Manchester United haven’t had the best of times on the pitch ever since Sir Alex Ferguson retired as despite trophies coming intermittently. The team has firmly been behind the league leaders, posting their worst-ever Premier League finish last season.
There was a threat that with their own failures combined with the success of their rivals, the “Man United brand” would take a hit.
However, the latest details emerging of their deal with Snapdragon for their front-of-jersey sponsorship have put all those fears to rest.
Some mind-boggling numbers, extremely favourable clauses, and a thriving marketing giant makes sure that United’s brand is as strong as ever.
Soaring number in Snapdragon deal: Details
As per The Athletic, the deal with Snapdragon to have their name in front of the jersey is for three years.
United will be paid $75 million (nearly £60 million) every year for sporting the company’s logo.
It is a marked increase from the previous deal with TeamViewer, which was announced in 2022 and paid United £47 million per year.
Accounting for the exchange rates, it is nearly double the amount which is remarkable, considering the club just posted their worst league season in Premier League history.
Snapdragon has the option to extend the deal by two years as well and in a bit of positive PR news, have introduced an option where their name can be replaced by a charity for one game a season.
Most importantly, and in another strong statement of intent for the club’s enduring brand strength, there are no reduction clauses for non-participation in the Champions League.
United’s deal with kit manufacturer Adidas penalises them if they fail to qualify for Europe’s premier club competition two seasons in a row.
However, Snapdragon has no such clause that would allow United to plan ahead of time as they know the amount involved is guaranteed income.
Besides these, the report states that Snapdragon endorses the idea of taking Premier League games overseas while inviting the Women’s team to play a game at Snapdragon Stadium as a part of a US tour.
How does this change things at United?
United’s worries with Profit and Sustainability Rules are well documented and it is a legacy of the Glazers’ apathy.
In such a time, sponsorship deals directly affect the bottom line of the business as they are not owner investments.
While it would be naive to assume United haven’t already considered this income in their financial projections, the money nonetheless helps in sending a strong statement for future deals.
Sir Jim Ratcliffe has repeatedly said that United has a lot of potential due to its large fanbase and enduring brand value.
In the long-term, this reaffirms that fact and strengthens United’s position in negotiating future brand deals, which, under the new regime, is likely to go straight back into the club instead of dividends for the owners.
In the short term, United’s bottom line is unlikely to get much stronger so this deal won’t have a transformative impact on the finances ruined by nearly two decades of financial mismanagement by the Glazers.
At least the future looks bright, which is more than what could be said about United under the previous regime.