Chevrolet reported to consider pulling plug on Manchester United sponsorship following team’s poor performances
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Manchester United is searching for a new shirt sponsor amid concerns Chevrolet is preparing to pull the plug on its record endorsement contract with the English Premier League football club following recent poor performances on the pitch.
The US car brand signed a $559m seven-year deal with Manchester United, starting in the 2014/15 season, for its logo to be emblazoned on the team’s shirts, in one of the largest ever corporate endorsement agreements in the sport.
The club and General Motors, Chevrolet’s parent company, have been in talks for months about renewing the deal after 2022. But Manchester United has also initiated talks with other companies about changing its shirt sponsor, according to people familiar with the discussions. One of these people said it was “business as usual” as Ed Woodward, Manchester United’s executive vice-chairman is confident of securing a new sponsorship deal that matches or surpasses the current arrangement with Chevrolet.
That contract was premised on Manchester United’s perceived reach in China, where the club claims to have well over 100m followers. However, club insiders admit privately that its business is being rocked by the team’s recent travails. Last season, Manchester United failed to qualify for the Champions League, Europe’s most prestigious club competition where €2bn is shared between participating clubs.
After a poor start to this season, the club is in 12th place in the Premier League, meaning it could fail to reach the Champions League for a second consecutive season. The value of many of the club’s sponsorship contracts is partly predicated on the team regularly playing in the continental competition, which gains large worldwide television audiences.
