New United deal smashes world record- 6 Aug 2012 00:00:00
Manchester United has revealed that its new shirt sponsorship deal, signed last week with Chevrolet, will bring in a record US$559m (£4.56bn) during the seven-year deal.
The English Premier League runners up confirmed financial details of the deal in a regulatory filing as it prepares to launch its initial public offering on the New York Stock Exchange later this month.
United’s partnership with the General Motors brand will start from the beginning of the 2014/15 season, but the club said it will begin to pay financial dividends as soon as this year.
GM will pay fees of $18.6m in the 2012/13 and 2013/14 seasons, before the first year of the agreement kicks in with a payment of $70m in 2014/15.
The payments will then increase by 2.1% every season through until 2020/21.
Insurance firm Aon has been the official shirt sponsor of the club since 2010/11, with its deal worth £80 million to United – meaning the club has more than doubled the value of its shirt sponsorship.
The deal smashes the value of the previous largest shirt sponsorship deal, with FC Barcelona’s five-year agreement with Qatar Foundation worth $230m.