GM Spends $559M on Soccer Shirt Sponsorship

2012 August 5
by bc3b

Your taxpayer dollars at work!

Remember good old Government Motors? They are the company that still owes more than $25 billion in loans to the U.S. taxpayers … the company whose stock has been sinking since it issued its IPO two years ago … the company whose sales have declined in recent months … the company that has been accused of forcing cars upon dealers to get them out or company inventory? That Government Motors?

Well it seems Government Motors found $559 million lying around to sponsor the Manchester United Soccer Club for seven years. Mind you, the $559 million doesn’t mean GM is purchasing the club … it simply means the Chevrolet logo will be prominently displayed on the team’s jerseys and on the wallpaper behind players and coaches being interviewed for seven years.

To be fair, Manchester United is the New York Yankees/Dallas Cowboys of soccer … the most loved/hated team in the sport. Government Motors will be spending twice what Aon Insurance – the current jersey sponsor – is paying for sponsorship rights.

CHICAGO (Reuters) – Manchester United Ltd.’s deal with General Motors Co. to sponsor the hugely popular soccer club’s shirts will bring in $559 million over the agreement’s seven-year term, the club said in a regulatory filing Friday.

Terms were first reported by Reuters on July 30.

The disclosure of the record-breaking deal, which will put GM’s Chevrolet brand name on the soccer team’s famous red jerseys, came as Manchester United supporters called for a boycott of sponsors’ products to pressure the club’s American owners to shelve a plan to float the club’s stock.

(snip)

The agreement with GM starts in the 2014-2015 season, but the club will start to reap some financial benefits as soon as this year, Friday’s filing said.

GM will pay fees of $18.6 million in this year’s and next year’s season, it said, before paying $70 million in the 2014-2105 season. GM’s payments will rise 2.1 percent each season thereafter, through the 2020-2021 season, it said.

U.S. automaker’s global marketing chief was ousted in connection with a deal with the popular English soccer club.

GM’s payments are more than double the current fee paid by insurance broker Aon.

The agreement was announced the day after the Detroit automaker said it was removing its global marketing chief, Joel Ewanick, because he “failed to meet the expectations that the company has for its employees.”

Sources told Reuters Ewanick didn’t properly report financial details about the jersey deal.

The key to automotive marketing is “butts in seats” – getting people to test drive your vehicles. A sponsorship hardly does this.

Hat tip: New York Times

Is it worth $559 million?

40 Responses leave one →
  1. 2012 August 5 10:30 am
    [1]
    bc3b permalink

    I cannot believe that a deal that costs $559 million doesn’t require approval above the chief marketing officer. If not, Government Motors needs to change its approval procedures.

  2. 2012 August 5 10:35 am
    [2]
    bc3b permalink

    I have always subscribed to the “butts in seats” philosophy.

    What good are sponsorships? Nissan Trucks have been the Heisman sponsor for several years and sales of its Titan pickup suck.

    What’s the point of advertising on NFL football when the majority of people are checking on the other game, getting a beer, emptying a beer or checking their email?

  3. 2012 August 5 10:45 am
    [3]
    RepublicanPundit permalink

    Obama is about to find out that there are many more military veteran voters than there are queers:

    http://washingtonexaminer.com/obama-angers-military-groups-with-lawsuit-against-ohio-early-voting-law/article/2504015

  4. 2012 August 5 10:53 am
    [4]
    bc3b permalink

    Obama and the Democrats are doing everything in their power to foster voter fraud while surpressing the military vote … while the Republicans remain silent.

  5. 2012 August 5 11:09 am
    [5]
    bc3b permalink

    Today’s Sunshine Girl, Angelynn, is a Toronto Argonauts cheerleader and serves as a reminder that NFL and college football is not that far off:

    http://www.torontosun.com/sunshine-girl/2012/08/05/angelynn

  6. 2012 August 5 11:47 am
    [6]
    brucefdb permalink

    What is a queer, RP? 😉

  7. 2012 August 5 12:09 pm
    [7]

    Go over to HHR*, they seem to be the experts on all things concerning the subject.

    *Home of Heterophobic Retrobates

  8. 2012 August 5 12:23 pm
    [8]
    judyt2012 permalink

    Axelrod was a sleazy greazy as they come this morning. Amazing how someone can lie so easily.

  9. 2012 August 5 12:37 pm
    [9]
    brucefdb permalink

    I like that term Heterophobe….it describes most liberals, huh?

    Let’s see they are also Christophobes, and probably some other ones we can think of.

    Yeah, I saw Axelrod. Actually he exudes grease and sleaze so I am almost happy he is one of their most prominent faces.

    Ted Cruz, on the other hand, is an impressive communicator. I can see him getting a speaking gig at the convention.

  10. 2012 August 5 12:39 pm
    [10]
    brucefdb permalink

    By the way, I noticed Yahoo over at Pundit the other day. He was friendly but still has a pretty negative outlook.

  11. 2012 August 5 12:39 pm
    [11]
    mulletover permalink

    Axlerod and Plouffe are two of the slimiest figures ever in American politics.

    Even more than Carville and Begala.

  12. 2012 August 5 12:58 pm
    [12]
    bc3b permalink

    It’s strange. On the phone Yahoo is soft-spoken and quiet. He appears to suffer from keyboard rage.

  13. 2012 August 5 4:04 pm
    [13]
    JustMary permalink

    #12 Indeed.

  14. 2012 August 5 4:22 pm
    [14]

    Jekyl-hyde

  15. 2012 August 5 4:22 pm
    [15]

    THERE WAS A YAHOO WHO CAME FROM THE RIGHT,
    SEEKING OUT LIBERALS FOR WHOM TO SMITE,
    ALL WAS FAIR GAME IN THIS TURKEY SHOOT,
    RIGHT WING YAHOO DIDN’T GIVE A HOOT,
    ONE THING FOR SURE, HE WAS NEVER CONTRITE.

  16. 2012 August 5 4:39 pm
    [16]
    drdog09 permalink

    I cannot believe that a deal that costs $559 million doesn’t require approval above the chief marketing officer. If not, Government Motors needs to change its approval procedures. — BC

    I suspect that a deal this big requires board approval. Maybe GM permits that level of authority for that amount of money. But I kind of doubt it. My Telco days, anything over $100m required CEO, CFO and board majority concurrence.

  17. 2012 August 5 4:45 pm
    [17]
    drdog09 permalink

    Ted Cruz, on the other hand, is an impressive communicator. I can see him getting a speaking gig at the convention. — Bruce

    Doubtful. “He’s one of those Teas ya know?” The Establishment GOP would rather gouge their eyes out than have Cruz up on the dais.

  18. 2012 August 5 4:47 pm
    [18]

    The Republican establishment will be in full retreat ,
    For the substance of their spines is geared to defeat,
    Like turds in a punchbowl that float to the top,
    Their infant like balls have closed up shop,
    Time to make these geldings obsolete.

  19. 2012 August 5 4:48 pm
    [19]

    THERE ONCE WAS A CANINE PHYSICIAN,
    SNIFFING OUT MOONBATS WAS HIS MISSION,
    HE COULD MAKE A BASKERVILLE HOUND QUIVER,
    OF THE LIBERALS HE WOULD MAKE CHOPPED LIVER,
    DARE NOT DISUADE HIM OF THIS MISSION.

  20. 2012 August 5 4:49 pm
    [20]
    drdog09 permalink

    Speaking of football have you seen G. Will’s column? — http://www.washingtonpost.com/opinions/george-f-will-footballs-problem-with-danger-on-the-field-isnt-going-away/2012/08/03/ff71ec48-dcd0-11e1-8e43-4a3c4375504a_story.html

    Never heard of this, but if true the sport is doomed.

  21. 2012 August 5 4:50 pm
    [21]

  22. 2012 August 5 4:51 pm
    [22]

    FOR EPH

    (caution, not for the squemish)

  23. 2012 August 5 4:55 pm
    [23]
    drdog09 permalink

    21,

    Really that should be 4. The three displayed and 1 showing fried chicken. Ya know, for those unfortunate enough to meet an untimely end.

  24. 2012 August 5 4:55 pm
    [24]

    post 20~~~about what to expect from the cradle to grave nanny state.

  25. 2012 August 5 4:56 pm
    [25]

    😀 😀

  26. 2012 August 5 5:04 pm
    [26]
    drdog09 permalink

    Wow. 7 dead in attack at a sikh temple — http://hosted.ap.org/dynamic/stories/U/US_SIKH_TEMPLE_SHOOTING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-08-05-15-14-22

    First, I find this deplorable. These people are Hindus not Islamists. They are the least likely to commit terrorist acts. Now here’s where I get peeved. The attacker is a male, white, 30ish. Right up the DHS profile so the first thing that is espoused is that this IS domestic terrorism. But some Islamist that shoots up a military base? Oh noooooo. That can’t be the case. As far as I know they still have not classified the Fort Hood shootings as terrorism.

    Always with the narrative, hardly ever with the facts.

  27. 2012 August 5 5:11 pm
    [27]
    drdog09 permalink

  28. 2012 August 5 5:22 pm
    [28]

    I don’t see how a lasar can correct for windage, as air is invisable to it.

  29. 2012 August 5 5:25 pm
    [29]

    The problem is, once we invent it, the enemy can always capture it on the battlefield,
    and easily reproduce it themselves.

  30. 2012 August 5 5:33 pm
    [30]
    drdog09 permalink

    Me, I think the sniper still has to account for windage. You are right there is no way a laser can pick that up. The idea of the directed bullet sounds a more viable option for DARPA to go after. The military has all the hardware for this at the mortar and 155mm sizes. So half of the infrastructure to paint a target is already in place.

  31. 2012 August 5 6:00 pm
    [31]
    mulletover permalink

    NASA is about four hours away from the controlled crash of the Mars Science Laboratory rover.

    Could end up a $2.5 billion dollar pile of parts.

    Here is your viewing guide.

    http://boingboing.net/2012/08/02/mars-science-laboratory-rover.html#previouspost

  32. 2012 August 5 6:31 pm
    [32]
    TLS permalink

    DrD ~ Do you have any insight on file converting software that won’t load me up with a bunch of adware/malware? Trying to convert .mov files to .avi.

  33. 2012 August 5 6:36 pm
    [33]
    bc3b permalink

    drdog09 –

    Football is bigger than ever, in several senses. Bear Bryant’s 1966 undefeated Alabama team had only 19 players who weighed more than 200 pounds. The heaviest weighed 223. The linemen averaged 194. The quarterback weighed 177. Today, many high school teams are much bigger. In 1980, only three NFL players weighed 300 or more pounds. In 2011, according to pro-football-reference.com, there were 352, including three 350-pounders. Thirty-one of the NFL’s 32 offensive lines averaged more than 300.

    Will makes a good point. I think the size of players contributes to injuries, to what degree I an not sure. The Lions first round draft pick is a 300 pound offensive lineman from Iowa. The question: is he big enough for the NFL?

  34. 2012 August 5 6:42 pm
    [34]
    TLS permalink

    How will that football injury thing work out for the UFC?? I can’t imagine those guys don’t know they are going to get hurt and shorten their life expectancy.

  35. 2012 August 5 6:47 pm
    [35]
    bc3b permalink

    The UFC makes the NFL look like child’s play. At least NFL players make good money. Only a few in the UFC do.

  36. 2012 August 5 7:16 pm
    [36]

  37. 2012 August 5 8:50 pm
    [37]
    drdog09 permalink

    TLS,

    Sorry for the delay. You might try http://www.zamzar.com, its a free service online. That way you don’t have to load anything.

  38. 2012 August 5 9:00 pm
    [38]
    drdog09 permalink

    36,

    Sounds like an Eastern pilot I had acquaintance with. Head was definitely up the anal canal with that guy.

  39. 2012 August 5 9:17 pm
    [39]
    TLS permalink

    Thanks DrD, that worked great!!!

  40. 2012 August 5 9:33 pm
    [40]

    Sounds like an Eastern pilot I had acquaintance with. Head was definitely up the anal canal with that guy.~~~mutley

    Most of them are overpaid prima donnas.

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