Red Devils Invade China

The Reds Invade China

            Manchester United has been increasing efforts to connect with their some 70 million supporters in China.  The last weekend of October, ManU’s “Champions Experience” opened in Beijing after previously being in Shanghai; on Friday alone the experience had over 2,000 visitors.  The experience, which was located in front of the “Bird’s Nest” Stadium from the 2008 Olympics, took fans through the history of each of the Club’s 19 League Titles and showcased other memorabilia.  Some of the pieces include the first ever league medal won by Man United, shirts worn by Denis Law, Teddy Sheringham, and Ruud van Nistelrooy, as well as cleats worn by Wayne Rooney and David Beckham. However, one of the coolest things in the experience is the final piece, an Epson 3D projection showcase of United’s star players.  Also in Beijing was the Barclay’s Premier League Trophy tour, which gave the fans more interactive displays and ways to connect with the teams.  As if all of this wasn’t enough for the fans, there were giveaways all weekend and chances to win a signed United shirt. 

Even more recently, the Reds have launched a Mandarin version of their official online store, “United Direct”, in order to meet the demands of the growing Chinese fan base.  Lifting this language barrier will make it easier for the fans to buy the United kits, personalized shirts or ones with their favorite player’s name on the back.  The store also brings an online channel for the fans to order Nike football cleats that can be embroidered with the Red Devil emblem.  In addition the store offers Nike training and fashion equipment, football equipment, gifts, souvenirs, and more.  The store also added additional payment methods including Alipay, ChinaPay, PayEase, and TenPay to make it easier for the Chinese fans to buy directly from the online store.

What do you think the Next step for Manchester United in China is?

Sources:http://www.manutd.com/en/News-And-Features/Club-News/2011/Oct/Champions-come-to-Beijing.aspx

http://www.manutd.com/en/News-And-Features/Club-News/2011/Nov/manchester-united-online-store-launched-in-mandarin-chinese.aspx

Commercializing Man United

The enormous value of Manchester United’s brand has recently begun to pay dividends. Due to aggressive commercialization tactics, England’s most famous club has signed sponsorship deals which have dramatically improved their revenue stream over the past few years.

One of their most impressive current partnerships was their recent completion of a £40m training kit sponsorship deal with DHL. DHL, an American logistics company, has agreed to pay the £40m over the next four years for the logo rights to Manchester United’s domestic training kit.
The club's chief executive David Gill said the DHL deal "breaks new ground in the English game".

The total deal exceeds the club's main shirt deal with former sponsors Vodafone, which ended in 2005, and is around half the £20m a year that Aon pays to be emblazoned across their shirt. This new sponsorship is especially remarkable in the fact that the deal exceeds the value of all but five main shirt sponsors in the Premier League. From a financial perspective, that gives Manchester United an advantage over the competition not only in terms of revenue but also their subsequent ability to acquire world class players.

The success of this deal can largely be attributed to the increased global media coverage of English football. DHL hopes that by investing in such a visible and internationally popular brand their logo will be featured around the world. This sponsorship is just one of many that Manchester United has been able to leverage their brand with and is the driving force behind their recent financial success. “Manchester United's full year accounts, to be released in October, are expected to show that commercial revenues have topped £100m for the first time. Quarterly results in May showed growth of around 30% on the previous year, while matchday and media income remained flat.”

While this aggressive commercialization leaves many fans wary that Manchester United is selling its soul it seems that the club has discovered a previously untapped way to stay financially solvent, something that is becoming increasingly rare in today’s football world.

http://www.guardian.co.uk/football/2011/aug/22/manchester-united-kit-deal-dhl

The Glazer Era: Fans vs. Finance

Manchester United supporters are not entirely happy with the current condition of their club, more specifically the ownership of American businessman Malcolm Glazer.  In 2005 Glazer seized control as owner of Manchester United F.C. in a leveraged buyout totaling almost £800 million. Effectively, the takeover was financed primarily by loans which were secured against the club's assets. And while a leveraged buyout of this kind is common practice in the corporate business world, the huge amount of debt that has been subsequently incurred by Manchester United has left many Red Devils supporters seething.

But what is there to complain about? Manchester United has continued to experience on field success since Glazer took over and remains one of the elite teams worldwide. The business side of the club has prospered as well. Increased revenue from TV rights and sponsors such as Nike, AIG, AON, and DHL has fueled profits and the value of Man U has only continued to rise in recent years. From an outside perspective it would seem that Manchester United as a football club is thriving.

Taking a closer look and evaluating the recent dissatisfaction Manchester United fans have expressed it become apparent that the problem lies not so much in the success of the team as much as in other more intangible qualities of the club. Many supporters feel that the destiny of their team has fallen out of their control in the hands of Malcolm Glazer. A chant of "stand up if you hate Glazer" resulted in three-fourths of the 76,000 supporters rising, according to reports at a recent match. They cry that Manchester United is more than just a business venture and should be operated as such. Ticket prices have risen in past years to the point where many lifelong supporters can no longer afford to attend games and the significant amount of debt that the club has taken on has many fans extremely alarmed.

Red Devils fan are just not in alignment with the Malcolm Glazer on the way a British football club should be run. Glazer, who also owns the Tampa Bay Bucaneers, is of the mindset that Manchester United should be run as a viable business venture in which profits are not compromised in lieu of club success. This goes against all traditional British ownership perspectives which lean more toward the attitude of the football club being a community institution instead of an asset.

"The way sports is looked at in America is slightly different than it is in the UK," says Sean Bones, vice chair of the anti-Glazer movement called the Manchester United Supporters Trust (MUST). "In the UK, it's part of your identity. … Some view Old Trafford as their church."

Manchester United fans have made numerous attempts to organize themselves to overthrow Glazer ownership and reclaim their club. Recently the above mentioned Manchester United Supporters Trust met with a group of wealthy fans with an interest in buying out the Glazers' controlling interest in the club. Fans have also enthusiastically participated in the “Green and Gold Movement” where at matches Glazer haters will wear the green and gold colors of Manchester United's precursor club, Newton Heath, in support of the traditional roots and values of the club.

At this point it seems that the differences between Malcolm Glazer and Manchester United fans have become irreconcilable and that the struggle over control of the club will continue to wage on.


http://www.soccernews.com/why-do-united-fans-hate-the-glazers/31207/