Manchester United‘s new shirt sponsorship deal with Chevrolet is worth an “incredible” $559 million under its seven-year shirt sponsorship agreement.
Chevrolet takes over from the insurer Aon starting with the 2014-15 season. Manchester United said it will receive $70 million during the first season of the new deal.
The agreement was signed July 26 and announced Monday. The financial details were disclosed by United on Friday in a filing with the U.S. Securities and Exchange Commission as part of Manchester United’s planned initial public offering of stock.
United said the payment will increase 2.1% annually during the deal, which runs through the 2020-21 season. In addition, United said the agreement calls for them to receive about $18.6 million in fees in each of the 2012-13 and 2013-14 seasons. This is in addition to the money that United will receive from AON during these seasons.
The sponsorship deal has already resulted in one casualty, as General Motors have announced the resignation of its chief marketing officer, Joel Ewanick. Ewanick had been involved in negotiating the deal.
“Mr. Ewanick failed to meet the expectations the company set for its employees,” spokesman Greg Martin said today, declining additional comment.
One marketing sector expert, who the story says was involved in negotiating one of United’s previous shirt sponsorship deal, with Vodafone, marvelled at the sums involved in the Chevrolet deal.
“It’s incredible, unbelievable,” he said.