Home » EPL, Featured, Latest » United secure £40m deal with DHL for their training kit

Manchester United have secured a £40 million training kit sponsorship deal with DHL which will see the club match Manchester City’s £10 million-a-year shirt earnings with Etihad and almost double Arsenal’s £5.5 million annual deal with Emirates.

The agreement, believed to be the first of its kind in the Premier League, is unrelated to the £80 million, four-year agreement with Aon as United’s principle shirt sponsor and will see the club bank £10 million-a-year over the next four years by simply having the DHL logo on the training kit worn by the first-team, reserves and youth players at the club’s Carrington base.

The announcement of the DHL deal come just a week after United’s owners, the Glazer family, submitted an application to list up to 30 per cent of the club on the Singapore Stock Exchange in an effort to reduce the £480 million debt attached to United since the Americans’ takeover in 2005.

United have also announced a £3 million-a-year, three-year agreement with Vietnamese telecommunications company Beeline, with the club close to completing a similar agreement with the manufacturers of Mister Potato, a Malaysian snack, within the next month.

The agreement with DHL is larger than the majority of shirt sponsorships struck by the club’s Premier League rivals, however, and chief executive David Gill has claimed that the “deal breaks new ground in the English game”. Within the Premier League, only Liverpool and Chelsea can claim to have secured shirt deals in excess of United’s agreement with DHL.

Tottenham’s £10 million-a-year deal with Autonomy and City’s partnership with Etihad, incorporated within the recent £400 million stadium naming rights agreement which replaced the £3.5 million-a-year package struck with the Abu Dhabi airline in 2009, are both anchored to the exposure generated by the clubs in domestic and European competition as opposed to United’s training deal with DHL.

City’s £400 million, 10-year deal with Etihad Airways, which covers the renaming of Eastlands, shirt sponsorship and the proposed development of a training ground within the Etihad Campus highlighted the ability of clubs to attract investment beyond the traditional areas of commercial branding and United are exploring further avenues for generating commercial income.

Despite having to make annual interest payments of £45 million to service United’s debt, senior figures at Old Trafford believe that the ability of the club’s 70-strong London-based commercial team in to raise substantial revenue highlights the strength of the brand off the pitch.

The DHL agreement ensures that United’s commercial revenue has now more than doubled to beyond £300 million since the Glazers completed their controversial leveraged takeover six years ago.

And with the £302.9 million, 13-year kit supplier deal with Nike due to expire in 2015, it is understood that the Glazers are confident of securing a new kit agreement worth in the region of £600 million within the next 12 months.

Similarly, Barcelona’s recent £125 million, five-year shirt sponsorship deal with Qatar Foundation has raised hopes at Old Trafford of an equally-lucrative package being secured when the contract with Aon, the Chicago-based insurance giant, expires in 2014.

Source: Telegraph

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