You have to admire the way that the Glazers and Manchester United have grown the commercial side of the business. With the introduction of Financial Fiar Play in Europe and the Premier League, United have an uncatchable financial gap over their nearest rivals.
The latest commercial deal they Premier League champions-elect have completed is with insurance firm Aon, the club’s current shirt sponsors. Aon have bought the naming rights to United’s training ground for a reported £150m over 8 years. When few Premier Clubs have any sponsorship deals worth £18.75m per season, for United to get this much money for their training ground is amazing.
Aon wanted to stay involved with United, as their shirt sponsorship deal comes to an end in a year as United have signed a seven-year £357m deal with General Motors. GM will pay United a world record £51m to have Chevrolet name on United’s shirts from 2014
So from its kit and training ground deals alone United will get close to £70m in additional revenue. Add in the massive new TV deal and United’s commercial revenue will increase by around £110m. To put that in context, that’s the equivalent of doubling matchday income!
United usually keeps its wage bill at around 50% of turnover. Which means United could increase its wage bill by around £50m next season, and not have it impact the clubs bottom line.
When their rivals like Man City and Chelsea are fighting to cut their wage to comply with Financial Fair Play, for United to be able to increase its wage by at least a third is a huge competitive advantage. It means that they can now offer higher wages than anyone in England, including Chelsea and Man City.
