Archive → August, 2011
From the share sale news, to scarfs, to brand new sponsorship deals, to old campaigns and more. There are two things I want to discuss first or more of two things you could do. One any twitter followers, follow IMUSA on twitter. Since 1995 they have been a powerful voice of the fans. They campaign for the fans on almost about everything. Currently they have 375 followers when really it should be over 300,000. Forget MUST, these guys know what it’s about and they aren’t scared of letting others know. FOLLOW EM!
The second is linked to IMUSA in the way. They have officially called for all clubs in the Premier League and Football League to be 51% owned by the fans, so if you haven’t sign this link. http://epetitions.direct.gov.uk/petitions/12412 Had loads of questions about being outside the UK. If you are outside the UK, you just need to say your a UK resident and you can put a none UK address in as normal. That means you type a zip code instead of a postcode for those asking.
On from that MUST have a new campaign or should we say the recycled Green and Gold campaign much like Ashley Youngs new chant. I find the email they sent out a little simple, I don’t believe it was the ‘Green and Gold’ scarfs or the ‘Green and Gold’ Campaign, it was a whole movement and feeling. Put it this way you’ve got a movement against you, one step from possibly going all out, are you going to make it worse or try and dampen the situation down? I think even the Glazers knew taking that £95m out of the club, at that stage would have caused an almighty uproar. With the IPO coming am not saying it’s time to move away, I still wear mine but the latest email from MUST is limited at best. They have this million member project? I’ve never seen this start. There should a plan to push this. If this IPO comes about, wheres the plan for taking a stake? There needs to be a recommended value set which MUST members will buy shares at? Initial or not. I don’t think a pretty poster with George Best on will gain members or buy shares. If one of you reads this, it isn’t me moaning, it’s a feeling we all have.
This DHL deal has really taken to the press… £40m for the training kit. Theres a reason this is doing the rounds. That means for the 1st team kit and training kit sponsorship value is £120m every four years. Considering Arsenals last deal was a £48m for the shirts over 8 years, is valued at £6m a year, this is £10m a year just for training kits. That means Manchester United’s shirt/training deals are 5 times more valuable than Arsenals. Over 10 years that’s comparable with City’s £400m deal but this doesn’t include any naming rights of stadiums and I believe this deal doesn’t include sponsorship on the training gear before Champions League matches. If that’s to do with rules or something else I don’t currently know. You have to ask some questions. If the shirt deal went to market now, what would that fetch? Will there be a deal for the naming of the training ground? Will there be another deal for Champions League matches? Did this deal just make Manchester City’s deal more viable? If other clubs deals like Arsenal’s were up for renewal, what would they fetch? There are likely three more deals in those questions which are already being lined up and that doesn’t include another £3m a year deal with a Vietnamese mobile company that has also just been signed. Another odd one is Mister Potato a Malaysian snack company which is apparently being lined up. United have many of these lower level partners have targeted telecoms firms hard by signing many deals and they are likely to sign more.
The IPO has been raising a few questions and my main current question is to do with the buyers of the shares. We know already you need a broker in Singapore but theres rumour this is just open to financial institutions. That to me would say it’s limiting the value by cutting certain people out, such as this Peter Lim and of course the fans. I don’t really see why other than gaining possible interest or dividend payments why a financial investment company would want to invest in a football club which hasn’t for the last two years made a profit and plans to spend it’s 30% value on reducing debt. The bonds given out have a different purpose than shares. The bonds have an interest rate of between 8-9% and I’d very much doubt the shares would have anything similar unless theres some odd Glazer plan that only makes sense to them and David Gill.
I did a blog the other day about Skys TV deal and how it could be affected by European competition law in October. It’s only after some more research and some digging I’ve worked out how much it could be affected. The press did a number of stories how it could be affected but never put it into numbers. Forget the Football Governance Report and the Phone Hacking if there is something that’s going to hit someone Hard in the pocket in the next few months, it’s going to be this. Sky are estimated to have around 50,000 pub customers with many paying over £1000 a month or more to show live Premier League games. We don’t know the total value figure but that could be put a value of around £600m. The current deal between Sky and Premier League is worth something around £1.7 Billion a season. Currently if you were to install a Greek Box, your expected to pay for the year and so on which works at around £1000-1600 for box, satellite installation, HD and a 12 month subscription. Interesting thing is the card on it’s own to renew is around £995 for the year if you buy it off the installation company which works at out £80 a month. The same package from Nova directly is £45. If you buy it through a UK company that makes it 92% cheaper than a comparable Sky subscription for the year. If you get it direct from Greece it’s 95.5 cheaper.
This is where Skys big problem comes in. A few months ago the Greek broadcaster nova sports threatened to cut British customers off as it didn’t have the rights to broadcast outside of Greece but this has since changed drastically. Since hearing the European Court of Justices likely outcome, they have plans to directly market their products in the UK. Even for home users this makes the market more competitive. Currently with Sky the Sky Sports package is £50 with the same package only being £45 from Nova which also happens to show the 3pm games. If Nova are allowed to market directly to pubs, at 95.5 cheaper rate and are also given the chance to air 3pm games there is no way the current deal is worth £1.7 Billion in the UK. It would clearly no longer be exclusive and the pub market value and prices should in theory drop drastically.
This morning I got a very interesting email. I’ve kept all the details under wraps for obvious reasons and may release them at a later date once this has travelled under the bridge. At first it just seemed like someone had found a place to advertise a random company but then it turns out to be something more. The last thing I expected to see was this….