Tuesday, May 26, 2015Tuesday, May 26, 2015

GM signs $750 million Man Utd deal after marketing chief ouster

Published on Jul 31, 2012 9:38 AM
On Monday, GM announced its Chevrolet brand would sponsor the Manchester United's shirts for the next seven years, in a deal estimated to be worth $750 million. -- PHOTO: REUTERS

DETROIT (REUTERS) - The ouster of General Motors' (GM) global marketing chief is related to a hugely expensive sponsorship deal with England's Manchester United soccer club for which GM is paying twice as much as the team's previous automotive sponsor.

On Monday, GM, the biggest United States (US) automaker, announced its Chevrolet brand would sponsor the hugely popular club's shirts for the next seven years. The deal is worth US$60 million (S$75 million) to US$70 million a year and includes a US$100 million activation fee that brings the total value to as much as US$600 million, said a person with knowledge of the contract who asked not to be identified.

By comparison, insurance broker Aon Plc pays about US$31 million a year for the current jersey sponsorship, which runs through the 2013-2014 season.

GM did not disclose financial terms of its agreement, which was announced the day after the Detroit company said it was removing its global marketing chief Joel Ewanick because he "failed to meet the expectations that the company has for its employees."

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!