Thursday, March 18, 2010

Manchester United aiming to exploit huge sponsorship opportunities in India

United's London-based commercial operation, which has secured 15 lucrative sponsorship agreements worth in excess of £130 million since its inception in 2008, has conducted a detailed study into the opportunities open to the club in India.

And with the Glazer family continuing to view the club's off-field appeal as a key factor in their ability to drive down their £716.5 million debt, results have highlighted United's huge potential in the country. A five-year deal, worth £12 million, with the Indian mobile communications company Bharti Airtel was sealed last May and moves are now underway to extend United's links to India, with the likelihood of Sir Alex Ferguson's team visiting the country within the next two years.

United's research has shown that they have 20 million supporters in India, with their fixtures broadcast to 1.15 billion homes in 2008-09. And in a direct comparison with the 2008 Formula One season's final grand prix from Sao Paulo, which attracted 156 million viewers in India, United's Champions League final victory against Chelsea in May 2008 was watched by 267 million people in the country.

In an effort to forge closer ties with India, the club recently hosted a global brands event – in an Old Trafford suite dominated by vast images of Wayne Rooney, Michael Owen and Ji-sung Park - staged by +91 Europe, a network of Indian CEO's, which was aimed at emphasising United's value to prospective Indian partners.

Rakesh Rawal, founder of +91 Europe, said: "Until 10 years ago, everybody returning to India from the UK would be asked to take one thing home to his friends and family – a bottle of Johnnie Walker Black Label whisky. Now, the first request is for a red Manchester United shirt, then a bottle of Johnnie Walker Black Label whisky!

"As India has largely shrugged off the global downturn, I can see many Indian multi-nationals becoming household names in the next five to 10 years and it will be fascinating to see which Indian companies embrace global sports like football to enhance their global brand recognition."

The Glazers' determination to 'sweat the brand' has been borne out with a host of territory-specific deals being signed recently. Last Thursday, a five-year agreement with Telekom Malaysia was announced, followed by a £7 million tie-up with Turkish Airlines on Monday. on Thursday, United will announce an African sponsorship deal.

United's focus on India was sharpened by the interest in Bayern Munich's visit to Kolkata in May 2008, which saw 120,000 fans turn out to watch the Germans.

A Manchester United cafe has been launched in India and coaches have travelled to the country to help identify and train youngsters capable of guiding India to qualification for the 2022 World Cup. But while United have no plans to 'dilute the brand' by acquiring an IPL franchise, the club are determined to make their mark in India.

Casper Stylsvig, United's sponsorship manager, said: "In Europe, 86 per cent of all sponsorship goes to sport. In India, that figure is just 10 per cent.

"We expect that to change. Football is the second-most popular sport behind cricket in India and there is a huge English-speaking audience who actively watch football.

"We know we have a long way to go in terms of realising the club's potential off-field earnings, especially in comparison to the likes of the New York Yankees or Dallas Cowboys.

"But the reason companies like AIG and Aon have chosen to put their name on our shirt is because we can raise brand awareness. Within a year of starting their shirt deal, AIG went from outside Business Week's Top 100 global brands to number 47."

Stylsvig's claims of United's brand value are supported by Sharp, the electronics company whose 18-year shirt sponsorship deal with the club ended in 2000.

Sharp communications manager Martin Arnold said: "When you say Sharp to people today, many of them either bring up Manchester United or microwave ovens that have lasted for 20 years.Since we stepped away from Manchester United, the awareness of Sharp has fallen." With United due to tour North America this summer, a trip to India may have to wait until 2011, though.
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Monday, March 15, 2010

Manchester United's Dimitar Berbatov backs Wayne Rooney to break record goal tally

Rooney extended his staggering recent goal haul to 17 since the turn of the year by scoring twice in Sunday’s 3-0 Old Trafford win against Fulham. The double strike takes his tally for the season to 32 goals in all competitions and leaves him just ten behind the 42-goal mark set by Cristiano Ronaldo in 2007-08. With Denis Law’s 46-goal club record mark now looming into sight, Rooney could yet end the campaign by writing both Law and Ronaldo out of the Manchester United record books.

And Berbatov, who scored United’s third against Fulham to round off an impressive personal performance, admits he has no qualms about playing the provider for Rooney to maintain his incredible goal streak. Berbatov said: “I’m pleased I made a goal for Rooney against Fulham because that is part of my job as well as scoring.

“I think Wayne can certainly get over 40 goals. He still has plenty of games left so I wish him luck and we will all help him get over the 40 mark. “If we win it doesn’t matter if I don’t score, as long as we are champions at the end of the season.

“I like making assists as much as I like scoring and I was just as happy making the second goal for Wayne as I was scoring the third myself.

“I think at the moment he is the best (player in the world) and he is still so young so he has plenty of chances to get even greater.

“Like I’ve told him many times, just stay healthy and you can achieve everything.”

Berbatov has begun to win over the doubters at Old Trafford, who have viewed his languid style with disdain.

But the Bulgarian is on course to win his second title medal since arriving in a £30.75m move from Spurs in Aug 2008 and he insists that United have the edge over their title rivals.

He said: “The title race is tight but I’m convinced we are going to win it.

“Chelsea and Arsenal are great teams and we have some difficult games ahead, but we have home advantage for those big games, so I am optimistic that at the end of the season we will be champions.

“Experience is very important in these tight games an we have a good balance of experienced players and young ones.

“We have a good spirit and we have the boss who is the most experienced manager and, in the end, it all makes for a great team.”
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Thursday, March 11, 2010

Manchester United can win the Champions League, says David Beckham

David Beckham has backed Manchester United to go on and win the Champions League after they crushed AC Milan to book their place in the quarter-finals last night. Wayne Rooney's virtuoso performance at Old Trafford may have cemented a 7-2 aggregate victory but it was Beckham who stole the headlines with his decision to wear a green-and-gold scarf, a symbol of supporter opposition to the Glazer family’s ownership of United, as he left the pitch.

Beckham was given a standing ovation when he was introduced as a 64th-minute substitute for his first appearance against his former club since leaving 6½ years ago. His cult status soared farther as he grabbed a scarf handed to him by a supporter, although he later attempted to distance himself from the campaign to oust the Glazer family.

Beckham reflected on an "unbelievable" reaction from the crowd and predicted United would reach their third consecutive Champions League final in May. "When you get knocked out of a competition you kind of hope that the team that knocks you out goes all the way," he said. "It is always disappointing when you lose games, especially when they are as important as this, but we've come up against a great United side tonight.

"The thing that I will take is the reception I got from the fans, it was unbelievable. It meant a lot [coming back here]. It's definitely up there as one of my best nights, obviously without the result. The atmosphere, the occasion and everything that the fans gave to me tonight was unbelievable. I hope they go all the way again. They deserve to, it is a great club, a great fan base and a great manager."

Beckham's decision to endorse the green and gold movement has been regarded as a major victory for the protestors, but the former England captain does not want to be regarded as a figurehead for the campaign.

"I'm a Manchester United fan and when I saw the scarf I wanted to put it round my neck," he said. "It's the old colours of United but, it's not my business. I'm a United fan and I support the club. I always will, but it's got nothing to do with me how it's run. That's all to do with other people. I will always support the team."

On a night when Malcolm Glazer's sons, Joel and Avram, were inside the stadium to witness the scale of antipathy towards their ownership of the club, Beckham admitted he was aware of the gathering protests against United's owners. "You can hear it week in and week out," he said. "There's always protests going on. Let's hope it gets sorted out."

Two more goals from Rooney on the night left Sir Alex Ferguson wondering whether his leading scorer could emulate Cristiano Ronaldo's total of 42 last season and Beckham lavished the striker with praise.

"He is one of the best in the world at the moment, if not the best," Beckham said. "Wayne will continue to play like that because he is a passionate player, he is a young player, he wants to learn. "With [Lionel] Messi and Ronaldo he is up there with the best, if not at the top. He has always scared defenders, whoever he has played for. Let's hope he continues that."
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Wednesday, March 10, 2010

Manchester United v AC Milan - Milan line-up a puzzle for Sir Alex Ferguson

Broken bridges have been rebuilt by Ferguson and Beckham since their fractured relationship paved the way for the midfielder's £25 million transfer from United to Real Madrid in 2003, but Ferguson has yet to take the step of lavishing the kind of nostalgic praise on Beckham that he has reserved for his successor in the No 7 shirt – Cristiano Ronaldo – since the Portuguese winger's defection to Madrid last summer.

Ferguson might have rolled an eye and cast doubt publicly on Milan's decision to deploy Beckham as a central midfielder following United's 3-2 first-leg victory in the San Siro last month, but the Scot retains a healthy respect for the former England captain's continuing ability to hurt opponents with his peerless right boot. Wayne Rooney, rather than Beckham, is the man Ferguson expects to dominate the headlines in Wednesday's last 16, second-leg tie in Manchester.

But, like the boxer who is wary of the old slugger with the ferocious uppercut, Ferguson admits that Beckham retains the ability to deliver a knockout blow for Milan with the one component of his game that remains as potent now as it always has been.

Ferguson said: "I think David's strength has always been in his crossing and his set-piece play. That doesn't change. That has been his strength throughout his career, and the one thing with David that you have to be aware of is his delivery of the ball.

"It is fantastic and that is a threat. There are lots of threats that Milan have, of course, but we are well aware of that posed by David. If he plays, that will be the threat against us."

If he plays. While Old Trafford prepares to afford a hero's welcome to one of its most illustrious sons, Ferguson remains unconvinced that Beckham, who was mobbed by fans on his arrival at Manchester Airport yesterday, will start the game.

Although Milan coach Leonardo has briefed Italian reporters to expect Beckham to be in his starting 11, Ferguson is suspicious of Milan's decision to name the Brazilian forward Pato in their squad, despite doubts over his fitness, and the United manager admits the uncertainty is clouding his plans for this evening's game.

He said: "It is difficult to say what effect David will have on the tie because we don't know for certain whether he is going to start. He has not started a game since the first leg against us. I find it difficult to pick their team.

"It all depends on Pato's fitness, but he has travelled. I don't know if Beckham will start. I haven't got him down in my conclusions."

Rooney, whose two goals in the first leg secured United's cushion for the return fixture, has been declared fit to start after initially being a doubt with the inflamed knee tendons that forced him to miss Saturday's Premier League victory at Wolves.

With Ronaldo now turning out in Madrid white, Rooney has emerged as United's destructive force in the Champions League and Ferguson, who confirmed that defender Wes Brown will be sidelined for four to six weeks with a broken metatarsal, expects the 24 year-old forward to continue in the same vein.

He said: "It was a worry that Wayne's injury prevented him playing on Saturday. You looked at him on Friday and I didn't think he had any chance of playing against Milan. But he has progressed and he plays and, on his form at the moment, he would be a threat to anyone.

"That is what he will realise for us tonight – a real threat up front. I don't think that Ronaldo's departure has had anything to do with Wayne's form. I don't think that one bit. The credit must go to Wayne and his rise in the game. I just wish I had the two of them there!"

Plans by United supporters to protest against the club's owners, the Glazer family, by boycotting the first 10 minutes of the game have been abandoned.

"Our fans are not like that," Ferguson said. ''It is far too important a game for that. I'm sure that, whether they are wearing the traditional red and white or the protest green and gold scarves, they will be united and speaking with one voice to get us safely through the round."

Ferguson need not worry. The focus will be on 'Golden balls' rather than green and gold.

Beckham said: "It will be good to see Sir Alex again. He's a scary man, but in a really good way. I wanted to stay at United for my whole career, but sometimes things aren't meant to be. I've been to three great clubs since I left United, but it would have been great to stay like Ryan Giggs has."
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Thursday, March 4, 2010

The Fight for Manchester United

MANCHESTER, England—Red Knights, an army of green and gold, a plan to bring down an empire. It sounds more like the plot of a fairy tale than a proposed takeover of the world's most valuable sports, but this is the story behind a bid by rebel fans and a group of financiers to buy Manchester United.

A group of wealthy backers known as the Red Knights announced plans this week to wrest control of the English Premier League club from its American owners, the Glazer family. The consortium, which includes Jim O'Neill, chief economist at Goldman Sachs Group Inc., and Paul Marshall, founder of London hedge fund Marshall Wace LLP, has joined forces with disgruntled Manchester United supporters.

Who have ditched the team's famous red shirts in favor of the green and gold colors worn by the club until 1902 in protest at the debts imposed on the team since the Glazer family's highly leveraged takeover in 2005. It is an intriguing tale, to be sure, but one that seems increasingly unlikely to have a happy ending for the rebels after David Gill, the Manchester United chief executive, Wednesday reaffirmed the Glazers have no intention of selling the Premier League club.

"The owners are long-term investors, they want to keep the club for many years to come," he said at the Soccerex business convention here. "These Red Knights can put a plan together, but unless the owners want to sell, and they've given no indication that is the case, then they can't buy the asset. It's not for sale."
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Wednesday, March 3, 2010

Manchester United football club figures show gross debt reduced as Red Knights

Manchester United's gross debt was down yesterday after a report published by Deloitte revealed their revenues topped 300 million euros. Publishing financial results to end of 2009, gross debt at the club fell to £507.5 million (559 million euros).

Despite earning large revenues, fans remained concerned and a consortium of city traders are believed to be interested in raising £1 billion to takeover the company. "We as Manchester United have always been run professionally and will continue to be run professionally." said David Gill to the media today in response to the 'Red Knights' takeover consortium.

The Glazer family, who bought the club by amassing over £700 million debts in their holding company, Red Football Ltd, face renewed protest from fans in the face of this takeover bid. Despite this, Manchester United continue to perform to extraordinary success on the pitch, winning the Champions League in 2007/8 and the Premier League the every year the Glazer family have been at the club.

The level of debt at the club though continues to cause concern. The figures for club show turnover up 19 pct, media revenues up 33 pct and commercial revenues up 16 pct, however debt used to finance the club's takeover still remains high.

The Glazer family, have managed to decrease this figure, but their own debt still remains high. In the latest development, Manchester United Supporters' Trust (MUST) who are backing takeover of the club, issued a statement saying an 'extraordinary' amount of growth to their membership had occured over the last 24 hours.

"An incredible first 24 hours means we are well on our way and we are now appealing to the millions of United supporters around the world to come together, and show the Red Knights there is a passionate desire to see a better ownership model for Manchester United." they said.
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