All Rights Reserved. Here’s the reaction from investors:
More numbers here and here.
BNET’s Global Football Sponsorship Deal League:
© 2010 CBS Interactive Inc.. The Aon deal was about 40 percent more than AIG paid for the same rights.
Tatjana Greil Castro, Evolution Securities: “Most traditional high-yield investors won’t touch this … Most people just won’t focus on something with far too much leverage, limited free cash flow and lumpy earnings.
Jean-Luc Petit, BT Investment Management: “This looks like a fairly risky type of investment considering the amount of leverage the American owners have … It’s unrated, so some investors can’t take it, and there’s a very busy new-issue calendar so there are plenty of alternatives.
Bayern Munich: Â£25.5 million a year (through 2013) with Deutsche Telekom/T-Home
Liverpool: Â£20 million a year (Â£81 million over four years) with Standard Chartered
Manchester United: Â£20 million a year (Â£80 million over four years) with Aon
Real Madrid: Â£18.3 million a year (Â£55 million over three years) with Bwin.com
Juventus: Â£15 million a year (Â£75 million over five years) with Tamoil
Chelsea: Â£12.5 million a year (Â£37.5 million over three years) with Samsung
Manchester City: Â£8m a year (Â£24 million over three years) with Etihad Airways.
Arsenal: Â£6.7 million a year (Â£100 million over 15 years) with Emirates
Last Updated Jan 13, 2010 12:07 PM EST
With growth of just under 9 percent and margins of around 10 percent during a recession, you’d think that makes Man Utd a solid financial proposition. also sold striker Cristiano Ronaldo to Real Madrid for Â£80 million, and BusinessWeek reports that Aon paid a Â£35.9 million advance on its contract. But the club reported 2009 net income of just Â£25.6 million on revenues of Â£278.5 million. Those revenues inched up from last year’s Â£256.2 million take.. I don’t think mainstream bond fund managers would be that interested in investing in Manchester United.”
You’d think that Manchester United’s Â£80 million deal with Aon for the lead sponsor slot on its team shirts would have made the club rich. But no, just like last year — when it lost Â£21.4 million — the club is struggling to keep its financial head above water.
Man Utd. But Wall Street is unimpressed. Still saddled by Â£608 million in debt from Malcolm Glazer’s 2005 buyout of the club, Man Utd is looking to raise Â£500 million in a sale of junk bonds
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