Nike, who manage the club's merchandising operation as part of a £303 million 13-year partnership established in 2002.[107] Through Manchester United Finance and the club's membership scheme, One United, those with an affinity for the club can purchase a range of branded goods and services. Additionally, Manchester United-branded media services – such as the club's dedicated television channel, MUTV – have allowed the club to expand its fan base to those beyond the reach of its Old Trafford stadium
//
In an initial five-year deal worth £500,000, Sharp Electronics became the club's first shirt sponsor at the beginning of the 1982–83 season, a relationship that lasted until the end of the 1999–2000 season, when Vodafone agreed a four-year, £30 million deal.[108] Vodafone agreed to pay £36 million to extend the deal by four years, but after two seasons triggered a break clause in order to concentrate on its sponsorship of the Champions League.[108]
To commence at the start of the 2006–07 season, American insurance corporation AIG agreed a four-year £56.5 million deal which in September 2006 became the most valuable in the world.[109][110] At the beginning of the 2010–11 season, American reinsurance company Aon became the club's principal sponsor in a four-year deal reputed to be worth approximately £80 million, making it the most lucrative shirt sponsorship deal in football history.[111] Manchester United announced their first training kit sponsor in August 2011, agreeing a four-year deal with DHL reported to be worth £40 million; it is believed to be the first instance of training kit sponsorship in English football.[112][113]
The club's first kit manufacturer was Umbro, until a five-year deal was agreed with Admiral Sportswear in 1975.[114] Adidas received the contract in 1980,[115] before Umbro started a second spell in 1992.[116] Umbro's sponsorship lasted for ten years, followed by Nike's record-breaking £302.9 million deal that will last until 2015; 3.8 million replica shirts were sold in the first 22 months with the company.[117][118] In addition to Nike and Aon, the club also has several lower-level "platinum" sponsors, including Chevrolet and Budweiser.[119]
On 30 July 2012, United signed a seven-year deal with the American automotive corporation General Motors, which will replace Aon as the shirt sponsor from the 2014–15 season. The new $80m[120] a year shirt deal is worth $559m over seven years and will feature the logo of General Motors brand Chevrolet.[121]
Ownership and finances
