General Motors Co wil pay Manchester United $60 million to $70 million a year according to a person with knowledge of the contract who asked not to be identified, Reuters reports.
The U.S. based giant will also pay the club a $100 million activation fee. That’s huge. Aon Corp., which signed a four-year jersey sponsorship deal with Manchester United beginning in 2010, pays an estimated $30 million a year for the sponsorship.
Shorthy after the deal GM ousted its global marketing chief, Joel Ewanick, without giving specifics.
Ewanick has been silent, commenting only on the Twitter social media site, where he said, “It has been a privilege & honour to work with the GM Team and to be a small part of Detroit’s turnaround. I wish everyone at GM all the best.”
However, GM plans to honor the arrangement.
“Ewanick’s departure may not be indicative of a problem with GM’s marketing strategy or dissatisfaction with GM’s market share, but it doesn’t make things any easier,” Adam Jonas, an analyst at Morgan Stanley, wrote in a note Monday.
Under Ewanick, 52, the automaker decided in May to end advertising on Facebook Inc. (FB) after a regular spending review. GM began discussions about resuming ads on the social-network website, two people familiar with the talks said this month. Ewanick also decided not to advertise during the National Football League’s Super Bowl championship game next year on CBS.