Football Partnerships

Manchester United have approached Indian company Tata Group, about a potential shirt sponsorship deal.

The club’s existing shirt sponsor, AIG, said in January that it would not be renewing its deal beyond May 2010. AIG’s deal is worth $100 million over four years. The US insurance company has been badly hit during the economic crisis and has required four separate US government bailouts to date.

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AIG Logo Makes it Into New Wii Soccer Game

By Lee Bains

Apparently, the creators of Konami’s new Wii soccer game didn’t get the memo; stateside, ‘AIG’ has nearly become a four-letter word.

According to MTV’s Multiplayer blog, in the introductory scene of ‘Pro Evolution Soccer 2009,’ those three infamous letters appear on the blue jerseys of the Manchester United, the British powerhouse that the corporation has sponsored of late. While this might get some U.S. players’ hackles up, we can’t really blame Konami. Just last week, the bailed-out corporation (which recently paid out $165 million in employee bonuses) shelled out an additional $28 million in order to sponsor the Manchester United through the 2010 season.

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By Tariq Panja

Manchester United, the English and European soccer champion, says it can eclipse its 19 million- pound ($26.6 million) shirt sponsorship deal with American International Group Inc. as the club looks for new partners.

The 17-time English champion sent letters to a “select number of worldwide companies” offering them the possibility of having their names emblazoned on United’s famous red shirts, club spokesman Philip Townsend said in an interview today.

Earlier today, Sahara India Pariwar, which sponsors the Indian cricket team, confirmed that it got a letter from United commercial director Richard Arnold that inquired about the company’s interest in becoming a partner for “the world’s most iconic sports marketing tool.”

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By Alex Kotler

Football Partnerships has compiled an 11-man roster of central players in the football-related credit crunch. While none are entirely to blame, each is a contributor in some way. Rate the lineup, and come up with your own 11 and corresponding formation!

FORMATION: 3-1-4-2 (Clogging up the middle)

STRIKERS: Martin J.Sullivan, CEO of AIG (sponsors of Manchester United); Chris Ronnie, CEO of JJB Sports (sponsors of Wigan Athletic)

Sullivan, the former President and CEO of American International Group, Inc., presided over AIG’s accumulation of misplaced bets on credit default swaps – financial derivatives that debt holders can use to hedge against the default by a debtor corporation. In this case, they were speculative, and, with the collapse of the housing market, the value of the mortgage pools that AIG insured fell precipitously.

Ronnie, the CEO of JJB Sports, purchased a portion of JJB Founder Dave Whelan’s 29% stake, and has since seen the firm’s shares half in value. With the Wigan sponsorship contract over after this season, the Latics must now look for new investors to buy shirt and stadium naming rights. Both potentially shirtless, Sullivan and Ronnie will lead a toothless offensive.

WIDE LEFT: Bjorgolfur Gudmundsson, Chairman of West Ham United

A majority owner and chairman of the Icelandic bank Landsbanki, Gudmundsson has seen his bank get taken over by the Icelandic Financial Supervisory Authority. Thanks to fiscal instability and the Landsbanki Freezing Order 2008, the bank’s UK-based assets are now frozen and West Ham looks unlikely to purchase any players in the January transfer market. Gudmundsson will play the left, as his government is currently regulating his commercial affairs.

WIDE RIGHT: Steven Crenshaw, Chairman and CEO of Bradford and Bingley

The embattled lender announced plans for an unscheduled trading update. The news comes less than a month after surprising investors with an emergency cash call. Crenshaw, according to reports, is stepping down due to a heart condition. He has to be on the field somewhere.

CENTRAL MIDFIELD: Tom Hicks, George Gillett Jr, co-Owners of Liverpool FC

After months of feuding, Liverpool FC owners Hicks and Gillett make a peace offering to fans in the form of disappointment. Due to the ‘global market’, work on the £350million Stanley Park project will be temporarily halted. The uncertainty around the construction only further concern and disappointment amongst the Scouser faithful. A less compatible partnership than even Lampard and Gerrard, the two will fight out their differences at midfield – at the expense of Liverpool fans.

HOLDING MIDFIELDER: Adam Applegarth, CEO of Northern Rock

During Applegarth’s tenure, the bank experienced a crisis from which he could not steer the firm out. This led to the nationalization of the bank, which continues to cast doubts on the bank’s stability. At the north of the country, Applegarth will line up in front of the fullbacks to hold everyone down in the red.

FULLBACKS: Lakshmi Mittal, Flavio Briatore, Bernie Ecclestone Owner of Queens Park Rangers

Mittal was recently rated by Forbes as the fourth wealthiest man in the world, and his partners are no paupers to boot. The ‘Taj Mittal’, as he’s also known, is a steel magnate who owns 20% of QPR. Joint owners Flavio Briatore, an Italian businessman and managing director of the Renault Formula One team, and Bernie Ecclestone, considered to be the authority over Formula One, make up the balance. Together, the three have enraged fans of Championship football by raising prices to £50 per ticket – higher than 70% of Premier League match-ticket prices. Their partnership assures no one will get past them, including into the Loftus Road Stadium.

GOALKEEPER: Phil Wyatt, CEO of XL Leisure Group, sponsors of West Ham United

Wyatt assumed responsibility for the collapse of XL Leisure Group, after it plummeted £143million into the red. Amidst rising oil prices and a worsening economic climate, lenders withdrew support and XL was unable to refinance the group’s principal debt. His uncertain hands earn him a spot between the sticks.

What lineup would you choose?

In some parts of the world, American International Group is better known for a shirt than for a bailout.

That would be the red shirt of Manchester United, soccer champions of England and Europe. A.I.G. signed a four-year, $100 million deal in 2005 to sponsor the team and have its logo on the uniforms. As a result, the logo has been seen by soccer fans all over the world.

With the U.S. government’s takeover of the troubled global insurance giant, through a $85 billion dollar loan from the Federal Reserve, United may soon have to find a new sponsor.

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