General Motors Fired Joel Ewanick Over Manchester United Deal
Yesterday we wrote about Joel Ewanick stepping down from GM. Ewanick was the head of marketing at the automotive giant. What we know now is that he was actually fired as the global marketing chief because of an expensive deal that he made with Manchester United.
GM is paying twice as much as the team’s previous sponsor for the deal. GM said that they would be paying $60-$70 million per year with a $100 million activation fee to place the Chevrolet logo on the club’s shirts for the next seven years. The total value of the deal is worth around $600 million according to sources with Reuters. Insurance broker Aon Plc pays about $31 million per year for the jersey sponsorship.
GM spent around $4.5 billion on advertising last year. Manchester United has an estimated 659 million fans around the world.
This deal is extremely important for Manchester United. MU revealed in their IPO filing recently that their revenue fell 3-5% to 315 million-320 million pound ($495-$503 million). Based on these figures, the GM deal is around 13% of MU’s revenues.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry