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